Document:

Exhibit
4.68

 

SECURITIES
PURCHASE AGREEMENT 

 

This SECURITIES
PURCHASE AGREEMENT (the “Agreement”), dated as of March 28, 2017, is by and between FreeSeas Inc., a
corporation incorporated and existing under the laws of the Republic of the Marshall Islands (the
“Company”), and CERBERUS FINANCE GROUP, LTD, a British Virgin Islands Company, with its address at
Craigmuir Chambers, Road Town, Tortola VG 1110, British Virgin Islands (the “Investor”).

 

RECITALS

 

A. The
Company and the Investor are executing and delivering this Agreement in reliance upon the exemption from securities
registration afforded by Rule 903 of Regulation S (“Regulation S”) as promulgated by the United States
Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the
“1933 Act”).

 

B. The
Company has authorized the issuance of a convertible note in the original principal amount of $25,000, in the form attached hereto
as Exhibit A (the “Note”), which Note shall be convertible into shares of Common Stock (as defined
below) (as converted, collectively, the “Conversion Shares”), in accordance with the terms of the Note.

 

C. The
Investor wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, the original
principal amount of the Note.

 

D. The
Note is entitled to interest, which, at the option of the Company and subject to certain conditions, may be paid in shares of
Common Stock (the “Interest Shares”) or in cash.

 

E. The
Note, the Conversion Shares and the Interest Shares are collectively referred to herein as the “Securities.”

 

F. The
parties have agreed that the obligation to repay the Note shall be an unsecured obligation of the Company.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

		1.	PURCHASE
                                         AND SALE OF NOTE. 

 

(a) Note.
Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company shall issue and sell
to the Investor, and the Investor shall purchase from the Company on the Closing Date (as defined below), the Note.

 

    	 		 

     

    

 

(b) Closing.
The closing (the “Closing”) of the purchase of the Note by the Investor shall occur at the offices of the
Company . The date of the Closing (the “Closing Date”) shall be around March 28, 2017 (or such later date
as is mutually agreed to by the Company and the Investor). As used herein “Business Day” means any day
other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by
law to remain closed.

 

(c) Purchase
Price. The purchase price for the Note to be purchased by the Investor (the “Purchase Price”) shall be
$25,000.

 

(d) Payment
of Purchase Price; Delivery of Note. On the Closing Date, (i) the Investor shall pay the Purchase Price to the Company for
the Note by wire transfer of immediately available funds in accordance with the Company’s written wire instructions and
(ii) the Company shall deliver to the Investor the Note duly executed on behalf of the Company and registered in the name of the
Investor or its designee.

 

		2.	INVESTOR’S
                                         REPRESENTATIONS AND WARRANTIES. 

 

The
Investor represents and warrants to the Company that:

 

(a) Organization;
Authority. The Investor is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

(b) No
Public Sale or Distribution. The Investor (i) is acquiring the Note, (ii) may acquire the Interest Shares in accordance with
the terms of the Note, and (iii)upon conversion of the Note, will acquire the Conversion Shares issuable upon conversion thereof
for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof in
violation of applicable securities laws, except pursuant to sales registered or exempted under the 1933 Act; provided, however,
by making the representations herein, the Investor does not agree, or make any representation or warranty, to hold any of the
Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance
with or pursuant to a registration statement or an exemption under the 1933 Act. The Investor does not presently have any agreement
or understanding, directly or indirectly, with any Person to distribute any of the Securities in violation of applicable securities
laws.

 

(c) Regulation
S Representations. The Investor hereby acknowledges and agrees that:

 

(i) it
is not in the United States and is not a “U.S. Person” as defined in Rule 902 of Regulation S promulgated under the
1933 Act (a “U.S. Person”);

 

(ii) the
Securities were not offered to the Investor in the United States and at the time its buy order was made, it was outside the United
States;

 

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(iii) this
Agreement was delivered to, completed, executed and delivered by, the Investor (or its authorized signatory) outside the United
States;

 

(iv) the
Investor is not a “distributor” of securities, as that term is defined in Regulation S under the 1933 Act, nor a dealer
in securities, and is not purchasing the Securities for the account or benefit of, directly or indirectly, any U.S. Person;

 

(v) the
current structure of this transaction and all transactions and activities contemplated hereunder is not a scheme to evade the
registration requirements of the 1933 Act; and

 

(vi) it
has not purchased the Securities as a result of any form of “directed selling efforts” (as such term is used in Regulation
S under the 1933 Act) or “general solicitation” or “general advertising” (as such terms are used under
Rule 502(c) of Regulation D promulgated under the 1933 Act), including, but not limited to, any advertisements, articles, notices
or other communications published in any newspaper, magazine or similar media or on the Internet or broadcast over radio, television
or the Internet, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.

 

(d) Reliance
on Exemptions. The Investor understands that the Securities are being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws, that the offer and sale of the Securities
are intended to be exempt from the registration requirements of the 1933 Act pursuant to Rule 903 of Regulation S under the 1933
Act, and that the Company is relying in part upon the truth and accuracy of, and the Investor’s compliance with, the representations,
warranties, agreements, acknowledgments and understandings of such Investor set forth herein in order to determine the availability
of such exemptions and the eligibility of the Investor to acquire the Securities.

 

(e) Information.
The Investor and its advisors, if any, have been furnished with all materials relating to the business, finances and operations
of the Company and materials relating to the offer and sale of the Securities which have been requested by the Investor. The Investor
and its advisors, if any, have been afforded the opportunity to ask questions of the Company. The Investor understands that its
investment in the Securities involves a high degree of risk. The Investor has sought such accounting, legal and tax advice as
it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

 

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

 

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(g) Transfer
or Resale. The Investor acknowledges and agrees that, pursuant to the provisions of Regulation S, the Securities cannot be
sold, assigned, transferred, conveyed, pledged or otherwise disposed of to any U.S. Person or within the United States of America
or its territories or possessions for a period of 40 days from and after the Closing Date, unless such Securities are registered
for sale in the United States pursuant to an effective registration statement under the 1933 Act or another exemption from such
registration is available. Without limiting the foregoing, the Investor understands that: (i) the Securities have not been and
are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned, transferred,
conveyed or pledged, unless (A) subsequently registered under the 1933 Act and applicable states securities laws, (B) the sale,
assignment or transfer is made outside the United States to a non-U.S. Person in accordance with the requirements of Rule 904
of Regulation S and in compliance with applicable local laws and regulations, (C) the sale, assignment or transfer is made in
the United States or to a U.S. Person and the applicable 40-day distribution compliance period under Rule 903 of Regulation S
has been satisfied, (D) such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to any
other exemption from registration under the 1933 Act and applicable state securities laws, or (E) the Investor provides the Company
with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144A promulgated under the
1933 Act (or a successor rule thereto) (collectively, “Rule 144A”); (ii) any sale of the Securities made in
reliance on Rule 144A may be made only in accordance with the terms of Rule 144A, and further, if Rule 144A is not applicable,
any resale of the Securities under circumstances in which the seller (or the Person (as defined below) through whom the sale is
made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption
under the 1933 Act or the rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other
Person is under any obligation to register the Securities under the 1933 Act or any state securities laws or to comply with the
terms and conditions of any exemption thereunder.

 

(h) Validity;
Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and constitutes
the legal, valid and binding obligations of the Investor enforceable against the Investor in accordance with its terms, except
as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights
and remedies.

 

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

 

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(j) Residency.
The Investor is a resident of the Country of Canada.

 

(k) Certain
Trading Activities. The Investor has not directly or indirectly, nor has any Person acting on behalf of or pursuant to
any understanding with the Investor, engaged in any transactions in the securities of the Company (including, without
limitation, any Short Sales (as defined below) involving the Company’s securities) during the period commencing as of
the time that the Investor was first contacted regarding the specific investment in the Company contemplated by this
Agreement and ending immediately prior to the execution of this Agreement by the Investor (it being understood and agreed
that for all purposes of this Agreement, and, without implication that the contrary would otherwise be true, that neither
transactions nor purchases nor sales shall include the location and/or reservation of borrowable shares of Common Stock).
“Short Sales” means all “short sales” as defined in Rule 200 promulgated under Regulation SHO
under the Securities Exchange Act of 1934, as amended (the “1934 Act”).

 

(l) Experience
of the Investor. The Investor, either alone or together with its representatives, has such knowledge, sophistication and experience
in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the
Securities, and has so evaluated the merits and risks of such investment. The Investor is able to bear the economic risk of an
investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(m) Not
a 10% Owner. The Investor is not a “beneficial owner” of more than 10% of the shares of Common Stock (as defined
for purposes of Rule 13d-3 of the 1934 Act).

 

		3.	REPRESENTATIONS
                                         AND WARRANTIES OF THE COMPANY. 

 

The
Company represents and warrants to the Investor that:

 

(a) Organization
and Qualification. Each of the Company and each of its Subsidiaries are entities duly organized and validly existing and in
good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authorization to own
their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the
Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction
in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to
the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. “Material
Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including
results thereof), condition (financial or otherwise) or prospects of the Company and its Subsidiaries taken as a whole, (ii) the
transactions contemplated hereby or in any of the other Transaction Documents or (iii) the authority or ability of the Company
or any of its Subsidiaries to timely perform any of their respective obligations under any of the Transaction Documents (as defined
below). Other than the Persons (as defined below) set forth in the SEC Reports (as defined below), the Company has no Subsidiaries.
“Subsidiaries” means any Person in which the Company, directly or indirectly, (I) owns a majority of the outstanding
capital stock or holds a majority of equity or similar interest of such Person or (II) controls or operates all or any part of
the business, operations or administration of such Person, and each of the foregoing, is individually referred to herein as a
“Subsidiary.”

 

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(b) Authorization;
Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations under this
Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof. The
execution and delivery of this Agreement and the other Transaction Documents by the Company, and the consummation by the Company
of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Note, and the reservation
for issuance and issuance of the Conversion Shares issuable upon conversion of the Note and the Interest Shares issuable in accordance
with the terms of the Note) have been duly authorized by the Company’s board of directors (the “Signing Resolutions”),
andno further filing, consent or authorization is required by the Company, its board of directors or its shareholders. The Signing
Resolutions are valid, in full force and effect and have not been modified or supplemented in any respect. The Company has delivered
to the Investor a true and correct copy of the Signing Resolutions executed by all of the members of the Company’s Board
of Directors.

 

(c) This
Agreement has been, and the other Transaction Documents will be prior to the Closing, duly executed and delivered by the Company,
and each constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with
its respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies and except as rights to indemnification and to contribution may be limited by federal or state securities
law and public policy, and the remedy of specific performance and injunctive and other forms of equitable relief may be subject
to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought. “Transaction
Documents” means, collectively, this Agreement, the Note and each of the other agreements and instruments entered into
or delivered by any of the parties hereto in connection with the transactions contemplated hereby and thereby, as may be amended
from time to time.

 

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(d) Issuance
of Securities. The issuance of the Note is duly authorized and, upon issuance in accordance with the terms of the Transaction
Documents, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens,
charges and other encumbrances with respect to the issue thereof. The Company shall have reserved from its duly authorized capital
stock not less than 100% of the maximum number of Conversion Shares issuable upon conversion of the Note and without taking into
account any limitations on the conversion of the Note set forth therein). The Interest Shares, upon issuance in accordance with
the Note, and upon conversion in accordance with the Note, the Conversion Shares, when issued, will be validly issued, fully paid
and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to
the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. Subject to the accuracy
of the representations and warranties of the Investor in this Agreement, the offer and issuance by the Company of the Securities
is exempt from registration under the 1933 Act. “Common Stock” means (i) the Company’s shares of common
stock, US$0.001 par value per share, and (ii) any capital stock into which such common stock shall have been changed or any share
capital resulting from a reclassification of such common stock.

 

(e) No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Note, the Conversion
Shares and the reservation for issuance of the Conversion Shares and the Interest Shares) will not (i) result in a violation of
the Charter (as defined below) (including, without limitation, any certificate of designation contained therein) or other organizational
documents of the Company or any of its Subsidiaries, any capital stock of the Company or any of its Subsidiaries or Bylaws (as
defined below) or the bylaws any of its Subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party or (iii) result
in a violation of any law, rule, regulation, order, judgment or decree (including, without limitation, foreign, federal and state
securities laws and regulations and the rules and regulations of the capital market on which the Company’s Common Stock
is traded (the “Principal Market”)) applicable to the Company or any of its Subsidiaries or by which any property
or asset of the Company or any of its Subsidiaries is bound or affected other than, in the case of clause (ii) above, such conflicts,
defaults or rights that could not reasonably be expected to have a Material Adverse Effect.

 

(f) Consents.
Neither the Company nor any Subsidiary is required to obtain any consent from, authorization or order of, or make any filing or
registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for
it to execute, deliver or perform any of its respective obligations under, or contemplated by, the Transaction Documents, in each
case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which the
Company is required to obtain at or prior to the Closing have been obtained or effected on or prior to the Closing Date, and the
Company is not aware of any facts or circumstances which might prevent the Company from obtaining or effecting any of the registration,
application or filings contemplated by the Transaction Documents. Except as disclosed in the SEC Reports (as defined below), the
Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances which
could reasonably lead to delisting or suspension of the Common Stock in the foreseeable future.

 

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(g) Acknowledgment
Regarding Investor’s Purchase of Securities. The Company acknowledges and agrees that the Investor is acting solely
in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the
transactions contemplated hereby and thereby and that the Investor is not (i) an officer or director of the Company or any of
its Subsidiaries, (ii) an “affiliate” (as defined in Rule 144 under the 1933 Act (“Rule 144”))
of the Company or any of its Subsidiaries or (iii) to its knowledge, a “beneficial owner” of more than 10% of the
shares of Common Stock (as defined for purposes of Rule 13d-3 of the 1934 Act. The Company further acknowledges that the
Investor is not acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar
capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice
given by the Investor or any of its representatives or agents in connection with the Transaction Documents and the
transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase of the Securities. The
Company further represents to the Investor that the Company’s decision to enter into the Transaction Documents to which
it is a party has been based solely on the independent evaluation by the Company’s representatives.

 

(h) No
General Solicitation; Placement Agent’s Fees. Neither the Company, nor any of its Subsidiaries or affiliates, nor any
Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning
of Regulation D) in connection with the offer or sale of the Securities. The Company shall be responsible for the payment of any
placement agent’s fees, financial advisory fees, or brokers’ commissions (other than for Persons engaged by the Investor
or its investment advisor) relating to or arising out of the transactions contemplated hereby. Neither the Company nor any of
its Subsidiaries has engaged any placement agent or other agent in connection with the offer or sale of the Securities.

 

(i) No
Integrated Offering. None of the Company, its Subsidiaries or any of their affiliates, nor, to the knowledge of the Company,
any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers
to buy any security, under circumstances that would require registration of the issuance of any of the Securities under the 1933
Act, whether through integration with prior offerings or otherwise, or cause this offering of the Securities to require approval
of stockholders of the Company under any applicable stockholder approval provisions, including, without limitation, under the
rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or
designated for quotation. None of the Company, its Subsidiaries, their affiliates nor, to the knowledge of the Company, any Person
acting on their behalf will take any action or steps that would require registration of the issuance of any of the Securities
under the 1933 Act or cause the offering of any of the Securities to be integrated with other offerings of securities of the Company.

 

(j) Dilutive
Effect. The Company understands and acknowledges that the number of Conversion Shares will increase in certain circumstances.
The Company further acknowledges that its obligation to issue the Conversion Shares upon conversion of the Note in accordance
with this Agreement, the Note is absolute and unconditional (subject to any limitations on conversion as set forth in the Note),
regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company.

 

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(k) Application
of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action, if any,
in order to render inapplicable any control share acquisition, interested stockholder, business combination, poison pill (including,
without limitation, any distribution under a rights agreement), stockholder rights plan or other similar antitakeover provision
under the Charter, Bylaws or other organizational documents or the laws of the jurisdiction of its incorporation or otherwise
which is or could become applicable to the Investor as a result of the transactions contemplated by this Agreement, including,
without limitation, the Company’s issuance of the Securities and the Investor’s ownership of the Securities. The Company
and its board of directors have taken all necessary action, if any, in order to render inapplicable any stockholder rights plan
or similar arrangement relating to accumulations of beneficial ownership of shares of Common Stock or a change in control of the
Company or any of its Subsidiaries.

 

(l) Public
Reports. The Company is current in its filing obligations under the 1934 Act, including without limitation as to its filings
of Annual Reports on Form 20-F and Reports on Form 6-K (collectively, the “SEC Reports”). The SEC Reports do
not contain any untrue statement of a material fact or omit to state any fact necessary to make any statement therein not misleading.
The financial statements included within the SEC Reports for the fiscal year ended December 31, 2015 and for each filed period
thereafter (the “Financial Statements”) have been prepared in accordance with generally accepted accounting
principles (“GAAP”) applied on a consistent basis throughout the periods indicated and with each other, except
that unaudited Financial Statements may not contain all footnote required by generally accepted accounting principles. The Financial
Statements fairly present, in all material respects, the financial condition and operating results of the Company as of the dates,
and for the periods, indicated therein, subject in the case of unaudited Financial Statements to normal year-end audit adjustments.

 

(m) Absence
of Certain Changes. Except as disclosed in the SEC Reports, since December 31, 2015, there has been no material adverse change
and no material adverse development in the business, assets, liabilities, properties, operations (including results thereof),
condition (financial or otherwise) or prospects of the Company or any of its Subsidiaries. Except as disclosed in the SEC Reports,
since December 31, 2015, neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any
assets outside of the ordinary course of business or (iii) made any capital expenditures outside of the ordinary course of business.
Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating
to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary have
any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings
or any actual knowledge of any fact which would reasonably lead a creditor to do so.

 

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(n) Conduct
of Business; Regulatory Permits. Neither the Company nor any of its Subsidiaries is in violation of any term of or in default
under its Charter, any certificate of designation, preferences or rights of any other outstanding series of preferred stock of
the Company or any of its Subsidiaries or Bylaws or their organizational charter, certificate of formation or certificate of incorporation
or bylaws, respectively. Except as disclosed in the SEC Reports, neither the Company nor any of its Subsidiaries is in violation
of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries,
and neither the Company nor any of its Subsidiaries will conduct its business in violation of any of the foregoing, except in
all cases for possible violations which could not, individually or in the aggregate, have a Material Adverse Effect. The Company
and each of its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities
necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits
would not have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has
received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit.

 

(o) Foreign
Corrupt Practices. Neither the Company nor any of its Subsidiaries nor, to the knowledge of the Company, any director, officer,
agent, employee or other Person acting on behalf of the Company or any of its Subsidiaries has, in the course of its actions for,
or on behalf of, the Company or any of its Subsidiaries (i) used any corporate funds for any unlawful contribution, gift, entertainment
or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or
domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S.
Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback
or other unlawful payment to any foreign or domestic government official or employee.

 

(p) Sarbanes-Oxley
Act. The Company and each Subsidiary is in material compliance with all applicable requirements of the Sarbanes-Oxley Act
of 2002 that are effective as of the date hereof, and all applicable rules and regulations promulgated by the SEC thereunder that
are effective as of the date hereof.

 

(q) Transactions
With Affiliates. Except as disclosed in the SEC Filings, none of the officers, directors, employees or affiliates of the Company
or any of its Subsidiaries is presently a party to any transaction with the Company or any of its Subsidiaries (other than for
ordinary course services as employees, officers or directors), including any contract, agreement or other arrangement providing
for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any such officer, director, employee or affiliate or, to the knowledge of the Company or any of its Subsidiaries,
any corporation, partnership, trust or other Person in which any such officer, director, employee or affiliate has a substantial
interest or is an employee, officer, director, trustee or partner.

 

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(r) Equity
Capitalization. As of March 27, 2017, the authorized capital stock of the Company consists of (i) 10,000,000,000 shares of
Common Stock, of which, 3,892,602 are issued and outstanding and approximately 211,163,206 shares are reserved for issuance pursuant
to Convertible Securities (as defined below) (other than the Note) and (ii) 5,000,000 shares of preferred stock, of which, 8,160
are issued and outstanding. No shares of Common Stock are held in treasury. All of such outstanding shares are duly authorized
and have been, or upon issuance will be, validly issued and are fully paid and non-assessable. To the Company’s knowledge,
except as disclosed in the SEC Reports, no Person owns 10% or more of the Company’s issued and outstanding shares of Common
Stock (calculated based on the assumption that all Convertible Securities, whether or not presently exercisable or convertible,
have been fully exercised or converted (as the case may be) taking account of any limitations on exercise or conversion (including
“blockers”) contained therein without conceding that such identified Person is a 10% stockholder for purposes of federal
securities laws). The Company has furnished (or made available through the SEC’s EDGAR system) to the Investor true, correct
and complete copies of the Company’s articles of incorporation, as amended and as in effect on the date hereof (the “Charter”),
and the Company’s bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms
of all Convertible Securities and the material rights of the holders thereof in respect thereto. “Convertible Securities”
means any capital stock or other security of the Company or any of its Subsidiaries that is at any time and under any circumstances
directly or indirectly convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire,
any capital stock or other security of the Company (including, without limitation, Common Stock) or any of its Subsidiaries.

 

(s) Absence
of Litigation. Except as disclosed in the SEC Reports, there is no action, suit, proceeding, inquiry or investigation before
or by the Principal Market, any court, public board, government agency, self-regulatory organization or body pending or, to the
knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries, the Common Stock or any of the
Company’s or its Subsidiaries’ officers or directors which is outside of the ordinary course of business or individually
or in the aggregate material to the Company or any of its Subsidiaries. There has not been, and to the knowledge of the Company,
there is not pending or contemplated, any investigation by the SEC involving the Company, any of its Subsidiaries or any current
or former director or executive officer of the Company or any of its Subsidiaries.

 

(t) Insurance.
The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and
risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company
and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has been refused any insurance coverage sought or
applied for, and neither the Company nor any such Subsidiary has any reason to believe that it will be unable to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business at a cost that would not have a Material Adverse Effect.

 

    	 	11	 

     

    

 

(u) Employee
Relations. Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any
member of a union. The Company believes that its and its Subsidiaries’ relations with their respective employees are good.
No executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company or any of
its Subsidiaries has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary
or otherwise terminate such officer’s employment with the Company or any such Subsidiary. To the knowledge of the Company,
no executive officer or other key employee of the Company or any of its Subsidiaries is, or is now expected to be, in violation
of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition
agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive
officer or other key employee (as the case may be) does not subject the Company or any of its Subsidiaries to any liability with
respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all federal, state, local and
foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment
and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect.

 

(v) Title.
The Company and its Subsidiaries have good and marketable title in fee simple to all real property, and have good and marketable
title to all personal property, owned by them which is material to the business of the Company and its Subsidiaries, in each case,
free and clear of all liens, encumbrances and defects except such as do not materially affect the value of such property and do
not interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries. Any real
property and facilities held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and
enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of
such property and buildings by the Company or any of its Subsidiaries.

 

(w) Environmental
Laws. The Company and its Subsidiaries (i) are in compliance with all Environmental Laws (as defined below), (ii) have
received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct
their respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval
where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected to have,
individually or in the aggregate, a Material Adverse Effect. “Environmental Laws” means all federal,
state, local or foreign laws relating to pollution or protection of human health or the environment (including, without
limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws
relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or
hazardous substances or wastes (collectively, “Hazardous Materials”)into the environment, or otherwise
relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous
Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses,
notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved
thereunder.

 

    	 	12	 

     

    

 

(x) Subsidiary
Rights. The Company or one of its Subsidiaries has the unrestricted right to vote, and (subject to limitations imposed by
applicable law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Company
or such Subsidiary.

 

(y) Tax
Status. The Company and each of its Subsidiaries (i) has timely made or filed all foreign, federal and state income and all
other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid all taxes
and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports
and declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate
for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There
are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of
the Company and its Subsidiaries know of no basis for any such claim. The Company is not operated in such a manner as to qualify
as a passive foreign investment company, as defined in Section 1297 of the U.S. Internal Revenue Code of 1986, as amended (the
“Code”).

 

(z) 1933
Act Exemption. The Company is a “foreign private issuer” as defined in Rule 405 under the 1933 Act. The offer,
sale and issuance of the Securities in accordance with the Transaction Documents are exempt from the registration requirements
of the 1933 Act pursuant to Regulation S promulgated under the 1933 Act. Neither the Company nor any of its affiliates, nor, to
the knowledge of the Company, any Person acting on their behalf, has made or will make any offer to sell or any solicitation of
an offer to buy any of the Securities to any U.S. person (as defined in Rule 902 of Regulation S). During the period in which
the Securities are offered for sale, neither the Company nor any of its affiliates nor, to the knowledge of the Company, any Person
acting on their behalf has made or will make any “directed selling efforts” (as such term is defined in Rule 902(b)
of Regulation S promulgated under the 1933 Act) in the United States or has taken or will take any action that would cause the
exemption afforded by Regulation S under the 1933 Act to be unavailable for offers and sales of the Securities outside of the
United States. The Company has implemented all necessary offering restrictions applicable to the transactions contemplated by
this Agreement under Regulation S promulgated under the 1933 Act.

 

(aa)Shell
Company Status. The Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i).

 

		4.	COVENANTS.
                                         

 

(a) Intentionally
Deleted.

 

    	 	13	 

     

    

 

(b) Reporting
Status. Until the date on which the Investor shall have sold all of the Conversion Shares and Interest Shares (the “Reporting
Period”), the Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act, and
the Company shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the
rules and regulations thereunder would no longer require or otherwise permit such termination.

 

(c) Use
of Proceeds. The Company shall use the proceeds from the sale of the Securities solely for general working capital purposes.
Without limiting the foregoing, none of such proceeds shall be used, directly or indirectly, (i) for the redemption of any securities
of the Company or (ii) with respect to any litigation involving the Company or any of its Subsidiaries (including, without limitation,
(x) any settlement thereof or (y) the payment of any costs or expenses related thereto).

 

(d) Financial
Information. As long as the Note remains outstanding, the Company agrees to send the following to the Investor during the
Reporting Period unless the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system,
(i) within one (1) Business Day after the filing thereof with the SEC, a copy of its Annual Reports on Form 20-F, any interim
reports or any consolidated balance sheets, income statements, stockholders’ equity statements and/or cash flow statements
for any period other than annual, any Reports on Form 6-K and any registration statements or amendments filed pursuant to the
1933 Act and (ii) copies of any notices and other information made available or given to the stockholders of the Company generally,
contemporaneously with the making available or giving thereof to the stockholders.

 

(e) Intentionally
Deleted

 

(f) Reservation
of Shares. So long as the Note remains outstanding, the Company shall take all action necessary to at all times have authorized,
and reserved for the purpose of issuance, no less than the number of shares of Common Stock required to be reserved for issuance
to effect the conversion of the Note in full under Section 8 of the Note.

 

(g) Conduct
of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or
regulation of any governmental entity, except where such violations would not result reasonably be expected to result, either
individually or in the aggregate, in a Material Adverse Effect.

 

    	 	14	 

     

    

 

(h) No
Net Short Sales. So long as the Notes remain outstanding, neither the Investor nor any of its affiliates nor any entity managed
or controlled by the Investor (collectively, the “Restricted Persons” and each of the foregoing is referred
to herein as a “Restricted Person”) shall maintain, in the aggregate, a Net Short Position. For purposes hereof,
a “Net Short Position” by a Restricted Person means a position whereby such Restricted Person has executed
one or more sales of Common Stock that is marked as a short sale (but not including any sale marked “short exempt”)
and that is executed at a time when such Restricted Person does not have an equivalent offsetting long position in the Common
Stock (or is deemed to have a long position hereunder or otherwise in accordance with Regulation SHO under the 1934 Act); provided,
further that no “Short Sale” shall be deemed to exist as a result of any failure by the Company (or its agents) to
deliver Conversion Shares upon conversion of the Notes to any Restricted Person converting such Notes. For purposes of determining
whether a Restricted Person has an equivalent offsetting long position in the Common Stock, such Restricted Person shall be deemed
to hold “long” all Common Stock that is either (i) then owned by such Restricted Person, if any, or (ii) then issuable
to such Restricted Person as Conversion Shares or Interest Shares pursuant to the terms of the Notes then held by such Restricted
Person, if any (without regard to any limitations on conversion set forth in the Notes and giving effect to any conversion price
adjustments that would take effect given only the passage of time). Notwithstanding the foregoing, nothing contained herein shall
(without implication that the contrary would otherwise be true) prohibit any Restricted Person from selling “long”
(as defined under Rule 200 promulgated under Regulation SHO under the 1934 Act) the Securities or any other Common Stock then
owned by such Restricted Person.

 

(i) Passive
Foreign Investment Company. The Company shall conduct its business, and shall cause its Subsidiaries to conduct their respective
businesses, in such a manner as will ensure that the Company will not be deemed to constitute a passive foreign investment company
within the meaning of Section 1297 of the Code.

 

(j) Restriction
on Redemption and Cash Dividends. So long as the Note is outstanding, the Company shall not, directly or indirectly, redeem,
or declare or pay any cash dividend or distribution on, any securities of the Company without the prior express written consent
of the Investor.

 

(k) Corporate
Existence. So long as the Investor owns the Note, the Company shall not be party to any Fundamental Transaction (as defined
in the Note) unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in
the Note.

 

		5.	REGISTER;
                                         LEGEND. 

 

(a)
Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company
as it may designate by notice to each holder of Securities), a register for the Note in which the Company shall record the name
and address of the Person in whose name the Note have been issued (including the name and address of each transferee), the principal
amount of the Note held by such Person, the number of Conversion Shares issuable upon conversion of the Note held by such Person.
The Company shall keep the register open and available at all times during business hours for inspection of the Investor or its
legal representatives.

 

    	 	15	 

     

    

 

(b) Legends.
The Investor understands that the Securities have been issued (or will be issued in the case of the Conversion Shares or the Interest
Shares) pursuant to an exemption from registration or qualification under the 1933 Act and applicable state securities laws, and
except as set forth in Section 5(c) below, the Securities shall bear any legend as required by the “blue sky” laws
of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer
of such stock certificates and the Company shall be required to refuse to register any transfer of the Securities not made in
accordance with applicable U.S. securities laws):

 

THESE
SECURITIES WERE ISSUED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO
REGULATIONS UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). ACCORDINGLY, NONE OF THE
SECURITIES TO WHICH THIS CERTIFICATE RELATES [NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE] HAVE BEEN
REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN
THE UNITED STATES (AS DEFINED HEREIN OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING
TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE 1933 ACT. “UNITED
STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

 

(c) Removal
of Legends. Certificates evidencing Securities shall not be required to contain the legend set forth in Section 5(b) above
or any other legend (i) while a registration statement covering the resale of such Securities is effective under the 1933 Act,
(ii) if such Securities are sold, assigned or transferred outside the United States to a non-U.S. Person in accordance with the
requirements of Rule 904 of Regulation S and in compliance with applicable local laws and regulations, (iii) if such Securities
are sold, assigned or transferred in the United States or to a U.S. Person and the applicable 40-day distribution compliance period
under Rule 903 of Regulation S has been satisfied, (iv) if such Securities are eligible to be sold, assigned or transferred under
Rule 144A (provided that the Investor provides the Company with reasonable assurances that such Securities are eligible for sale,
assignment or transfer under Rule 144A which shall not include an opinion of counsel), (v) in connection with any other sale,
assignment or other transfer of such Securities, provided that such sale, assignment or transfer of such Securities may be made
without registration under the applicable requirements of the 1933 Act or (vi) if such legend is otherwise not required under
applicable requirements of the 1933 Act (including, without limitation, controlling judicial interpretations and pronouncements
issued by the SEC). If a legend is not required pursuant to the foregoing, the Company shall no later than three (3) Trading Days
following the delivery by the Investor to the Company or the transfer agent (with notice to the Company) of a legended certificate
representing such Securities (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to
affect the reissuance and/or transfer, if applicable), as directed by such Investor, either: (A) provided that the Company’s
transfer agent is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer
Program and such Securities are Conversion Shares or Interest Shares, credit the aggregate number of shares of Common Stock to
which such Investor shall be entitled to such Investor’s or its designee’s balance account with DTC through its Deposit/Withdrawal
at Custodian system or (B) if the Company’s transfer agent is not participating in the DTC Fast Automated Securities Transfer
Program, issue and deliver at the Company’s expense (via reputable overnight courier) to such Investor, a certificate representing
such Securities that is free from all restrictive and other legends, registered in the name of such Investor or its designee.

 

    	 	16	 

     

    

 

		6.	CONDITIONS
                                         TO THE COMPANY’S OBLIGATION TO SELL. 

 

(a) The
obligation of the Company hereunder to issue and sell the Note to the Investor at the Closing is subject to the satisfaction,
at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s
sole benefit and may be waived by the Company at any time in its sole discretion by providing the Investor with prior written
notice thereof:

 

(i) The
Investor shall have executed each of the other Transaction Documents to which it is a party and delivered the same to the Company.

 

(ii) The
Investor shall have delivered to the Company the Purchase Price for the Note being purchased by the Investor at the Closing by
wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.

 

(iii) The
representations and warranties of the Investor shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific
date, which shall be true and correct as of such date), and the Investor shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with
by such Investor at or prior to the Closing Date.

 

		7.	CONDITIONS
                                         TO THE INVESTOR’S OBLIGATION TO PURCHASE. 

 

(a) The
obligation of the Investor hereunder to purchase the Note at the Closing is subject to the satisfaction, at or before the Closing
Date, of each of the following conditions, provided that these conditions are for the Investor’s sole benefit and may be
waived by the Investor at any time in its sole discretion by providing the Company with prior written notice thereof:

 

(i) The
Company shall have duly executed and delivered to the Investor each of the Transaction Documents to which it is a party and the
Company shall have duly executed and delivered to the Investor the Note being purchased by the Investor at the Closing pursuant
to this Agreement.

 

    	 	17	 

     

    

 

(ii) Each
and every representation and warranty of the Company shall be true and correct as of the date when made and as of the Closing
Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which
shall be true and correct as of such date) and the Company shall have performed, satisfied and complied in all respects with the
covenants, agreements and conditions required to be performed, satisfied or complied with by the Company at or prior to the Closing
Date. The Investor shall have received a certificate, executed by the Chief Financial Officer of the Company, dated as of the
Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Investor in the form
acceptable to the Investor.

 

(iii) No
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed
by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated
by the Transaction Documents.

 

(iv) Since
the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or result
in a Material Adverse Effect.

 

(v) Trading
in the Common Stock shall not have been suspended by the SEC or the Principal Market, the Company shall not have received any
final and non-appealable notice that the listing or quotation of the Common Stock on the Principal Market shall be terminated
on a date certain, there shall not have been imposed any suspension of electronic trading or settlement services by DTC with respect
to the Common Stock that is continuing, and the Company shall not have received any notice from DTC to the effect that a suspension
of electronic trading or settlement services by DTC with respect to the Common Stock is being imposed or is contemplated.

 

(vi) The
Company and its Subsidiaries shall have delivered to the Investor such other documents, instruments or certificates relating to
the transactions contemplated by this Agreement as the Investor or its counsel may reasonably request.

 

		8.	TERMINATION.
                                         

 

In
the event that the Closing shall not have occurred within five (5) business days after the date hereof, then the Investor shall
have the right to terminate its obligations under this Agreement at any time on or after the close of business on such date without
liability of the Investor to any other party; provided, however, the right to terminate its obligations under this Agreement pursuant
to this Section 8 shall not be available to the Investor if the failure of the transactions contemplated by this Agreement to
have been consummated by such date is the result of the Investor’s breach of this Agreement. Nothing contained in this Section
8 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement
or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its
obligations under this Agreement or the other Transaction Documents.

 

    	 	18	 

     

    

 

		9.	MISCELLANEOUS.
                                         

 

(a) Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of
this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the
adjudication of any dispute hereunder or under any of the other Transaction Documents or in connection herewith or with any
transaction contemplated hereby or thereby or discussed herein or therein, and hereby irrevocably waives, and agrees not to
assert in any suit, action or proceeding, any claim that it is not subject to the jurisdiction of any such court, that such
suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. By the execution and delivery of this Agreement, the Company acknowledges that it has, by separate written
instrument, irrevocably designated and appointed Sichenzia Ross Friedman Ference LLP, at 61 Broadway, 32nd Floor,
New York, NY 10006 (together with any successor, the “Agent for Service”) as its authorized agent upon
which process may be served in any suit or proceeding arising out of or relating to this Agreement or the Securities that may
be instituted in any state or federal court sitting in The City of New York, Borough of Manhattan, or brought under federal
or state securities laws, and acknowledges that the Agent for Service has accepted such designation. The Company further
agrees to take any and all action, including the execution and filing of any and all such documents and instruments, as may
be necessary to continue such designation and appointment of the Agent for Service in full force and effect so long as the
Note shall be outstanding. Service upon such Agent for Service in accordance with this Section 9(a) shall be deemed
completed whether or not forwarded to or received by the Company. If such Agent for Service ceases to be able to act as such,
resigns as such Agent for Service or to have an address in New York, New York, the Company agrees to irrevocably appoint a
new agent acceptable to the Investor to receive on behalf of the Company service of any legal process and to deliver to the
Investor within 14 days a copy of a written acceptance of appointment by such agent. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall (i) limit, or be deemed
to limit, in any way any right to serve process in any manner permitted by law, (ii) operate, or shall be deemed to operate,
to preclude the Investor from bringing suit or taking other legal action against the Company in any other jurisdiction to
collect on the Company’s obligations to such Investor or to enforce a judgment or other court ruling in favor of such
Investor or (iii) limit, or be deemed to limit, any provision of Section 22 of the Note. EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR
UNDER ANY OTHER TRANSACTION DOCUMENT OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.

 

    	 	19	 

     

    

 

(b) Counterparts.
This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and shall
become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature
is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature
page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature
is executed) with the same force and effect as if such signature page were an original thereof.

 

(c) Headings;
Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine,
feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision
in which they are found.

 

(d) Severability.
If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity
or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s). Notwithstanding
anything to the contrary contained in this Agreement or any other Transaction Document (and without implication that the following
is required or applicable), it is the intention of the parties that in no event shall amounts and value paid by the Company and/or
its Subsidiaries (as the case may be), or payable to or received by the Investor, under the Transaction Documents (including without
limitation, any amounts that would be characterized as “interest” under applicable law) exceed amounts permitted under
any applicable law. Accordingly, if any obligation to pay, payment made to the Investor, or collection by the Investor pursuant
the Transaction Documents is finally judicially determined to be contrary to any such applicable law, such obligation to pay,
payment or collection shall be deemed to have been made by mutual mistake of such Investor, the Company and its Subsidiaries and
such amount shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case
may be, as would not be so prohibited by the applicable law. Such adjustment shall be effected, to the extent necessary, by reducing
or refunding, at the option of such Investor, the amount of interest or any other amounts which would constitute unlawful amounts
required to be paid or actually paid to such Investor under the Transaction Documents. For greater certainty, to the extent that
any interest, charges, fees, expenses or other amounts required to be paid to or received by such Investor under any of the Transaction
Documents or related thereto are held to be within the meaning of “interest” or another applicable term to otherwise
be violative of applicable law, such amounts shall be pro-rated over the period of time to which they relate.

 

    	 	20	 

     

    

 

(e) Entire
Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and
thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Investor,
the Company, its Subsidiaries, their affiliates and Persons acting on their behalf solely with respect to the matters contained
herein and therein, and this Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto
and the instruments referenced herein and therein contain the entire understanding of the parties solely with respect to the matters
covered herein and therein; provided, however, nothing contained in this Agreement or any other Transaction Document shall (or
shall be deemed to) (i) have any effect on any agreements the Investor has entered into with the Company or any of its Subsidiaries
prior to the date hereof with respect to any prior investment made by the Investor in the Company or (ii) waive, alter, modify
or amend in any respect any obligations of the Company or any of its Subsidiaries, or any rights of or benefits to the Investor
or any other Person, in any agreement entered into prior to the date hereof between or among the Company and/or any of its Subsidiaries
and the Investor, and all such agreements shall continue in full force and effect. Except as specifically set forth herein or
therein, neither the Company nor the Investor makes any representation, warranty, covenant or undertaking with respect to such
matters. For clarification purposes, the Recitals are part of this Agreement. No provision of this Agreement may be amended other
than by an instrument in writing signed by the Company and the Investor, and any amendment to any provision of this Agreement
made in conformity with the provisions of this Section 9(e) shall be binding on the Investor and holders of Securities,
as applicable, provided that no such amendment shall be effective to the extent that it (1) applies to less than all of the holders
of the Securities then outstanding or (2) imposes any obligation or liability on the Investor without the Investor’s prior
written consent (which may be granted or withheld in the Investor’s sole discretion). No waiver shall be effective unless
it is in writing and signed by an authorized representative of the waiving party, provided that the Investor may waive any provision
of this Agreement, and any waiver of any provision of this Agreement made in conformity with the provisions of this Section 9(e)
shall be binding on the Investor and holders of Securities, as applicable, provided that no such waiver shall be effective to
the extent that it (1) applies to less than all of the holders of the Securities then outstanding (unless a party gives a waiver
as to itself only) or (2) imposes any obligation or liability on the Investor without such Investor’s prior written consent
(which may be granted or withheld in the Investor’s sole discretion). The Company has not, directly or indirectly, made
any agreements with the Investor relating to the terms or conditions of the transactions contemplated by the Transaction Documents
except as set forth in the Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth
in this Agreement, the Investor has not made any commitment or promise or has any other obligation to provide any financing to
the Company, any Subsidiary or otherwise. As a material inducement for the Investor to enter into this Agreement, the Company
expressly acknowledges and agrees that (i) no due diligence or other investigation or inquiry conducted by the Investor, any of
its advisors or any of its representatives shall affect the Investor’s right to rely on, or shall modify or qualify in any
manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement or any other
Transaction Document and (ii) unless a provision of this Agreement or any other Transaction Document is expressly preceded by
the phrase “except as disclosed in the SEC Reports,” nothing contained in the SEC Reports shall affect the Investor’s
right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and
warranties contained in this Agreement or any other Transaction Document.

 

    	 	21	 

     

    

 

(f) Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, if delivered personally; (ii) when sent, if sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party);
(iii) when sent, if sent by e-mail (provided that such sent e-mail is kept on file (whether electronically or otherwise) by the
sending party and the sending party does not receive an automatically generated message from the recipient’s e-mail server
that such e-mail could not be delivered to such recipient) and (iv) if sent by overnight courier service, one (1) Business Day
after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party
to receive the same. The addresses, facsimile numbers and/or e-mail addresses for such communications are as follows:

 

If
to the Company:

 

FreeSeas
Inc.

10
EleftheriouVenizelou Street, (Panepistimiou Ave.)

10671
Athens, Greece

Facsimile:
+30 210 4291 010

E-mail
address: igv@freeseas.gr

Attention:
Chief Executive Officer

 

With
a copy (for informational purposes only) to:

 

Sichenzia
Ross Friedman Ference LLP

61
Broadway, 32nd Floor

New
York, NY 10006

Facsimile:
(212) 930-9725

E-mail address: mross@srff.com

Attention: Marc J. Ross, Esq.

 

    	 	22	 

     

    

 

If
to the Investor:

 

Cerberus
Finance Group, Ltd

Craigmuir
Chambers

Road
Town

Tortola,
VG 1110

British
Virgin Islands 

Attn:
Albert Dayan

 

or
to such other address, facsimile number or e-mail address and/or to the attention of such other Person as the recipient party
has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation
of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically
generated by the sender’s facsimile machine containing the time, date and recipient facsimile number or (C) provided by
an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight
courier service in accordance with clause (i), (ii) or (iv) above, respectively. A copy of the e-mail transmission containing
the time, date and recipient e-mail address shall be rebuttable evidence of receipt by e-mail in accordance with clause (iii)
above.

 

(g) Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns, including, as contemplated below, any assignee or transferee of any of the Securities. The Company shall not assign
this Agreement or any rights or obligations hereunder without the prior written consent of each of the Investor (which may be
granted or withheld in the sole discretion of the Investor), including, without limitation, by way of a Fundamental Transaction
(as defined in the Note) (unless the Company is in compliance with the applicable provisions governing Fundamental Transactions
set forth in the Note). The Investor may assign some or all of its rights hereunder in connection with any assignment or transfer
of any of its Securities without the consent of the Company, in which event such assignee or transferee (as the case may be) shall
be deemed to be an Investor hereunder with respect to such assigned rights.

 

(h) No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(i) Survival.
The representations, warranties, agreements and covenants shall survive the Closing.

 

    	 	23	 

     

    

 

(j) Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

(k) Construction.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and
no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the generality
or applicability of a more general representation or warranty. Each and every reference to share prices, shares of Common Stock
and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted for stock splits, stock
dividends, stock combinations and other similar transactions that occur with respect to the Common Stock after the date of this
Agreement.

 

(l) Remedies.
The Investor and each holder of any Securities shall have all rights and remedies set forth in the Transaction Documents and all
rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights
which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to
enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any
provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event
that it or any Subsidiary fails to perform, observe, or discharge any or all of its or such Subsidiary’s (as the case may
be) obligations under the Transaction Documents, any remedy at law may prove to be inadequate relief to the Investor. The Company
therefore agrees that the Investor shall be entitled to seek specific performance and/or temporary, preliminary and permanent
injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity of proving
actual damages and without posting a bond or other security. The remedies provided in this Agreement and the other Transaction
Documents shall be cumulative and in addition to all other remedies available under this Agreement and the other Transaction Documents,
at law or in equity (including a decree of specific performance and/or other injunctive relief).

 

(m) Withdrawal
Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction
Documents, whenever the Investor exercises a right, election, demand or option under a Transaction Document and the Company does
not timely perform its related obligations within the periods therein provided, then the Investor may rescind or withdraw, in
its sole discretion from time to time upon written notice to the Company or such Subsidiary (as the case may be), any relevant
notice, demand or election in whole or in part without prejudice to its future actions and rights

 

(n) Payment
Set Aside; Currency. To the extent that the Company makes a payment or payments to the Investor hereunder or pursuant to any
of the other Transaction Documents or the Investor enforces or exercises its rights hereunder or thereunder, and such payment
or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company,
a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal
law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred. Unless otherwise expressly indicated, all dollar amounts referred to in this Agreement
and the other Transaction Documents are in United States Dollars (“U.S. Dollars”), and all amounts owing under
this Agreement and all other Transaction Documents shall be paid in U.S. Dollars. All amounts denominated in other currencies
(if any) shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation.
“Exchange Rate” means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to
this Agreement, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date of calculation.

 

 

[signature
pages follow]

    	 	25	 

     

    

 

IN
WITNESS WHEREOF, Investor and the Company have caused their respective signature page to this Agreement to be duly executed
as of the date first written above.

 

	 	COMPANY:
	 	 
	 	FREESEAS,
    INC.
	 	 	 
	 	By:	/s/
    Dimitris Papadopoulos
	 	Name: 	Dimitris
    Papadopoulos
	 	Title:	CFO

 

    	 	26	 

     

    

 

IN
WITNESS WHEREOF, Investor and the Company have caused their respective signature page to this Agreement to be duly executed
as of the date first written above.

 

	 	INVESTOR:
	 	 	 
	 	CERBERUS
    FINANCE GROUP, LTD
	 	 	 
	 	By:	 
	 	Name: 	Albert
    Dayan
	 	Title:	Director

 

 

26Exhibit 4.69

 

THESE
SECURITIES WERE ISSUED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATIONS
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). ACCORDINGLY, NONE OF THE SECURITIES TO
WHICH THIS CERTIFICATE RELATES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE 1933
ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE UNITED STATES (AS DEFINED
HEREIN OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH
CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY
NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE 1933 ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED
BY REGULATION S UNDER THE 1933 ACT. ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE. 

 

US $25,000.00

 

FREESEAS
INC.

8% CONVERTIBLE
REDEEMABLE NOTE

DUE MARCH
28, 2018

 

FOR VALUE
RECEIVED, FreeSeas Inc. (the “Company”) promises to pay to the order of CERBERUS FINANCE GROUP LTD and its authorized
successors and permitted assigns (“Holder”), the aggregate principal face amount of Twenty Five Thousand Dollars
exactly (U.S. $25,000.00) on March 28, 2018 (”Maturity Date”) and to pay interest on the principal amount outstanding
hereunder at the rate of 8% per annum commencing on March 28, 2017. The interest will be paid to the Holder in whose name this
Note is registered on the records of the Company regarding registration and transfers of this Note. The principal of, and interest
on, this Note are payable at Craigmuir Chambers, Road Town, Tortola, VG 1110, British Virgin Islands, initially, and if changed,
last appearing on the records of the Company as designated in writing by the Holder hereof from time to time. The Company will
pay each interest payment and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required
by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address
appearing on the records of the Company. The forwarding of such check or wire transfer shall constitute a payment of outstanding
principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented
by such check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

 

     

     

    

 

This Note is subject
to the following additional provisions:

 

		1.	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 made for such
registration or transfer or exchange, except that Holder shall pay any tax or other governmental charges payable in connection
therewith.

 

		2.	The Company shall be entitled to withhold from all payments any amounts
required to be withheld under applicable laws.

 

		3.	This Note may be transferred or exchanged only in compliance
with the Securities Act of 1933, as amended (“Act”) and applicable state securities laws. Any attempted transfer
to a non-qualifying party shall be treated by the Company as void. Prior to due presentment for transfer 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 Company's records as the owner
hereof for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected
or bound by notice to the contrary. Any Holder of this Note electing to exercise the right of conversion set forth in Section
4(a) hereof, in addition to the requirements set forth in Section 4(a), and any prospective transferee of this Note, also is required
to give the Company written confirmation that this Note is being converted (“Notice of Conversion”) in the
form annexed hereto as Exhibit A. The date of receipt (including receipt by telecopy) of such Notice of Conversion shall
be the Conversion Date.

 

		4.	(a) The Holder of this Note is entitled, at its option, at any time, to
convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock
(the ”Common Stock”) at a price (“Conversion Price”) for each share of Common Stock equal
to 60% of the lowest trading price of the Common Stock as reported by the trading market on which the Company’s
shares are traded, for the fifteen prior trading days including the day upon which a Notice of Conversion
is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication
to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price).
If the shares have not been delivered within 3 business days, the Notice of Conversion may be rescinded. Such conversion shall
be effectuated by the Company delivering the shares of Common Stock to the Holder within 3 business days of receipt by the Company
of the Notice of Conversion. Once the Holder has received such shares of Common Stock, the Holder shall surrender this Note to
the Company, executed by the Holder evidencing such Holder's intention to convert this Note or a specified portion hereof, and
accompanied by proper assignment hereof in blank. Accrued, but unpaid interest shall be subject to conversion. No fractional shares
or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the
nearest whole share. In the event the Company experiences a DTC “Chill” on its shares, the conversion price shall
be decreased to 50% instead of 60% while that “Chill” is in effect. In no event shall the Holder be allowed to
effect a conversion if such conversion, along with all other shares of Company Common Stock beneficially owned by the Holder and
its affiliates would exceed 9.9% of the outstanding shares of the Common Stock of the Company..

 

    	 	2	 

     

    

 

		(b)	Interest on any unpaid principal balance of this Note shall be paid at the
rate of 8% per annum. Interest shall be paid by the Company in Common Stock ("Interest Shares"). Holder may, at any time,
send in a Notice of Conversion to the Company for Interest Shares based on the formula provided in Section 4(a) above. The dollar
amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the unpaid principal balance
of this Note to the date of such notice.

 

		(c)	The Notes may be prepaid with the following penalties:

 

	PREPAY DATE	 	PREPAY AMOUNT
	≤ 39 days	 	125% of principal plus accrued interest

 

This Note
may not be prepaid after the 39th day. Such redemption must be closed and funded within 3 days of giving notice of redemption
of the right to redeem shall be null and void.

 

		(d)	Upon (i) a transfer of all or substantially all of the assets of the Company
to any person in a single transaction or series of related transactions, (ii) a reclassification, capital reorganization or other
change or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock split or stock dividend, or
(iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving
entity (other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in
a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items
(i), (ii) and (iii) being referred to as a "Sale Event"), then, in each case, the Company shall, upon request of the
Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption,
or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of
accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the Conversion Price.

 

		(e)	In case of any Sale Event (not to include a sale of all or substantially
all of the Company’s assets) in connection with which this Note is not redeemed or converted, the Company shall cause effective
provision to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert
this Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification,
capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could
have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such
Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the holders
of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor person
or entity acting in good faith.

 

    	 	3	 

     

    

 

		5.	No provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the
form, herein prescribed.

 

		6.	The Company hereby expressly waives demand and presentment for payment,
notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, and diligence
in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all
sums owing and to be owing hereto.

 

		7.	The Company agrees to pay all costs and expenses, including reasonable attorneys'
fees and expenses, which may be incurred by the Holder in collecting any amount due under this Note.

 

		8.	If one or more of the following described "Events of Default"
shall occur:

 

		(a)	The Company shall default in the payment of principal
or interest on this Note or any other note issued to the Holder by the Company; or

 

		(b)	Any of the representations or warranties made by the Company herein or in
any certificate or financial or other written statements heretofore or hereafter furnished by or on behalf of the Company in connection
with the execution and delivery of this Note, or the Securities Purchase Agreement under which this note was issued shall be false
or misleading in any respect; or

 

		(c)	The Company shall fail to perform or observe, in any respect, any covenant,
term, provision, condition, agreement or obligation of the Company under this Note or any other note issued to the Holder; or

 

		(d)	The Company shall (1) become insolvent; (2) admit in writing its inability
to pay its debts generally as they mature; (3) make an assignment for the benefit of creditors or commence proceedings for its
dissolution; (4) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part
of its property or business; (5) file a petition for bankruptcy relief, consent to the filing of such petition or have filed against
it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable; or

 

    	 	4	 

     

    

 

		(e)	A trustee, liquidator or receiver shall be appointed for the Company or
for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after
such appointment; or

 

		(f)	Any governmental agency or any court of competent jurisdiction at the instance
of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties or assets
of the Company; or

 

		(g)	One or more money judgments, writs or warrants of attachment, or similar
process, in excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered or filed against the Company or any of
its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of fifteen (15) days or in
any event later than five (5) days prior to the date of any proposed sale thereunder; or

 

		(h)	The Company shall have defaulted on or breached any term of any other note
of similar debt instrument into which the Company has entered and failed to cure such default within the appropriate grace period;
or

 

		(i)	The Company shall have its Common Stock delisted and not
quoted on a Trading Market; or

 

		(j)	If the Common Stock trades on an exchange, then trading
in the Common Stock shall be suspended for more than 10 consecutive days or if the Company files a Form 15 or otherwise suspends
its filings with the Securities and Exchange Commission ; or

 

		(j)	If a majority of the members of the Board of Directors of the Company on
the date hereof are no longer serving as members of the Board;

 

		(k)	The Company shall not deliver to the Holder the Common Stock pursuant to
paragraph 4 herein without restrictive legend within 3 business days of its receipt of a Notice of Conversion; or

 

		(l)	The Company shall not replenish the reserve set forth in Section 12, within
3 business days of the request of the Holder.

 

		(m)	The Company shall not be “current” in its filings with the Securities
and Exchange Commission; or

 

    	 	5	 

     

    

 

		(n)	The Company shall lose the “bid” price for its stock in a market
(including the OTCQB marketplace or other exchange).

 

Then, or
at any time thereafter, unless cured within 5 days, and in each and every such case, unless such Event of Default shall have been
waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the
Holder and in the Holder's sole discretion, the Holder may consider this Note immediately due and payable, without presentment,
demand, protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly waived,
anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately,
and without expiration of any period of grace, enforce any and all of the Holder's rights and remedies provided herein or any other
rights or remedies afforded by law. Upon an Event of Default, interest shall accrue at a default interest rate of 24% per annum
or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law. In the event
of a breach of Section 8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th day after
the conversion notice was delivered to the Company. This penalty shall increase to $500 per day beginning on the 10th
day. The penalty for a breach of Section 8(n) shall be an increase of the outstanding principal amounts by 20%. In case of a breach
of Section 8(i), the outstanding principal due under this Note shall increase by 50%. If this Note is not paid at maturity, the
outstanding principal due under this Note shall increase by 10%. Further, if a breach of Section 8(o) occurs, or is continuing
after the 6 month anniversary of the Note, then the Holder shall be entitled, while such breach remains uncured, to use the lowest
trading price during the period starting on the date of the breach and ending on the day the breach is remedied, as a base price
for the conversion.

 

If the
Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging an
attorney, then if the Holder prevails in such action, the Holder shall be reimbursed by the Company for its attorneys’ fees
and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

Make-Whole
for Failure to Deliver Loss. At the Holder’s election, if the Company fails for any reason to deliver to the Holder the conversion
shares by the by the 3rd business day following the delivery of a Notice of Conversion to the Company and if the Holder incurs
a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice indicating the amounts payable to
the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows:

 

Failure
to Deliver Loss = [(High trade price at any time on or after the day of exercise) x (Number of conversion shares)]

 

The Company
must pay the Failure to Deliver Loss by cash payment, and any such cash payment must be made by the third business day from the
time of the Holder’s written notice to the Company.

 

    	 	6	 

     

    

 

		9.	In case any provision of this Note is held by a court of competent jurisdiction
to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible,
so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this
Note will not in any way be affected or impaired thereby.

 

		10.	Neither this Note nor any term hereof may be amended, waived, discharged
or terminated other than by a written instrument signed by the Company and the Holder.

 

		11.	The Company represents that it is not a “shell” issuer and has
never been a “shell” issuer or that if it previously has been a “shell” issuer that at least 12 months
have passed since the Company has reported form 10 type information indicating it is no longer a “shell issuer”. Further.
The Company will instruct its counsel to either (i) write a 144 opinion to allow for salability of the conversion shares or (ii)
accept such opinion from Holder’s counsel.

 

		12.	The Company shall irrevocably reserve 8,333,000 shares of its Common Stock
for conversions under this Note and any other notes owned by the Holding (the “Share Reserve”). Upon full conversion
of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all transfer agent costs associated
with issuing and delivering the share certificates to Holder. If such amounts are to be paid by the Holder, it may deduct such
amounts from the Conversion Price. The company should at all times reserve a minimum of four times the amount of shares required
if the note would be fully converted. The Holder may reasonably request increases from time to time to reserve such amounts. The
Company will instruct its transfer agent to provide the outstanding share information to the Holder in connection with its conversions.

 

		13.	The Company will give the Holder direct notice of any corporate actions,
including but not limited to name changes, stock splits, recapitalizations etc. This notice shall be given to the Holder as soon
as possible under law.

 

		14.	This Note shall be governed by and construed in accordance with the laws
of New York applicable to contracts made and wholly to be performed within the State of New York and shall be binding upon the
successors and assigns of each party hereto. The Holder and the Company hereby mutually waive trial by jury and consent to exclusive
jurisdiction and venue in the courts of the State of New York or in the Federal courts sitting in the county or city of New York.
This Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall
be effective as an original.

 

[signature
page follows] 

 

    	 	7	 

     

    

 

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed by an officer thereunto duly authorized.

 

Dated:                                     

 

	 	FREESEAS,
    INC.
	 	 	 
	 	/s/ Dimitris Papadopoulos
	 	By:	Dimitris Papadopoulos
	 	Title:	CFO

 

    	 	8	 

     

    

 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

(To
be Executed by the Registered Holder in order to Convert the Note)

 

The undersigned
hereby irrevocably elects to convert $___________ of the above Note into _________ Shares of Common Stock of Freeseas, Inc. (“Shares”)
according to the conditions set forth in such Note, as of the date written below.

 

If Shares
are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and
charges payable with respect thereto.

 

Date of Conversion:                                                                                                                           

Applicable Conversion Price:                                                                                                            

Signature:                                                                                                                                              

[Print Name of Holder and Title of Signer]

Address:                                                                                                                                                

                                                                                                                                                

 

SSN or EIN:                                                                                                                                           

Shares are to be registered in the following name:                                                                              

 

Name:                                                                                                                                                    

SSN or EIN:                                                   

Address:                                                                                                                                               

Tel:                                                                 

Fax:                                                                 

 

Shares are to be sent or delivered to the following account:

 

Account Name:                                                                                                                                    

Address:                                                                                                                                               

 

 

9

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