Document:

Exhibit 4.1

 

Agrify
Corporation

 

Senior
Secured Note due 2025

 

THE
ISSUANCE AND SALE OF NEITHER THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES THAT MAY BE ISSUABLE PURSUANT TO THIS
NOTE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES
LAWS. UNTIL THE DATE THAT IS ONE (1) YEAR AFTER MARCH 23, 2022, THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION AND PROSPECTUS-DELIVERY REQUIREMENTS OF THE SECURITIES ACT.

 

     

     

    

 

Agrify
Corporation

 

Senior
Secured Note due 2025

 

Certificate
No. B-1

 

Agrify
Corporation, a Nevada corporation (the “Company”), for value received, promises to pay to High Trail Special Situations
LLC (the “Initial Holder”), or its registered assigns, the principal sum of thirty five million dollars ($35,000,000)
(such principal sum, the “Principal Amount”) on August __, 2025, and to pay any outstanding interest thereon, as provided
in this Note, in each case as provided in and subject to the other provisions of this Note, including the earlier redemption or repurchase
of this Note.

 

Additional
provisions of this Note are set forth on the other side of this Note.

 

[The
Remainder of This Page Intentionally Left Blank; Signature Page Follows]

 

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IN
WITNESS WHEREOF, Agrify Corporation has caused this instrument to be duly executed as of the date set forth below.

 

	 	Agrify Corporation
	 	 	 
	Date:                                     	By:	 
	 		Name:
	 		Title:

 

(Signature Page to Senior Secured Note due 2025, Certificate No. B-1)

 

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Agrify
Corporation

 

Senior
Secured Note due 2025

 

This
Note (this “Note” and, collectively with any Note issued in exchange therefor or in substitution thereof, the “Notes”)
is issued by Agrify Corporation, a Nevada corporation (the “Company”), and designated as its “Senior Secured
Notes due 2025.”

 

Section
1.Definitions.

 

“Affiliate”
has the meaning set forth in Rule 144 under the Securities Act.

 

“ATM
Issuance” means an Equity Issuance made pursuant to an ATM Program.

 

“ATM
Program” means an “at-the-market” offering within the meaning of Rule 415(a)(4) of the Securities Act.

 

“Authorized
Denomination” means, with respect to the Notes, a Principal Amount thereof equal to $1,000 or any integral multiple of $1,000
in excess thereof, or, if such Principal Amount then-outstanding is less than $1,000, then such outstanding Principal Amount.

 

“Bankruptcy
Law” means Title 11, United States Code, or any similar U.S. federal or state or non-U.S. law for the relief of debtors.

 

“Board
of Directors” means the board of directors of the Company or a committee of such board duly authorized to act on behalf of
such board.

 

“Business
Combination Event” has the meaning set forth in Section 10.

 

“Business
Day” means any day other than a Saturday, a Sunday or any day on which commercial banks in The City of New York are authorized
or required by law or executive order to close or be closed; provided, however, for clarification, commercial banks in
The City of New York shall not be deemed to be authorized or required by law or executive order to close or be closed due to “stay
at home”, “shelter-in-place”, “non-essential employee” or any other similar orders or restrictions or the
closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems
(including for wire transfers) of commercial banks in The City of New York are open for use by customers on such day.

 

“Capital
Lease” means, with respect to any Person, any leasing or similar arrangement conveying the right to use any property, whether
real or personal property, or a combination thereof, by that Person as lessee that, in conformity with GAAP, is required to be accounted
for as a capital lease on the balance sheet of such Person.

 

“Capital
Lease Obligation” means, at the time any determination is to be made, the amount of the liability in respect of a Capital Lease
that would at that time be required to be capitalized on a balance sheet prepared in accordance with GAAP, and the stated maturity thereof
shall be the date of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease
may be prepaid by the lessee without payment of a penalty.

 

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“Capital
Stock” of any Person means any and all shares of, interests in, rights to purchase, warrants or options for, participations
in, or other equivalents of, in each case however designated, the equity of such Person, but excluding any debt securities convertible
into such equity.

 

“Cash”
means all cash and liquid funds.

 

“Cash
Equivalents” means, as of any date of determination, any of the following: (A) marketable securities (i) issued or directly
and unconditionally guaranteed as to interest and principal by the United States Government, or (ii) issued by any agency of the United
States the obligations of which are backed by the full faith and credit of the United States, in each case maturing within one (1) year
after such date; (B) marketable direct obligations issued by any state of the United States of America or any political subdivision of
any such state or any public instrumentality thereof, in each case maturing within one (1) year after such date and having, at the time
of the acquisition thereof, a rating of at least A-1 from Standard & Poor’s Corporation or at least P-1 from Moody’s
Investors Service; (C) commercial paper maturing no more than one (1) year from the date of creation thereof and having, at the time
of the acquisition thereof, a rating of at least A-1 from Standard & Poor’s Corporation or at least P-1 from Moody’s
Investors Service; (D) certificates of deposit or bankers’ acceptances maturing within one (1) year after such date and issued
or accepted by any commercial bank organized under the laws of the United States of America or any State, or the District of Columbia
that (i) is at least “adequately capitalized” (as defined in the regulations of its primary federal banking regulator), and
(ii) has Tier 1 capital (as defined in such regulations) of not less than $5,000,000,000; and (E) shares of any money market mutual fund
that (i) has substantially all of its assets invested continuously in the types of investments referred to in clauses (A) and (B) above,
(ii) has net assets of not less than $5,000,000,000, and (iii) has the highest rating obtainable from either Standard & Poor’s
Corporation or Moody’s Investors Service.

 

“Cash
Spend Availability” means the Cash and Cash Equivalents held by the Company.

 

“Cash
Sweep Amount” means, with respect to any Equity Issuance, twenty percent (20%) of the net proceeds from such Equity Issuance.

 

“Cash
Sweep Certification” has the meaning set forth in Section 4(E)(ii).

 

“Cash
Sweep Notice” has the meaning set forth in Section 4(E)(iv).

 

“Cash
Sweep Payment” has the meaning set forth in Section 4(E)(i).

 

“Collateral”
has the meaning set forth in the Security Agreements.

 

“Collateral
Agent” means High Trail Special Situations LLC in its capacity as collateral agent for the Holder and each Other Holder, together
with any successor thereto in such capacity.

 

“Commission”
means the U.S. Securities and Exchange Commission.

 

“Common
Stock” means the common stock, par value $0.001 per share, of the Company.

 

“Company
Redemption Date” has the meaning set forth in Section 8(A).

 

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“Company
Redemption Notice” has the meaning set forth in Section 8(A).

 

“Company
Redemption Price” means a cash amount equal to one hundred and two point five percent (102.5%) of the Principal Amount then
outstanding, plus accrued and unpaid interest.

 

“Compliance
Certification” has the meaning set forth in Section 9(K)(v).

 

“Contingent
Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person with
respect to (A) any Indebtedness or other obligations of another Person, including any such obligation directly or indirectly guaranteed,
endorsed, co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly
liable; (B) any obligations with respect to undrawn letters of credit, corporate credit cards or merchant services issued for the account
of that Person; and (C) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement,
interest rate collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates,
currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements
for collection or deposit in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount
equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided,
however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support arrangement.

 

“Copyright
License” means any written agreement granting any right to use any Copyright or Copyright registration, now owned or hereafter
acquired by the Company or in which the Company now holds or hereafter acquires any interest.

 

“Copyrights”
means all copyrights, whether registered or unregistered, held pursuant to the laws of the United States, any State thereof, or of any
other country.

 

“Daily
VWAP” means, for any VWAP Trading Day, the per share volume-weighted average price of the Common Stock as displayed under the
heading “Bloomberg VWAP” on Bloomberg page “AGFY <EQUITY> VAP” (or, if such page is not available, its
equivalent successor page) in respect of the period from the scheduled open of trading until the scheduled close of trading of the primary
trading session on such VWAP Trading Day (or, if such volume-weighted average price is unavailable, the market value of one share of
Common Stock on such VWAP Trading Day, determined, using a volume-weighted average price method, by a nationally recognized independent
investment banking firm selected by the Company). The Daily VWAP will be determined without regard to after-hours trading or any other
trading outside of the regular trading session.

 

“Default”
means any event that is (or, after notice, passage of time or both, would be) an Event of Default.

 

“Default
Interest” has the meaning set forth in Section 4(B)(ii).

 

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“Disqualified
Stock” means, with respect to any Person, any Capital Stock that by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable at the option of the holder) or upon the happening of any event:

 

(A) matures
or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise;

 

(B) is
convertible or exchangeable for Indebtedness or Disqualified Stock (excluding Capital Stock convertible or exchangeable solely at the
option of the Company or a Subsidiary of the Company; provided that any such conversion or exchange will be deemed an incurrence of Indebtedness
or Disqualified Stock, as applicable); or

 

(C) is
redeemable at the option of the holder thereof, in whole or in part,

 

(D) in
the case of each of clauses (A), (B) and (C), at any point prior to the one hundred eighty-first (181st) day after the Maturity Date.

 

“DTC”
means The Depository Trust Company.

 

“Eligible
Exchange” means any of The New York Stock Exchange, The NYSE American LLC, The Nasdaq Capital Market, The Nasdaq Global Market
or The Nasdaq Global Select Market (or any of their respective successors).

 

“Equipment”
means all “equipment” as defined in the UCC with such additions to such term as may hereafter be made, and includes
without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing.

 

“Equity
Interests” shall mean, with respect to any Person, any and all shares, interests, participations or other equivalents, including
preferred stock or membership interests (however designated, whether voting or non-voting), of equity of such Person, including, if such
Person is a partnership, partnership interests (whether general or limited) and including, without limitation, any “equity security”
(as that term is defined under Rule 405 promulgated under the Securities Act), and any other interest or participation that confers
on a Person the right to receive a share of the profits and losses of, or distributions of assets of, such partnership.

 

“Equity
Issuance” shall mean (a) any issuance or sale by the Company or any of its Subsidiaries of any Equity Interests (including
any Equity Interests issued upon exercise or conversion of any Equity Rights) or any Equity Rights, or (b) the receipt by the Company
or any of its Subsidiaries of any capital contribution (whether or not evidenced by any Equity Interest issued by the recipient of such
contribution), in each case for bona fide capital-raising purposes and other than (i) Equity Interests issuable upon the exercise of
Equity Rights issued pursuant to an Approved Stock Plan (as defined in the Securities Exchange Agreement) or upon the lapse of forfeiture
restrictions on awards made pursuant to an Approved Stock Plan (including Equity Interests withheld by the Company for the purpose of
paying on behalf of the holder thereof the exercise price of stock options or for paying taxes due as a result of such exercise or lapse
of forfeiture restrictions), and (ii) Common Stock issuable upon the exercise of stock options or upon the lapse of forfeiture restrictions
on awards made pursuant to, any stock option exchange program of the Company that is approved by the Board of Directors or the compensation
committee thereof or the Company’s stockholders, whether now in effect or hereafter implemented.

 

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“Equity
Rights” shall mean, with respect to any Person, any then-outstanding subscriptions, options, warrants, commitments, preemptive
rights, convertible debt, or other equity-linked securities or agreements of any kind for the issuance or sale, of any additional Equity
Interests of any class, or partnership or other ownership interests of any type in, such Person.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“Event
of Default” has the meaning set forth in Section 11(A).

 

“Event
of Default Acceleration Amount” means, with respect to the delivery of a notice pursuant to Section 11(B)(ii) declaring
this Note to be due and payable immediately on account of an Event of Default, a cash amount equal to one hundred and fifteen percent
(115%) of the then outstanding Principal Amount of this Note (or such lesser principal amount accelerated pursuant to such notice) plus
accrued and unpaid interest on this Note.

 

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

 

“Fiscal
Quarter” means each three month period ending March 31, June 30, September 30, and December 31.

 

“Fundamental
Change” means any of the following events:

 

(A)
a “person” or “group” (within the meaning of Section 13(d)(3) of the Exchange Act), other than the Company
or its Wholly Owned Subsidiaries, or the employee benefit plans of the Company or its Wholly Owned Subsidiaries, files any report
with the Commission indicating that such person or group has become the direct or indirect “beneficial owner” (as
defined below) of shares of the Company’s common equity representing more than fifty percent (50%) of the voting power of all
of the Company’s then-outstanding common equity; or

 

(B)
the consummation of (i) any sale, lease or other transfer, in one transaction or a series of transactions, of all or substantially
all of the assets of the Company and its Subsidiaries, taken as a whole, to any Person (other than solely to one or more of the
Company’s Wholly Owned Subsidiaries); or (ii) any transaction or series of related transactions in connection with which
(whether by means of merger, consolidation, share exchange, combination, reclassification, recapitalization, acquisition,
liquidation or otherwise) all of the Common Stock is exchanged for, converted into, acquired for, or constitutes solely the right to
receive, other securities, cash or other property (other than a subdivision or combination, or solely a change in par value, of the
Common Stock); provided, however, that any merger, consolidation, share exchange or combination of the Company
pursuant to which the Persons that directly or indirectly “beneficially owned” (as defined below) all classes of the
Company’s common equity immediately before such transaction directly or indirectly “beneficially own,” immediately
after such transaction, more than fifty percent (50%) of all classes of common equity of the surviving, continuing or acquiring
company or other transferee, as applicable, or the parent thereof, in substantially the same proportions vis-à-vis each other
as immediately before such transaction will be deemed not to be a Fundamental Change pursuant to this clause (B).

 

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For
the purposes of this definition, (x) any transaction or event described in both clause (A) and in clause (B)(i) or (ii)
above (without regard to the proviso in clause (B)) will be deemed to occur solely pursuant to clause (B) above (subject
to such proviso); and (y) whether a Person is a “beneficial owner” and whether shares are “beneficially owned”
will be determined in accordance with Rule 13d-3 under the Exchange Act.

 

“Fundamental
Change Base Repurchase Price” means, with respect to this Note (or any portion of this Note to be repurchased) upon a Repurchase
Upon Fundamental Change, a cash amount equal to one hundred two point five percent (102.5%) of the then-outstanding Principal Amount
of such Note (or portion thereof) to be so repurchased.

 

“Fundamental
Change Notice” has the meaning set forth in Section 6(C).

 

“Fundamental
Change Repurchase Date” means the date as of which this Note must be repurchased for cash in connection with a Fundamental
Change, as provided in Section 6(B).

 

“Fundamental
Change Repurchase Price” means the cash price payable by the Company to repurchase this Note (or any portion of this Note)
upon its Repurchase Upon Fundamental Change, calculated pursuant to Section 6(D).

 

“GAAP”
means generally accepted accounting principles in the United States of America, as in effect from time to time; provided the definitions
set forth in this Note and any financial calculations required by thereby shall be computed to exclude any change to lease accounting
rules from those in effect pursuant to Financial Accounting Standards Board Accounting Standards Codification 840 (Leases) and other
related lease accounting guidance as in effect on the date hereof.

 

“Holder”
means the person in whose name this Note is registered on the books of the Company, which initially is the Initial Holder.

 

The
term “including” means “including without limitation,” unless the context provides otherwise.

 

“Indebtedness”
means, indebtedness of any kind, including, without duplication (A) all indebtedness for borrowed money or the deferred purchase price
of property or services, including reimbursement and other obligations with respect to surety bonds and letters of credit, (B) all obligations
evidenced by notes, bonds, debentures or similar instruments, (C) all Capital Lease Obligations, (D) all Contingent Obligations, and
(E) Disqualified Stock.

 

“Independent
Investigator” has the meaning set forth in Section 9(S).

 

“Initial
Holder” has the meaning set forth in the cover page of this Note.

 

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“Intellectual
Property” means all of the Company’s Copyrights; Trademarks; Patents; Licenses; trade secrets and inventions; mask works;
the Company’s applications therefor and reissues, extensions, or renewals thereof; and the Company’s goodwill associated
with any of the foregoing, together with the Company’s rights to sue for past, present and future infringement of Intellectual
Property and the goodwill associated therewith.

 

“Interest
Payment Date” means (A) the first calendar day of each month, beginning on September 1, 2022; and (B) if not otherwise included
in clause (A), the Maturity Date.

 

“Investment”
means any beneficial ownership (including stock, partnership or limited liability company interests) of or in any Person, or any loan,
advance or capital contribution to any Person or the acquisition of all, or substantially all, of the assets of another Person or the
purchase of any assets of another Person for greater than the fair market value of such assets to solely the extent of the amount in
excess of the fair market value.

 

“Issue
Date” means August __, 2022.

 

“License”
means any Copyright License, Patent License, Trademark License or other license of rights or interests.

 

“Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien or charge
of any kind, whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional sale or
other title retention agreement, and any lease in the nature of a security interest; provided, that for the avoidance of doubt, licenses,
strain escrows and similar provisions in collaboration agreements, research and development agreements that do not create or purport
to create a security interest, encumbrance, levy, lien or charge of any kind shall not be deemed to be Liens for purposes of this Note.

 

“Market
Disruption Event” means, with respect to any date, the occurrence or existence, during the one-half hour period ending at the
scheduled close of trading on such date on the principal U.S. national or regional securities exchange or other market on which the Common
Stock is listed for trading or trades, of any material suspension or limitation imposed on trading (by reason of movements in price exceeding
limits permitted by the relevant exchange or otherwise) in the Common Stock or in any options contracts or futures contracts relating
to the Common Stock.

 

“Maturity
Date” means August __, 2025.

 

“Net
Proceeds” means the gross proceeds received by the Company in connection with any capital raising transaction, including without
limitation any issuance of debt, equity convertible debt, or other equity-linked securities or a combination thereof, less any discounts
or fees provided to the related underwriter, agent or placement agent in connection therewith less any out-of-pocket expenses and fees
incurred in connection therewith; provided, however, that for purposes of this Note, Net Proceeds shall in no event be less than 90%
of the gross proceeds received by the Company.

 

The
term “or” is not exclusive, unless the context expressly provides otherwise.

 

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“Optional
Holder Redemption Amount” means the Principal Amount specified in the Optional Holder Redemption Notice, plus accrued and unpaid
interest as of the Optional Holder Redemption Date.

 

“Optional
Holder Redemption Date” has the meaning set forth in Section 8(B).

 

“Optional
Holder Redemption Notice” has the meaning set forth in Section 8(B).

 

“Other
Holder” means any person in whose name any Other Note is registered on the books of the Company.

 

“Other
Notes” means any Notes that are of the same class of this Note and that are represented by one or more certificates other than
the certificate representing this Note.

 

“Patent
License” means any written agreement granting any right with respect to any invention covered by a Patent that is in existence
or a Patent application that is pending, in which agreement the Company now holds or hereafter acquires any interest.

 

“Patents”
means all letters patent of, or rights corresponding thereto, in the United States or in any other country, all registrations and recordings
thereof, and all applications for letters patent of, or rights corresponding thereto, in the United States or any other country.

 

“Permitted
Acquisition” means any transaction or series of related transactions consummated by the Company or one of its Subsidiaries
with the prior written consent of the Holder for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or
substantially all of the assets of a Person, or of any business or division of a Person, (b) the acquisition of in excess of fifty percent
(50%) of the capital stock or equity interests of any Person or otherwise causing any Person to become a Subsidiary of the Company, or
(c) a merger or consolidation or any other combination with another Person; provided, so long as no Default or Event of Default shall
then exist or would exist after giving effect to any of the foregoing; provided further, that the purchase price or consideration in
respect of all of the foregoing in the aggregate (for all such aforementioned purchases, acquisitions, mergers, consolidations or Investments)
at any time shall not exceed an amount equal to the aggregate purchase price of the Purchased Securities outstanding at such time.

 

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“Permitted
Indebtedness” means (A) Indebtedness evidenced by the Exchange Notes (as defined in the Securities Exchange Agreement) and
Indebtedness evidenced by the Notes (as defined in the Securities Purchase Agreement); (B) Indebtedness actually disclosed pursuant to
the Securities Exchange Agreement as of the date of the Securities Exchange Agreement; (C) nonrecourse Indebtedness outstanding at any
time secured by a Lien described in clause (G) of the defined term “Permitted Liens,” provided such Indebtedness does not
exceed the cost of the Equipment or real property interests and related expenses financed with such Indebtedness or in the form of purchase
money Indebtedness (whether in the form of a loan or a lease) used solely to acquire Equipment or real property interests used in the
ordinary course of business and secured only by such Equipment and real property interests and sale and insurance proceeds in respect
thereof, and provided further that the total amount of Permitted Indebtedness permitted pursuant to this clause (C) may not exceed five
million dollars ($5,000,000) in the aggregate; (D) nonrecourse Indebtedness outstanding at any time secured by a Lien described in clause
(H) of the defined term “Permitted Liens,” provided such Indebtedness does not exceed the cost of the software or other intellectual
property and related expenses financed with such Indebtedness or in the form of purchase money Indebtedness (whether in the form of a
loan or a lease) used solely to acquire software or other intellectual property used in the ordinary course of business and secured only
by such software or other intellectual property and sale and insurance proceeds in respect thereof, provided further that the total amount
of Permitted Indebtedness permitted pursuant to this clause (D) may not exceed five hundred thousand dollars ($500,000) in the aggregate;
(E) Indebtedness to trade creditors incurred in the ordinary course of business; (F) Subordinated Indebtedness of the Company that has
received the prior written approval of the Holder; (G) reimbursement obligations in connection with letters of credit or similar instruments
that are secured by Cash or Cash Equivalents and issued on behalf of the Company or a Subsidiary thereof in an aggregate amount not to
exceed five hundred thousand dollars ($500,000) at any time outstanding; (H) unsecured Indebtedness of the Company that has received
the prior written approval of the Holder, (I) Contingent Obligations that are guarantees of Indebtedness described in clauses (A) through
(H) and (J); and (J) earn-outs incurred in connection with any Permitted Acquisition that are subordinated in full to the Notes to the
satisfaction of the Holder and do not exceed (a) ten million dollars ($10,000,000) in the aggregate due in any twelve-month period and
(b) twenty million dollars ($20,000,000); provided that in no event shall Permitted Indebtedness under (x) clauses (B)-(J) of this definition
exceed in the aggregate an amount equal to ten million dollars ($10,000,000) or (y) clauses (F) or (H) (1) have a final maturity date,
amortization payment, sinking fund, put right, mandatory redemption or other repurchase obligation at the option of the lender or holder
of such indebtedness, or be prepayable at the option of the Company, in any case earlier than one hundred eighty-one (181) days following
the Maturity Date or (2) have any covenants that are more restrictive on the Company in any material respect than the covenants set forth
in this Note.

 

“Permitted
Intellectual Property Licenses” means Intellectual Property (A) licenses in existence at March 23, 2022, including those listed
on the Schedules to the Security Agreements, and (B) non-perpetual licenses granted in the ordinary course of business on arm’s
length terms consisting of the licensing of technology, the development of technology or the providing of technical support which may
include licenses with unlimited renewal options solely to the extent such options require mutual consent for renewal or are subject to
financial or other conditions as to the ability of licensee to perform under the license; provided such license was not entered into
during an Event of Default or continuance of a Default.

 

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“Permitted
Investment” means: (A) Investments actually disclosed pursuant to the Securities Exchange Agreement, as in effect as of the
Issue Date; (B) (i) marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency
or any State thereof maturing within one year from the date of acquisition thereof, (ii) commercial paper maturing no more than one year
from the date of creation thereof and currently having a rating of at least A-2 or P-2 from either Standard & Poor’s Corporation
or Moody’s Investors Service, (iii) certificates of deposit issued by any bank headquartered in the United States with assets of
at least $5,000,000,000 maturing no more than one year from the date of investment therein, and (iv) money market accounts; (C) Investments
accepted in connection with Permitted Transfers; (D) Investments (including debt obligations) received in connection with the bankruptcy
or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers
arising in the ordinary course of the Company’s business; (E) Investments consisting of notes receivable of, or prepaid royalties
and other credit extensions, to customers and suppliers in the ordinary course of business and consistent with past practice, provided
that this clause (E) shall not apply to Investments of the Company in any Subsidiary thereof; (F) Investments consisting of (i) loans
not involving the net transfer on a substantially contemporaneous basis of cash proceeds to employees, officers or directors relating
to the purchase of capital stock of the Company pursuant to employee stock purchase plans or other similar agreements approved by the
Company’s Board of Directors and (ii) travel advances and employee relocation loans and other employee loans and advances in the
ordinary course of business, provided that the aggregate of all such loans outstanding may not exceed one hundred thousand ($100,000)
at any time; (G) Investments in Wholly Owned Subsidiaries; (H) Permitted Intellectual Property Licenses; (I) Permitted Acquisitions;
(J) loans, advances or other capital contributions to Company customers pursuant to a TTK Contract with such customer; (K) Investments
in a TTK SPV; and (L) Investments in real property; provided that, for any Investment set forth in clause (G), (J) and (K) other than
a Permitted Turnkey Investment, such Investment shall not qualify as a Permitted Investment unless the Company receives the prior written
consent to such Investment from the Holder.

 

“Permitted
Liens” means any and all of the following: (A) Liens in favor of Holder or the Collateral Agent; (B) Liens deemed to be disclosed
pursuant to the Securities Exchange Agreement, as in effect as of the Issue Date; (C) Liens for taxes, fees, assessments or other governmental
charges or levies, either not delinquent or being contested in good faith by appropriate proceedings; provided, that the Company maintains
adequate reserves therefor in accordance with GAAP; (D) Liens securing claims or demands of materialmen, artisans, mechanics, carriers,
warehousemen, landlords and other like Persons arising in the ordinary course of business; provided, that the payment thereof is not
yet required; (E) Liens arising from judgments, decrees or attachments in circumstances which do not constitute a Default or an Event
of Default hereunder; (F) the following deposits, to the extent made in the ordinary course of business: deposits under workers’
compensation, unemployment insurance, social security and other similar laws, or to secure the performance of bids, tenders or contracts
(other than for the repayment of borrowed money) or to secure indemnity, performance or other similar bonds for the performance of bids,
tenders or contracts (other than for the repayment of borrowed money) or to secure statutory obligations (other than Liens arising under
ERISA or environmental Liens) or surety or appeal bonds, or to secure indemnity, performance or other similar bonds; (G) Liens on Equipment
(but, for the avoidance of doubt, not software or other intellectual property) or real property interests constituting purchase money
Liens or Liens securing construction financing for real property interests and Liens in connection with Capital Leases securing Indebtedness
permitted in clause (C) of “Permitted Indebtedness”; (H) Liens on software or other intellectual property (but, for the avoidance
of doubt, not Equipment or real property interests related thereto) constituting purchase money Liens and Liens in connection with Capital
Leases securing Indebtedness permitted in clause (D) of “Permitted Indebtedness”; (I) leasehold interests in leases or subleases
and licenses granted in the ordinary course of the Company’s business and not interfering in any material respect with the business
of the licensor; (J) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of custom duties
that are promptly paid on or before the date they become due; (K) Liens on insurance proceeds securing the payment of financed insurance
premiums that are promptly paid on or before the date they become due (provided that such Liens extend only to such insurance proceeds
and not to any other property or assets); (L) statutory and common law rights of set-off and other similar rights as to deposits of cash
and securities in favor of banks, other depository institutions and brokerage firms; (M) easements, zoning restrictions, rights-of-way
and similar encumbrances on real property imposed by law or arising in the ordinary course of business so long as they do not materially
impair the value or marketability of the related property; (N) Liens on Cash or Cash Equivalents securing obligations permitted under
clause (E) and (G) of the definition of Permitted Indebtedness; (O) Liens securing Subordinated Indebtedness, and (P) Liens incurred
in connection with the extension, renewal or refinancing of the Indebtedness secured by Liens of the type described in clauses (C) through
(O) above (other than any Indebtedness repaid with the proceeds of this Note); provided, that any extension, renewal or replacement Lien
shall be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed
or refinanced (as may have been reduced by any payment thereon) does not increase.

 

    13

     

    

 

“Permitted
Transfers” means (A) dispositions of inventory sold, and Permitted Intellectual Property Licenses entered into, in each case,
in the ordinary course of business, (B) dispositions of worn-out, obsolete or surplus property at fair market value in the ordinary course
of business; (C) dispositions of accounts or payment intangibles (each as defined in the UCC) resulting from the compromise or settlement
thereof in the ordinary course of business for less than the full amount thereof; (D) transfers consisting of Permitted Investments in
Wholly Owned Subsidiaries under clause (G) of Permitted Investments; (E) transfers between Grantors (as defined in the Security Agreement);
and (F) other transfers of assets to any Person other than to a joint venture and which have a fair market value of not more than fifty
thousand dollars ($50,000) in the aggregate in any twelve (12) month period.

 

“Permitted
Turnkey Investment” shall mean any Investments in Gold Leaf Florida LLC not to exceed in the aggregate ten million dollars
($10,000,000) or Bud & Mary’s Cultivation, Inc., provided that the aggregate amount of Investments qualifying as “Permitted
Turnkey Investments” may not exceed in the aggregate twelve million dollars ($12,000,000).

 

“Person”
or “person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, company,
trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate,
entity or government agency.

 

“Principal
Amount” has the meaning set forth in the cover page of this Note; provided, however, that the Principal Amount
of this Note will be subject to reduction (A) pursuant to Section 6 and Section 8 and (B) by an amount equal to the sum
of all Cash Sweep Payments made pursuant to Section 4(E) prior to the date of determination of the Principal Amount of the Note
then outstanding.

 

“Qualified
Equity Financing” shall mean an Equity Issuance registered under the Securities Act, the aggregate gross proceeds of which
equal or exceed fifteen million dollars ($15,000,000).

 

“Repurchase
Upon Fundamental Change” means the repurchase of any Note by the Company pursuant to Section 6.

 

“Rule
144” means Rule 144 promulgated under the Securities Act.

 

    14

     

    

 

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

 

“Securities
Exchange Agreement” means that certain Securities Exchange Agreement, dated as of August 18, 2022, by and among the Company
and each of the investors listed on the Schedule of Holders attached thereto.

 

“Securities
Purchase Agreement” means that certain Securities Purchase Agreement, dated as of March 14, 2022, by and among the Company
and each of the investors listed on the Schedule of Buyers attached thereto.

 

“Security
Agreements” means those certain Security Agreements, dated March 23, 2022, between the Company and the Collateral Agent, as
amended, supplemented or otherwise modified from time to time.

 

“Security
Document” has the meaning set forth in the Security Agreements.

 

“Significant
Subsidiary” means, with respect to any Person, any Subsidiary of such Person that constitutes a “significant subsidiary”
(as defined in Rule 1-02(w) of Regulation S-X under the Exchange Act) of such Person.

 

“Stated
Interest” has the meaning set forth in Section 4(B)(i).

 

“Stated
Interest Rate” means, as of any date, a rate per annum equal to nine percent (9.0%).

 

“Subordinated
Indebtedness” means Indebtedness subordinated to the Notes that is (a) in amounts and on terms and conditions satisfactory
to the Holder in its sole discretion or (b) nonrecourse Indebtedness incurred in connection with the consummation of a TTK Contract that
is secured only by assets of the respective TTK SPV, provided that, for the avoidance of doubt, no Indebtedness permitted under this
clause (b) shall be guaranteed by the Company or qualify as a liability of the Company.

 

“Subsidiary”
means, with respect to any Person, (A) any corporation, association or other business entity (other than a partnership or limited liability
company) of which more than fifty percent (50%) of the total voting power of the Capital Stock entitled (without regard to the occurrence
of any contingency, but after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting
power) to vote in the election of directors, managers or trustees, as applicable, of such corporation, association or other business
entity is owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person; and (B)
any partnership or limited liability company where (i) more than fifty percent (50%) of the capital accounts, distribution rights, equity
and voting interests, or of the general and limited partnership interests, as applicable, of such partnership or limited liability company
are owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person, whether in the
form of membership, general, special or limited partnership or limited liability company interests or otherwise; and (ii) such Person
or any one or more of the other Subsidiaries of such Person is a controlling general partner of, or otherwise controls, such partnership
or limited liability company.

 

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“Successor
Corporation” has the meaning set forth in Section 10(A).

 

“Trademark
License” means any written agreement granting any right to use any Trademark or Trademark registration, now owned or hereafter
acquired by the Company or in which the Company now holds or hereafter acquires any interest.

 

“Trademarks”
means all trademarks (registered, common law or otherwise) and any applications in connection therewith, including registrations, recordings
and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State
thereof or any other country or any political subdivision thereof.

 

“Trading
Day” means any day on which (A) trading in the Common Stock generally occurs on the principal U.S. national or regional securities
exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a U.S. national or regional securities
exchange, on the principal other market on which the Common Stock is then traded; and (B) there is no Market Disruption Event. If the
Common Stock is not so listed or traded, then “Trading Day” means a Business Day.

 

“Transaction
Documents” has the meaning set forth in the Securities Exchange Agreement.

 

“TTK
Contracts”means Total Turn-Key Solution contracts entered into between the Company and customers thereof to implement a TTK
Transaction, which include, without limitation, financing, construction, vertical farming unit leasing, extraction or processing equipment
leasing, software, brand and/or marketing consulting and production-based fee contracts.

 

“TTK
SPV” means a special purpose vehicle established to implement a TTK Transaction with a customer of the Company.

 

“TTK
Transaction” means a long-term partnership between the Company and a customer of the Company designed to provide such customer
with access to vertical farming units, extraction or processing equipment, construction and/or equipment funding, facility design and
construction services, cultivation equipment and software, standard operating procedures, training, data and insights, and ongoing maintenance,
support, and equipment upgrades.

 

“UCC”
means the Uniform Commercial Code as the same is, from time to time, in effect in the State of New York.

 

“VWAP
Market Disruption Event” means, with respect to any date, (A) the failure by the principal U.S. national or regional securities
exchange on which the Common Stock is then listed, or, if the Common Stock is not then listed on a U.S. national or regional securities
exchange, the principal other market on which the Common Stock is then traded, to open for trading during its regular trading session
on such date; or (B) the occurrence or existence, for more than one half hour period in the aggregate, of any suspension or limitation
imposed on trading (by reason of movements in price exceeding limits permitted by the relevant exchange or otherwise) in the Common Stock
or in any options contracts or futures contracts relating to the Common Stock, and such suspension or limitation occurs or exists at
any time before 1:00 p.m., New York City time, on such date.

 

    16

     

    

  

“VWAP
Trading Day” means a day on which (A) there is no VWAP Market Disruption Event; provided that the Holder, by written notice
to the Company, may waive any such VWAP Market Disruption Event; and (B) trading in the Common Stock generally occurs on the principal
U.S. national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on
a U.S. national or regional securities exchange, on the principal other market on which the Common Stock is then traded. If the Common
Stock is not so listed or traded, then “VWAP Trading Day” means a Business Day.

 

“Wholly
Owned Subsidiary” of a Person means any Subsidiary of such Person all of the outstanding Capital Stock or other ownership interests
of which (other than directors’ qualifying shares) are owned by such Person or one or more Wholly Owned Subsidiaries of such Person.

 

Section
2. Persons Deemed Owners.

 

The
Holder of this Note will be treated as the owner of this Note for all purposes.

 

Section
3. Registered Form.

 

This
Note, and any Note issued in exchange therefor or in substitution thereof, will be in registered form, without coupons.

 

Section
4. Interest; Maturity Date Payment; Prepayment.

 

(A) [Reserved].

 

(B) Interest.

 

(i) This
Note will accrue interest (the “Stated Interest”) at a rate per annum equal to the Stated Interest Rate. Stated Interest
on this Note will (i) accrue on the Principal Amount of this Note; (ii) accrue from, and including, the most recent date to which Stated
Interest has been paid or duly provided for (or, if no Stated Interest has theretofore been paid or duly provided for, the Issue Date)
to, but excluding, the date of payment of such Stated Interest; (iii) be paid to Holder in cash on each Interest Payment Date in accordance
with Section 5(A); (iv) be paid to Holder in cash concurrently with any Cash Sweep Payment with respect to the Principal Amount
portion of any such Cash Sweep Payment being paid; (v) with respect to the amount of interest then accrued on the portion of the Principal
Amount being redeemed on an Optional Holder Redemption Date, be paid to the Holder in arrears as of such Optional Holder Redemption Date
in accordance with Section 8(B), and (vi) be computed on the basis of a 360-day year comprised of twelve 30-day months.

 

(ii) If
a Default or an Event of Default occurs, then in each case, to the extent lawful, interest (“Default Interest”) will
accrue (rather than at the Stated Interest Rate, if applicable) on the Principal Amount outstanding as of the date of such Default or
Event of Default at a rate per annum equal to fifteen percent (15.0%), from, and including, the date of such Default or Event of Default,
as applicable, to, but excluding, the date such Default is cured and all outstanding Default Interest under this Note has been paid.
Default Interest hereunder will be payable in arrears on the earlier of (i) the first day of each calendar month and (ii) the date such
Default is cured, and will be computed on the basis of a 360-day year comprised of twelve 30-day months.

 

    17

     

    

  

(C) Maturity
Date Payment. On the Maturity Date, the Company will pay the Holder an amount in cash equal to the then-outstanding Principal Amount
of this Note plus any accrued and unpaid interest on this Note.

 

(D) Prepayment.
The Company may not prepay the Note without the written consent of the Holder other than pursuant to Section 8(A).

 

(E) Cash
Sweep Payments.

 

(i) For
purposes of this Note, any payment made to the Holder pursuant to Section 4(E) shall be referred to as a “Cash Sweep
Payment”.

 

(ii) Concurrently
with the completion of any Equity Issuance other than an ATM Issuance, the Company shall certify to Holder in writing (i) the net proceeds
of the applicable Equity Issuance, (ii) the calculation of the Cash Sweep Amount with respect to such Equity Issuance (including a certification
that such Cash Sweep Amount was calculated in accordance with the terms hereof) and (iii) whether the Company believes that the extent
of such Equity Issuances and Cash Sweep Amount constitutes material non-public information regarding the Company (such certification
a “Cash Sweep Certification”); provided, however, that, unless consented to by the Holder in writing, in the event
that the extent of such Equity Issuances and Cash Sweep Amount is such that the information required in such certification would constitute
material non-public information regarding the Company, then the Company shall also publicly disclose such material non-public information
on a Current Report on Form 8-K or otherwise, on or prior to 9:00 am, New York City time on the Business Day immediately following the
delivery of such Cash Sweep Certification.

 

(iii) With
respect to an Equity Issuance that is an ATM Issuance, on the first Business Day of each calendar month, the Company shall deliver a
certification to Holder in writing certifying (i) the net proceeds of the applicable Equity Issuances consummated in the immediately
preceding calendar month, (ii) the calculation of the Cash Sweep Amount with respect to such Equity Issuances (including a certification
that such Cash Sweep Amount was calculated in accordance with the terms hereof), and (iii) whether the Company believes that the extent
of such Equity Issuances and Cash Sweep Amount constitutes material non-public information regarding the Company (such certification
also being a Cash Sweep Certification); provided, however, that, unless consented to by the Holder in writing, in the event that the
extent of such Equity Issuances and Cash Sweep Amount is such that the information required in such certification would constitute material
non-public information regarding the Company, then the Company shall also publicly disclose such material non-public information on a
Current Report on Form 8-K or otherwise, on or prior to 9:00 am, New York City time on the Business Day immediately following the delivery
of such Cash Sweep Certification.

 

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(iv) The
Holder shall have the right to require the Company, exercisable by delivery of written notice to the Company of exercise of such right
(a “Cash Sweep Notice”), to pay to the Holder in cash within two (2) Business Days following the delivery of such
Cash Sweep Notice, all or a portion of the Cash Sweep Amount related to such Equity Issuance.

 

Section
5. Method of Payment; When Payment Date is Not a
Business Day.

 

(A) Method
of Payment. The Company will pay all cash amounts due under this Note by wire transfer of immediately available funds to an account
of the Holder that is provided to the Company on the date hereof, which account may be changed for any cash amount due under this Note
by written notice provided by the Holder to the Company at least three (3) Business Days before the date such amount is due.

 

(B) Delay
of Payment when Payment Date is Not a Business Day. If the due date for a payment on this Note as provided in this Note is not a
Business Day, then, notwithstanding anything to the contrary in this Note, such payment may be made on the immediately following Business
Day and no interest will accrue on such payment as a result of the related delay.

 

Section
6. Required Repurchase of Note upon a Fundamental
Change.

 

(A) Repurchase
Upon Fundamental Change. Subject to the other terms of this Section 6, if a Fundamental Change occurs, then the Holder will
have the right to require the Company to repurchase this Note (or any portion of this Note in an Authorized Denomination) on the Fundamental
Change Repurchase Date for such Fundamental Change for a cash purchase price equal to the Fundamental Change Repurchase Price.

 

(B) Fundamental
Change Repurchase Date. The Fundamental Change Repurchase Date for any Fundamental Change will be a Business Day of the Holder’s
choosing that is no more than twenty (20) Business Days after the later of (x) the date the Company delivers to the Holder the related
Fundamental Change Notice pursuant to Section 6(C); and (y) the effective date of such Fundamental Change.

 

(C) Fundamental
Change Notice. No later than the eighth (8th) Business Day before the occurrence of any Fundamental Change, the Company will send
to the Holder a written notice (the “Fundamental Change Notice”) thereof (provided, however, in no event shall such
notice be required prior to the actual public notice of such Fundamental Change), stating the expected date such Fundamental Change will
occur. No later than the fifth (5th) Business Day after the date of delivery of the Fundamental Change Notice, the Holder
shall notify the Company in writing whether it will require the Company to repurchase this Note and specify the Fundamental Change Repurchase
Date.

 

(D) Fundamental
Change Repurchase Price. The Fundamental Change Repurchase Price for this Note (or any portion of this Note to be repurchased) upon
a Repurchase Upon Fundamental Change following a Fundamental Change is an amount in cash equal to the Fundamental Change Base Repurchase
Price for such Fundamental Change plus any accrued and unpaid interest on this Note (or such portion of this Note) to, but excluding,
the Fundamental Change Repurchase Date for such Fundamental Change. For the avoidance of doubt, no other prepayment premium, fee or penalty
(including, the prepayment fee set forth in the definition of “Company Redemption Price”) shall be due or payable in connection
with a Repurchase Upon Fundamental Change.

 

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(E) Effect
of Repurchase. If this Note (or any portion of this Note) is to be repurchased upon a Repurchase Upon Fundamental Change, then, from
and after the date the related Fundamental Change Repurchase Price is paid in full, this Note (or such portion) will cease to be outstanding.

 

Section
7. [Reserved.]

 

Section
8. Redemption of this Note.

 

(A) Company
Redemption Election.  Provided that an Optional Holder Redemption Notice has not been delivered pursuant to Section 8(B),
the Company may redeem all (or a portion thereof not less than five million dollars ($5,000,000)) of the then outstanding Principal Amount
on any date by paying on the Company Redemption Date (as defined below) a cash redemption price equal to the Company Redemption Price;
provided, that the Company must provide irrevocable written notice thereof (a “Company Redemption Notice”) certifying
that no Default has occurred or is continuing as of the date of such notice and that no Event of Default has occurred as of the date
of such notice that has not been waived and setting forth the date upon which such redemption shall occur (the “Company Redemption
Date”) at least ten (10) days prior to the Company Redemption Date and the Company must have, on or prior to 9:00 am, New York
City time, on such notice delivery date, publicly disclosed any material, non-public information regarding the Company (including the
fact that the Company is redeeming the Note) on a Form 8-K or otherwise; provided, however, that this Section 8(A) will cease
to have any force and effect if a Default has occurred and is continuing or an Event of Default has occurred and has not been waived
by the Required Holders. If this Note is to be redeemed in full pursuant to this Section 8(A), then, from and after the date the
related Company Redemption Price is paid in full, this Note will cease to be outstanding.

 

(B) Holder
Redemption Election. The Holder may elect to require the Company to redeem all or any portion of this Note at par in an amount equal
to the Optional Holder Redemption Amount on or before August __, 2023 and August __, 2024 by delivering to the Company a written notice
of any such election, including the Principal Amount to be redeemed (an “Optional Holder Redemption Notice”), on or
before August __, 2023 and August __, 2024, as applicable. Following the delivery of any Optional Holder Redemption Notice, the Company
shall pay the Holder the Optional Holder Redemption Amount by wire transfer of immediately available funds on or before August __, 2023
and August __, 2024, as applicable (the date on which the Optional Holder Redemption Amount is received by the Holder is referred to
herein as the “Optional Holder Redemption Date”). If this Note is to be redeemed in full pursuant to this Section
8(B), then, from and after the Optional Holder Redemption Date, this Note will cease to be outstanding.

 

Section
9. Affirmative and Negative Covenants.

 

(A) Stay,
Extension and Usury Laws. To the extent that it may lawfully do so, the Company (A) agrees that it will not at any time insist upon,
plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law (wherever or whenever
enacted or in force) that may affect the covenants or the performance of this Note; and (B) expressly waives all benefits or advantages
of any such law and agrees that it will not, by resort to any such law, hinder, delay or impede the execution of any power granted to
the Holder by this Note, but will suffer and permit the execution of every such power as though no such law has been enacted.

 

    20

     

    

  

(B) Corporate
Existence. Subject to Section 10, the Company will cause to preserve and keep in full force and effect:

 

(i) its
corporate existence and the corporate existence of its Subsidiaries in accordance with the organizational documents of the Company or
its Subsidiaries, as applicable; and

 

(ii) the
material rights (charter and statutory), licenses and franchises of the Company and its Subsidiaries;

 

provided,
however, that the Company need not preserve or keep in full force and effect any such rights (charter and statutory), license
or franchise or existence of any of its Subsidiaries if the Board of Directors determines in good faith that (x) the preservation thereof
is no longer desirable in the conduct of the business of the Company and its Subsidiaries, taken as a whole; and (y) the loss thereof
is not, individually or in the aggregate, materially adverse to the Holder.

 

(C) Ranking.
All payments due under this Note (i) shall rank pari passu with all Other Notes and (ii) shall rank senior to all other indebtedness
of the Company (other than the indebtedness described in clauses (i)) and any Subordinated Indebtedness.

 

(D) Indebtedness;
Amendments to Indebtedness. The Company shall not and shall not permit any Subsidiary to: (a) create, incur, assume, guarantee or
be or remain liable with respect to any Indebtedness, other than Permitted Indebtedness; (b) prepay any Indebtedness except for (i) by
the conversion of Indebtedness into equity securities (other than Disqualified Stock) and the payment of cash in lieu of fractional shares
in connection with such conversion, and (ii) a refinancing of the entire amount of such Indebtedness which does not impose materially
more burdensome terms upon the Company or its Subsidiaries than exist in such Indebtedness prior to such refinancing, but with a maturity
date which is later than one hundred eighty-one (181) days following the Maturity Date; or (c) amend or modify any documents or notes
evidencing any Indebtedness in any manner which shortens the maturity date or any amortization, redemption or interest payment date thereof
or otherwise imposes materially more burdensome terms upon the Company or its Subsidiaries than exist in such Indebtedness prior to such
amendment or modification without the prior written consent of Holder. The Company shall not and shall not permit any Subsidiary to incur
any Indebtedness that would cause a breach or Default under the Notes or prohibit or restrict the performance of any of the Company’s
or its Subsidiaries’ obligations under the Notes, including without limitation, the payment of interest and principal thereon.

 

(E) Liens.
The Company will not, and will not permit any of its Subsidiaries to, directly or indirectly, create, incur, assume or permit to exist
any Lien of any kind on any asset now owned or hereafter acquired, except Permitted Liens.

 

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(F)  Investments.
The Company shall not directly or indirectly acquire or own, or make any Investment in or to any Person, or permit any of its Subsidiaries
so to do, other than Permitted Investments; provided that the Company may not make any Investment (including a Permitted Investment)
or permit any of its Subsidiaries to make any Investment (including a Permitted Investment) if (i) any Event of Default has occurred
hereunder or (ii) any event or circumstance has occurred and is continuing which, with the giving of notice or passage of time or both,
could constitute an Event of Default with respect to Section 11(A)(ii), Section 11(A)(iii), Section 11(A)(ix), Section
11(A)(xi), Section 11(A)(xiv) or Section 11(A)(xv).

 

(G) Distributions.
The Company shall not, and shall not allow any Subsidiary to, (a) repurchase or redeem any class of stock or other Equity Interest
other than pursuant to employee, director or consultant repurchase plans or other similar agreements provided under plans approved by
the Board of Directors; provided, however, in each case the repurchase or redemption price does not exceed the original consideration
paid for such stock or Equity Interest, or (b) declare or pay any cash dividend or make a cash distribution on any class of stock or
other Equity Interest, except that a Subsidiary of the Company may pay dividends or make distributions to the Company or a parent company
that is a direct or indirect Wholly Owned Subsidiary of the Company, or (c) lend money to any employees, officers or directors (except
as permitted under clause (F) of the definition of Permitted Investment), or guarantee the payment of any such loans granted by a third
party in excess of fifty thousand dollars ($50,000) in the aggregate or (d) waive, release or forgive any Indebtedness owed by any employees,
officers or directors in excess of fifty thousand dollars ($50,000) in the aggregate. Within one (1) Business Day following the date
on which the Company files an Annual Report on Form 10-K or Quarterly Report on Form 10-Q with the Commission, the Company will provide
the Holder with a written notice setting forth the aggregate amount of dividends or distributions made by the Company or any Subsidiary
pursuant to this Section 9(G) for the period covered by such Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as applicable.
Notwithstanding anything herein to the contrary, the Company shall not, and shall not allow any Subsidiary to, declare or pay any cash
dividend or make a cash distribution on any class of stock or other Equity Interest if (A) any Event of Default has occurred hereunder
and has not been waived by the Required Holders or (B) any event or circumstance has occurred and is continuing which, with the giving
of notice or passage of time or both, could constitute an Event of Default with respect to Section 11(A)(ii), Section 11(A)(iii),
Section 11(A)(ix), Section 11(A)(xi), Section 11(A)(xiv) or Section 11(A)(xv).

 

(H)  Transfers.
The Company shall not, and shall not allow any Subsidiary to, voluntarily or involuntarily transfer, sell, lease, license, lend or in
any other manner convey any equitable, beneficial or legal interest in any material portion of the assets of the Company and its Subsidiaries
(taken as a whole), except for Permitted Transfers and Permitted Investments.

 

(I) Taxes.
The Company and its Subsidiaries shall pay when due all material taxes, fees or other similar governmental charges (together with any
related interest or penalties) now or hereafter imposed or assessed against the Company and its Subsidiaries or their respective assets
or upon their ownership, possession, use, operation or disposition thereof or upon their rents, receipts or earnings arising therefrom.
The Company and its Subsidiaries shall file on or before the due date therefor all material personal property tax returns. Notwithstanding
the foregoing, the Company and its Subsidiaries may contest, in good faith and by appropriate proceedings, taxes for which they maintain
adequate reserves therefor in accordance with GAAP.

 

    22

     

    

 

(J) Minimum
Liquidity. The Company and its Subsidiaries shall have at all times liquidity calculated as unrestricted, unencumbered Cash and Cash
Equivalents in one or more deposit accounts located in the United States and subject to a Control Agreement (as defined in the Security
Agreements) entered into in favor of the Collateral Agent in a minimum amount equal to ten million dollars ($10,000,000).

 

(K) Minimum
Cash Spend Availability.

 

(i) The
Cash Spend Availability as of September 30, 2022 shall be an amount equal to or exceeding twelve million two hundred three thousand five
hundred dollars ($12,203,500). The Cash Spend Availability calculated pursuant to this Section 9(K)(i) shall not include Net Proceeds
received between the date hereof and September 30, 2022.

 

(ii) Commencing
with the fiscal quarter ending December 31, 2022, the Cash Spend Availability as of the last calendar day of any Fiscal Quarter, the
calculation of which shall not include Net Proceeds received during such Fiscal Quarter, shall be an amount equal to or exceeding the
Cash Spend Availability as of the last calendar day of the immediately preceding Fiscal Quarter, less eight million dollars ($8,000,000).

 

(iii) Commencing
with the month ending October 31, 2022, the Cash Spend Availability as of the last calendar day of any calendar month (including, for
the avoidance of doubt, October 2022), the calculation of which shall not include Net Proceeds received during such calendar month, shall
be an amount equal to or exceeding the Cash Spend Availability as of the last calendar day of the immediately preceding calendar month,
less four million dollars ($4,000,000).

 

(iv) Commencing
with the month ending November 30, 2022, the Cash Spend Availability as of the last calendar day of any two consecutive calendar month
period (including, for the avoidance of doubt, the two month period ended November 30, 2022), the calculation of which shall not include
Net Proceeds received during such calendar months, shall be an amount equal to or exceeding the Cash Spend Availability as of the last
calendar day of the calendar month immediately preceding such period, less eight million dollars ($8,000,000).

 

(v) On
October 1, 2022, the Company shall provide to the Holder a certification, executed on behalf of the Company by the Chief Financial Officer
of the Company, certifying whether or not the Company has satisfied the requirements of Section 9(K)(i). On or prior to the first
(1st) Business Day of each calendar month, the Company shall provide to the Holder a certification, executed on behalf of
the Company by the Chief Financial Officer of the Company, certifying whether or not the Company has satisfied the requirements of Section
9(J) Section 9(K)(iii), Section 9(K)(iv) and Section 9(G) during the immediately preceding calendar month. On or prior to
the first (1st) Business Day of each Fiscal Quarter, the Company shall provide to the Holder a certification, executed on
behalf of the Company by the Chief Financial Officer of the Company, certifying whether or not the Company has satisfied the requirements
of Section 9(K)(ii) during the immediately preceding Fiscal Quarter. Each such certification delivered pursuant to this Section
9(K)(v) shall be referred to as a “Compliance Certification”. If the Company determines in its sole discretion
that any such information constitutes material non-public information, then the Company will so indicate in the certification provided
pursuant to this Section 9(K)(v) and the Company will concurrently disclose such material non-public information on a Current
Report on Form 8-K or otherwise.

 

    23

     

    

 

(L) Qualified
Equity Financing. On or before October 31, 2022, the Company shall consummate a Qualified Equity Financing.

 

(M) Change
in Nature of Business. The Company shall not, and the Company shall cause each of its Subsidiaries to not, directly or indirectly,
engage in any material line of business substantially different from those lines of business conducted by or publicly contemplated to
be conducted by the Company and each of its Subsidiaries on the Issue Date; provided, that the foregoing shall not prevent the
Company and its Subsidiaries from engaging in any business that is reasonably related or incidental or ancillary to its or their business.

 

(N) Maintenance
of Properties, Etc. The Company shall maintain and preserve, and the Company shall cause each of its Subsidiaries to maintain and
preserve, all of its properties which are necessary or useful (as determined by the Company in good faith) to the conduct of its business
in good working order and condition, ordinary wear and tear excepted, and comply at all times with the provisions of all leases to which
it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder (except where
the failure to do so would not, individually or in the aggregate, have a material effect on the Company or any Subsidiary).

 

(O) Maintenance
of Intellectual Property. The Company will take, and the Company shall cause each of its Subsidiaries to take, all actions necessary
or advisable to maintain all of the Intellectual Property Rights (as defined in the Securities Exchange Agreement) of the Company or
such Subsidiary that are necessary or material (as determined by the Company in good faith) to the conduct of its business in full force
and effect.

 

(P) Maintenance
of Insurance. The Company shall maintain, and the Company shall cause each of its Subsidiaries to maintain, insurance with responsible
and reputable insurance companies or associations (including, without limitation, comprehensive general liability, hazard, rent and business
interruption insurance) with respect to its properties (including all real properties leased or owned by it) and business, in such amounts
and covering such risks as is required by any governmental authority having jurisdiction with respect thereto or as is carried generally
in accordance with sound business practice by companies in similar businesses similarly situated.

 

(Q) Transactions
with Affiliates. Neither the Company, nor any of its Subsidiaries, shall enter into, renew, extend or be a party to, any transaction
or series of related transactions (including, without limitation, the purchase, sale, lease, transfer or exchange of property or assets
of any kind or the rendering of services of any kind) with any affiliate (other than the Company or any of its Wholly Owned Subsidiaries),
except (i) transactions for fair consideration and on terms no less favorable to it than would be obtainable in a comparable arm’s
length transaction with a Person that is not an affiliate thereof, (ii) loans or advances made by the Company or one of its Subsidiaries
to its directors, officers and other employees in the ordinary course of business for reasonable travel and entertainment expenses, and
relocation costs up to a maximum of one hundred thousand dollars ($100,000) in the aggregate at any one time outstanding, and (iii) distributions
permitted by Section 9(G).

 

    24

     

    

 

(R) Restricted
Issuances. The Company shall not, and shall cause its Subsidiaries not to, directly or indirectly, without the prior written consent
of the holders of a majority in aggregate principal amount of the Notes then outstanding, (i) issue any Notes (other than as contemplated
by the Securities Purchase Agreement, the Securities Exchange Agreement and the Notes) or (ii) issue any other securities or incur any
Indebtedness, in each case, that would cause a breach or Default under the Notes or that by its terms would prohibit or restrict the
performance of any of the Company’s or its Subsidiaries’ obligations under the Notes, including without limitation, the payment
of interest and principal thereon.

 

(S) Independent
Investigation. At the request of the Required Holders (as defined in the Securities Exchange Agreement) at any time the Required
Holders have determined in good faith that (i) an Event of Default has occurred or (ii) any event or circumstance has occurred and is
continuing which, with the giving of notice or passage of time or both, could constitute an Event of Default but the Company has not
timely agreed to such determination in writing, the Company shall hire an independent, reputable investment bank selected by the Company
and approved by the Required Holders to investigate as to whether such Event of Default or event or circumstance has occurred (the “Independent
Investigator”). If the Independent Investigator determines that such Event of Default or event or circumstance has occurred,
the Independent Investigator shall notify the Company of such Event of Default or occurrence of such event or circumstance and the Company
shall promptly deliver written notice to the Holder of such Event of Default if such Event of Default has occurred. In connection with
such investigation, the Independent Investigator may, during normal business hours and upon signing a confidentiality agreement in a
form reasonably acceptable to the Company, inspect all contracts, books, records, personnel, offices and other facilities and properties
of the Company and its Subsidiaries and, to the extent available to the Company after the Company uses reasonable efforts to obtain them,
the records of its accountants (including the accountants’ work papers) and any books of account, records, reports and other papers
not contractually required of the Company to be confidential or secret, or subject to attorney-client or other evidentiary privilege,
and the Independent Investigator may make such copies and inspections thereof as the Independent Investigator may reasonably request.
The Company shall furnish the Independent Investigator with such financial and operating data and other information with respect to the
business and properties of the Company as the Independent Investigator may reasonably request. The Company shall permit the Independent
Investigator to discuss the affairs, finances and accounts of the Company with, and to make proposals and furnish advice with respect
thereto to, any of the Company’s officers, directors, key employees and independent public accountants (and by this provision the
Company authorizes said accountants to discuss with such Independent Investigator the finances and affairs of the Company and any Subsidiaries);
provided, that the Company’s chief executive officer and chief financial officer shall be invited to join any such discussion,
all at such reasonable times, upon reasonable notice, and as often as may be reasonably requested.

 

(T) Upon
delivery by the Company to the Holder (or receipt by the Company from the Holder) of any notice in accordance with the terms of this
Note, unless the Company has in good faith determined that the matters relating to such notice do not constitute material, non-public
information relating to the Company or any of its Subsidiaries, the Company shall on or prior to 9:00 am, New York City time on the Business
Day immediately following such notice delivery date, publicly disclose such material, non-public information on a Form 8-K or otherwise.
In the event that the Company believes that a notice contains material, non-public information relating to the Company or any of its
Subsidiaries, the Company so shall indicate to the Holder explicitly in writing in such notice (or immediately upon receipt of notice
from the Holder, as applicable), and in the absence of any such written indication in such notice (or notification from the Company immediately
upon receipt of notice from the Holder), the Holder shall be entitled to presume that information contained in the notice does not constitute
material, non-public information relating to the Company or any of its Subsidiaries. Nothing contained in this Section 9(T) shall
limit any obligations of the Company, or any rights of the Holder, under the Securities Exchange Agreement.

 

    25

     

    

 

(U) The
Company acknowledges and agrees that the Holder is not a fiduciary or agent of the Company, the Holder will not have any obligations
hereunder except those obligations expressly set forth herein (and in the Securities Exchange Agreement) and the Holder is acting solely
in the capacity of an arm’s length contractual counterparty to the Company with respect to the Note and not as a fiduciary or agent
of the Company. The Company agrees that it will not assert any claim against the Holder based on an alleged breach of fiduciary duty
by the Holder in connection with the Note. The Company acknowledges that the Holder shall have no obligation to (a) maintain the confidentiality
of any information provided by the Company or (b) refrain from trading any securities while in possession of such information in the
absence of a written non-disclosure agreement signed by an officer of the Holder that explicitly provides for such confidentiality and
trading restrictions. In the absence of such an executed, written non-disclosure agreement, the Company acknowledges that the Holder
may freely trade in any securities issued by the Company, may possess and use any information provided by the Company in connection with
such trading activity, and may disclose any such information to any third party.

 

(V) The
Company shall cause this Note to be eligible to be offered, sold or otherwise transferred by the Holder pursuant to Rule 144, without
any requirements as to volume, manner of sale, availability of current public information (whether or not then satisfied) or notice under
the Securities Act and without any requirement for registration under any state securities or “blue sky” law, on and after
the date that is six (6) months following March 23, 2022. If this Note is to be transferred, the Holder shall notify the Company and
surrender this Note to the Company (or provide the Company an affidavit in a form reasonably acceptable to the Company that this Note
was lost, stolen or destroyed), whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Note, registered
as the Holder may request. The Company shall not be obligated to pay any tax which may be payable with respect to any transfer (or deemed
transfer) arising in connection with the registration of any certificates for Notes in the name of any Person other than the Holder or
any of its Affiliates.

 

(W) The
Company shall at all times have a number of authorized and unissued shares of Common Stock no less than a number of shares of Common
Stock equal to the sum of (x) 100% of the maximum number of shares of Common Stock as shall be necessary to satisfy the Company’s
obligation to issue shares of Common Stock under the warrants then outstanding issued under the Securities Exchange Agreement and the
Securities Purchase Agreement, reserved for the purpose of issuance pursuant to such warrants, plus (y) an additional twenty million
(20,000,000) unreserved and available shares of Common Stock.

 

(X)  On
or before the date that is thirty (30) days after the Issue Date, the Company shall have delivered to the Holder the results of a recent
lien, bankruptcy and judgment search in each relevant jurisdiction with respect to the Company and its Subsidiaries and such search shall
reveal no Liens on any of the Collateral (as such term is defined in the Security Agreement Amendments) or other assets of the Company
and its Subsidiaries except, in the case of assets other than Collateral, for Permitted Liens.

 

    26

     

    

  

Section
10. Successors.

 

The
Company will not consolidate with or merge with or into, or (directly, or indirectly through one or more of its Subsidiaries) sell, lease
or otherwise transfer, in one transaction or a series of transactions, all or substantially all of the assets of the Company and its
Subsidiaries, taken as a whole, to another Person, other than the Holder or any of its Affiliates (a “Business Combination Event”),
unless:

 

(A) the
resulting, surviving or transferee Person either (x) is the Company or (y) if not the Company, is a corporation (the “Successor
Corporation”) duly organized and existing under the laws of the United States of America, any State thereof or the District
of Columbia that expressly assumes (by executing and delivering to the Holder, at or before the effective time of such Business Combination
Event, a supplement to this instrument) all of the Company’s obligations under this Note; and

 

(B) immediately
after giving effect to such Business Combination Event, no Default or Event of Default will have occurred and be continuing.

 

At
the effective time of any Business Combination Event, the Successor Corporation (if not the Company) will succeed to, and may exercise
every right and power of, the Company under this Note with the same effect as if such Successor Corporation had been named as the Company
in this Note, and, except in the case of a lease, the predecessor Company will be discharged from its obligations under this Note.

 

Section
11. Defaults and Remedies

 

(A) Events
of Default. “Event of Default” means the occurrence of any of the following:

 

(i) a
default in the payment when due of the Principal Amount, any Cash Sweep Payment, any amount due under Section 8 or the Fundamental
Change Repurchase Price under this Note;

 

(ii) a
default for three (3) Business Days in the payment when due of the interest on this Note;

 

(iii) a
default in the Company’s obligation to timely deliver a Fundamental Change Notice pursuant to Section 6(C), a Cash Sweep
Certification pursuant to Section 4(E), or a Compliance Certification pursuant to Section 9(K)(v), and such default continues
for three (3) Business Days, or the delivery of a materially false or inaccurate Fundamental Change Notice, Cash Sweep Certification,
Compliance Certification, or Company Redemption Notice;

 

(iv) a
default in the Company’s obligation to deliver when due any Event of Default Acceleration Amount;

 

(v) any
failure to timely deliver an Event of Default Notice or a materially false or inaccurate certification as to whether any Event of Default
has occurred;

    27

     

    

 

(vi) a
default in any of the Company’s obligations or agreements under this Note or the Transaction Documents (in each case, other than
a default set forth in clauses (i) - (v) or (vii) – (xviii) of this Section 11(A)), or a breach
of any representation or warranty in any material respect (other than representations or warranties subject to material adverse effect
or materiality qualifications, which may not be breached in any respect) of any Transaction Document; provided, however,
that if such default can be cured, then such default shall not be an Event of Default unless the Company has failed to cure such default
within ten (10) Business Days after its occurrence;

 

(vii) any
provision of any Transaction Document at any time for any reason (other than pursuant to the express terms thereof) ceases to be valid
and binding on or enforceable against the parties thereto, or the validity or enforceability thereof is contested, directly or indirectly,
by the Company or any of its Subsidiaries, or a proceeding is commenced by the Company or any of its Subsidiaries or any governmental
authority having jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof;

 

(viii) the
Company fails to comply with any covenant set forth in Section 9(D), Section 9(E), Section 9(F), Section 9(G),
Section 9(H), Section 9(J), Section 9(K), Section 9(L), Section 9(R), Section 9(W) or Section 9(X)
of this Note;

 

(ix) the
suspension from trading or failure of the Common Stock to be trading or listed on an Eligible Exchange for a period of three (3) consecutive
Trading Days;

 

(x) (i)
the failure of the Company or any of its Subsidiaries to pay when due or within any applicable grace period any Indebtedness having an
individual principal amount in excess of at least five hundred thousand dollars ($500,000) (or its foreign currency equivalent) in the
aggregate of the Company or any of its Subsidiaries, whether such Indebtedness exists as of the Issue Date or is thereafter created,
and whether such default has been waived for any period of time or is subsequently cured; or (ii) the occurrence of any breach or
default under any terms or provisions of any other Indebtedness of at least five hundred thousand dollars ($500,000) (or its foreign
currency equivalent) in the aggregate of the Company or any of its Subsidiaries, if the effect of such failure or occurrence is to cause
or to permit the holder or holders of any such indebtedness, to cause, Indebtedness having an individual principal amount in excess of
five hundred thousand dollars ($500,000) to become or be declared due prior to its stated maturity;

 

(xi) one
or more final judgments, orders or awards (or any settlement of any litigation or other proceeding that, if breached, could result in
a judgment, order or award) for the payment of at least five hundred thousand dollars ($500,000) (or its foreign currency equivalent)
in the aggregate (excluding any amounts covered by insurance pursuant to which the insurer has been notified and has not denied coverage),
is rendered against the Company or any of its Subsidiaries and remains unsatisfied and (i) enforcement proceedings shall have been commenced
by any creditor upon any such judgment, order, award or settlement or (ii) there shall be a period of ten (10) consecutive Trading Days
after entry thereof during which (A) a stay of enforcement thereof is not in effect or (B) the same is not vacated, discharged, stayed
or bonded pending appeal;

 

    28

     

    

 

(xii) (A)
the Company fails to timely file its quarterly reports on Form 10-Q or its annual reports on Form 10-K with the Commission in the manner
and within the time periods required by the Exchange Act in a manner that results in the Company failing for any reason to satisfy the
requirements of Rule 144(c)(1) under the Securities Act, including, without limitation, the failure to satisfy the current public information
requirement under Rule 144(c), or (B) the Company withdraws or restates in any material respect any such quarterly report or annual report
previously filed with the Commission;

 

(xiii) any
Security Document shall for any reason fail or cease to create a separate valid and perfected first priority Lien on the Collateral,
in each case, in favor of the Collateral Agent in accordance with the terms thereof, or any material provision of any Security Document
shall at any time for any reason cease to be valid and binding on or enforceable against the Company or the validity or enforceability
thereof shall be contested by any party thereto, or a proceeding shall be commenced by the Company or any governmental authority having
jurisdiction over the Company, seeking to establish the invalidity or unenforceability thereof;

 

(xiv) any
material damage to, or loss, theft or destruction of, any Collateral (provided that any damage, loss, theft or destruction of the Collateral
that reduces the value of such Collateral by one million dollars ($1,000,000) or more shall be deemed to be material), that is not insured,
or any strike, lockout, labor dispute, embargo, condemnation, act of God or public enemy, or other casualty which causes, for more than
fifteen (15) consecutive days, the cessation or substantial curtailment of revenue producing activities at any facility of the Company
or any Subsidiary, if any such event or circumstance could reasonably be expected to have a Material Adverse Effect (as defined in the
Securities Exchange Agreement). For clarity, an Event of Default under this Section 11(A)(xiv) will not require any curtailment
of revenue;

 

(xv) the
Company fails to remove any restrictive legend on any certificate or any shares of Common Stock issued to the Holder pursuant to any
Securities (as defined in the Securities Exchange Agreement) acquired by the Holder under the Securities Exchange Agreement as and when
required by such Securities or the Securities Exchange Agreement, unless otherwise then prohibited by applicable federal securities laws
and such failure continues for more than five (5) Trading Days;

 

(xvi) the
Company or any of its Significant Subsidiaries, pursuant to or within the meaning of any Bankruptcy Law, either:

 

(1) commences
a voluntary case or proceeding;

 

(2) consents
to the entry of an order for relief against it in an involuntary case or proceeding;

 

(3) consents
to the appointment of a custodian of it or for any substantial part of its property;

 

(4) makes
a general assignment for the benefit of its creditors;

 

(5) takes
any comparable action under any foreign Bankruptcy Law; or

 

(6) generally
is not paying its debts as they become due; or

 

    29

     

    

 

(xvii) a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that either:

 

(1) is
for relief against Company or any of its Significant Subsidiaries in an involuntary case or proceeding;

 

(2) appoints
a custodian of the Company or any of its Significant Subsidiaries, or for any substantial part of the property of the Company or any
of its Significant Subsidiaries;

 

(3) orders
the winding up or liquidation of the Company or any of its Significant Subsidiaries; or

 

(4) grants
any similar relief with respect to the Company or any of its Significant Subsidiaries under any foreign Bankruptcy Law,

 

and,
in each case under this Section 11(A)(xvii), such order or decree remains unstayed and in effect for at least thirty (30) days.

 

(xviii) the
Company’s stockholders approve any plan for the liquidation or dissolution of the Company:

 

(B) Acceleration.

 

(i) Automatic
Acceleration in Certain Circumstances. If an Event of Default set forth in Section 11(A)(xvi) or Section 11(A)(xvii)
occurs with respect to the Company (and not solely with respect to a Significant Subsidiary of the Company), then the then outstanding
portion of the Principal Amount of, and all accrued and unpaid interest on, this Note will immediately become due and payable without
any further action or notice by any Person.

 

(ii) Optional
Acceleration. If an Event of Default (other than an Event of Default set forth in Section 11(A)(xvi) or Section 11(A)(xvii)
with respect to the Company and not solely with respect to a Subsidiary of the Company) occurs and has not been waived by the Holder,
then the Holder, by notice to the Company, may declare this Note (or any portion thereof) to become due and payable immediately for cash
in an amount equal to the Event of Default Acceleration Amount.

 

(C) Notice
of Events of Default. Promptly, but in no event later than two (2) Business Days after an Event of Default, the Company will provide
written notice of such Event of Default to the Holder (an “Event of Default Notice”), which Event of Default Notice
shall include (i) a reasonable description of the applicable Event of Default, (ii) the date on which the Event of Default occurred and
(iii) the date on which the Default underlying such Event of Default initially occurred, if different than the date on which the Event
of Default occurred.

 

    30

     

    

 

Section
12. Ranking.

 

All
payments due under this Note shall rank (i) pari passu with all Other Notes, (ii) effectively senior to all unsecured indebtedness of
the Company to the extent of the value of the Collateral securing the Notes for so long as the Collateral so secures the Notes in accordance
with the terms hereof and (iii) senior to any Subordinated Indebtedness.

 

Section
13. Replacement Notes.

 

If
the Holder of this Note claims that this Note has been mutilated, lost, destroyed or wrongfully taken, then the Company will issue, execute
and deliver a replacement Note upon surrender to the Company of such mutilated Note, or upon delivery to the Company of evidence of such
loss, destruction or wrongful taking reasonably satisfactory to the Company. In the case of a lost, destroyed or wrongfully taken Note,
the Company may require the Holder to provide such security or an indemnity that is reasonably satisfactory to the Company to protect
the Company from any loss that it may suffer if this Note is replaced.

 

Section
14. Notices.

 

Any
notice or communication to the Company will be deemed to have been duly given if in writing and delivered in person or by first class
mail (registered or certified, return receipt requested), electronic transmission (including e-mail) or other similar means of unsecured
electronic communication or overnight air courier guaranteeing next day delivery, or to the other’s address, which initially is
as follows:

 

Agrify
Corporation

76 Treble Cove Rd., Building 3

Billerica, MA 01862

Attention: Joshua Savitz, Esq., Associate General Counsel

Email
address: josh.savitz@agrify.com

 

Burns
& Levinson LLP

125
High Street

Boston,
MA 02110

Telephone:
617-345-3684

Attention:
Frank A. Segall, Esq.

Email:
FSegall@burnslev.com

 

The
Company, by notice to the Holder, may designate additional or different addresses for subsequent notices or communications.

 

Any
notice or communication to the Holder will be by email to its email address, which initially are as set forth in the Securities Exchange
Agreement. The Holder, by notice to the Company, may designate additional or different addresses for subsequent notices or communications.

 

If
a notice or communication is mailed in the manner provided above within the time prescribed, it will be deemed to have been duly given,
whether or not the addressee receives it.

 

    31

     

    

 

Section
15. Successors and Assigns.

 

All
agreements of the Company in this Note will bind its successors and will inure to the benefit of the Holder’s successors and assigns.

 

Section
16. Severability.

 

If
any provision of this Note is invalid, illegal or unenforceable, then the validity, legality and enforceability of the remaining provisions
of this Note will not in any way be affected or impaired thereby.

 

Section
17. Headings, Etc.

 

The
headings of the Sections of this Note have been inserted for convenience of reference only, are not to be considered a part of this Note
and will in no way modify or restrict any of the terms or provisions of this Note.

 

Section
18. Amendments

 

This
Note may not be amended or modified unless in writing by the Company and the Required Holders (as defined in the Securities Exchange
Agreement), and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant
to benefit.

 

Section
19. Governing Law; Waiver of Jury Trial.

 

All
questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by the internal laws of
the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware
or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware. The Company
and each Holder hereby irrevocably submits to the exclusive jurisdiction of the Court of Chancery of the State of Delaware, for the adjudication
of any dispute hereunder or in connection herewith or under any of the other Transaction Documents or with any transaction contemplated
hereby or thereby, 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. 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 to such party at the address for such 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 manner permitted by law. Nothing contained herein
shall be deemed or operate to preclude any Holder from bringing suit or taking other legal action against the Company in any other jurisdiction
to collect on the Company’s obligations to such Holder or to enforce a judgment or other court ruling in favor of such Holder.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY OTHER TRANSACTION DOCUMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

    32

     

    

 

Section
20. Submission to Jurisdiction.

 

The
Company and each Holder (A) agree that any suit, action or proceeding against it arising out of or relating to this Note shall be instituted
in the Court of Chancery of the State of Delaware; (B) waive, to the fullest extent permitted by applicable law, (i) any objection that
it may now or hereafter have to the laying of venue of any such suit, action or proceeding; and (ii) any claim that it may now or hereafter
have that any such suit, action or proceeding in such a court has been brought in an inconvenient forum; and (C) submit to the nonexclusive
jurisdiction of such court in any such suit, action or proceeding.

 

Section
21. Enforcement Fees.

 

The
Company agrees to pay all costs and expenses of the Holder incurred as a result of enforcement of this Note and the collection of any
amounts owed to the Holder hereunder (whether in cash, Common Stock or otherwise), including, without limitation, reasonable attorneys’
fees and expenses.

 

Section
22. Electronic Execution.

 

 The
words “execution,” “signed,” “signature,” and words of similar import in the Note shall be deemed
to include electronic or digital signatures or the keeping of records in electronic form, each of which shall be of the same effect,
validity, and enforceability as manually executed signatures or a paper-based recordkeeping system, as the case may be, to the extent
and as provided for under applicable law, including the Electronic Signatures in Global and National Commerce Act of 2000 (15 U.S.C.
§§ 7001-7006), the Electronic Signatures and Records Act of 1999 (N.Y. State Tech. §§ 301-309), or any other similar
state laws based on the Uniform Electronic Transactions Act.

 

*
* *

 

 

33Exhibit 4.2

 

THE
SECURITIES REPRESENTED BY THIS WARRANT, AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE ISSUER
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS. 

 

FORM
OF WARRANT

 

AGRIFY
CORPORATION

 

WARRANT
TO PURCHASE COMMON STOCK

 

Warrant
No.: HTCS-2

 

Number
of Shares of Common Stock: 6,881,108

 

Date
of Issuance: August __, 2022 (“Issuance Date”)

 

Agrify
Corporation, a corporation organized under the laws of Nevada (the “Company”), hereby certifies that, for good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, High
Trail Special Situations LLC, 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 the date that is six (6) months after the Issuance Date (the “Initial Exercisability Date”), but not after
11:59 p.m., New York time, on the Expiration Date (as defined below), six million eight hundred eighty one thousand one hundred and eight
(6,881,108) duly authorized, validly issued, fully paid and non-assessable shares of Common Stock (as defined below), 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. This Warrant is one of the Warrants to Purchase Common Stock (the “Warrants”)
issued pursuant to that certain Securities Exchange Agreement (the “Securities Exchange Agreement”), dated as of August
18, 2022 (the “Subscription Date”) by and among the Company and the Holder.

 

     

     

    

 

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) and Section 1(i)), this Warrant may be exercised by the Holder at any time or times on or after the Initial
Exercisability Date, in whole or in part, by delivery (whether via electronic mail or otherwise) of a duly completed and executed written
notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to
exercise this Warrant. Within two (2) Trading Days following the delivery of the Exercise Notice, if a registration statement covering
the issuance or resale of the applicable Exercise Notice Warrant Shares (as defined below) is available for the issuance or resale, as
applicable, of such Exercise Notice Warrant Shares, the Holder shall make payment to the Company of an amount equal to the Exercise Price
in effect on the date of such exercise 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, 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, nor shall any ink-original signature
or medallion guarantee (or other type of guarantee or notarization) with respect to any Exercise Notice be required. 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 and the Holder shall not
be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder
and this Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within
three (3) Trading Days of the date on which the final Exercise Notice is delivered to the Company. On or before the first (1st)
Trading Day following the date on which the Holder has delivered the applicable Exercise Notice, the Company shall transmit by electronic
mail a duly executed and completed acknowledgment of confirmation of receipt of the Exercise Notice, in the form attached to the Exercise
Notice, to the Holder and the Company’s transfer agent (the “Transfer Agent”). So long as the Holder delivers
the Aggregate Exercise Price (or notice of a Cashless Exercise, if applicable) on or prior to the first (1st) Trading Day
following the date on which the Exercise Notice has been delivered (or deemed to have been delivered) to the Company, then on or prior
to the earlier of (i) the second (2nd) Trading Day and (ii) the number of Trading Days comprising the Standard Settlement
Period, in each case following the date on which the Exercise Notice has been delivered (or deemed to have been delivered) to the Company,
or, if the Holder does not deliver the Aggregate Exercise Price (or notice of a Cashless Exercise, if applicable) on or prior to the
first (1st) Trading Day following the date on which the Exercise Notice has been delivered (or deemed to have been delivered)
to the Company, then on or prior to the first (1st) Trading Day following the date on which the Aggregate Exercise Price (or
notice of a Cashless Exercise, if applicable) is delivered (such earlier date, or if later, the earliest day on which the Company is
required to deliver Warrant Shares pursuant to this Section 1(a), the “Share Delivery Date”), the Company shall
(X) provided that the Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities
Transfer Program (“FAST”), 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 FAST, issue and dispatch by overnight courier to the address as specified
in the Exercise Notice, a certificate, registered 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, including without limitation for same day processing.
Upon delivery (or deemed delivery) of the Exercise Notice, the Holder shall be deemed for all corporate purposes to have become the holder
of record and beneficial owner 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 physically delivered to the Company 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 and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 77(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 to the nearest whole number. The Company
shall pay any and all transfer, stamp, issuance and similar taxes, costs and expenses (including, without limitation, fees and expenses
of the Transfer Agent) 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 the Person 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 (except for consents and waivers provided pursuant to
Section 9), the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment,
limitation or termination; provided, however, that the Company shall not be required to deliver Warrant Shares with respect
to an exercise prior to the Holder’s delivery of the Aggregate Exercise Price (or notice of a Cashless Exercise) with respect to
such exercise.

 

    - 2 -

     

    

 

(b) Exercise Price. For purposes of this Warrant, “Exercise Price” means $2.15 per share, subject to adjustment
as provided herein.

 

(c) Company’s Failure to Timely Deliver Securities. If the Company shall fail for any reason or for no reason on or prior to
the applicable Share Delivery Date, if (x) the Transfer Agent is not participating in FAST, to issue to the Holder a certificate for
the number of shares of Common Stock to which the Holder is entitled and register such Common Stock on the Company’s share register
or (y) the Transfer Agent is participating in FAST, 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 (such shares to which Holder is entitled
being, the “Exercise Notice Warrant Shares”), then, in addition to all other remedies available to the Holder, if
on or prior to the applicable Share Delivery Date the Holder is required by its broker to purchase (in an open market transaction or
otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the
Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company
shall, within five (5) Trading Days after the Holder’s request, (A) pay in cash to the Holder the amount, if any, by which (x)
the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds
(y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection
with the exercise at issue by (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at
the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise
was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock
that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. 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 exercise of the
Warrant with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding
sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts
payable to the Holder in respect of the Buy-In and, upon request of the Company, written 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 shares
of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. As of the Issuance Date, the Company’s current
transfer agent participates in FAST. In the event that the Company changes transfer agents while this Warrant is outstanding, the Company
shall use commercially reasonable efforts to select a transfer agent that participates in FAST. While this Warrant is outstanding, the
Company shall request its transfer agent to participate in FAST with respect to this Warrant. In addition to the foregoing rights, (i)
if the Company fails to deliver the applicable number of Warrant Shares upon an exercise pursuant to Section 1 by the applicable
Share Delivery Date, then the Holder shall have the right to rescind such exercise in whole or in part and retain and/or have the Company
return, as the case may be, any portion of this Warrant that has not been exercised pursuant to such Exercise Notice; provided that the
rescission of an exercise shall not affect the Company’s obligation to make any payments that have accrued prior to the date of
such notice pursuant to this Section 1(c) or otherwise. In addition to the foregoing, if the Company fails for any reason to deliver
to the Holder the Warrant Shares subject to an Exercise Notice by the second Trading Day following 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 Warrant Shares subject to such exercise
(based on the Weighted Average Price of the Common Stock on the date of the applicable Exercise Notice), $10 per Trading Day (increasing
to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after the Share Delivery
Date until such Warrant Shares are delivered or Holder rescinds such exercise.

 

(d) Cashless Exercise. Notwithstanding anything contained herein to the contrary, if (i) a registration statement covering the issuance
or resale of the applicable Exercise Notice Warrant Shares is not available for the issuance or resale, as applicable, of such Exercise
Notice Warrant Shares or (ii) if the Requisite Stockholder Approval (as such term is used in the Securities Exchange Agreement) has not
yet been obtained, then in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment
of the Aggregate Exercise Price, the Holder may elect to receive upon such exercise the “Net Number” of shares of Common
Stock determined according to the following formula (a “Cashless Exercise”):

 

Net
Number = (A x B) - (A x C)

B

For
purposes of the foregoing formula:

 

A=
the total number of shares with respect to which this Warrant is then being exercised.

 

B=
as applicable: (i) the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the date of the applicable Exercise
Notice if such Exercise Notice 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)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading
Day, (ii) at the option of the Holder, either (y) the Weighted Average Price on the Trading Day immediately preceding the date of the
applicable Exercise Notice or (z) the Bid Price of the Common Stock as of the time of the Holder’s execution of the applicable
Exercise Notice if such Exercise Notice 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 Closing Sale Price of the Common Stock on the date of the applicable Exercise Notice if the
date of such Exercise Notice is a Trading Day and such Exercise Notice is both executed and delivered pursuant to Section 1(a)
hereof after the close of “regular trading hours” on such Trading Day.

 

C=
the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

 

    - 3 -

     

    

 

If
Warrant Shares are issued in such a cashless exercise, the Company acknowledges and agrees that in accordance with Section 3(a)(9) of
the Securities Act of 1933, as amended (the “Securities Act”), the Warrant Shares shall take on the registered characteristics
of the Warrants being exercised, and the holding period of the Warrants being exercised may be tacked on to the holding period of the
Warrant Shares. The Company agrees not to take any position contrary to this Section 1(d). Without limiting the rights of a Holder
to receive Warrant Shares on a “cashless exercise,” and to receive the cash payments contemplated pursuant to Sections
1(c) and 4(b), in no event will the Company be required to net cash settle a Warrant exercise. Any Cashless Exercise of this
Warrant shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder by an amount equal to 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 and not the number of Warrant Shares actually received by the Holder.

 

(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 11.

 

(f)
Beneficial Ownership Limitation. 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 the aggregate
in excess of 4.99% (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 any other 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 Reports 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 (z) 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 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 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 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.
The Holder hereby acknowledges and agrees that the Company shall be entitled to rely on the representations and other information set
forth in any Exercise Notice and shall not be required to independently verify whether any exercise of this Warrant would cause the Holder
(together with the other Attribution Parties) to collectively beneficially own in excess of the Maximum Percentage of the number of shares
of Common Stock outstanding after giving effect to such exercise or otherwise trigger the provisions of this Section 1(f).

 

    - 4 -

     

    

 

(g) Required Reserve Amount. So long as this Warrant remains outstanding, the Company shall at all times keep reserved for issuance
under this Warrant a number of shares of Common Stock at least equal to 100% of the maximum number of shares of Common Stock as shall
be necessary to satisfy the Company’s obligation to issue shares of Common Stock under the Warrants then outstanding (without regard
to any limitations on exercise) (the “Required Reserve Amount”); provided that at no time shall the number
of shares of Common Stock reserved pursuant to this Section 1(g) be reduced other than in connection with any exercise of Warrants
or such other event covered by Section 22(b). The Required Reserve Amount (including, without limitation, each increase in the
number of shares so reserved) shall be allocated pro rata among the holders of the Warrants based on the number of shares of Common Stock
issuable upon exercise of Warrants held by each holder thereof on the Issuance Date (without regard to any limitations on exercise) (the
“Authorized Share Allocation”). In the event that a Holder shall sell or otherwise transfer any of such holder’s
Warrants, each transferee shall be allocated a pro rata portion of such Holder’s Authorized Share Allocation. Any shares of Common
Stock reserved and allocated to any Person which ceases to hold any Warrants shall be allocated to the remaining holders of Warrants,
pro rata based on the number of shares of Common Stock issuable upon exercise of the Warrants then held by such holders thereof (without
regard to any limitations on exercise). Each share of Common Stock delivered upon exercise of this Warrant will be a newly issued or
treasury share and will be duly and validly issued, fully paid, non-assessable, free from preemptive rights and free of any lien or adverse
claim (except to the extent of any lien or adverse claim created by the action or inaction of the Holder or the Person to whom such share
will be delivered). If the Common Stock is then listed on any securities exchange, or quoted on any inter-dealer quotation system, then
the Company will cause each share of Common Stock issued upon exercise of this Warrant, when delivered upon such exercise, to be admitted
for listing on such exchange or quotation on such system.

 

(h) 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 the Required Reserve Amount (an
“Authorized Share Failure”), then the Company shall promptly take all action reasonably 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 ninety (90) days after the occurrence of such Authorized Share
Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the 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 reasonable
best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and the Company’s
management shall recommend to the Company’s Board of Directors that it recommend to the stockholders that they approve such proposal.
Notwithstanding the foregoing, if at any such time of an Authorized Share Failure, the Company is able to obtain the written consent
of a majority of the shares of its issued and outstanding shares of Common Stock to approve the increase in the number of authorized
shares of Common Stock, the Company may satisfy this obligation by obtaining such consent and submitting for filing with the SEC an Information
Statement on Schedule 14C. In addition to the foregoing, in the event of any Authorized Share Failure that results in the failure of
the Company to deliver any shares of Common Stock that would have otherwise been deliverable pursuant to an Exercise Notice (such shares
the “Authorized Shares Failure Shares”), (1) the Company will promptly pay to the Holder, as liquidated damages and
not as a penalty, cash in an amount equal (i) to the product of (x) the number of such Authorized Shares Failure Shares; and (y) the
Daily VWAP per share of Common Stock on the date the Holder delivered the applicable Exercise Notice hereunder (or, if such date is not
a VWAP Trading Day, the immediately preceding VWAP Trading Day), minus (ii) if such exercise is not a cashless exercise the Aggregate
Exercise Price applicable to such Authorized Shares Failure Shares, to the extent not previously paid; and (2) to the extent the Holder
purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in settlement of a sale by the Holder of such
Authorized Shares Failure Shares, the Company will reimburse the Holder for (x) any brokerage commissions and other out-of-pocket expenses,
if any, of the Holder incurred in connection with such purchases and (y) the excess, if any, of (A) the aggregate purchase price of such
purchases over (B) an amount equal to (i) the product of (I) the number of such Authorized Shares Failure Shares purchased by the Holder;
and (II) the Daily VWAP per share of Common Stock on the date the Holder delivered the applicable Exercise Notice hereunder (or, if such
date is not a VWAP Trading Day, the immediately preceding VWAP Trading Day), minus (ii) if such exercise is not a cashless exercise the
Aggregate Exercise Price applicable to such Authorized Shares Failure Shares, to the extent not previously paid.

 

(i)
Stock Exchange Limitations. Notwithstanding anything to the contrary in this Warrant, if Nasdaq notifies the Company that shareholder
approval would be required under Nasdaq Rule 5635(d) with respect to the issuance of this Warrant, until the Requisite Stockholder Approval
is obtained, in no event will the number of shares of Common Stock issuable upon exercise of this Warrant, together with all shares of
Common Stock issued in respect of the Prior Notes (as defined in the Securities Exchange Agreement), the Exchange Notes (as defined in
the Securities Exchange Agreement) and any other Warrant issued pursuant to the Exchange Agreement, exceed 5,308,578 shares in the aggregate.
If, commencing one hundred and eighty (180) days following the issuance of any Warrants that require the Requisite Stockholder Approval
under Nasdaq Rule 5635(d), one or more shares of Common Stock are not delivered at any time as a result of the operation of the preceding
sentence (such shares, the “Withheld Shares”), then (1) the Company will promptly pay to the Holder, as liquidated damages
and not as a penalty, cash in an amount equal to the product of (x) the number of such Withheld Shares; and (y) the Daily VWAP per share
of Common Stock on the date the Holder delivered the applicable Exercise Notice hereunder (or, if such date is not a VWAP Trading Day,
the immediately preceding VWAP Trading Day); and (2) to the extent the Holder purchases (in an open market transaction or otherwise)
shares of Common Stock to deliver in settlement of a sale by the Holder of such Withheld Shares, the Company will reimburse the Holder
for (x) any brokerage commissions and other out-of-pocket expenses, if any, of the Holder incurred in connection with such purchases
and (y) the excess, if any, of (A) the aggregate purchase price of such purchases over (B) the product of (I) the number of such Withheld
Shares purchased by the Holder; and (II) the Daily VWAP per share of Common Stock on the date the Holder delivered the applicable Exercise
Notice hereunder (or, if such date is not a VWAP Trading Day, the immediately preceding VWAP Trading Day).

 

    - 5 -

     

    

 

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:

 

(a) Voluntary Adjustment by Company. The Company may at any time during the term of this Warrant reduce the then-current Exercise
Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company.

 

(b) Adjustment Upon Subdivision or Combination 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.

 

3. RIGHTS UPON DISTRIBUTION OF ASSETS. In addition to any adjustments pursuant to Section 2, if, on or after the Subscription
Date and on or prior to the Expiration Date, 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 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 on which a record is taken for such Distribution, or, if no such record
is taken, the date as of which the record holders of 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) and the portion of such Distribution shall be held in abeyance for the benefit
of the Holder until such time or times as its right thereto would not result in the Holder and the other Attribution Parties exceeding
the Maximum Percentage, at which time or times the Holder shall be granted such Distribution (and any Distributions declared or made
on such initial Distribution or on any subsequent Distribution held similarly in abeyance) to the same extent as if there had been no
such limitation).

 

4. PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a) Purchase Rights. In addition to any adjustments pursuant to Section 2, if at any time on or after the Subscription Date
and on or prior to the Expiration Date the Company grants, issues or sells any Options, Convertible Securities or rights to purchase
stock, warrants, securities or other property pro rata to the record holders of any class of Common Stock (the “Purchase Rights”),
then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the
Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete 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 Common Stock are to be determined for the grant, issuance 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 Common Stock as a result of such Purchase
Right (and beneficial ownership) to such extent) and such Purchase Right to such extent shall be held in abeyance for the benefit of
the Holder until such time or times as its right thereto would not result in the Holder and the other Attribution Parties exceeding the
Maximum Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold on
such initial Purchase Right or on any subsequent Purchase Right to be held similarly in abeyance) to the same extent as if there had
been no such limitation).

 

    - 6 -

     

    

 

(b) Fundamental Transaction. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity
assumes in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 4(b),
including agreements to 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, including, without limitation, which is exercisable for a corresponding
number of shares of capital stock 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 adjustments to the 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). Upon the consummation of each Fundamental Transaction, the Successor Entity shall succeed to, and be
substituted for the Company (so that from and after the date of the applicable 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 with the same effect as
if such Successor Entity had been named as the Company herein. Upon consummation of each Fundamental Transaction, the Successor Entity
shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation
of the applicable Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property
(except such items still issuable under Sections 3 and 4(a), which shall continue to be receivable thereafter)) issuable
upon the exercise of this Warrant prior to the applicable Fundamental Transaction, such shares of common stock (or its equivalent) of
the Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of the applicable
Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to
any limitations on the exercise of this Warrant), as adjusted in accordance with the provisions of this Warrant. Notwithstanding the
foregoing, and without limiting Section 1(f) hereof, the Holder may elect, at its sole option, by delivery of written notice to
the Company to waive this Section 4(b) to permit the Fundamental Transaction without the assumption of this Warrant. In addition
to and not in substitution for any other rights hereunder, prior to the consummation of each Fundamental Transaction pursuant to which
holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common
Stock (a “Corporate Event”), the Company shall make appropriate provision to insure that the Holder will thereafter
have the right to receive upon an exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction
but prior to the Expiration Date, in lieu of the shares of the Common Stock (or other securities, cash, assets or other property (except
such items still issuable under Sections 3 and 4(a), which shall continue to be receivable thereafter)) issuable upon the
exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever
(including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening
of the applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction
(without regard to any limitations on the exercise of this Warrant). The provision made pursuant to the preceding sentence shall be in
a form and substance reasonably satisfactory to the Holder. The provisions of this Section 4(b) shall apply similarly and equally
to successive Fundamental Transactions and Corporate Events. Notwithstanding the foregoing, in the event of a Change of Control, at the
request of the Holder delivered before the 30th day after such Change of Control, the Company (or the Successor Entity) shall purchase
this Warrant from the Holder by paying to the Holder, within five (5) Business Days after such request (or, if later, on the effective
date of the Change of Control), an amount equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the
effective date of such Change of Control, payable in cash; provided, however, that, if the Change of Control is not within the Company’s
control, including not approved by the Company’s Board of Directors, Holder shall only be entitled to receive from the Company
or any Successor Entity, as of the date of consummation of such Change of Control, the same type or form of consideration (and in the
same proportion), at the Black Scholes Value of the unexercised portion of this Warrant, that is being offered and paid to the holders
of Common Stock of the Company in connection with the Change of Control, 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 Change of Control; provided, further, that if holders of Common Stock are not offered or paid any consideration
in such Change of Control, such holders of Common Stock will be deemed to have received common stock of the Successor Entity (which entity
may be the Company following such Change of Control) in such Change of Control.

 

5. 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, issuance 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 exercise of this Warrant, and (iii) shall, so long as any of the 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 Warrants, the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of
the Warrants then outstanding (without regard to any limitations on exercise).

 

    - 7 -

     

    

 

6. 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 capital stock 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 6, 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.

 

7. REISSUANCE OF WARRANTS.

 

(a) Transfer of Warrant. If this Warrant is to be transferred, the Holder shall notify the Company and 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
7(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 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.
The Company shall not be obligated to pay any tax which may be payable with respect to any transfer (or deemed transfer) arising in connection
with the registration of any certificates for Warrant Shares or Warrants in the name of any Person other than the Holder.

 

(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 (but without the obligation to post a bond) 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 7(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 7(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.

 

(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 7(a)
or Section 7(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.

 

    - 8 -

     

    

 

8. NOTICES. Whenever notice is required to be given under this Warrant, including, without limitation, an Exercise Notice, unless
otherwise provided herein, such notice shall be given in writing, (i) if delivered (a) from within the domestic United States, by first-class
registered or certified airmail, or nationally recognized overnight express courier, postage prepaid or electronic mail or (b) from outside
the United States, by International Federal Express or electronic mail, and (ii) will be deemed given (A) if delivered by first-class
registered or certified mail domestic, three (3) Business Days after so mailed, (B) if delivered by nationally recognized overnight carrier,
one (1) Business Day after so mailed, (C) if delivered by International Federal Express, two (2) Business Days after so mailed and (D)
at the time of transmission, if delivered by electronic mail to each of the email addresses specified in this Section 8 prior
to 5:00 p.m. (New York time) on a Trading Day and (E) the next Trading Day after the date of transmission, if delivered by electronic
mail to each of the email addresses specified in this Section 8 on a day that is not a Trading Day or later than 5:00 p.m. (New
York time) on any Trading Day, and will be delivered and addressed as follows:

 

 (i) if to the Company, to:

 

Agrify
Corporation

76
Treble Cove Road, Building 3

Billerica,
MA 01862

Telephone: (919) 619-7346

Attention:
Joshua Savitz, Esq., Associate General Counsel

E-mail:
josh.savitz@agrify.com

With
a copy (for informational purposes only) to:

 

Burns
& Levinson LLP

 

125
High Street

Boston,
MA 02110

Telephone:
(617) 345-3000

Attention:
Frank A. Segall, Esq.

Email:
fsegall@burnslev.com

 

(ii)
if to the Holder, at such address or other contact information delivered by the Holder to Company or as is on the books and records of
the Company (provided that, with respect to the Holder, such notice may only be delivered via electronic mail),

 

With
a copy (for informational purposes only) to:

 

Latham
& Watkins LLP

12670
High Bluff Drive

San
Diego, CA 92130

Telephone:
(858) 523-5400

Attention:
Michael E. Sullivan, Esq.

Email:
michael.sullivan@lw.com

 

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) promptly upon any adjustment of the Exercise Price, setting forth in reasonable detail, and certifying, the
calculation of such adjustment, (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record
(A) with respect to any dividend or distribution upon the 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 pro rata to holders of shares
of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation and (iii)
ten (10) Business Days (or such shorter period as is reasonably practicable under the circumstances if the Company does not have 10 Business
Days’ prior notice) prior to the consummation of any Fundamental Transaction; 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 but only to the extent the
information in such notice constitutes material non-public information regarding the Company. It is expressly understood and agreed that
the time of exercise specified by the Holder in each Exercise Notice shall be definitive and may not be disputed or challenged by the
Company.

 

    - 9 -

     

    

 

9. 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 Holder. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach
or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before
or after that waiver. No failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Warrant
shall operate or be construed 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, remedy, power or privilege.

 

10. 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. Each party hereto 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 such party 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. 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 to such party at the address set forth with respect to such party in Section 8 or such other address
as such party subsequently delivers to the other party 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 a party hereto from bringing suit or taking other
legal action against the other party in any other jurisdiction to collect on its obligations to the other party, 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 other party.
If either party shall commence an action, suit or proceeding to enforce any provisions of this Warrant, the prevailing party in such
action, suit or proceeding shall be reimbursed by the other party for their reasonable attorneys’ fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such action or proceeding. EACH PARTY HERETO 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.

 

11.  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 or other event 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.

 

12. 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 any 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 or the Company to
pursue actual damages for any failure by the other party to comply with the terms of this Warrant. Each of the Company and the
Holder acknowledges that a breach by such party of its obligations hereunder will cause irreparable harm to the other party and that
the remedy at law for any such breach may be inadequate. The Company and the Holder therefore agree that, in the event of any such
breach or threatened breach, the other party 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.

 

    - 10 -

     

    

 

13. TRANSFER.
Subject to the transfer conditions referred to in the legend hereon and compliance with Section 7(a), this Warrant and the
Warrant Shares may be offered for sale, sold, transferred, pledged or assigned without the consent of the Company.

 

14. COMPLIANCE
WITH THE SECURITIES ACT.

 

(a) Agreement to Comply with the Securities Act; Legend. The Holder, by acceptance of this Warrant, agrees to comply in all respects
with the provisions of this Section 14 and the restrictive legend requirements set forth on the face of this Warrant and further
agrees that such Holder shall not offer, sell or otherwise dispose of this Warrant or any Warrant Shares to be issued upon exercise hereof
except under circumstances that will not result in a violation of the Securities Act. This Warrant and all Warrant Shares issued upon
exercise of this Warrant (unless registered under the Securities Act) shall be stamped or imprinted with a legend in substantially the
following form:

 

“THE
SECURITIES REPRESENTED BY THIS WARRANT, AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE ISSUER
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.”

 

(b) Representations of the Holder. In connection with the issuance of this Warrant, the Holder specifically represents, as of the
date hereof, to the Company by acceptance of this Warrant as follows:

 

(1) The Holder is an “accredited investor” as defined in Rule 501(a) of Regulation D promulgated under the Securities Act. The
Holder is acquiring this Warrant and the shares of Common Stock to be issued upon exercise hereof for investment for its own account
and not with a view towards, or for resale in connection with, the public sale or distribution of this Warrant or the Warrant Shares,
except pursuant to sales registered or exempted under the Securities Act.

 

(2) The Holder understands and acknowledges that this Warrant and the shares of Common Stock to be issued upon exercise hereof are “restricted
securities” under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving
a public offering and that, under such laws and applicable regulations, such securities may be resold without registration under the
Securities Act only in certain limited circumstances. In addition, the Holder represents that it is familiar with Rule 144 under the
Securities Act, as presently in effect (“Rule 144”), and understands the resale limitations imposed thereby and by
the Securities Act.

 

(3) The Holder acknowledges that it can bear the economic and financial risk of its investment for an indefinite period, and has such knowledge
and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Warrant
and the Warrant Shares. The Holder has had an opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of the offering of the Warrant and the business, properties, prospects and financial condition of the Company.

 

(c) Acknowledgement of the Company. The Company acknowledges and agrees that the Holder may from time to time pledge pursuant to a
bona fide margin agreement with a registered broker-dealer or grant a security interest in some or all of this Warrant or the Warrant
Shares to a financial institution that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and,
if required under the terms of such arrangement, Holder may transfer any pledged or secured Warrant or Warrant Shares to the pledgees
or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of
the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge.
At the Holder’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of this
Warrants or any Warrant Shares may reasonably request in connection with a pledge or transfer of this Warrant or any Warrant Shares.

 

    - 11 -

     

    

 

(d) Removal of Legends. This Warrant and the Warrant Shares shall not be required to contain the legend set forth in Section 14(a)
or any other legend (i) following any sale of the Warrant or Warrant Shares pursuant to Rule 144 (assuming the transferor is not
an affiliate of the Company), provided that the Holder furnishes the Company with reasonable assurances that such Warrant or Warrant
Shares are eligible for sale, assignment or transfer under Rule 144 which shall not include an opinion of the Holder’s counsel,
(ii) in connection with a sale, assignment or other transfer (other than under Rule 144), provided that the Holder provides the Company
with an opinion in a form reasonably acceptable to the Company to the effect that such sale, assignment or transfer of the Warrant or
Warrant Shares may be made without registration under the applicable requirements of the Securities Act or (iii) if such legend is not
required or customarily included under applicable provisions of the Securities Act (including, without limitation, controlling judicial
interpretations and pronouncements issued by the SEC). If a legend is not required pursuant to the foregoing, the Company shall no later
than two (2) Business Days (or such earlier date as required pursuant to the 1934 Act or other applicable law, rule or regulation for
the settlement of a trade initiated on the date the Holder delivers notice to the Company with respect to this Warrant or any Warrant
Shares issued in the form of book-entries or, if applicable, delivers a legended certificate representing Warrant Shares to the Company)
following the delivery by the Holder to the Company or the Transfer Agent (with notice to the Company) of notice with respect to this
Warrant or any Warrant Shares issued in the form of book-entries or, if applicable, a legended certificate representing any Warrant Shares
(endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer,
if applicable), together with any other deliveries from the Holder as may be reasonably required above in this Section 14(c) (such
date, the “Legend Removal Date”), as directed by the Holder, either: (A) provided that the Transfer Agent is participating
in FAST, credit the applicable number of Warrant Shares to the Holder’s or its designee’s balance account with DTC through
its Deposit/Withdrawal at Custodian system or (B) with respect to this Warrant or if the Transfer Agent is not participating in FAST,
issue and deliver (via reputable overnight courier) to the Holder, an updated form of this Warrant or a certificate representing Warrant
Shares, as applicable, in the case of each of clauses (A) and (B) above, free from all restrictive and other legends, registered in the
name of the Holder or its designee. The Company shall be responsible for any transfer agent fees or DTC fees with respect to any issuance
of Warrant Shares or the removal of any legends with respect to this Warrant or any Warrant Shares in accordance herewith. Notwithstanding
the foregoing, the Company and the Holder acknowledge and agree that the Warrant and the Warrant Shares will continue to have a holding
period under Rule 144, that will be deemed to have commenced as of March 23, 2022. The Company further acknowledges and agrees that it
will neither assert nor maintain a contrary position with respect to the date of commencement of the holding period under Rule 144 with
respect to the Warrant and the Warrant Shares.

 

(e) In addition to the Holder’s other available remedies hereunder, the Company shall pay to the Holder, in cash, (i) as partial liquidated
damages and not as a penalty, for each $1,000 of Warrant Shares (based on the Weighted Average Price of the Common Stock on the date
the Holder delivers notice or a legended certificate, as applicable, to the Company or the Transfer Agent with respect to such Warrant
Shares pursuant to Section 14(d)) delivered for removal of the restrictive legend and subject to Section 14(d), $10 per
Trading Day (increasing to $20 per Trading Day five (5) Trading Days after such damages have begun to accrue) for each Trading Day after
the Legend Removal Date until such Warrant Shares are delivered without a legend and (ii) if the Company is obligated to remove the restrictive
legends pursuant to Section 14(d) but fails to (a) issue and deliver (or cause to be delivered) Warrant Shares to the Holder by
the Legend Removal Date that are free from all restrictive and other legends and (b) if after the Legend Removal Date the Holder purchases
(in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of all or any
portion of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number
of shares of Common Stock, that the Holder anticipated receiving from the Company without any restrictive legend, then an amount equal
to the excess of the Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for
the shares of Common Stock so purchased (including brokerage commissions and other out-of-pocket expenses, if any) over the product of
(A) such number of Warrant Shares that the Company was required to deliver to the Holder by the Legend Removal Date multiplied by (B)
the price at which the sell order giving rise to such purchase obligation was executed.

 

(f)
In order to facilitate the Company filing a registration statement covering the issuance or resale of any Warrant Shares issued and issuable
upon exercise of this Warrant, the Holder hereby agrees to provide the Company with, following reasonable advance written request by
the Company, an executed selling stockholder questionnaire in a form reasonably acceptable to the Holder and the Company as is customary
under the circumstances.

 

    - 12 -

     

    

 

15. SEVERABILITY;
CONSTRUCTION; HEADINGS. 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). This Warrant shall be deemed to be jointly drafted by the Company and the Holder 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.

 

16. DISCLOSURE. Upon delivery by the Company to the Holder (or receipt by the Company from the Holder) of any notice in accordance
with the terms of this Warrant, unless the Company has in good faith determined that the matters relating to such notice do not constitute
material, non-public information relating to the Company or any of its subsidiaries, the Company shall on or prior to 9:00 am, New York
City time on the Business Day immediately following such notice delivery date, publicly disclose such material, non-public information
on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice contains material, non-public information
relating to the Company or any of its subsidiaries, the Company so shall indicate to the Holder explicitly in writing in such notice
(or immediately upon receipt of notice from the Holder, as applicable), and in the absence of any such written indication in such notice
(or notification from the Company immediately upon receipt of notice from the Holder), the Holder shall be entitled to presume that information
contained in the notice does not constitute material, non-public information relating to the Company or any of its subsidiaries. Nothing
contained in this Section 16 shall limit any obligations of the Company, or any rights of the Holder, under any other agreement
by and between the Company and the Holder.

 

17. ABSENCE OF TRADING AND DISCLOSURE RESTRICTIONS. The Company acknowledges and agrees that the Holder is not a fiduciary or agent
of the Company and that the Holder shall have no obligation to (a) maintain the confidentiality of any information provided by the Company
or (b) refrain from trading any securities while in possession of such information in the absence of a written non-disclosure agreement
signed by the Holder that explicitly provides for such confidentiality and trading restrictions. In the absence of such an executed,
written non-disclosure agreement, the Company acknowledges that the Holder may freely trade in any securities issued by the Company,
may possess and use any information provided by the Company in connection with such trading activity, and may disclose any such information
to any third party.

 

18. COUNTERPARTS; ELECTRONIC SIGNATURES. This Warrant may be executed in counterparts, each of which shall be deemed an original,
but all of which together shall be deemed to be one and the same agreement. A signed copy of this Warrant delivered by facsimile, e-mail
or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this
Warrant. A party’s electronic signature (complying with the New York Electronic Signatures and Records Act (N.Y. State Tech. §§
301-309), as amended from time to time, or other applicable law) of this Agreement shall have the same validity and effect as a signature
affixed by the party’s hand.

 

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

 

(a) “Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled
by, or is under common control with, such Person, it being understood for purposes of this definition that “control” of a
Person means the power directly or indirectly either to vote 10% or more of the stock having ordinary voting power for the election of
directors of such Person or direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 

(b) “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 Subscription Date, directly or indirectly managed
or advised by the Holder’s investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of
the Holder or any of the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or
any of the foregoing and (iv) any other Persons whose beneficial ownership of the Company’s Common Stock would or could be aggregated
with the Holder’s and the other Attribution Parties for purposes of Section 13(d) of the 1934 Act. For clarity, the purpose of
the foregoing is to subject collectively the Holder and all other Attribution Parties to the Maximum Percentage.

 

    - 13 -

     

    

 

(c) “Bid Price” means, for any security as of the particular time of determination, the bid price for such security on
the Principal Market as reported by Bloomberg as of such time of determination, or, if the Principal Market is not the principal securities
exchange or trading market for such security, the bid price of such security on the principal securities exchange or trading market where
such security is listed or traded as reported by Bloomberg as of such time of determination, or if the foregoing does not apply, the
bid price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg
as of such time of determination, or, if no bid price is reported for such security by Bloomberg as of such time of determination, the
average of the bid prices of any market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc.
(formerly Pink Sheets LLC) as of such time of determination. If the Bid Price cannot be calculated for a security as of the particular
time of determination on any of the foregoing bases, the Bid Price of such security as of such time of determination shall be the fair
market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market
value of such security, then such dispute shall be resolved in accordance with the procedures in Section 11. All such determinations
shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

(d) “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 first public announcement of the applicable
Change of Control, or, if the Change of Control is not publicly announced, the date the Change of Control 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 75%, (iii) the underlying price per share used in such
calculation shall be the greater of (a) 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 such Change of Control and (b) the greater of (1) the last Weighted Average Price immediately
prior to the announcement of such Change of Control, (2) the Weighted Average Price immediately after the announcement of such Change
of Control and (3) the last Weighted Average Price immediately prior to the consummation of such Change of Control, (iv) a remaining
option time equal to the time between the date of the public announcement of the applicable Change of Control and the Expiration Date
and (v) a zero cost of borrow.

 

(e) “Bloomberg” means Bloomberg Financial Markets.

 

(f)
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New
York are authorized or required by law to remain closed.

 

(g) “Change of Control” means any Fundamental Transaction other than (i) any reorganization, recapitalization or reclassification
of the Common Stock in which holders of the Company’s voting power immediately prior to such reorganization, recapitalization or
reclassification continue after such reorganization, recapitalization or reclassification to hold publicly traded securities and, directly
or indirectly, are, in all material respects, the holders of the voting power of the surviving entity (or entities with the authority
or voting power to elect the members of the board of directors (or their equivalent if other than a corporation) of such entity or entities)
after such reorganization, recapitalization or reclassification, (ii) pursuant to a migratory merger effected solely for the purpose
of changing the jurisdiction of incorporation of the Company or (iii) a merger in connection with a bona fide acquisition by the Company
of any Person in which (x) the gross consideration paid, directly or indirectly, by the Company in such acquisition is not equal to or
greater than 50% of the Company’s market capitalization as calculated on the date of the announcement of such merger and the date
of the consummation of such merger and (y) such merger does not contemplate a change to the identity of a majority of the Board of Directors
of the Company. Notwithstanding anything herein to the contrary, any transaction or series of transaction that, directly or indirectly,
results in the Company or the Successor Entity not having Common Stock or common stock, as applicable, registered under the 1934 Act
and listed on an Eligible Market shall be deemed a Change of Control.

 

(h) “Closing Sale Price” means, for any security as of any date, the 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 trade price then the last trade price, 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 trade
price 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 trade price of such security in the over-the-counter market on the electronic bulletin
board for such security as reported by Bloomberg, or, if no last trade price 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 on the “pink
sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Sale Price cannot be calculated for a security on
a particular date on any of the foregoing bases, the Closing Sale 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 11. 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.

 

    - 14 -

     

    

 

(i)
“Common Stock” means (i) the Company’s Common Stock, par value $0.001 per share, and (ii) any capital
stock into which such Common Stock shall have been changed or any capital stock resulting from a reclassification of such Common Stock.

 

(j)
“Convertible Securities” means any capital stock or other security of the Company or any of its subsidiaries (other
than Options) that is at any time and under any circumstances directly or indirectly convertible into, exercisable or exchangeable for,
or which otherwise entitles the holder thereof to acquire, any capital stock or other security of the Company (including, without limitation,
shares of Common Stock) or any of its subsidiaries.

 

(k) “Daily VWAP” means, for any VWAP Trading Day, the per share volume-weighted average price of the Common Stock as displayed
under the heading “Bloomberg VWAP” on Bloomberg page “MWK <EQUITY> VAP” (or, if such page is not available,
its equivalent successor page) in respect of the period from the scheduled open of trading until the scheduled close of trading of the
primary trading session on such VWAP Trading Day (or, if such volume-weighted average price is unavailable, the market value of one share
of Common Stock on such VWAP Trading Day, determined, using a volume-weighted average price method, by a nationally recognized independent
investment banking firm selected by the Company). The Daily VWAP will be determined without regard to after-hours trading or any other
trading outside of the regular trading session.

 

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

 

(m)
“Expiration Date” means the date that is five (5) years and six (6) months after the Issuance 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.

 

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

 

(o) “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.

 

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

 

    - 15 -

     

    

 

(q) “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person, including
such entity whose common stock or equivalent equity security is quoted or listed on an Eligible Market (or, if so elected by the Holder,
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 Holder 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 or Change of Control.

 

(r)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust,
an unincorporated organization, any other entity and a government or any department or agency thereof.

 

(s)
“Principal Market” means The Nasdaq Capital Market.

 

(t)
“Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, for the
Company’s primary trading market or quotation system with respect to the Common Stock that is in effect on the date of receipt
of an applicable Exercise Notice.

 

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

 

(v) “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 Change of Control 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 or Change of Control shall have been entered
into.

 

(w)
“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.

 

(x) “Transaction Documents” means any agreement entered into by and between the Company and the Holder, as applicable,
in connection with or pursuant to this Warrant.

 

(y) “VWAP Market Disruption Event” means, with respect to any date, (A) the failure by the principal U.S. national or
regional securities exchange on which the Common Stock is then listed, or, if the Common Stock is not then listed on a U.S. national
or regional securities exchange, the principal other market on which the Common Stock is then traded, to open for trading during its
regular trading session on such date; or (B) the occurrence or existence, for more than one half hour period in the aggregate, of any
suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the relevant exchange or otherwise)
in the Common Stock or in any options contracts or futures contracts relating to the Common Stock, and such suspension or limitation
occurs or exists at any time before 1:00 p.m., New York City time, on such date.

 

(z) “VWAP Trading Day” means a day on which (A) there is no VWAP Market Disruption Event; provided that the Holder, by
notice to the Company, may waive any such VWAP Market Disruption Event; and (B) trading in the Common Stock generally occurs on the principal
U.S. national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on
a U.S. national or regional securities exchange, on the principal other market on which the Common Stock is then traded. If the Common
Stock is not so listed or traded, then “VWAP Trading Day” means a Business Day.

 

(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 11 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]

 

    - 16 -

     

    

 

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

 

	 	AGRIFY
    CORPORATION
	 	 
	 	By:	    
	 	Name: 	Raymond
    Chang
	 	Title:	Chief
    Executive Officer

 

     

     

    

 

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

 

	 	HIGH
    TRAIL SPECIAL SITUATIONS LLC
	 	 
	 	By:	 
	 	Name: 	Eric
    Helenek
	 	Title:	Authorized
    Signatory

 

     

     

    

 

EXHIBIT
A

 

EXERCISE
NOTICE

 

TO
BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS

WARRANT
TO PURCHASE COMMON STOCK

 

AGRIFY
CORPORATION

 

The
undersigned holder hereby exercises the right to purchase _________________ shares of Common Stock (“Warrant Shares”)
of Agrify Corporation, a corporation organized under the laws of Delaware (the “Company”), evidenced by the attached
Warrant to Purchase Common Stock (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.

 

4. Maximum Percentage Representation. Notwithstanding anything to the contrary contained herein, this Exercise Notice shall constitute a
representation by the Holder of the Warrant submitting this Exercise Notice that, after giving effect to the exercise provided for in
this Exercise Notice, such Holder (together with the other Attribution Parties) will not have beneficial ownership of a number of shares
of Common Stock in excess of the Maximum Percentage of the total outstanding shares of Common Stock of the Company as determined pursuant
to the provisions of Section 1(f) of the Warrant.

 

Date:
_______________ __, ______

 

	 	 
	Name of Registered Holder	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

ACKNOWLEDGMENT

 

The
Company hereby acknowledges this Exercise Notice and hereby directs Broadridge Corporate Issuer Solutions, Inc. to issue the above indicated
number of shares of Common Stock on or prior to the applicable Share Delivery Date.

 

 

	 	AGRIFY CORPORATION
	 	 	 
	 	By:	                                                             
	 	Name: 	 
	 	Title:

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