Document:

Exhibit 10.2

          

     

    

    
      EXECUTION COPY

       

      January 14, 2022

       

      Mr. John A. Martins

        c/o Cross Country Healthcare, Inc.

        6551 Park of Commerce Blvd., NW

        Boca Raton, Florida 33487

       

      Dear Mr. Martins:

       

      Cross Country Healthcare, Inc., a Delaware corporation (the “Company”),
        hereby agrees to continue to employ you, and you hereby agree to accept such continued employment, under the following terms and conditions:

       

      1.            Term of Employment.  Except for earlier termination as provided in Section 9 below, this Agreement shall be effective for a
          period commencing on April 1, 2022 (the “Effective Date”) and terminating on March 31, 2025; provided, however, that this Agreement shall be automatically renewed for
          successive one (1) year periods commencing on April 1, 2025 and on each one-year anniversary thereof, unless either party to this Agreement provides written notice of non-renewal to the other party at least ninety (90) days prior to the
          expiration of the then current employment period. The period of time between the Effective Date and the termination of your employment hereunder will be referred to herein as the “Employment
              Term.”

       

      2.            Compensation.

       

      (a)            You will be compensated for all services rendered by you under this Agreement at the initial base rate of $725,000 per annum, which is expected (but is not guaranteed) to be increased to $825,000 per annum
          following the first anniversary of the Effective Date; subject to approval by the Company’s Board of Directors (the “Board”).  The Base Salary (as defined below) will be
          payable in such manner as is consistent with the Company’s payroll practices for executive employees. Prior to each anniversary of the Effective Date, including the first anniversary of the Effective Date, the Board, following consultation with
          the Compensation Committee of the Board (the “Compensation Committee”), will review and consider in its sole discretion whether to increase (but not decrease) the Base Salary
          payable to you hereunder. Your annual rate of base salary as increased herein from time to time, is hereinafter referred to as the “Base Salary”.

       

      (i)            For each calendar year during the Employment Term, you will be eligible to participate in the Company’s annual bonus plan at opportunity levels to be defined by the Compensation Committee, with a target bonus of no
          less than 100% of Base Salary (the “Target Annual Bonus Percentage”) and a maximum bonus of no more than 180% of Base Salary (the “Bonus”). Any Bonus will be paid by the Company no later than March 15 of the calendar year immediately following the applicable bonus period to which such Bonus relates. Except as otherwise provided herein,
          you must be employed by the Company or its affiliates on the day any Bonus is paid to earn any part of that Bonus.

      
        
          

      

      
      (ii)            During the first calendar year of the Employment Term, you will participate in the Company’s long-term incentive plan and receive an award thereunder with a target value of 200% of Base Salary, and during the
          second and third year of the Employment Term you will participate in the Company’s long-term incentive plan and receive awards thereunder on an annual basis with a target value of 275% of Base Salary (each, the “Target LTI Percentage”).

       

      3.            Duties.

       

      (a)            You will serve as President and Chief Executive Officer of the Company, subject to the direction and control of, and reporting to, the Board and you will have duties, responsibilities, and authority commensurate
          with those of an executive serving in such position. Your principal office will be located at the Company’s headquarters in Boca Raton, Florida. You will maintain your principal residence within a 25 mile radius of the Company’s headquarters.

       

      (b)            You will devote your full business time, energies and attention to the business and affairs of the Company and its subsidiaries (except during vacation periods and periods of illness or other incapacity), if any. 
          Subject to the following not materially interfering with your duties and responsibilities to the Company and its subsidiaries or creating a conflict of interest, you may participate in one civic or charitable activity and any participation in
          more than one such activity is subject to prior approval of the Board.

       

      (c)            You will, except as otherwise provided herein, be subject to the Company’s written rules, practices and policies applicable to the Company’s senior executive employees to the extent such written rules, practices
          and policies have previously been provided to you, whether on or prior to the date hereof or thereafter.

       

      4.            Benefits.  You will be entitled to such benefits, if any, as are generally provided by the Company to its senior
          executives, subject to satisfying the applicable eligibility requirements. The foregoing, however, will not be construed to require the Company to establish any such plans or to prevent the Company from modifying or terminating any such plans,
          and no such action or failure thereof will affect this Agreement. You will be entitled to four weeks paid vacation per annum in accordance with Company’s vacation policy in effect from time to time.

       

      5.            Expenses. The Company will reimburse you for reasonable expenses, including travel expenses and business class air travel
          incurred by you in connection with the business of the Company upon the presentation by you of appropriate substantiation for such expenses in accordance with the Company’s expense reimbursement policy. The Company shall reimburse you on an
          after-tax basis for all reasonable attorneys’ fees and costs incurred by you in the negotiation of this Agreement.

       

      6.            Restrictive Covenants.

       

      (a)            Non-Competition.  During such time as you will be employed by the Company, and for a period of two years thereafter, you
          will not, without the written consent of the Board, directly or indirectly become professionally associated with, render services to, invest in, represent, advise or otherwise participate as an officer, employee, director, stockholder, partner,
          agent of or consultant for, any business which is conducted in any of the jurisdictions in which the Company’s business is conducted and which is competitive with the business in which the Company is engaged; provided, however, that nothing herein will prevent you from acquiring up to 3% of the securities of any company listed on a national
          securities exchange or quoted on the NASDAQ quotation system or from passively investing in a hedge fund, private equity fund or venture capital fund, provided in each case, that your involvement with any such company is solely that of a passive
          equity holder.

      
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      (b)            Non-Interference.  You agree that during such time as you will be employed by the Company, and for a period of two years
          thereafter you will not without the written consent of the Board, for your own account or for the account of any other person, intentionally interfere with the Company’s relationship with any of its suppliers, customers or employees.

       

      (c)              Reformation.  The parties hereto intend that the covenants contained in this Section 6 will be deemed a series
          of separate covenants for each country, state, county and city in which the Company’s business is conducted.  If, in any judicial proceeding, a court will refuse to enforce all the separate covenants deemed included in this Section 6 because,
          taken together, they cover too extensive a geographic area, the parties intend that those of such covenants (taken in order of the countries, states, counties and cities therein which are least populous) which if eliminated would permit the
          remaining separate covenants to be enforced to the maximum extent permitted in such proceeding will, for the purpose of such proceeding, be deemed eliminated from the provisions of this Section 6.  For purposes of Section 6, the term “Company” will include the Company and each subsidiary of the Company.

       

      7.            Confidentiality, Non-Interference and Proprietary Information.

       

      (a)              Confidentiality.  In the course of your employment by the Company hereunder, you will have access to
          confidential or proprietary data or information of the Company and its operations.  You will not at any time divulge or communicate to any person nor will you direct any Company employee to divulge or communicate to any person (other than to a
          person bound by confidentiality obligations similar to those contained herein and other than as necessary in performing your duties hereunder or to comply with legal process) or use to the detriment of the Company or for the benefit of any other
          person, any of such data or information.  The provisions of this Section 7(a) will survive your employment hereunder, whether by the normal expiration thereof or otherwise.  The term “confidential or proprietary data or information” as used in
          this Agreement will mean information not generally available to the public or generally known within the relevant industry, including, without limitation, personnel information, financial information, customer lists, supplier lists, trade
          secrets, information regarding operations, systems, services, knowhow, computer and any other processed or collated data, computer programs, pricing, marketing and advertising data.  Nothing in this Agreement shall prohibit or impede you from
          making disclosures to any federal, state or local governmental or law enforcement branch, agency or entity with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosures to any of the
          foregoing that are protected under the whistleblower provisions of any such law or regulation.  You shall have no obligation to obtain any authorization or give any notice to the Company regarding any such communication or disclosure.

       

      (b)            Proprietary Information and Disclosure.  You agree that you will at all times promptly disclose to the Company (which, for
          the purposes of this Section 7, will include the Company and any subsidiaries and affiliates of the Company), in such form and manner as the Company may reasonably require, any inventions, improvements or procedural or methodological innovations,
          programs methods, forms, systems, services, designs, marketing ideas, products or processes (whether or not capable of being trade-marked, copyrighted or patented) conceived or developed or created by you during or in connection with your
          employment hereunder and which relate to the business of the Company and any of its subsidiaries or affiliates (“Intellectual Property”).  You agree that all such
          Intellectual Property will be the sole property of the Company.  You further agree that you will execute such instruments and perform such acts as may reasonably be requested by the Company to transfer to and perfect in the Company all legally
          protectable rights in such Intellectual Property.

      
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      (c)            Return of Property.  All written materials, records and documents made by you during your employment with the Company or
          coming into your possession during your employment with the Company, in each case concerning any products, processes or equipment, manufactured, used, developed, investigated or considered by the Company or otherwise concerning the business or
          affairs of the Company, will be the sole property of the Company, and upon termination of your employment, or upon request of the Company during your employment, you will promptly deliver same to the Company (to the extent then in your possession
          or under your control).  In addition, upon termination of your employment, or upon request of the Company during your employment, you will deliver to the Company all other Company property in your possession or under your control, including, but
          not limited to, financial statements, marketing and sales data, patent applications, drawings and other documents.

       

      8.            Equitable Relief.  With respect to the covenants contained in Sections 6 and 7 of this Agreement, you agree that any remedy
          at law for any breach of said covenants may be inadequate and that the Company will be entitled (without the necessity of posting a bond) to specific performance or any other mode of injunctive and/or other equitable relief to enforce its rights
          hereunder or any other relief a court might award.

       

      9.            Earlier Termination.  Your employment hereunder will terminate on the following terms and conditions:

       

      (a)            This Agreement will terminate automatically on the earlier of your voluntary resignation from employment without Good Reason or date of your death.

       

      (b)            The Company may terminate your employment upon written notice to you if you incur a disability that would qualify as such under the Company’s long-term disability plan then covering you.

       

      (c)            This Agreement will terminate immediately upon the Company sending you written notice terminating your employment hereunder for Cause.  “Cause”
          means (i) an act or acts of fraud or dishonesty by you which results in the material personal enrichment of you or another person or entity at the expense of the Company; (ii) your pleading of guilty or nolo contendere to, or conviction of (x) any felony (other than third degree vehicular infractions), or (y) any other crime or offense involving misuse or misappropriation of money or other property; (iii)
          your knowing, intentional and material breach of the Company’s Code of Conduct for Senior Officers; or (iv) your gross negligence or willful misconduct with respect to your duties that results in material harm to the Company.  Prior to
          terminating your employment for Cause, the Company shall provide you with written notice of such termination.

      
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      (d)            Your employment under this Agreement will terminate immediately upon (w) the Company’s sending you written notice terminating your employment hereunder without Cause for any reason or for no reason, (x) the
          Company’s sending you written notice of non-renewal pursuant to the proviso set forth in the first sentence of Section 1 above (provided that in such case, such termination shall occur on the last day of the then-current Employment Term), or (y)
          your delivery to the Company of a written notice of your resignation for Good Reason (provided that such termination shall occur on the last day of the Company’s cure period, or such earlier date during such cure period as specified by the
          Company).  “Good Reason” means, if without your written consent, any of the following events occurs that are not cured by the Company within 30 days after you have given the
          Company written notice specifying the occurrence of such Good Reason event, which notice must be given by you to the Company within 90 days after your becoming aware of the occurrence of the Good Reason event: (i) a material diminution in your
          then authority, duties or responsibilities or assignment of duties and responsibilities that are materially inconsistent with your status, title or position; (ii) a diminution in your Base Salary (other than with respect to a reduction that is
          part of an action applicable to other executives), Target Annual Bonus Percentage or applicable Target LTI Percentage; (iii) a relocation of your principal business location to a location more than 25 miles outside of Boca Raton, Florida
          (provided that the same materially increases your commute); or (iv) any material breach of this Agreement by the Company.  Notwithstanding the previous provisions of this Section 9(d), it shall not be an event of Good Reason under this Agreement
          for the Company (A) to adopt (or subsequently amend) one or more claw-back, mandatory deferral or other risk management policies related to the Company’s incentive compensation plans or arrangements, (B) to adopt (or subsequently amend) stock
          ownership guidelines related to the Company’s common stock or (C) to subject the compensation payable to you under this Agreement to these policies or guidelines; provided
          that, except as otherwise required by law, such policies are generally applicable to the Company’s executive officers.  Your resignation hereunder for Good Reason will not occur later than 180 days following the initial date on which the event
          you claim constitutes Good Reason occurred.

      
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      (e)            Upon a termination of your employment pursuant to clauses (w) and (y) of Section 9(d) above, the Company’s sole obligation to you will be to pay or provide to you: (i) the Accrued Amounts (as defined below) and,
          (ii) subject to Section 9(g), to pay you continued payments of the Base Salary in effect at the time of such termination (or if such termination was due to Good Reason triggered by, in whole or in part, a Base Salary reduction, as in effect
          immediately prior to such reduction), to be paid in substantially equal installments in accordance with the Company’s policies and regular payroll practices for a period of 24 months following the date of termination, and (iii) an amount equal to
          two times the average actual Bonus paid in the immediately prior three calendar years or, in the event you were not an employee during the immediately prior three calendar years, an amount equal to two times the Bonus you would have  earned
          during the year in which the termination of your employment occurs (such amount you would have earned during the year in which the termination of your employment occurs to be determined by the Compensation Committee; provided that such amount
          will be no less than 50% of your Target Annual Bonus Percentage for the year in which such termination date occurs) to be paid in substantially equal installments in accordance with the Company’s policies and regular payroll practices for a
          period of 24 months following the date of termination) and (iv) benefits elected by you at the time of such termination in accordance with the Company’s policies for a period of 24 months following the date of termination (to the extent necessary
          to avoid such benefits being treated as discriminatory or resulting in adverse tax consequences to you, the Company shall treat any Company-subsidized premiums (e.g., COBRA premiums) as taxable to you), with such benefit to be paid in
          substantially equal installments in accordance with the Company’s policies and regular payroll practices for a period of 24 months following the date of termination; provided,
          that the first payment of the Severance Payment (as defined below) will be made on the 60th day after the date of termination, and will include payments that were otherwise due prior thereto; provided, further, that any and all unvested stock appreciation rights, restricted stock, performance share awards (at target level performance), stock options or other equity (including, for the avoidance of
          doubt, all long term incentive awards pursuant to Section 2(a)(ii) above) shall immediately vest upon such termination without Cause or for Good Reason and any such awards shall be settled in a manner that is in compliance with, or is exempt
          from, Code Section 409A (as defined below) (collectively (ii), (iii) and (iv), the “Severance Payment”).  Upon a termination of your employment pursuant to clause (x) of
          Section 9(d) above, the Company’s sole obligation to you will be to pay you (A) the Accrued Amounts and (B) subject to Section 9(g), to pay you continued payments of Base Salary in effect at the time of such termination in accordance with the
          Company’s policies and regular payroll practices for a period of 18 months following the date of termination (the “Non-Renewal Payment”), provided, that the first payment of
          the Non-Renewal Payment will be made on the 60th day after the date of termination, and will include payments that were otherwise due prior thereto.  Notwithstanding the foregoing, if you are or become eligible for severance benefits under the
          Company’s Executive Severance Plan (as  in effect on the Effective Date, as thereafter amended, or any similar plan or arrangement adopted by the Company in replacement thereof, the “Severance
              Plan”), then payment of the Severance Payment or Non-Renewal Payment, as applicable, to the extent the same as the payments and benefits owed to you under the Severance Plan, shall be paid in accordance with the terms of this
          Agreement and also satisfy the Company’s obligation to provide you such payments and benefits under the Severance Plan, and any payments and benefits owed to you under the Severance Plan that exceed the Severance Payment or Non- Renewal Payment,
          as applicable, shall be provided to you in accordance with the terms of the Severance Plan and in a manner that complies with Code Section 409A; provided, however, that if you become eligible for benefits under the Severance Plan and are also
          entitled to the Non-Renewal Payment, then any Base Salary severance owed (under the Severance Plan and with respect to the Non-Renewal Payment) equal in amount to the Base Salary severance under clause (ii) above shall be paid according to the
          same schedule as Base Salary is paid under clause (ii) above, any Bonus severance owed (under the Severance Plan) equal in amount to the Bonus severance under clause (iii) above shall be paid according to the same schedule as Bonus severance is
          paid under clause (iii) above and any excess severance owed under the Severance Plan shall be provided to you in accordance with the terms of the Severance Plan and in a manner that complies with Code Section 409A; provided further, that
          notwithstanding anything herein or in the Severance Plan to the contrary, in all cases, base salary and bonus severance shall be paid in equal installments in accordance with the Company's payroll practices during the 24 month period following
          the termination date.

      
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      (f)            Except as specifically set forth in Sections 9(d) and (e) above, upon termination of your employment for any reason, the Company’s obligations hereunder to provide you with compensation will cease other than to
          provide you with (collectively, the “Accrued Amounts”):

       

      (i)            any unpaid Base Salary through the date of termination payable in accordance with the Company’s regular payroll practices;

       

      (ii)            reimbursement for any unreimbursed business expenses incurred through the date of termination paid promptly in accordance with Sections 5 and
          17(b)(iv);

       

      (iii)            except in the case of a termination for Cause or a resignation without Good Reason, any unpaid Bonus for the year immediately preceding the year in which such termination occurs (payable at the same
          time, and calculated in the same manner, as if no such termination had occurred);

       

      (iv)            payment for any accrued but unused vacation and sick time in accordance with Company policy, payable within thirty (30) days following the termination of your employment; and

       

      (v)            all other applicable payments or benefits to which the you may be entitled under, and paid or provided in accordance with, the terms of any applicable compensation arrangement or benefit, equity or fringe benefit
          plan or program or grant or this Agreement.

       

      (g)            The Severance Payment and the Non-Renewal Payment, as applicable, will only be payable to you if within 60 days following the date of termination you execute and deliver to the Company a fully effective and
          irrevocable release of claims against the Company and related parties in the form attached hereto as Exhibit A.

       

      (h)            You will not be required to seek other employment or to attempt in any way to reduce the Severance Payment payable to you hereunder and there shall be no offset against the Severance Payment on account of any
          remuneration attributable to any subsequent employment that you may obtain.

       

      10.          Representation and Warranty.  The execution, delivery and performance of this Agreement by you will not conflict with or
          result in a violation of any agreement to which you are a party or any law, regulation or court order applicable to you.

       

      11.         Effectiveness; Entire Agreement; Modification.  This Agreement constitutes the full and complete understanding of the
          parties and will, on the Effective Date, supersede all prior agreements between the parties with respect to your employment arrangements.  No representations, inducements, promises, agreements or understandings, oral or otherwise, have been made
          by either party to this Agreement, or anyone acting on behalf of either party, which are not set forth herein, or any others are specifically waived.  This Agreement may not be modified or amended except by an instrument in writing signed by the
          parties hereto.

       

      12.          Severability.  Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction will, as to
          such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms
          or provisions of this Agreement in any other jurisdiction.

      
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      13.          Waiver of Breach.  The waiver of either party of a breach of any provision of this Agreement, which waiver must be in
          writing and signed by the waiving party to be effective, will not operate as or be construed as a waiver of any subsequent breach.

       

      14.          Notices.  All notices hereunder will be in writing and will be sent by express mail or by certified or registered mail,
          postage prepaid, return receipt requested, if to you, to your residence as listed in the Company’s records, and if to the Company to:

       

       Cross Country Healthcare, Inc.

           6551 Park of Commerce Blvd

            Boca Raton, FL 33487

            Attention:  General Counsel

       

      15.           Assignability; Binding Effect.  This Agreement is personal to you and may not be assigned by you.  This Agreement will be
          binding upon and inure to the benefit of you, your legal representatives, heirs and distributees, and will be binding upon and inure to the benefit of the Company, its successors and assigns.

       

      16.           Governing Law.  All questions pertaining to the validity, construction, execution and performance of this Agreement will be
          construed and governed in accordance with the laws of the State of Florida, without regard to the conflicts or choice of law provisions thereof.

       

      17.          Tax Matters.

       

      (a)              Withholding.  The Company may withhold from any and all amounts payable under this Agreement such federal,
          state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.

       

      (b)              Section 409A.

       

      (i)            Although the Company does not guarantee the tax treatment of any payments under this Agreement, the intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Section
          409A of the Internal Revenue Code of 1986, as amended (“Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement will be interpreted in
          accordance with the foregoing.  In no event whatsoever will the Company be liable for any additional tax, interest or penalties that may be imposed on you by Code Section 409A or any damages for failing to comply with Code Section 409A.

       

      (ii)            Notwithstanding any provision in this Agreement or elsewhere to the contrary, if on your date of termination you are a “specified employee” within the meaning of Code Section 409A and using the identification
          methodology selected by the Company from time to time in accordance with Section 409A, or if none, the default methodology under Code Section 409A, any payments and benefits due within six months following such termination that are payable as the
          result of  a termination of your employment under any arrangement that constitutes a “deferral of compensation” within the meaning of Code Section 409A (whether under this Agreement, any other plan, program, payroll practice or any equity grant)
          and which do not otherwise qualify under the exemptions under Treas. Regs. Section 1.409A-1 (including without limitation, the short-term deferral exemption and the permitted payments under Treas. Regs. Section 1.409A-l(b)(9)(iii)(A)), will be,
          to the extent required by Code Section 409A, delayed and paid or provided to you in a lump sum (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay), on the earlier of (x) the date which
          is six months and one day after your separation from service (as such term is defined in Code Section 409A) for any reason other than death, and (y) the date of your death (provided that the foregoing shall not result in any payment being made
          earlier than it would have been made absent such death), and any remaining payments and benefits will be paid or provided in accordance with the normal payment dates specified for such payment or benefit.

      
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      (iii)            Notwithstanding anything in this Agreement or elsewhere to the contrary, a termination of employment will not be deemed to have occurred for purposes of any provision of this Agreement providing for
          the payment of any amounts or benefits that constitute “non-qualified deferred compensation” within the meaning of Code Section 409A upon or following a termination of your employment unless such termination is also a “separation from service”
          within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms will mean “separation from service” (within the meaning of Code Section
          409A).

       

      (iv)            Any taxable reimbursement of costs and expenses by the Company provided for under this Agreement will be made in accordance with the Company’s applicable policy and this Agreement but in no event later than
          December 31 of the calendar year next following the calendar year in which the expenses to be reimbursed are incurred.  With regard to any provision in this Agreement that provides for reimbursement of expenses or in-kind benefits, except as
          permitted by Code Section 409A, (x) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit, and (y) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any
          taxable year will not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided that the foregoing clause (y) will not be violated with regard to expenses reimbursed under any
          arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect.

       

      (v)            Whenever a payment under this Agreement may be paid within a specified period, the actual date of payment within the specified period will be within the sole discretion of the Company.

       

      (vi)            With regard to any installment payments provided for under this Agreement, each installment thereof will be deemed a separate payment for purposes of Code Section 409A.

       

      18.            Cooperation.  Subject to your other commitments, you agree to reasonably cooperate (but only truthfully) with the Company
          and provide information as to matters which you were personally involved, or have information on, during your employment with the Company and which are or become the subject of litigation or other dispute.  The Company shall pay for any
          reasonable out-of-pocket expenses incurred by you in connection with your performance of the obligations pursuant to this Section 18.

      
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      19.          Intentionally Omitted.

       

      20.         Clawback.  You agree that all compensation paid to you shall be subject to any clawback policy adopted by the Board or an
          authorized committee thereof with regard to compensation paid to executive officers of the Company in the event of inaccurate financial statements or inaccuracy in the underlying information utilized to calculate any compensation, including
          without limitation any clawback policy adopted to comply with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act; provided that, except as
          otherwise required by law, such policies are generally applicable to the Company’s executive officers.

       

      21.          Headings.  The headings of this Agreement are intended solely for convenience of reference and will be given no effect in
          the construction or interpretation of this Agreement.

       

      22.          Counterparts.  This Agreement may be executed in several counterparts, each of which will be deemed to be an original but
          all of which together will constitute one and the same instrument.

       

      23.          Waiver.  The Company and you each waive any right to trial by jury in any action, suit or proceeding with respect to this
          Agreement.

       

      24.          Indemnification and D&O Insurance.  The Company agrees to indemnify and hold you harmless to the fullest extent
          permitted by the laws of the State of Delaware (including advancement of expenses) as provided in the Company’s charter and by-laws as in effect on the date hereof and shall maintain and pay the full cost of directors and officers liability
          insurance policy the Board deems adequate for you to cover any such liability (following your termination of employment, your coverage under any Company provided directors and officers liability insurance policy shall be no less favorable than
          that provided to any other member of the Board or executive officer of the Company).  This provision shall survive any termination of your employment hereunder.

       

      25.          Review of this Agreement.  You acknowledge that you have (a) carefully read this Agreement, (b) had an opportunity to
          consult with independent counsel with respect to this Agreement and (c) entered into this Agreement of your own free will.

       

       (SIGNATURE PAGE FOLLOWS)

      
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       If this Agreement correctly sets forth our understanding, please sign the duplicate original in the space provided below and return it
        to the Company, whereupon this will constitute the employment agreement between you and the Company effective and for the term as stated herein.

      

      

      
        	
                 

              	
                CROSS COUNTRY HEALTHCARE, INC.

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                 

              	
                 

              
	
                 

              	
                By:

                

              	
                /s/ Thomas C. Dircks

              
	
                 

              	
                Name:

              	
                Thomas C. Dircks

              
	
                 

              	
                Title:

              	
                Chairman of the Board of Directors

              

      

            

      

       

      Agreed as of the date

        first above written:

       

      /s/ John A. Martins

      John A. Martins

      

      

      
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      EXHIBIT A

       

      GENERAL RELEASE

       

      General Release executed this_________  day of __________, 20_____ by John A. Martins
          (“Martins”);

       

      For and in consideration of the Severance Payment set forth in the Employment Agreement by and between Cross Country Healthcare, Inc.
        (the “Company”) and Martins, dated __________ (“Agreement”), and for other valuable consideration as set
        forth in the Agreement, Martins, for himself and for his heirs, executors, administrators, trustees, legal representatives and assigns (hereinafter, collectively referred to as “Releasors”),
        hereby forever release and discharge the Company and any of its past, present, or future parent corporations, subsidiaries, divisions, affiliates, officers, directors, agents, trustees, administrators, insurers, attorneys, employees, employee
        benefit and/or pension plans or funds (including qualified and non-qualified plans or funds), successors and/or assigns and any of its or their past, present or future parent corporations, subsidiaries, divisions, affiliates, officers, directors,
        agents, trustees, administrators, insurers, attorneys, employees, employee benefit and/or pension plans or funds (including qualified and non-qualified plans or funds), successors and/or assigns (whether acting as agents for the Company or in their
        individual capacities) (collectively referred to as “Releasees”) from any and all claims, demands, causes of action, and liabilities of any kind whatsoever (upon any legal or
        equitable theory, whether contractual, common-law, statutory, federal, state, local, or otherwise), whether known or unknown, by reason of any act, omission, transaction or occurrence, including but not limited to claims based on information
        unknown to Martins as of the time of his signing of this General Release for any reason whatsoever, which Releasors ever had, now have or hereafter can, shall or may have against Releasees up to and including the date of the execution of this
        General Release.

       

      Without limiting the generality of the foregoing, Releasors hereby release and discharge Releasees from:

       

      
        	
                (i)

              	
                any and all claims, relating to Martins’ employment by the Company, the terms and conditions of such employment, employee benefits related to his employment, the
                  termination of his employment, and/or any of the events relating directly or indirectly to or surrounding such termination;

              

         

        

      

      
        	
                (ii)

              	
                any and all claims of discrimination, harassment, whistle blowing or retaliation in employment (whether based on federal, state or local law, statutory or
                  decisional), including without limitation, all claims under The Age Discrimination in Employment Act of 1967, as amended, Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, the Civil Rights Act of
                  1991, the Reconstruction Era Civil Rights Act of 1866, 42 USC§§ 1981-86, as amended, the Rehabilitation Act of 1973, the Equal Pay Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act (“ERISA”), the
                  Sarbanes-Oxley Act of 2002, Section 922 of the Dodd-Frank Act, the Federal False Claims Act; the Florida Civil Rights Act of 1992 f/k/a Human Rights Act of 1977, Fla. Stat. § 760.01 et seq.; Florida Equal Pay Law, Fla. Stat. § 448.07, Fla. Stat. § 725.07; Florida AIDS Act, Fla. Stat.§ 760.50; Florida Law Sickle-Cell Trait Discrimination Law, Fla. Stat. §§ 448.075,
                  448.076; Florida Private Whistleblower Protection Law, Fla. Stat.§ 448.101 et seq.; Florida Public Whistle-Blower’s Act, Fla. Stat.§ 112.3187 et seq.; Florida Worker’s Compensation Retaliation Law, Fla. Stat. § 440.205; Florida Unpaid Wages Law, Fla. Stat.§ 448.08; Florida Minimum Wage Act, Fla.
                  Stat.§§ 448.109, 448.11O; Florida Leave to Victims of Domestic Violence Act, Fla. Stat. § 741.313, and waivable rights under the Florida Constitution;

              

        
          12

          
            

        

      

      
        	
                (iii)

              	
                any and all claims for wrongful discharge or retaliatory discharge;

              

         

        

      

      
        	
                (iv)

              	
                any and all claims for damages of any kind whatsoever, including without limitation compensatory, punitive, treble, liquidated and/or consequential damages;

              

         

        

      

      
        	
                (v)

              	
                any and all claims under any contract, whether express or implied;

              

         

        

      

      
        	
                (vi)

              	
                any and all claims for unintentional or intentional torts, for emotional distress and for pain and suffering;

              

         

        

      

      
        	
                (vii)

              	
                any and all claims for violation of any statutory or administrative rules, regulations or codes;

              

      

      
        	
                (viii)

              	
                any and all claims for attorneys’ fees, costs, disbursements, wages, bonuses, benefits, vacation and/or the like;

              

         

        

      

      which Releasors ever had, now have or hereafter can, shall or may have against Releasees for, upon or by reason of any act, omission, transaction or
        occurrence up to and including the date of the execution of this General Release.

       

      Without limiting the generality or force or effect of this General Release, it is explicitly understood and intended that the Severance
        Payment paid by the Company shall be deemed to satisfy all claims by Martins for backpay, frontpay, bonus payments, benefits or compensation of any kind (or the value thereof), and/or for liquidated damages or punitive damages (under any applicable
        statute or at common law).

       

      Notwithstanding any provision of this General Release to the contrary, by executing this General Release, Martins is not releasing (i)
        any claims relating to his rights under Section 9 of the Agreement, (ii) any claims that cannot be waived by law or that arise after the date on which Martins executes this General Release (so long as the events giving rise to such claims also
        arose after the date on which Martins executes this General Release), (iii) any rights as a stockholder of the Company, (iv) any claims for benefits under any D&O or other similar policy maintained by the Company, (v) any rights to
        indemnification, advancement and reimbursement of legal fees and •expenses, or contribution that Martins may have as a former officer or director of the Company or its subsidiaries, or (vi) Martins’ right to accrued, vested benefits due to
        terminated employees under any employee benefit plan of the Company in which he participated (excluding any severance or similar plan or policy), in accordance with the terms thereof (including his right to elect COBRA continuation coverage).

      
        13

        
          

      

      This General Release may not be changed orally it may be changed only by a writing signed by Martins and the Company).

       

      Martins recognizes and acknowledges that his employment relationship with the Company has been permanently and irrevocably severed and
        that he is therefore not eligible for rehire or re-employment with the Company at any time in the future and hence covenants that at no time will he seek employment with or to be hired by the Company.  Martins acknowledges and agrees that if he
        does seek such employment or relationship, a rejection will not constitute a violation of the Agreement, this General Release or any law, and he will not claim that such rejection is a violation of the Agreement, this General Release or any law. 
        Martins acknowledges further that such representation constitutes a material inducement for the Company entering into the Agreement.

       

      Martins represents and warrants that by virtue of the foregoing, he has waived any relief available to him (including without
        limitation, monetary damages, equitable relief and reinstatement) under any of the claims and/or causes of action waived in this General Release.  Therefore, he agrees that he will not seek or accept any award or settlement from any source or
        proceeding (including but not limited to any proceeding brought by any other person or by any government agency) with respect to any claim or right waived in this General Release.  He affirms that he has disclosed to the Company any information he
        has concerning any conduct involving the Releasees, that he has any reason to believe may be fraudulent or unlawful.  He further agrees, to the maximum extent permitted by law, that he will not, at any time hereafter, commence, maintain, prosecute
        in as a party, or permit to be filed by any other person on his behalf, any action or proceeding of any kind (judicial or administrative) (on his own behalf and/or on behalf of any other person and/or on behalf of or as a member of any alleged
        class of person) in any court or agency, or participate in any action, suit or proceeding (unless compelled by legal process or court order), against the Releasees with respect to any claim released pursuant to this General Release.

       

      Any claim or counterclaim by the Company to enforce this General Release shall not be deemed retaliatory.

       

      Martins represents and warrants that he has had the opportunity to consult with an attorney before signing this General Release; that he
        has had the opportunity to consider the terms of this General Release; and that he has executed this General Release after consulting with an attorney of his choice, who has answered to his satisfaction any and all questions he has regarding this
        General Release, its terms and consequences.  Martins further represents and warrants that he has read this General Release in its entirety, fully understands all of its terms, and voluntarily assents to all terms and conditions contained herein.

       

      This General Release is not intended, and shall not be construed, as an admission that the Releasees have violated any federal, state or
        local law (statutory or decisional), ordinance or regulation, breached any contract or committed any wrongdoing whatsoever against Martins or otherwise.

      
        14

        
          

      

      This General Release shall not become effective until the eighth day following Martins’ signing of this General Release (“effective
        date”) and Martins may at any time prior to the effective date revoke this General Release by giving notice in writing of such revocation to the Company’s General Counsel.  In the event that Martins revokes this General Release prior to the eighth
        day after his execution thereof, this General Release, and the promises contained therein, shall automatically be deemed null and void.

       

      Martins acknowledges that he has been advised in writing to consult with an attorney before signing this General Release; and that he
        has been afforded the opportunity to consider the terms of this General Release for twenty-one (21) days prior to its execution.  Martins further acknowledges that he has read this General Release in its entirety; that he fully understands all of
        its terms and their significance; that he has signed it voluntarily and of his own free will; and that he intends to abide by its provisions without exception.

    

     

    

    
      	
               

            	
               

            	
               

            
	
               

            	
              John A. Martins

            	
               

            

    

    

    

  

   

    

  15edbl_ex1017i.htm

EXHIBIT10.17i  
  
 THIS NOTE HAS BEEN ISSUED WITH “ORIGINAL ISSUE DISCOUNT” FOR U.S. FEDERAL INCOME TAX PURPOSES. THE ISSUER OF THIS NOTE WILL MAKE AVAILABLE TO ANY HOLDER OF THIS NOTE: (1) THE ISSUE PRICE AND ISSUE DATE OF THE NOTE, (2) THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THE NOTE, (3) THE YIELD TO MATURITY OF THE NOTE, AND (4) ANY OTHER INFORMATION REQUIRED TO BE MADE AVAILABLE BY U.S. TREASURY REGULATIONS UPON RECEIVING A WRITTEN REQUEST FOR SUCH INFORMATION AT THE FOLLOWING ADDRESS: 13850 MANCHESTER RD., BALLWIN, MO 63011.
  
 NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.
  
  
 	 Dated as of: 
	 January 14, 2022
	 Purchase Price:
	 $400,000

	 Maturity Date:
	 October 14, 2022
	 Original Issue Discount:
	  $60,000

	 Interest Rate: 
	 5%
	 Original Principal Amount: 
	 $460,000

  
 15% OID SENIOR SECURED PROMISSORY NOTE
 DUE OCTOBER 14, 2022
  
 THIS 15% OID SENIOR SECURED PROMISSORY NOTE is one of a series of duly authorized and validly issued 15% OID Senior Secured Promissory Notes due October 14, 2022 of Edible Garden AG Incorporated, a Delaware corporation (the “Company”), having its principal place of business at 283 County Road 519, Belvidere, New Jersey 07823, designated as its 15% OID Senior Secured Promissory Notes due October 14, 2022 (this Note, the “Note” and, collectively with the other Notes of such series, the “Notes”).
  
 FOR VALUE RECEIVED, the Company hereby promises to pay to the or
 der of Evergreen Capital Management LLC or its registered assigns or successors-in-interest (the “Holder”), or shall have paid pursuant to the terms hereunder, the principal amount set forth above on October 14, 2022 (the “Maturity Date”) or such earlier date as this Note is required or permitted to be repaid as provided hereunder, and to pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note in accordance with the provisions hereof.
  
 This Note is being issued pursuant to that Securities Purchase Agreement dated as of October 7, 2021, as amended (the “Purchase Agreement”) between the Company and the Holder (defined below) and the other purchasers, if any, of the Notes. 
  
 This Note is subject to the following additional provisions:
   
 	 
	1
	

	 

  
 1. Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Note, (a) capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall have the following meanings:
  
 “Alternate Consideration” shall have the meaning set forth in Section 5(e).
  
 “Bankruptcy Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or any Significant Subsidiary thereof, (b) there is commenced against the Company or any Significant Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after commencement, (c) the Company or any Significant Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d) the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) the Company or any Significant Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Company or any Significant Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts or (g) the Company or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.
  
 “Base Conversion Price” shall have the meaning set forth in Section 5(b).
  
 “Beneficial Ownership Limitation” shall have the meaning set forth in Section 4(d).
  
 “Change of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of 50% of the voting securities of the Company (other than by means of conversion or exercise of the Notes and the Securities issued together with the Notes), (b) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own less than 66% of the aggregate voting power of the Company or the successor entity of such transaction, (c) the Company sells or transfers all or substantially all of its assets to another Person and the stockholders of the Company immediately prior to such transaction own less than 66% of the aggregate voting power of the acquiring entity immediately after the transaction, (d) a replacement at one time or within a three-year period of more than one-half of the members of the Board of Directors which is not approved by a majority of those individuals who are members of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board of Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors who are members on the date hereof), or (e) the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.
  
 “Conversion” shall have the meaning ascribed to such term in Section 4. 
  
 “Conversion Date” shall have the meaning set forth in Section 4(a).
  
 “Conversion Price” shall have the meaning set forth in Section 4(b).
  
 “Conversion Schedule” means the Conversion Schedule in the form of Schedule 1 attached hereto.
   
 	 
	2
	

	 

  
 “Conversion Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Note in accordance with the terms hereof.
  
 “Dilutive Issuance” shall have the meaning set forth in Section 5(b).
  
 “Dilutive Issuance Notice” shall have the meaning set forth in Section 5(b).
  
 “Event of Default” shall have the meaning set forth in Section 6(a).
  
 “Fundamental Transaction” shall have the meaning set forth in Section 5(e). 
  
 “IPO” means the consummation of the first underwritten public offering of Common Stock under the Securities Act. 
  
 “Late Fees” shall have the meaning set forth in Section 2(c).
  
 “New Jersey Courts” shall have the meaning set forth in Section 7(d).
  
 “Note Register” shall have the meaning set forth in Section 2(b). 
  
 “Notice of Conversion” shall have the meaning set forth in Section 4(a).
  
 “Original Issue Date” means the date of the first issuance of this Note, regardless of any transfers of any Note and regardless of the number of instruments which may be issued to evidence such Notes.
  
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
  
 “Share Delivery Date” shall have the meaning set forth in Section 4(c)(ii).
  
 “Successor Entity” shall have the meaning set forth in Section 5(e). 
  
 “Trading Market” means any of the following markets or exchanges on which the Common Stock (or any other common stock of any other Person that references the Trading Market for its common stock) is listed or quoted for trading on the date in question: The NASDAQ Global Market, The NASDAQ Global Select Market, The NASDAQ Capital Market, the New York Stock Exchange, NYSE Arca, the NYSE American, the OTCQX Marketplace, the OTCQB Marketplace, the OTC Pink Marketplace or any other tier operated by OTC Markets Group Inc. (or any successor to any of the foregoing).
  
 2. Interest and Prepayments.
  
 (a) Payment of Interest in Cash.  The Company shall pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at the rate of five percent (5%) per annum.  All interest payments hereunder will be payable in cash.  Accrued and unpaid interest shall be due on payable on the Maturity Date, or as otherwise set forth herein. 
  
 (b)  Interest Calculations.  Interest shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar day periods, and shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding principal, together with all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made. Interest hereunder will be paid to the Person in whose name this Note is registered on the records of the Company regarding registration and transfers of this Note (the “Note Register”).
   
 	 
	3
	

	 

  
 (c) Late Fee. All overdue accrued and unpaid interest to be paid hereunder shall entail a late fee at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted by applicable law (the “Late Fees”) which shall accrue daily from the date such interest is due hereunder through and including the date of actual payment in full.
  
 (d) Prepayment. This Note may be prepaid by the Company in whole or in part at any time or from time to time, upon at least three (3) Business Days prior written notice to the Holder. If the Company exercises its right to prepay this Note at any time on or prior to November 30, 2021, the Company shall make payment to the Holder of an amount in cash equal to the sum of the then outstanding principal amount of this Note and accrued interest thereon, plus a prepayment premium equal to 15% of the principal amount of this Note to be prepaid, within three (3) Business Days after such three (3) Business Day period.  If the Company exercises its right to prepay this Note after November 30, 2021 and prior to January 1, 2022, the Company shall make payment to the Holder of an amount in cash equal to the sum of the then outstanding principal amount of this Note and accrued interest thereon, plus a prepayment premium equal to 20% of the principal amount of this Note to be prepaid, within three (3) Business Days after such three (3) Business Day period. If the Company exercises its right to prepay this Note at any time on or after January 1, 2022, the Company shall make payment to the Holder of an amount in cash equal to the sum of the then outstanding principal amount of this Note and accrued interest thereon, plus a prepayment premium equal to 30% of the principal amount of this Note to be prepaid, within three (3) Business Days after such three (3) Business Day period. 
  
 (e) Prepayment Upon Qualified Financing.  If the Company completes a Qualified Financing (as defined below), the Company shall repay in full the then-outstanding principal amount of this Note and any accrued but unpaid interest, plus an amount equal to the applicable prepayment premium on the date of such repayment. Such repayment shall be due within one (1) Business Day of the closing of the Qualified Financing.  The Company shall give written notice to Holder as soon as practicable, but in no event less than three (3) Business Days before the anticipated closing date of such Qualified Financing, during which period Holder shall have the opportunity to convert this Note pursuant to Section 4 hereof. The term “Qualified Financing” shall mean that the Company issues and sells shares of its equity securities to investors on or before the Maturity Date in an equity financing with total gross proceeds to the Company of not less than $5,000,000 (excluding the conversion of the notes or other convertible securities issued for capital raising purposes).  
  
  
 3. Registration of Transfers and Exchanges. 
  
 (a) Different Denominations. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.
  
 (b) Investment Representations. This Note has been issued subject to certain investment representations of the original Holder set forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal and state securities laws and regulations. 
  
 (c) Reliance on Note Register. Prior to due presentment for transfer to the Company of this Note, the Company and any agent of the Company may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor any such agent shall be affected by notice to the contrary.
  
 4. Conversion.
  
 (a) Voluntary Conversion. This Note shall be convertible, in whole or in part, into shares of Common Stock at the option of the Holder, at any time and from time to time (subject to the conversion limitations set forth in Section 4(d) hereof), but only with the prior written consent of the Company. The Holder shall effect conversions by delivering to the Company a Notice of Conversion, the form of which is attached hereto as Annex A (each, a “Notice of Conversion”), specifying therein the principal amount of this Note to be converted, accrued and unpaid interest outstanding under this Note to be converted, and the date on which such conversion shall be effected (such date, the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire principal amount of this Note, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion. The Holder and the Company shall maintain a Conversion Schedule showing the principal amount(s) converted and the date of such conversion(s). The Company may deliver an objection to any Notice of Conversion within three (3) Business Days of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. The Holder, and any assignee by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof.
  
 (b) Conversion Price. The conversion price in effect on any Conversion Date shall be equal to $4.15 (the “Conversion Price”). 
  
 (c) Mechanics of Conversion.
  
 i. Conversion Shares Issuable Upon Conversion of Principal Amount and Interest. The number of Conversion Shares issuable upon a conversion hereunder shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Note to be converted and any accrued and unpaid interest to be converted, by (y) the Conversion Price.
  
 ii. Delivery of Certificate Upon Conversion. Not later than three (3) Trading Days after each Conversion Date (the “Share Delivery Date”), the Company shall deliver, or cause to be delivered, to the Holder (A) a certificate or certificates representing the Conversion Shares which, on or after the date on which such Conversion Shares are eligible to be sold under Rule 144 without the need for current public information and the Company has received an opinion of counsel to such effect reasonably acceptable to the Company, shall be free of restrictive legends and trading restrictions (other than those which may then be required by the Purchase Agreement) representing the number of Conversion Shares being acquired upon the conversion of this Note, and (B) a bank check in the amount of accrued and unpaid interest (if the Company has elected or is required to pay accrued interest in cash). All certificate or certificates required to be delivered by the Company under this Section 4(c) shall be delivered electronically through the Depository Trust Company or another established clearing corporation performing similar functions, if available. If the Conversion Date is prior to the date on which such Conversion Shares are eligible to be sold under Rule 144 without the need for current public information the Conversion Shares shall bear a restrictive legend in the following form, as appropriate:
   
 	 
	4
	

	 

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

  
 iii. Failure to Deliver Certificates. If, in the case of any Notice of Conversion, such certificate or certificates are not delivered to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Company at any time on or before its receipt of such certificate or certificates, to rescind such Conversion, in which event the Company shall promptly return to the Holder any original Note delivered to the Company and the Holder shall promptly return to the Company the Common Stock certificates issued to such Holder pursuant to the rescinded Conversion Notice. Notwithstanding the obligations of the Company contained in Section 4(c) to deliver share certificates, any requirement to deliver share certificates shall be remedied by recording share issuances in favor of the Holder in book entry form and delivery to the Holder of written evidence of such share issuances.
  
 iv. Obligation Absolute; Partial Liquidated Damages. The Company’s obligations to issue and deliver the Conversion Shares upon conversion of this Note in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of such Conversion Shares; provided, however, that such delivery shall not operate as a waiver by the Company of any such action the Company may have against the Holder. Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section 6 hereof for the Company’s failure to deliver Conversion Shares within the period specified herein and the Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law.
  
 vi. Reservation of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock a number of shares of Common Stock at least equal to the Required Minimum for the sole purpose of issuance upon conversion of this Note and payment of interest on this Note, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and the other holders of the Notes), not less than such aggregate number of shares of the Common Stock as shall (subject to the terms and conditions set forth in the Purchase Agreement) be issuable (taking into account the adjustments and restrictions of Section 5) upon the conversion of the then outstanding principal amount of this Note and payment of interest hereunder. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.
   
 	 
	5
	

	 

  
 vii. Fractional Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Note. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Company shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share.
  
 viii. Transfer Taxes and Expenses. The issuance of certificates for shares of the Common Stock on conversion of this Note shall be made without charge to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificates, provided that, the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of this Note so converted and the Company shall not be required to issue or deliver such certificates unless or until the Person or Persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Conversion.
  
 (d) Holder’s Conversion Limitations. Following the IPO, the Company shall not effect any conversion of principal and/or interest of this Note, and a Holder shall not have the right to convert any principal and/or interest of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any Persons acting as a group together with the Holder or any of the Holder’s Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted principal amount of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other Notes or the Warrants) beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 4(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 4(d) applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder’s determination of whether this Note may be converted (in relation to other securities owned by the Holder together with any Affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4(d), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Company, or (iii) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Holder. The Holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 4(d), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this Section 4(d) shall continue to apply. Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Note. 
  
 	 
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 5. Certain Adjustments.
  
 (a) Stock Dividends and Stock Splits. If the Company, at any time while this Note is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion of, or payment of interest on, the Notes), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Company, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Company) outstanding immediately before such event, and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re‐classification.
  
 (b)  Subsequent Equity Sales. If, at any time while this Note is outstanding and prior to (but including) the closing of the Qualified Offering, the Company or any Subsidiary, as applicable, sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock at an effective price per share that is lower than the then Conversion Price (such lower price, the “Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance), then the Conversion Price shall be reduced to equal the Base Conversion Price. Such adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustment will be made under this Section 5(b) in respect of an Exempt Issuance. The Company shall notify the Holder in writing, no later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 5(b), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 5(b), upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion Price in the Notice of Conversion.
  
 	 
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 (c) Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 5 above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).
  
 (d) Pro Rata Distributions. During such time as this Note is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Note, then, in each such case, upon conversion of this Note, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).
  
 	 
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 (e) Fundamental Transaction. If, at any time while this Note is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent conversion of this Note, the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation in Section 4(d) on the conversion of this Note), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Note is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in Section 4(d) on the conversion of this Note). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Note following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Note and the other Transaction Documents (as defined in the Purchase Agreement) in accordance with the provisions of this Section 5(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the holder of this Note, deliver to the Holder in exchange for this Note a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Note which is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon conversion of this Note (without regard to any limitations on the conversion of this Note) prior to such Fundamental Transaction, and with a conversion price which applies the conversion price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic value of this Note immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Note and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Note and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.
  
 (f) Calculations. All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued and outstanding.
  
 	 
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 (g) Notice to the Holder.
  
 i. Adjustment to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5, the Company shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 
  
 ii. Notice to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each office or agency maintained for the purpose of conversion of this Note, and shall cause to be delivered to the Holder at its last address as it shall appear upon the Note Register, at least ten (10) 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 Note during the 10-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. 
  
 (h) Adjustment for More Favorable Terms Contained in Future Financings. So long as this Note is outstanding, upon any issuance by the Company or any of its subsidiaries of any convertible security, including any convertible debt security (whether such debt begins with a convertible feature or such feature is added at a later date) or other Common Stock Equivalents, with any term more favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly provided to the Holder in this Note, then the Company shall notify the Holder of such additional or more favorable term and such term, at the Holder’s option, shall become a part of this Note and its supporting documentation. The types of terms contained in the other security that may be more favorable to the holder of such security include, but are not limited to, terms addressing conversion discounts, conversion look back periods, interest rates, original issue discount percentages and warrant coverage.
  
 6. Events of Default. 
  
 (a) “Event of Default” means, wherever used herein, any of the following events (whatever the reason for such event and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):
  
 	 
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 i. any default in the payment of (A) the principal amount of any Note or (B) interest, liquidated damages and other amounts owing to a Holder on any Note, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity Date or by acceleration or otherwise) which default, solely in the case of an interest payment or other default under clause (B) above, is not cured within four (4) Trading Days;
  
 ii. the Company shall materially fail to observe or perform any other covenant or agreement contained in the Notes (other than a breach by the Company of its obligations to deliver shares of Common Stock to the Holder upon conversion, which breach is addressed in clause (ix) below) which failure is not cured, if possible to cure, within the earlier to occur of (A) five (5) Trading Days after notice of such failure sent by the Holder or by any other Holder to the Company and (B) ten (10) Trading Days after the Company has become or should have become aware of such failure;
  
 iii. the Company shall materially fail to observe or perform any other covenant or agreement contained in, or a default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument) shall occur under the specific terms of, any of the other Transaction Documents which failure is not cured, if possible to cure, within the earlier to occur of (A) five (5) Trading Days after notice of such failure sent by the Holder or by any other Holder to the Company and (B) ten (10) Trading Days after the Company has become or should have become aware of such failure;
  
 iv. any representation or warranty made in this Note, any other Transaction Documents, any written statement pursuant hereto or thereto or any other report, financial statement or certificate made or delivered to the Holder shall be untrue or incorrect in any material respect as of the date when made or deemed made; 
  
 v. the Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy Event; 
  
 vii. [reserved];
  
 viii. the Company shall be a party to any Change of Control Transaction or Fundamental Transaction or shall agree to sell or dispose of all or in excess of 50% of its assets in one transaction or a series of related transactions (whether or not such sale would constitute a Change of Control Transaction);
  
 ix. the Company shall fail for any reason to deliver certificates to a Holder prior to the third Trading Day after a Conversion Date pursuant to Section 4(c) or the Company shall provide at any time notice to the Holder, including by way of public announcement, of the Company’s intention to not honor requests for conversions of any Notes in accordance with the terms hereof; 
  
 x. [reserved];
  
 xi. if the Company or any Significant Subsidiary shall: (i) apply for or consent to the appointment of a receiver, trustee, custodian or liquidator of it or any of its properties, (ii) make a general assignment for the benefit of creditors, (iii) be adjudicated a bankrupt or insolvent or be the subject of an order for relief under Title 11 of the United States Code or any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation law or statute of any other jurisdiction or foreign country, or (iv) file a voluntary petition in bankruptcy, or a petition or an answer seeking reorganization or an arrangement with creditors or to take advantage or any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation law or statute, or an answer admitting the material allegations of a petition filed against it in any proceeding under any such law, or (v) take or permit to be taken any action in furtherance of or for the purpose of effecting any of the foregoing;
   
 	 
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 xii. if any order, judgment or decree shall be entered, without the application, approval or consent of the Company or any Significant Subsidiary, by any court of competent jurisdiction, approving a petition seeking liquidation or reorganization of the Company or any Subsidiary, or appointing a receiver, trustee, custodian or liquidator of the Company or any Subsidiary, or of all or any substantial part of its assets, and such order, judgment or decree shall continue unstayed and in effect for any period of sixty (60) days;
  
 xiii. the occurrence of any levy upon or seizure or attachment of, or any uninsured loss of or damage to, any property of the Company or any Subsidiary having an aggregate fair value or repair cost (as the case may be) in excess of $250,000 individually or in the aggregate, and any such levy, seizure or attachment shall not be set aside, bonded or discharged within thirty (30) days after the date thereof; 
  
 xiv. the Company or any subsidiary shall default on any of its obligations under any mortgage(s), credit agreement(s) or other facility, indenture agreement(s), factoring agreement(s) or other instrument(s) under which there may be issued, or by which there may be secured or evidenced, any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that (a) involve(s) obligations greater than $500,000 in the aggregate, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become due and payable; 
  
 xv. any monetary judgement, writ or similar final process shall be entered or filed after the date hereof against the Company, any subsidiary or any of their respective property or assets for more than $250,000, and such judgement, writ or similar process shall remain unvacated, unbonded or unstayed for a period of 45 calendar days; or 
  
 xvi. the Company shall fail to maintain sufficient reserved shares pursuant to Section 4.11 of the Purchase Agreement for a period of five (5) Trading Days after the Company has become or should have become aware of such failure.
  
 (b) Remedies Upon Event of Default. Subject to the Beneficial Ownership Limitation as set forth in Section 4(d), if any Event of Default occurs, then the outstanding principal amount of this Note, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become, at the Holder’s election, immediately due and payable in cash. After the occurrence of any Event of Default that results in the eventual acceleration of this Note, the interest rate on this Note shall accrue at an additional interest rate equal to the lesser of 2% per month (24% per annum) or the maximum rate permitted under applicable law. Upon the payment in full of the Note, the Holder shall promptly surrender this Note to or as directed by the Company. In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of the Note until such time, if any, as the Holder receives full payment pursuant to this Section 6(b). No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.
  
 7. Security. This Note is secured by the Security Agreement (as defined in the Purchase Agreement), executed by the Company in favor of the Holders encumbering the collateral set forth therein, as more specifically set forth in the Security Agreement, all the terms and conditions of which are hereby incorporated into and made a part of this Note.
  
 	 
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 8. Miscellaneous. 
  
 (a) Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile, by email, or sent by a nationally recognized overnight courier service, addressed to the Company, at the address set forth above, or such other facsimile number, email or other address as the Company may specify for such purposes by notice to the Holder delivered in accordance with this Section 7(a). Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, by email or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number, email or other address of the Holder appearing on the books of the Company, or if no such facsimile number, email or other address appears on the books of the Company, at the principal place of business of such Holder, as set forth in the Purchase Agreement. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile or via email at the facsimile number or email set forth on the signature pages attached hereto prior to 12:00 p.m. (New York City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile or via email at the facsimile number or email set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 12:00 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.
  
 (b) Absolute Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company. 
  
 (c) Lost or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.
  
 (d) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in Bergen, Essex and Hudson Counties, State of New Jersey (the “New Jersey Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New Jersey Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New Jersey Courts, or such New Jersey Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney’s fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.
   
 	 
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 (e) Waiver. Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note on any other occasion. Any waiver by the Company or the Holder must be in writing. 
  
 (f) Severability. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Note, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.
  
 (g) Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Note.
  
 (h) Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.
  
 (i) Headings. The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit or affect any of the provisions hereof.
  
 *********************
  
 (Signature Pages Follow)
   
 	 
	14
	

	 

  
 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.
  
 	 	Edible Garden AG Incorporated	
	 	 	 	 
		By:	/s/ James Kras	
	  
	  
	 Name: James Kras
	 
	 		Title: Chief Executive Officer	 

   
 Facsimile No. for delivery of Notices: None
  
 Email address for delivery of Notices: jkras@ediblegarden.com
   
 	 
	15
	

	 

  
 ANNEX A
  
 NOTICE OF CONVERSION
  
 The undersigned hereby elects to convert principal and interest under the 15% OID Senior Secured Promissory Notes due October 14, 2022 of Edible Garden AG Incorporated (the “Company”), into shares of its common stock (the “Common Stock”), according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any. 
  
 By the delivery of this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common Stock does not exceed the amounts specified under Section 4 of this Note, as determined in accordance with Section 13(d) of the Exchange Act.
  
 The undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the aforesaid shares of Common Stock. 
  
 Conversion calculations:
  
 Date to Effect Conversion:______________________________________
  
 Principal Amount of Note to be Converted:________________________
  
 Payment of Interest in Common Stock __ yes __ no
  
 If yes, $_____ of Interest Accrued on Account of Conversion at Issue.
  
 Number of shares of Common Stock to be issued:___________________
  
 	  
	  

	 Signature
	  

	  
	  

	  
	  

	 Name
	  

	  
	  

	 Delivery Instructions:
	  

	  
	  

	  
	  

	  
	  

	  
	  

	  
	  

	  
	  

    
 	 
	16
	

	 

  
 Schedule 1
  
 CONVERSION SCHEDULE
  
 This 15% OID Senior Secured Promissory Notes due October 14, 2022 in the original principal amount of $460,000 is issued by Edible Garden AG Incorporated (the “Company”). This Conversion Schedule reflects conversions made under Section 4 of the above referenced Note.
  
 Dated: 
  
 	 Date of Conversion
 (or for first entry, Original Issue Date)
	  
 Amount of Conversion
	 Aggregate Principal Amount Remaining Subsequent to Conversion
 (or original Principal Amount)
	  
 Company Attest

	  
  
	  
	  
	  

	  
  
	  
	  
	  

	  
  
	  
	  
	  

	  
  
	  
	  
	  

	  
  
	  
	  
	  

	  
  
	  
	  
	  

	  
  
	  
	  
	  

   
 	 
	17

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