Document:

Exhibit 4.1

 

SENIOR CONVERTIBLE DEBENTURE

 

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

 

COMSovereign
Holding Corp.

 

9% Senior Convertible Debenture

 

	Issuance Date:  ___________, 2020	Principal Amount: U.S. $[_________]

 

 

FOR VALUE RECEIVED,
COMSOVEREIGN HOLDING CORP., a Nevada corporation (the “Company”), hereby promises to pay to the order of [____________]
or its registered assigns (“Holder”) the amount set out above as the Principal Amount (the “Principal”)
when due, whether upon the Maturity Date (as defined below), acceleration, redemption, conversion or otherwise (in each case in
accordance with the terms hereof) and to pay interest (“Interest”) on the outstanding Principal at the applicable Interest
Rate (as defined below) from the date set out above as the Issuance Date (the “Issuance Date”) until the same becomes
due and payable, whether upon the Maturity Date or acceleration, conversion, redemption or otherwise (in each case in accordance
with the terms hereof). This 9% Senior Convertible Debenture (this “Debenture”) is one of an issue of 9% Senior Convertible
Debentures issued pursuant one or more subscription agreements having terms substantially identical to the Subscription Agreement
(as defined below) (collectively, the “Other Debentures” and together with this Debenture, the “Debentures”).
Certain capitalized terms used herein and in the Conversion Notice in Exhibit I are defined in Section 23. All other capitalized
terms not defined herein shall have the meaning given to such terms in the Subscription Agreement.

 

1. INTEREST.

 

(a) Interest
Rate. So long as no Event of Default shall have occurred and be continuing, Interest on this Debenture shall accrue at a rate
equal to nine percent (9%) simple interest per annum. If an Event of Default shall have occurred and be continuing, the Interest
Rate shall automatically be increased to a rate equal to fifteen percent (15%) simple interest per annum during the period of such
Event of Default, until such Event of Default is later cured.

 

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(b) Payment of
Interest in Cash or Kind. The Company shall pay interest to the Holder on the aggregate unconverted and then outstanding
principal amount of this Debenture at the applicable interest rate per annum, payable in one lump sum on the Maturity Date
(each such date, an “Interest Payment Date”) (if any Interest Payment Date is not a Business Day, then the
applicable payment shall be due on the next succeeding Business Day), in cash or, at the Company’s option, in duly
authorized, validly issued, fully paid and non-assessable shares of Common Stock, par value $0.0001 per share (the
“Common Stock”), of the Company at the then-applicable Conversion Price (as defined in Section 3 below)
 (the dollar amount to be paid in shares, the “Interest Share Amount”) or a combination thereof.  

 

(c) Notice
of Company’s Election to Pay Interest in Cash or Kind. Subject to the terms and conditions herein, the decision whether
to pay interest hereunder in cash, shares of Common Stock or a combination thereof shall be at the sole discretion of the Company.
At least ten (10) days prior to each Interest Payment Date, the Company shall deliver to the Holder a written notice of its election
to pay interest hereunder on the applicable Interest Payment Date either in cash, shares of Common Stock or a combination thereof
and the Interest Share Amount as to the applicable Interest Payment Date, provided that the Company may indicate in such notice
that the election contained in such notice shall apply to future Interest Payment Dates until revised by a subsequent notice. During
any the period between the delivery of any such notice and the applicable Interest Payment Date, the Company’s election (whether
specific to an Interest Payment Date or continuous) shall be irrevocable as to such Interest Payment Date. Subject to the aforementioned
conditions, failure to timely deliver such written notice to the Holder shall be deemed an election by the Company to pay the interest
on such Interest Payment Date in cash.

 

(d) Interest
Calculations. Interest shall be calculated on the basis of the actual number of days elapsed and a 365-day year, and shall
accrue daily commencing on the Issuance Date until payment in full of the outstanding principal, together with all accrued and
unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made. Payment of interest in shares
of Common Stock shall otherwise occur pursuant to Section 3 herein and, solely for purposes of the payment of interest in shares,
the Interest Payment Date shall be deemed the Conversion Date. Interest shall cease to accrue with respect to any principal amount
converted, provided that, the Company actually delivers the Conversion Shares within the time period required by Section 3 herein.
Interest hereunder will be paid to the Person in whose name this Debenture is registered on the records of the Company regarding
registration and transfers of this Debenture maintained pursuant to Section 3(b)(ii). Except as otherwise provided herein, if at
any time the Company pays interest partially in cash and partially in shares of Common Stock to the holders of the Debentures,
then such payment of cash shall be distributed ratably among the holders of the then-outstanding Debentures based on their (or
their predecessor’s) initial purchases of Debentures pursuant to the Subscription Agreements.

 

(e) Prepayment.
Except as otherwise set forth in this Debenture (including Section 2(a)), the Company may not prepay any portion of the principal
amount of this Debenture without the prior written consent of the Holder.

 

2. OPTIONAL
REDEMPTION.

 

(a) Optional
Redemption Upon Liquidation Event.  The Company may not consummate or effect a Liquidation Event unless the Company
provides to the Holder of this Debenture at least 20 days’ prior written notice of such proposed Liquidation Event and
the opportunity to demand, at the option of the Holder, the redemption of this Debenture at a redemption price equal to the
Optional Redemption Amount (such redemption, an “Optional Redemption”).  In the event of any voluntary or
involuntary Liquidation Event, if the Holder of this Debenture shall have elected pursuant to this Section 2 to have this
Debenture redeemed, in whole or in part, the Holder shall be entitled to be paid out of the assets of the Company on or prior
to the date of such Liquidation Event and before any payment shall be made to the holders of capital stock of the Company by
reason of their ownership thereof, an amount equal to the Optional Redemption Amount with respect to the principal amount of
this Debenture to be redeemed.  If upon any Liquidation Event, the assets of the Company available for distribution
shall be insufficient to pay the Holder and the holders of Other Debentures who have properly elected the redemption of their
Other Debentures the full amount to which they shall be entitled under this Section 2(a), the Holder and such holders of
Other Debentures shall share ratably in any distribution of the assets available for distribution in proportion to the
respective principal amounts of Debentures to be redeemed.

 

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(b) Notice
of Redemption.  The Company shall send notice to the Holder of a proposed Liquidation Event at least twenty (20) days
prior to the date the Company consummates or effects such proposed Liquidation Event advising the Holder of the Holder’s
right (and providing the form of optional redemption notice to the Company (a “Redemption Demand”) to be provided by
the Holder to the Company to secure such right) to demand the redemption of this Debenture on or prior to the date of consummation
or effectiveness of such proposed Liquidation Event, and the Holder shall have a minimum of fifteen (15) days to deliver to the
Company the  completed Redemption Demand and thereby notify the Company of the Holder’s election to require the Company
to redeem this Debenture in whole or in part.   

 

(c) Failure
to Effect Liquidation Event.   If the Company provides notice of a proposed Liquidation Event, the Company shall
have no duty or obligation to consummate, complete or effect such proposed Liquidation Event, and if the Company fails to consummate,
complete or effect such proposed Liquidation Event any Redemption Demand received by the Company in respect of such proposed Liquidation
Event shall be void and unenforceable and the Company shall have no obligation to redeem this Debenture pursuant thereto.

 

(d) Right
to Rescind. If any portion of the payment pursuant to an Optional Redemption shall not be paid by the Company on the applicable
due date, interest shall accrue thereon at an interest rate equal to the lesser of 15% per annum or the maximum rate permitted
by applicable law until such amount is paid in full. Notwithstanding anything herein contained to the contrary, if any portion
of the Optional Redemption Amount remains unpaid after the applicable due date, the Holder may elect, by written notice to the
Company given at any time thereafter and prior to payment of the Optional Redemption Amount, to rescind and invalidate such Optional
Redemption, ab initio, and, thereafter, due to the Company’s failure to honor the Optional Redemption, the Company
shall have no further right to effect such Optional Redemption.

 

3. CONVERSION
OF DEBENTURES. This Debenture shall be convertible into validly issued, fully paid and non-assessable shares of Common Stock,
on the terms and conditions set forth in this Section 3.

 

(a) Optional
Conversion. At any time after the Issuance Date, the Holder shall be entitled, at its option, to convert the unpaid Principal
of and all accrued and unpaid Interest on this Debenture into that number of shares of Common Stock equal to the quotient of (A)
the Conversion Amount (as defined below) divided by (B) the Conversion Price. For the purposes of this Section 3(a), the “Conversion
Price” shall be equal to $1.00, as adjusted after the Issuance Date in accordance with Section 5.

 

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(b) Mechanics
of Conversion.

 

(i) Conversion; Issuance of
Shares. To convert this Debenture pursuant to Section 3(a) above into shares of Common Stock on any date (a
“Conversion Date”), the Holder shall deliver (whether via facsimile or otherwise) a copy of a properly and
fully-completed and executed notice of conversion in the form attached hereto as Exhibit I (the “Conversion
Notice”) to the Company. On or before the second Business Day following the date of receipt of such Conversion Notice,
the Company shall transmit by facsimile or email (by attachment in PDF format) an acknowledgment of confirmation, in the form
attached hereto as Exhibit II, of receipt of such Conversion Notice to the Holder and the Company’s transfer
agent (the “Transfer Agent”). On or before the third Business Day following the date of receipt of a Conversion
Notice, the Company shall instruct the Transfer Agent to issue and deliver (via reputable overnight courier) to the Holder of
a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the
Holder shall be entitled, with the following legend and the legends required applicable law:

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY),
IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE
TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

(ii) Registration;
Book-Entry. The Company shall maintain a register (the “Register”) for the recordation of the names and addresses
of the holders of each Debenture and the principal amount of the Debentures held by such holders (the “Registered Debentures”).
The entries in the Register shall be conclusive and binding for all purposes absent manifest error. The Company and the holders
of the Debentures shall treat each Person whose name is recorded in the Register as the owner of a Debenture for all purposes (including,
without limitation, the right to receive payments of Principal and Interest hereunder) notwithstanding notice to the contrary.
A Registered Debenture may be assigned, transferred or sold in whole or in part only by registration of such assignment or sale
on the Register. Upon its receipt of a written request to assign, transfer or sell all or part of any Registered Debenture by the
holder thereof and subject to the holder’s compliance with Section 11, the Company shall record the information contained
therein in the Register and issue one or more new Registered Debentures in the same aggregate principal amount as the principal
amount of the surrendered Registered Debenture to the designated assignee or transferee pursuant to Section 12, provided that if
the Company does not so record an assignment, transfer or sale (as the case may be) of all or part of any Registered Debenture
within two (2) Business Days of its receipt of such a request, then the Register shall be automatically updated to reflect such
assignment, transfer or sale (as the case may be). The Holder and the Company shall maintain records showing the Principal and
Interest converted and/or paid (as the case may be) and the dates of such conversion and/or payments (as the case may be) or shall
use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Debenture
upon conversion.

 

(iii) No
Fractional Shares; Transfer Taxes. The Company shall not issue any fraction of a share of Common Stock upon any conversion.
If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of
a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer, stamp, issuance and similar
taxes that may be payable with respect to the issuance and delivery of Common upon any conversion.

 

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4. RIGHTS
UPON EVENT OF DEFAULT.

 

(a) Event
of Default. Each of the following events shall constitute an “Event of Default”:

 

(i) any
default in the payment of (A) the principal amount of this Debenture or (B) interest, premium, liquidated damages and other amounts
owing to the Holder on this Debenture, as and when the same shall become due and payable (whether on an Interest Payment Date,
an Optional Redemption Date, a Conversion Date or on the Maturity Date or by acceleration or otherwise), which default is not cured
within five (5) Business Days;

 

(ii) other
than as specifically set forth in clauses (i) and (ii) of this Section 4(a), the Company’s failure to perform or observe
any covenant or agreement set forth in this Debenture in any material respect, but only if such failure remains uncured for a period
of at least five (5) days;

 

(iii) other
than as specifically set forth in another clause of this Section 4(a), the Company breaches any material representation or warranty,
or fails to perform or breaches or observe any covenant or other term or condition of any Transaction Document, except, in the
case of a breach of a covenant or other term or condition that is curable, only if such breach remains uncured for a period of
thirty (30) days after actual knowledge of the Company of such breach;

 

(iv) liquidation
proceedings shall be instituted by or against the Company and, if instituted, shall not be dismissed within sixty (60) days of
their initiation;

 

(v) bankruptcy,
insolvency, reorganization or other proceedings for the relief of debtors shall be instituted against the Company and shall not
be dismissed within sixty (60) days of their initiation;

 

(vi) the
commencement by the Company of a voluntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency,
reorganization or other similar law or the consent by the Company to the entry of a decree, order, judgment or other similar document
in respect of the Company in an involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the
filing by the Company of a petition or answer or consent seeking reorganization or relief under any applicable federal, state or
foreign law, or the consent by the Company to the filing of such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its
property, or the making by the Company of an assignment for the benefit of creditors, or the execution of a composition of debts,
or the occurrence of any other similar federal, state or foreign proceeding, or the admission by the Company in writing of its
inability to pay its debts generally as they become due, the taking of corporate action by the Company in furtherance of any such
action;

 

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(vii) the entry by a court of (i) a decree,
order, judgment or other similar document in respect of the Company of a voluntary or involuntary case or proceeding under any
applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law; or (ii) a decree, order, judgment
or other similar document adjudging the Company as bankrupt or insolvent, or approving as properly filed a petition seeking liquidation,
reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable federal, state or
foreign law; or (iii) a decree, order, judgment or other similar document appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or of any substantial part of its property, or ordering the winding
up or liquidation of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such
other decree, order, judgment or other similar document unstayed and in effect for a period of sixty (60) consecutive days;

 

(viii) a
final judgment or judgments for the payment of money aggregating in excess of $2,500,000 are rendered against the Company and which
judgments are not, within sixty (60) days after the entry thereof, bonded, discharged or stayed pending appeal, or are not discharged
within sixty (60) days after the expiration of such stay;

 

(ix) the
Company fails to pay, when due, or within any applicable grace period, any payment with respect to any Indebtedness in excess of
$2,500,000 due to any third party (other than, with respect to unsecured Indebtedness only, payments contested by the Company in
good faith by proper proceedings and with respect to which adequate reserves have been set aside for the payment thereof in accordance
with GAAP) or is otherwise in breach or violation of any agreement for monies owed or owing in an amount in excess of $2,500,000,
which breach or violation permits the other party thereto to declare a default or otherwise accelerate amounts due thereunder;
or

 

(x) any
Event of Default (as defined in the Other Debentures) occurs with respect to any Other Debentures.

 

(b) Notice
of an Event of Default. Upon the occurrence of an Event of Default with respect to this Debenture or any Other Debenture, the
Company shall within two (2) Business Days deliver written notice thereof via facsimile and overnight courier (with next day delivery
specified) (an “Event of Default Notice”) to the Holder. At any time after the earlier of the Holder’s receipt
of an Event of Default Notice and the Holder becoming aware of an Event of Default, the Holder may, by notice to the Company, declare
this Debenture to be forthwith due and payable, whereupon the Principal and all accrued and unpaid Interest thereon, plus all costs
of enforcement and collection (including court costs and reasonable attorney’s fees), shall immediately become and be forthwith
due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by
the Company. No course of dealing on the part of the Holder nor any delay or failure on the part of the Holder to exercise any
right shall operate as waiver of such right or otherwise prejudice such Holder’s rights, power and remedies.

 

5. ADJUSTMENT
OF CONVERSION PRICE.

 

(a) Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. If the Company 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
Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. If the Company at any time 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 Conversion Price in effect immediately prior to such combination will be proportionately increased. Any adjustment
pursuant to this Section 5(a) shall become effective immediately after the effective date of such subdivision or combination.

 

(b) Not
applicable this section.

 

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(c) Pro Rata Distributions.
During such time as this Debenture is outstanding, if the Company shall declare or make any dividend or other distribution of
its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise
(including, without limitation, any distribution of cash, stock or other securities, property or options by way of a
dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a
“Distribution”), at any time after the issuance of this Debenture, then, in each such case, at the sole option of
the Holder, the Holder shall be provided an opportunity to convert this Debenture into Common Stock pursuant to Section 3
hereof immediately prior to the dividend or other distribution.

 

(d) Fundamental
Transaction. If, at any time while this Debenture is outstanding, (i) the Company, directly or indirectly, in one or more
related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or
substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer,
tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common
Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by
the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related
transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or
property, (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase
agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or
scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of
Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or
associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business
combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of this Debenture, the
Holder shall have the right to receive, for each share of Common Stock that would have been issuable upon such conversion
immediately prior to the occurrence of such Fundamental Transaction, the number of shares of Common Stock of the successor or
acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the
“Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of
shares of Common Stock for which this Debenture is convertible immediately prior to such Fundamental Transaction. For
purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such
Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock
in such Fundamental Transaction, and the Company shall apportion the Conversion Price among the Alternate Consideration in a
reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Debenture
following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which
the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the
Company under this Debenture and the other Transaction Documents in accordance with the provisions of this Section 5(d) and
shall, at the option of the holder of this Debenture, deliver to the Holder in exchange for this Debenture a security of the
Successor Entity evidenced by a written instrument substantially similar in form and substance to this Debenture which is
convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
to the shares of Common Stock acquirable and receivable upon conversion of this Debenture prior to such Fundamental
Transaction, and with a conversion price which applies the conversion price hereunder to such shares of capital stock (but
taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value
of such shares of capital stock, such number of shares of capital stock and such conversion price being for the purpose of
protecting the economic value of this Debenture immediately prior to the consummation of such Fundamental Transaction), and
which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such
Fundamental Transaction, the provisions of this Debenture 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 Debenture and the other Transaction Documents with the same
effect as if such Successor Entity had been named as the Company herein.

 

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

 

(f) Notice
to the Holder.

 

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

 

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

 

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6. NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation or Bylaws
or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale
of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of
this Debenture, and will at all times in good faith carry out all of the provisions of this Debenture and take all action as
may be required to protect the rights of the Holder of this Debenture. Without limiting the generality of the foregoing, so
long as any of the Debentures remain outstanding, the Company (i) shall not increase the par value of any shares of Common
Stock receivable upon conversion of this Debenture above the Conversion Price then in effect and (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
non-assessable shares of Common Stock upon the conversion of this Debenture, including without limitation complying with
Section 7(b) hereof.

 

7. RESERVATION
OF AUTHORIZED SHARES.

 

(a) Reservation.
The Company shall at all times reserve and keep available out of its authorized but unissued shares Common Stock, solely for the
purpose of effecting the conversion of this Debenture, no less than one hundred ten percent (110%) of the maximum number of shares
issuable on conversion of this Debenture (the “Required Reserve Amount”).

 

(b) Insufficient
Authorized Shares. If, notwithstanding Section 7(a), and not in limitation thereof, at any time while any of the Debentures
remain outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy
its obligation to reserve a number of shares of Common Stock equal to the Required Reserve Amount (an “Authorized Share Failure”),
then the Company shall immediately take all action within its power 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 the Debentures then outstanding,
including without limitation using its best efforts to secure necessary Board of Directors and stockholder approvals, as further
described below, to appropriately amend the Company’s Certificate of Incorporation to provide for such increase. Without
limiting the generality of the foregoing sentence, if not earlier approved by written consent of the stockholders, as soon as practicable
after the date of the occurrence of an Authorized Share Failure, but in no event later than seventy (70) 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 any such meeting, the Company shall provide each stockholders with a proxy
statement and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common
Stock and to cause its Board of Directors to recommend to the stockholders that they approve such proposal.

 

8. COVENANTS.
Until all of the Debentures have been converted or otherwise satisfied in accordance with their terms:

 

(a) Rank.
All payments due under this Debenture shall rank pari passu with all Other Debentures.

 

(b) No
Impairment. The Company shall not enter into any agreement that would impair, interfere with or conflict with the Company’s
obligations hereunder.

 

(c) Assets
of Company. The Company shall not sell, lease, transfer or otherwise dispose of (including, without limitation, through licensing
or partnering arrangements) any material assets of the Company, other than in the ordinary course of business.

 

    9

     

    

 

9. DISTRIBUTION PARTICIPATION.
In addition to any adjustments pursuant to Section 5, if while this Debenture remains outstanding, the Company shall declare
or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common
Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other
securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of
arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Debenture,
then, in each such case, upon conversion of this Debenture entirely into Common Stock pursuant to Section 3(a), the Holder
shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein as
if the Holder had held, as of 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, the number of shares of Common Stock held immediately after such conversion.

 

10. AMENDING
THE TERMS OF THIS DEBENTURE. No provision of this Debenture may be amended other than by an instrument in writing signed by
the Company and the Required Holders which hold this Debenture and the Other Debentures then outstanding, and any amendment to
any provision of this Debenture made in conformity with the provisions of this Section 11 shall be binding on all Holders, provided
that no such amendment shall be effective to the extent that it (1) applies to less than all of the holders of the Debentures then
outstanding or (2) imposes any obligation or liability on any Holder without such Holder’s prior written consent (which may
be granted or withheld in such Holder’s sole discretion). No waiver of any provision of this Debenture shall be effective
unless it is in writing and signed by an authorized representative of the waiving party, provided that the Required Holders which
hold this Debenture and the Other Debentures then outstanding may waive any provision of this Debenture, and any waiver of any
provision of this Debenture made in conformity with the provisions of this Section 11 shall be binding on all Holders, provided
that no such waiver shall be effective to the extent that it (1) applies to less than all of the holders of the Debentures then
outstanding (unless a party gives a waiver as to itself only) or (2) imposes any obligation or liability on any Holder without
such Holder’s prior written consent (which may be granted or withheld in such Holder’s sole discretion). No amendment
to or waiver of any provision of this Debenture shall amend or waive any provision of any other Transaction Document.

 

11. TRANSFER.
The holder understands that except as provided in the Registration Rights Agreement: (i) the Debentures and the shares of Common
Stock issued upon conversion of the Debentures (the “Conversion Shares”) have not been and are not being registered
under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws, and may not be offered
for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) the holder shall have delivered to the
Company (if requested by the Company) an opinion of counsel to such holder, in a form reasonably acceptable to the Company, to
the effect that such Debentures or shares of Common Stock to be sold, assigned or transferred may be sold, assigned or transferred
pursuant to an exemption from such registration, or (C) such holder provides the Company with reasonable assurance and documentation
as may be requested by the Company or its legal counsel that such securities can be sold, assigned or transferred pursuant to Rule
144 or Rule 144A promulgated under the Securities Act (or a successor rule thereto) (collectively, “Rule 144”); (ii)
any sale of the Debentures or the Conversion Shares made in reliance on Rule 144 may be made only in accordance with the terms
of Rule 144, and further, if Rule 144 is not applicable, any resale of such securities under circumstances in which the seller
(or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act)
may require compliance with some other exemption under the Securities Act or the rules and regulations of the SEC promulgated thereunder;
and (iii) neither the Company nor any other Person is under any obligation to register the Debentures under the Securities Act
or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

    10

     

    

 

12. REISSUANCE
OF THIS DEBENTURE.

 

(a) Transfer. If this Debenture
is to be transferred, the Holder shall surrender this Debenture to the Company, whereupon the Company will forthwith issue
and deliver upon the order of the Holder a new Debenture (in accordance with Section 12(d)), registered as the Holder may
request, representing the outstanding Principal being transferred by the Holder and, if less than the entire outstanding
Principal is being transferred, a new Debenture (in accordance with Section 12(d)) to the Holder representing the outstanding
Principal not being transferred.

 

(b) Lost,
Stolen or Mutilated Debenture. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of this Debenture (as to which a written certification and the indemnification contemplated below
shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder
to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Debenture,
the Company shall execute and deliver to the Holder a new Debenture (in accordance with Section 12(d)) representing the outstanding
Principal.

 

(c) Debenture
Exchangeable for Different Denominations. This Debenture is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Debenture or Debentures (in accordance with Section 12(d) and in principal amounts of at least
$1,000) representing in the aggregate the outstanding Principal of this Debenture, and each such new Debenture will represent such
portion of such outstanding Principal as is designated by the Holder at the time of such surrender.

 

(d) Issuance
of New Debentures. Whenever the Company is required to issue a new Debenture pursuant to the terms of this Debenture, such
new Debenture (i) shall be of like tenor with this Debenture, (ii) shall represent, as indicated on the face of such new Debenture,
the Principal remaining outstanding (or in the case of a new Debenture being issued pursuant to Section 12(a) or Section 12(c),
the Principal designated by the Holder which, when added to the principal represented by the other new Debentures issued in connection
with such issuance, does not exceed the Principal remaining outstanding under this Debenture immediately prior to such issuance
of new Debentures), (iii) shall have an issuance date, as indicated on the face of such new Debenture, which is the same as the
Issuance Date of this Debenture, (iv) shall have the same rights and conditions as this Debenture, and (v) shall represent accrued
and unpaid Interest on the Principal of this Debenture, from the Issuance Date.

 

13. REMEDIES,
CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Debenture shall be cumulative
and in addition to all other remedies available under this Debenture at law or in equity (including a decree of specific performance
and/or other injunctive relief); provided, the Holder shall not be entitled to any duplication or multiplication of damages. The
Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided
herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof)
shall be the amounts to be received by the Holder and shall not, except as expressly provided herein be subject to any other obligation
of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that,
in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies,
to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and
without any bond or other security being required. The Company shall provide all information and documentation to the Holder that
is reasonably requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions
of this Debenture (including, without limitation, compliance with Section 5).

 

    11

     

    

 

14. PAYMENT OF
COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Debenture is placed in the hands of an attorney for collection or
enforcement of the debt evidenced hereby or is collected or enforced through any legal proceeding or the Holder otherwise
takes action to collect amounts due under this Debenture or to enforce the provisions of this Debenture or (b) there occurs
any bankruptcy, reorganization, receivership of the Company or other proceedings affecting Company creditors’ rights
and involving a claim under this Debenture, then the Company shall pay the reasonable costs incurred by the Holder for such
collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding,
including, without limitation, reasonable attorneys’ fees and disbursements.

 

15. CONSTRUCTION;
HEADINGS. This Debenture 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 Debenture are for convenience of reference and shall not form part of, or
affect the interpretation of, this Debenture.

 

16. FAILURE
OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it is in writing and
signed by an authorized representative of the waiving party.

 

17. DISPUTE
RESOLUTION. If the Holder and the Company are unable to agree as to the arithmetic calculation of the Conversion Price the
Holder and the Company will confer in good faith to resolve such disagreement and the Company shall promptly issue upon conversion
of this Debenture at the number of shares of Common Stock that are uncontested. Thereafter, the Company and Holder will confer
in good faith to attempt to reach agreement regarding the Conversion Price with the Required Holders; if the Required Holders and
the Company agree in writing upon a Conversion Price, that agreement will be binding on Holder and all holders of the Other Debentures.

 

18. NOTICES;
PAYMENTS.

 

(a) Notices.
Whenever notice is required to be given under this Debenture, unless otherwise provided herein, such notice shall be given in accordance
with the Subscription Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant
to this Debenture, including in reasonable detail a description of such action and the reason therefore. Without limiting the generality
of the foregoing, the Company will give written notice to the Holder (i) promptly, but in any event within ten (10) calendar days,
upon any adjustment of the Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment
and (ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record with respect to any
dividend or distribution upon the Common Stock.

 

(b) Payments.
Whenever any payment of cash is to be made by the Company to any Person pursuant to this Debenture, unless otherwise expressly
set forth herein, such payment shall be made in lawful money of the United States of America by a check drawn on the account of
the Company and sent via overnight courier service to such Person at such address as previously provided to the Company in writing,
provided that the Holder may elect to receive a payment of cash via wire transfer of immediately available funds by providing the
Company with prior written notice setting out such request and the Holder’s wire transfer instructions. Whenever any amount
expressed to be due by the terms of this Debenture is due on any day which is not a Business Day, the same shall instead be due
on the next succeeding day which is a Business Day.

 

    12

     

    

 

19. CANCELLATION.
After all Principal, accrued Interest and other amounts at any time owed on this Debenture have been paid or converted in
full, this Debenture shall automatically be deemed canceled, shall be surrendered promptly, but in any event within ten (10)
calendar days, to the Company by the Holder for cancellation and shall not be reissued.

 

20. WAIVER
OF NOTICE. To the extent permitted by law, the Company hereby irrevocably waives demand, notice, presentment, protest and all
other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Debenture.

 

21. NEGATIVE
COVENANTS. As long as any portion of this Debenture remains outstanding, unless the holders of 51% in principal amount of the
then outstanding Debentures shall have otherwise given prior written consent, the Company shall not, and shall not permit any of
the Subsidiaries to, directly or indirectly:

 

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

 

(b) repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock
or Common Stock Equivalents other than as to repurchases of Common Stock or Common Stock Equivalents of departing officers and
directors of the Company, provided that such repurchases shall not exceed an aggregate of $2,500,000 for all officers and directors
during the term of this Debenture; or

 

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

 

22. GOVERNING
LAW. This Debenture shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Debenture shall be governed by, the internal laws of the State of New York, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the State of New York. The Company hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that
the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. In the event that any provision of this Debenture is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of this Debenture. Nothing
contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the
Company in any other jurisdiction to collect on the Company’s obligations to the Holder, to realize on any collateral or
any other security for such obligations, or to enforce a judgment or other court ruling in favor of the Holder. EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    13

     

    

 

23. CERTAIN
DEFINITIONS. For purposes of this Debenture and the Conversion Notice in Exhibit I, the following terms shall have the following
meanings:

 

(a) “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.

 

(b) “Common
Stock” means (i) the Company’s shares of common stock, $0.0001 par value per share, and (ii) any capital stock into
which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

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

 

(d) “Conversion
Amount” means the sum of the outstanding and unpaid Principal plus all accrued and unpaid Interest thereon plus, if any,
other unpaid amounts due under this Debenture.

 

(e) “Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company
pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors
or a majority of the members of a committee of non-employee directors established for such purpose, (b) securities upon the exercise
or exchange of or conversion of any securities issued hereunder and/or other securities exercisable or exchangeable for or convertible
into shares of Common Stock issued and outstanding on the date of this Debenture, provided that such securities have not been amended
since the date of this Debenture to increase the number of such securities or to decrease the exercise price, exchange price or
conversion price of such securities and (c) securities issued pursuant to acquisitions or strategic transactions approved by a
majority of the disinterested directors of the Company, provided that any such issuance shall only be to a Person (or to the equity
holders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic
with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but
shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an
entity whose primary business is investing in securities.

 

(f) “GAAP”
means United States generally accepted accounting principles, consistently applied.

 

(g) “Interest
Rate” means nine percent (9%) per annum, as may be adjusted from time to time in accordance with Section 2.

 

(h) “Lien(s)”
shall mean any lien, claim, charge, pledge, security interest, deed of trust, mortgage or other encumbrance of any kind or other
arrangement having the practical effect of the foregoing.

 

(i) “Liquidation
Event” shall mean:

 

(i)  the
liquidation, dissolution or winding up of the Company; or

 

    14

     

    

 

(ii) a
merger or consolidation in which (A) the Company is a constituent party or (B) a subsidiary of the Company is a constituent
party and the Company issues shares of its capital stock pursuant to such merger or consolidation, except any such merger or
consolidation involving the Company or a subsidiary in which the shares of capital stock of the Company outstanding
immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares of
capital stock that represent, immediately following such merger or consolidation, at least a majority, by voting power, of
the capital stock of (y) the surviving or resulting corporation or (z) if the surviving or resulting corporation is a
wholly-owned subsidiary of another corporation immediately following such merger or consolidation, the parent corporation of
such surviving or resulting corporation (provided that, for the purpose of this clause (ii), all shares of Common Stock
issuable upon exercise of options or warrants outstanding immediately prior to such merger or consolidation or upon
conversion of convertible securities outstanding immediately prior to such merger or consolidation shall be deemed to be
outstanding immediately prior to such merger or consolidation and, if applicable, converted or exchanged in such merger or
consolidation on the same terms as the actual outstanding shares of Common Stock are converted or exchanged); or

 

(ii) the
sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the
Company or any subsidiary of the Company of all or substantially all the assets of the Company and its subsidiaries taken as a
whole, or the sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Company if substantially
all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where
such sale, lease, transfer, exclusive license or other disposition is to a wholly-owned subsidiary of the Company; or

 

(iv)  Any
other any transaction or series of related transactions in which the Company’s stockholders of record as constituted immediately
prior to such transaction or series of related transactions will, immediately after such transaction or series of related transactions
(by virtue of securities issued in such transaction or series of related transactions) fail to hold at least 50% of the voting
power of the resulting or surviving corporation following such transaction or series of related transactions.

 

(j) “Maturity
Date” shall mean September 30, 2020.

 

(k) “Optional
Redemption Amount” means the aggregate principal amount then outstanding under this Debenture to be redeemed pursuant to
Section 2; plus (i) all accrued and unpaid interest due under this Debenture with respect to such principal amount as of the date
of payment of the Option Redemption Amount; plus (ii) all other costs, fees and charges due and payable under this Debenture.

 

(l) Not
applicable this section.

 

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

 

    15

     

    

 

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

 

(o) Not
applicable this section.

 

(p) “Required
Holders” means holders of Debentures having principal amounts in the aggregate that are at least equal to seventy-five percent
(75%) of the aggregate principal amounts of all Debentures then outstanding.

 

(q) “SEC”
means the United States Securities and Exchange Commission or the successor thereto.

 

(r) “Subscription
Agreement” means that certain subscription agreement by and between the Company and the initial holder of this Debenture
pursuant to which the Company issued this Debenture, as may be amended from time to time.

 

(s) “Subsidiaries”
shall refer to all of the direct and indirect subsidiaries of the Company.

 

(t) “Transaction
Documents” means, collectively, this Debenture, the Other Debentures, the Warrants, the Registration Rights Agreement and
the Subscription Agreement.

 

(u) “Warrants”
means the stock purchase warrants issued pursuant to the Subscription Agreement.

 

24. MAXIMUM
PAYMENTS. Nothing contained in this Debenture shall, or shall be deemed to, establish or require the payment of a rate of interest
or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid
or other charges under this Debenture exceeds the maximum permitted by such law, any payments in excess of such maximum shall be
credited against amounts owed by the Company to the Holder and thus refunded to the Company.

 

25. SURRENDER
OR ACKNOWLEDGEMENT AND CERTIFICATION. Upon payment in full or conversion of this Debenture, Holder shall surrender the original
physical copy of this Debenture for cancellation; alternatively, if the Holder promptly requests in connection with such payment
or conversion, the Holder may deliver to the Company a signed acknowledgement of payment in full and a certification that the Holder
has cancelled or destroyed the Debenture in a form reasonably acceptable to the Company.

 

[Signature page follows]

 

    16

     

    

 

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

 

	
        

         
	COMSovereign Holding Corp.,
	 	a Nevada corporation
	 	 	 
	 	By:	 
	 	 	Daniel Hodges
	 	 	Chief Executive OfficerExhibit 4.2

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
MAY NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR IN ACCORDANCE WITH AN EXEMPTION FROM REGISTRATION UNDER THAT ACT.

 

WARRANT TO PURCHASE

SHARES OF COMMON STOCK OF

COMSOVEREIGN HOLDING CORP.

 

This certifies that ______________or any
party to whom this Warrant is assigned in accordance with its terms is entitled to subscribe for and purchase ____ shares of the
Common Stock of COMSovereign Holding Corp., a Nevada corporation, on the terms and conditions of this Warrant.

 

1. Definitions.
As used in this Warrant, the term:

 

1.1 “Business
Day” means any day other than a Saturday, Sunday, or a day on which banking institutions in the State of New York are
authorized or obligated to be closed by law or by executive order.

 

1.2 “Common
Stock” means the Common Stock, par value $.0001 per share, of the Corporation.

 

1.3 “Corporation”
means COMSovereign Holding Corp., a Nevada corporation, or its successor.

 

1.4 “Expiration
Date” means the earlier of (i) December 31, 2022 or (ii) the second anniversary of the consummation by the Company of
an IPO.

 

1.5 “Holder”
means ______________or any party to whom this Warrant is assigned in accordance with its terms.

 

1.6 “IPO”
means the initial public offering of the Corporation’s Common Stock pursuant to a registration statement filed on Form S-1
or any successor form thereto that is declared effective by the Securities and Exchange Commission in connection with which the
Common Stock will be uplisted to a national stock exchange.

 

1.7 “1933
Act” means the Securities Act of 1933, as amended.

 

1.8 “Warrant”
means this Warrant and any warrants delivered in substitution or exchange for this Warrant in accordance with the provisions of
this Warrant.

 

1.9 “Warrant
Price” means $1.00 per share of Common Stock, as such amount may be adjusted pursuant to Section 4 hereof. 

 

2. Exercise
of Warrant.  (a)  At any time before the Expiration Date, the Holder may exercise the purchase rights represented
by this Warrant, in whole or in part, by surrendering this Warrant (with a duly executed subscription in the form attached) at
the Corporation’s principal corporate office (located on the date hereof in Tucson, Arizona) and by paying the Corporation,
by check payable to the Corporation, the aggregate Warrant Price for the shares of Common Stock being purchased.

 

    

     

    

 

(b) In
lieu of exercising this Warrant pursuant to Section 1(a) above, the Holder may elect to exercise this Warrant on a “cashless”
basis and to receive, without the payment by the Holder of any additional consideration, shares of Common Stock equal to the value
of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Corporation
(together with a duly executed subscription in the form attached), in which event the Corporation shall issue to the Holder hereof
a number of shares of Common Stock computed using the following formula:

 

X =  Y (A-B)

A

 

Where:  X =  The number of
shares of Common Stock to be issued to the Holder pursuant to this net exercise;

 

Y =  The number of shares of Common
Stock in respect of which the net issue election is made;

 

A =  The fair market value of
one share of the Common Stock at the time the net issue election is made;

 

B =  The Warrant Price (as adjusted
to the date of the net issuance).

 

For purposes of this Warrant, the “fair
market value” of one share of Common Stock as of a particular date shall be determined as follows:  (i) if traded on
a securities exchange or through an interdealer quotation system such as the OTC Bulletin Board, the value shall be deemed to be
the average of the closing sale prices of the Common Stock on such exchange or quotation system over the ten (10) day period ending
three (3) days prior to the net exercise election; (ii) if traded over-the-counter, the value shall be deemed to be the average
of the closing sale price over the ten (10) day period ending three (3) days prior to the net exercise.  If there is no reported
sale price for the Common Stock, the fair market value of the Common Stock shall be the value as determined in good faith by the
Board of Directors of the Corporation.

 

2.1 Delivery
of Certificates. Within ten (10) days after each exercise of the purchase rights represented by this Warrant, the Corporation
shall deliver a certificate for the shares of Common Stock so purchased to the Holder and, unless this Warrant has been fully exercised
or expired, a new Warrant representing the balance of the shares of Common Stock subject to this Warrant.

 

2.2 Effect of
Exercise. The person entitled to receive the shares of Common Stock issuable upon any exercise of the purchase rights represented
by this Warrant shall be treated for all purposes as the holder of such shares of record as of the close of business on the date
of exercise.

 

2.3 Issue Taxes.
The Corporation shall pay all issue and other taxes that may be payable in respect of any issue or delivery to the Holder of shares
of Common Stock upon exercise of this Warrant.

 

3. Stock Fully
Paid; Reservation of Shares. The Corporation covenants and agrees that all securities that it may issue upon the exercise of
the rights represented by this Warrant will, upon issuance, be fully paid and nonassessable and free from all taxes, liens and
charges. The Corporation further covenants and agrees that, during the period within which the Holder may exercise the rights represented
by this Warrant, the Corporation shall at all times have authorized and reserved for issuance enough shares of its Common Stock
or other securities for the full exercise of the rights represented by this Warrant. The Corporation shall not, by an amendment
to its Articles of Incorporation or through reorganization, consolidation, merger, dissolution, issue or sale of securities, sale
of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant.

 

    2

     

    

 

4. Adjustments.
The Warrant Price and the number of shares of Common Stock that the Corporation must issue upon exercise of this Warrant shall
be subject to adjustment in accordance with Sections 4.1 through 4.3.

 

4.1 Adjustment
to Warrant Price for Combinations or Subdivisions of Common Stock. If the Corporation at any time or from time to time after
the date on which the Warrant Price is fixed at a set amount in U.S. dollars (1) declares or pays, without consideration, any dividend
on the Common Stock payable in Common Stock; (2) creates any right to acquire Common Stock for no consideration; (3) subdivides
the outstanding shares of Common Stock (by stock split, reclassification or otherwise); or (4) combines or consolidates the outstanding
shares of Common Stock, by reclassification or otherwise, into a lesser number of shares of Common Stock, the Corporation shall
proportionately increase or decrease the Warrant Price, as appropriate.

 

4.2 Adjustments
for Reclassification and Reorganization. If the Common Stock issuable upon exercise of this Warrant changes into shares of
any other class or classes of security or into any other property for any reason other than a subdivision or combination of shares
provided for in Section 4.1, including without limitation any reorganization, reclassification, merger or consolidation, the Corporation
shall take all steps necessary to give the Holder the right, by exercising this Warrant, to purchase the kind and amount of securities
or other property receivable upon any such change by the owner of the number of shares of Common Stock subject to this Warrant
immediately before the change.

 

4.3 Spin Offs.
If the Corporation spins off any subsidiary by distributing to the Corporation’s shareholders as a dividend or otherwise any stock
or other securities of the subsidiary, the Corporation shall reserve until the Expiration Date enough of such shares or other securities
for delivery to the Holders upon any exercise of the rights represented by this Warrant to the same extent as if the Holders owned
of record all Common Stock or other securities subject to this Warrant on the record date for the distribution of the subsidiary’s
shares or other securities.

 

4.4 Adjustment
to Warrant Price for Stock Issuances.  If the Corporation, at any time while this Warrant is outstanding, shall issue
shares of Common Stock, or any securities of the Corporation that entitle the holder thereof to acquire Common Stock at any time,
including without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible
into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock or other securities that entitle the
holder to receive, directly or indirectly, Common Stock (each, a “Common Stock Equivalent”), entitling any person or
entity to acquire shares of Common Stock, at a price per share less than the then applicable Warrant Price (the “Lower Shares
Price”) (if the holder of the Common Stock or Common Stock Equivalent so issued shall at any time, whether by operation of
purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants,
options or rights issued in connection with such issuance, be entitled to receive shares of Common Stock at a price less than the
then applicable Warrant Price, such issuance shall be deemed to have occurred for the lowest price possible under such instrument
or agreement and shall be deemed to be lower than the then applicable Warrant Price), then, the then applicable Warrant Price shall
be reduced to equal the Lower Shares Price, such adjustment to be made at the time such Common Stock or Common Stock Equivalents
are issued; provided, however, that no adjustment shall be made pursuant to this Section 4.4 as a result of the conversion, exercise
or exchange, as the case may be, of Common Stock Equivalents outstanding on the date hereof (but will apply to any amendments,
resets, modifications, and reissuances thereof and as a result of any changes, resets or adjustments to a conversion, exercise
or exchange price thereunder whether or not as a result of any amendment, modification or reissuance), upon the issuance of Common
Stock or Common Stock Equivalents to employees or consultants of the Company as compensation upon approval of the Board of Directors
of the Corporation, or upon the issuance of Common Stock pursuant to any agreements or other obligations in existence on the date
hereof (but will apply to any amendments, resets, modifications, and reissuances thereof and as a result of any changes, resets
or adjustments to a conversion, exercise or exchange price thereunder whether or not as a result of any amendment, modification
or reissuance). Notwithstanding anything to the contrary set forth herein, the Warrant Price shall never be increased as a result
of the Lower Shares Price.

 

    3

     

    

 

4.5 Certificates
as to Adjustments. Upon each adjustment or readjustment required by this Section 4, the Corporation at its expense shall promptly
compute such adjustment or readjustment in accordance with this Section, cause independent public accountants selected by the Corporation
to verify such computation and prepare and furnish to the Holder a certificate setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is based.

 

5. Fractional
Shares. The Corporation shall not issue any fractional shares in connection with any exercise of this Warrant. If any fraction
of a share would be issuable on the exercise of this Warrant (or specified portions thereof), the Corporation shall purchase such
fraction for an amount in cash equal to the same fraction of the Warrant Price of such share of Common Stock on the date of exercise
of this Warrant.

 

6. Dissolution
or Liquidation. If the Corporation dissolves, liquidates or winds up its business before the exercise or expiration of this
Warrant, the Holder shall be entitled, upon exercising this Warrant, to receive in lieu of the shares of Common Stock or any other
securities receivable upon such exercise, the same kind and amount of assets as would have been issued, distributed or paid to
it upon any such dissolution, liquidation or winding up with respect to such shares of Common Stock or other securities, had the
Holder been the holder of record on the record date for the determination of those entitled to receive any such liquidating distribution
or, if no record is taken, upon the date of such liquidating distribution. If any such dissolution, liquidation or winding up results
in a cash distribution or distribution of property which the Corporation’s Board of Directors determines in good faith to have
a cash value in excess of the Warrant Price provided by this Warrant, then the Holder may, at its option, exercise this Warrant
without paying the aggregate Warrant Price and, in such case, the Corporation shall, in making settlement to Holder, deduct from
the amount payable to Holder an amount equal to such aggregate Warrant Price.

 

7. Transfer and Exchange.

 

7.1 Transfer.
Subject to Section 7.3, the Holder may transfer all or part of this Warrant at any time on the books of the Corporation at its
principal office upon surrender of this Warrant, properly endorsed. Upon such surrender, the Corporation shall issue and deliver
to the transferee a new Warrant or Warrants representing the Warrants so transferred. Upon any partial transfer, the Corporation
shall issue and deliver to the Holder a new Warrant or Warrants with respect to the Warrants not so transferred.

 

7.2 Exchange.
The Holder may exchange this Warrant at any time at the principal office of the Corporation for Warrants in such denominations
as the Holder may designate in writing. No such exchanges will increase the total number of shares of Common Stock or other securities
that are subject to this Warrant.

 

7.3 Securities
Act of 1933. By accepting this Warrant, the Holder agrees that this Warrant and the shares of the Common Stock issuable upon
exercise of this Warrant may not be offered or sold except in compliance with the 1933 Act, and then only with the recipient’s
agreement to comply with this Section 7 with respect to any resale or other disposition of such securities. The Corporation may
make a notation on its records in order to implement such restriction on transferability.

 

    4

     

    

 

8. Loss or
Mutilation. Upon the Corporation’s receipt of reasonably satisfactory evidence of the ownership and the loss, theft, destruction
or mutilation of this Warrant and (in the case of loss, theft or destruction) of a reasonably satisfactory indemnity or (in the
case of mutilation) upon surrender and cancellation of this Warrant, the Corporation shall execute and deliver a new Warrant to
the Holder.

 

9. Successors.
All the covenants and provisions of this Warrant shall bind and inure to the benefit of the Holder and the Corporation and their
respective successors and assigns.

 

10. Notices.
All notices and other communications given pursuant to this Warrant shall be in writing and shall be deemed to have been given
when personally delivered or when mailed by prepaid registered, certified or express mail, return receipt requested. Notices should
be addressed as follows:

 

		(a)	If to Holder, then to the address of the Holder on
file in the books and records of the Company.

 

		(b)	If to the Corporation, then to:

 

COMSovereign Holding Corp.

5000 Quorum Drive STE 400

Dallas, TX 75254

Attention: Kevin M. Sherlock, General
Counsel

 

Such addresses for notices may be changed
by any party by notice to the other party pursuant to this Section 10.

 

11. Covenants of the Company.

 

11.1 Financial
Information.  Commencing with the year ending December 31, 2020, the Company shall deliver to the Holder annual and quarterly
unaudited financial statements.  The annual statements shall be delivered within 90 days of year-end.  Unaudited quarterly
financial statements shall be delivered within 45 days of the end of each calendar quarter. Delivery in this case includes required
Form 10K and 10Q filings performed on the EDGAR system.

 

11.2. Notices
of Record Date and Certain other Events. In the event of any taking by the Company of a record of the holders of any class
of securities for the purpose of determining the holders thereof who are entitled to receive any dividend or other distribution,
the Company shall mail to the Holder, at least 20 days prior to the date on which any such record is to be taken for the purpose
of such dividend or distribution, a notice specifying such date. In the event of any voluntary dissolution, liquidation or winding
up of the Company, the Company shall mail to the Holder, at least 20 days prior to the date of the occurrence of any such event,
a notice specifying such date. In the event the Company authorizes or approves, enters into any agreement contemplating, or solicits
stockholder approval for any capital reorganization, reclassification of the capital stock of the Company, consolidation or merger
of the Company with another entity in which the Company is not the surviving corporation, or sale, transfer or other disposition
of all or substantially all of the Company’s assets to another entity, the Company shall mail to the Holder, at least 20
days prior to the date of the occurrence of such event, a notice specifying such date. Notwithstanding the foregoing, the failure
to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be described in
such notice.

 

    5

     

    

 

12. Amendment.
This Warrant may be amended only by an instrument in writing signed by the Corporation and the Holder.

 

13. Construction
of Warrant. This Warrant shall be construed as a whole and in accordance with its fair meaning. A reference in this Warrant
to any section shall be deemed to include a reference to every section the number of which begins with the number of the section
to which reference is made. This Warrant has been negotiated by both parties and its language shall not be construed for or against
any party.

 

14. Law Governing.
This Warrant is executed, delivered and to be performed in the State of New York and shall be construed and enforced in accordance
with and governed by the New York law without regard to any conflicts of law or choice of forum provisions.

 

Dated as of _______________, 2020

 

	 	COMSOVEREIGN HOLDING CORP.
	 	 	 
	 	By:	                                      
	 	 	Daniel Hodges 
	 	 	Chief Executive Officer

 

 

6

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