Document:

EXHIBIT 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement
(this “Agreement”) is made and entered into as of August 22, 2022, between Volcon, Inc., a Delaware corporation (the
“Company”), and each of the several purchasers signatory hereto (each such purchaser, a “Purchaser”
and, collectively, the “Purchasers”).

 

This Agreement is made pursuant
to the Securities Purchase Agreement, dated as of the date hereof, between the Company and each Purchaser (the “Purchase Agreement”).

 

The Company and each Purchaser
hereby agrees as follows:

 

1.        Definitions.

 

Capitalized terms used
and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement.
As used in this Agreement, the following terms shall have the following meanings:

 

“Advice”
shall have the meaning set forth in Section 6(c).

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the 60th calendar
day following the Closing Date (as defined in the Purchase Agreement) (or, in the event of a “full review” by the Commission,
the 90th calendar day following the Closing Date) and with respect to any additional Registration Statements which may be required
pursuant to Section 2(c) or Section 3(c), the 60th calendar day following the date on which an additional Registration Statement
is required to be filed hereunder (or, in the event of a “full review” by the Commission, the 90th calendar day
following the date such additional Registration Statement is required to be filed hereunder); provided, however, that in
the event the Company is notified by the Commission that one or more of the above Registration Statements will not be reviewed or is no
longer subject to further review and comments, the Effectiveness Date as to such Registration Statement shall be the fifth Trading Day
following the date on which the Company is so notified if such date precedes the dates otherwise required above, provided, further, if
such Effectiveness Date falls on a day that is not a Trading Day, then the Effectiveness Date shall be the next succeeding Trading Day.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Event”
shall have the meaning set forth in Section 2(d).

 

“Event
Date” shall have the meaning set forth in Section 2(d).

 

“Filing
Date” means, with respect to the Initial Registration Statement required hereunder, the 30th calendar day following
the Closing Date and, with respect to any additional Registration Statements which may be required pursuant to Section 2(c) or Section
3(c), the earliest practical date on which the Company is permitted by SEC Guidance to file such additional Registration Statement related
to the Registrable Securities.

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial
Registration Statement” means the initial Registration Statement filed pursuant to this Agreement.

 

 

 

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“Losses”
shall have the meaning set forth in Section 5(a).

 

“Plan of
Distribution” shall have the meaning set forth in Section 2(a).

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously
omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated by the Commission
pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

 

“Registrable
Securities” means, as of any date of determination, (a) 100% of all Shares of the shares of Common Stock then issued and issuable
upon conversion in full of the Notes (assuming on such date the Notes are converted in full without regard to any conversion limitations
therein), (b) 100% of all Warrant Shares then issued and issuable upon exercise of the Warrants (assuming on such date the Warrants are
exercised in full without regard to any exercise limitations therein), and (c) any securities issued or then issuable upon any stock split,
dividend or other distribution, recapitalization or similar event with respect to the foregoing; provided, however, that any such
Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of
any, or file another, Registration Statement hereunder with respect thereto) for so long as (a) a Registration Statement with respect
to the sale of such Registrable Securities is declared effective by the Commission under the Securities Act and such Registrable Securities
have been disposed of by the Holder in accordance with such effective Registration Statement, (b) such Registrable Securities have been
previously sold in accordance with Rule 144, or (c) such securities become eligible for resale without volume or manner-of-sale restrictions
and without current public information pursuant to Rule 144 as set forth in a written opinion letter to such effect, addressed, delivered
and acceptable to the Transfer Agent and the affected Holders (assuming that such securities and any securities issuable upon exercise,
conversion or exchange of which, or as a dividend upon which, such securities were issued or are issuable, were at no time held by any
Affiliate of the Company, as reasonably determined by the Company, upon the advice of counsel to the Company).

 

“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional registration
statements contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus, amendments and supplements to any such
registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated
by reference or deemed to be incorporated by reference in any such registration statement.

 

“Rule 415”
means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 

“Rule 424”
means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 

“Selling
Stockholder Questionnaire” shall have the meaning set forth in Section 3(a).

 

“SEC Guidance”
means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements or requests of the Commission
staff and (ii) the Securities Act.

 

 

 

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2.        Shelf
Registration.

 

(a)              
On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale
of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering to be made on
a continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on any permitted form that qualifies, and
is available for, the resale of Registrable Securities in accordance with and pursuant to Rule 415 (except if the Company is then
eligible to register for resale the Registrable Securities on Form S-3, such registration shall be on Form S-3 in accordance herewith)
and shall contain (unless otherwise directed by the Required Holders) substantially the “Plan of Distribution” attached
hereto as Annex A and substantially the “Selling Stockholder” section attached hereto as Annex B; provided,
however, that no Holder shall be required to be named as an “underwriter” without such Holder’s express prior
written consent. Subject to the terms of this Agreement, the Company shall use its best efforts to cause a Registration Statement filed
under this Agreement (including, without limitation, under Section 3(c)) to be declared effective under the Securities Act as promptly
as possible after the filing thereof, but in any event no later than the applicable Effectiveness Date, and shall use its best efforts
to keep such Registration Statement continuously effective under the Securities Act until the date that all Registrable Securities covered
by such Registration Statement (i) have been sold, thereunder or pursuant to Rule 144, or (ii) may be sold without volume or manner-of-sale
restrictions pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current public information
requirement under Rule 144, as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed
and acceptable to the Transfer Agent and the affected Holders (the “Effectiveness Period”). The Company shall telephonically
request effectiveness of a Registration Statement as of 5:00 p.m. (New York City time) on a Trading Day. The Company shall immediately
notify the Holders via e-mail of the effectiveness of a Registration Statement on the same Trading Day that the Company telephonically
confirms effectiveness with the Commission, which shall be the date requested for effectiveness of such Registration Statement. The Company
shall, by 9:30 a.m. (New York City time) on the Trading Day after the effective date of such Registration Statement, file a final Prospectus
with the Commission as required by Rule 424. Failure to so notify the Holder within one (1) Trading Day of such notification of effectiveness
or failure to file a final Prospectus as foresaid shall be deemed an Event under Section 2(d).

 

(b)              
 Notwithstanding the registration obligations set forth in Section 2(a), if the Commission informs the Company that all of the
Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single
registration statement, the Company agrees to promptly inform each of the Holders thereof and use its commercially reasonable efforts
to file amendments to the Initial Registration Statement as required by the Commission, covering the maximum number of Registrable Securities
permitted to be registered by the Commission, on Form S-3 or such other form available to register for resale the Registrable Securities
as a secondary offering, subject to the provisions of Section 2(e); with respect to filing on Form S-3 or other appropriate form, and
subject to the provisions of Section 2(d) with respect to the payment of liquidated damages; provided, however, that prior
to filing such amendment, the Company shall be obligated to use diligent efforts to advocate with the Commission for the registration
of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance and Disclosure Interpretation
612.09.

 

(c)              
Notwithstanding any other provision of this Agreement and subject to the payment of liquidated damages pursuant to Section 2(d),
if the Commission or any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered on a
particular Registration Statement as a secondary offering (and notwithstanding that the Company used diligent efforts to advocate with
the Commission for the registration of all or a greater portion of Registrable Securities), unless otherwise directed in writing by a
Holder as to its Registrable Securities, the number of Registrable Securities to be registered on such Registration Statement will be
reduced as follows: 

 

		a.	First,
                                            the Company shall reduce or eliminate any securities to be included other than Registrable
                                            Securities;

 

		b.	Second,
                                            the Company shall reduce Registrable Securities represented by Warrant Shares (applied, in
                                            the case that some Warrant Shares may be registered, to the Holders on a pro rata basis based
                                            on the total number of unregistered Warrant Shares held by such Holders); and 

 

		c.	Third,
                                            the Company shall reduce Registrable Securities represented by Conversion Shares (applied,
                                            in the case that some Conversion Shares may be registered, to the Holders on a pro rata basis
                                            based on the total number of unregistered Conversion Shares held by such Holders). 

 

 

 

 

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In
the event of a cutback hereunder, the Company shall give the Holder at least five (5) Trading Days prior written notice along with the
calculations as to such Holder’s allotment. In the event the Company amends the Initial Registration Statement in accordance with
the foregoing, the Company will use its best efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance
provided to the Company or to registrants of securities in general, one or more registration statements on Form S-3 or such other form
available to register for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement,
as amended.

 

(d)              
If: (i) the Initial Registration Statement does not cover all the Registrable Securities, (ii) the Initial Registration Statement
is not filed on or prior to its Filing Date (if the Company files the Initial Registration Statement without affording the Holders the
opportunity to review and comment on the same as required by Section 3(a) herein, the Company shall be deemed to have not satisfied this
clause (ii)), or (iii) the Company fails to file with the Commission a request for acceleration of a Registration Statement in accordance
with Rule 461 promulgated by the Commission pursuant to the Securities Act, within five (5) Trading Days of the date that the Company
is notified (orally or in writing, whichever is earlier) by the Commission that such Registration Statement will not be “reviewed”
or will not be subject to further review, or (iv) prior to the effective date of a Registration Statement, the Company fails to file a
pre-effective amendment and otherwise respond in writing to comments made by the Commission in respect of such Registration Statement
within fifteen (15) calendar days after the receipt of comments by or notice from the Commission that such amendment is required in order
for such Registration Statement to be declared effective, or (v) a Registration Statement registering for resale all of the Registrable
Securities is not declared effective by the Commission by the Effectiveness Date of the Initial Registration Statement, or (vi) after
the effective date of a Registration Statement, such Registration Statement ceases for any reason to remain continuously effective as
to all Registrable Securities included in such Registration Statement, or the Holders are otherwise not permitted to utilize the Prospectus
therein to resell such Registrable Securities, for more than fifteen (15) consecutive calendar days or more than an aggregate of twenty-five
(25) calendar days (which need not be consecutive calendar days) during any 12-month period (any such failure or breach being referred
to as an “Event”, and for purposes of clauses (i) , (ii) and (v), the date on which such Event occurs, and for purpose
of clause (iii) the date on which such five (5) Trading Day period is exceeded, and for purpose of clause (iv) the date which such fifteen
(15) calendar day period is exceeded, and for purpose of clause (vi) the date on which such fifteen (15) or twenty-five (25) calendar
day period, as applicable, is exceeded being referred to as “Event Date”), then, in addition to any other rights the
Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if
the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Holder
an amount in cash, as partial liquidated damages and not as a penalty, equal to the product of 2.0% multiplied by the aggregate Subscription
Amount paid by such Holder pursuant to the Purchase Agreement. The parties agree that the maximum aggregate liquidated damages payable
to a Holder under this Agreement shall be 10.0% of the aggregate Subscription Amount paid by such Holder pursuant to the Purchase Agreement.
If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven days after the date payable,
the Company will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted to be paid by applicable
law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts, plus all such interest thereon,
are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro rata basis for any portion of
a month prior to the cure of an Event.

 

(e)              
If Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Company shall (i) register
the resale of the Registrable Securities on another appropriate form and (ii) undertake to register the Registrable Securities on Form
S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement then in
effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective by the
Commission.

 

(f)               
Notwithstanding anything to the contrary contained herein, in no event shall the Company be permitted to name any Holder or affiliate
of a Holder as any Underwriter without the prior written consent of such Holder.

 

 

 

 

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3.        Registration
Procedures.

 

In connection with the Company’s
registration obligations hereunder, the Company shall:

 

(a)              
Not less than five (5) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior
to the filing of any related Prospectus or any amendment or supplement thereto, the Company shall (i) furnish to each Holder copies of
all such documents proposed to be filed, which documents (other than those incorporated or deemed to be incorporated by reference) will
be subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent registered public accountants
to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to each Holder, to conduct a reasonable
investigation within the meaning of the Securities Act. The Company shall not file a Registration Statement or any such Prospectus or
any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall reasonably object in good
faith, provided that, the Company is notified of such objection in writing no later than five (5) Trading Days after the Holders have
been so furnished copies of a Registration Statement or one (1) Trading Day after the Holders have been so furnished copies of any related
Prospectus or amendments or supplements thereto. Each Holder agrees to furnish to the Company a completed questionnaire in the form attached
to this Agreement as Annex B (a “Selling Stockholder Questionnaire”) on a date that is not less than two (2)
Trading Days prior to the Filing Date or by the end of the fourth (4th) Trading Day following the date on which such Holder
receives draft materials in accordance with this Section.

 

(b)              
(i) Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and
the Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable
Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in
order to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related Prospectus to be amended
or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to
be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect
to a Registration Statement or any amendment thereto and provide as promptly as reasonably possible to the Holders true and complete copies
of all correspondence from and to the Commission relating to a Registration Statement (provided that, the Company shall excise any information
contained therein which would constitute material non-public information regarding the Company or any of its Subsidiaries), and (iv) comply
in all material respects with the applicable provisions of the Securities Act and the Exchange Act with respect to the disposition of
all Registrable Securities covered by a Registration Statement during the applicable period in accordance (subject to the terms of this
Agreement) with the intended methods of disposition by the Holders thereof set forth in such Registration Statement as so amended or in
such Prospectus as so supplemented.

 

(c)              
If during the Effectiveness Period, the number of Registrable Securities at any time exceeds the number of shares of Common Stock
then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case prior to the
applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than the number of such Registrable
Securities.

 

(d)              
Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be
accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably
possible (and, in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested by any such Person)
confirm such notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement
or post-effective amendment to a Registration Statement is proposed to be filed, (B) when the Commission notifies the Company whether
there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such Registration
Statement, and (C) with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii)
of any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration
Statement or Prospectus or for additional information, (iii) of the issuance by the Commission or any other federal or state governmental
authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities
or the initiation of any Proceedings for that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation
or threatening of any Proceeding for such purpose, (v) of the occurrence of any event or passage of time that makes the financial statements
included in a Registration Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus
or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions
to a Registration Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the
case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and (vi) of the
occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be material and
that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability of a Registration
Statement or Prospectus; provided, however, that in no event shall any such notice contain any information which would constitute
material, non-public information regarding the Company or any of its Subsidiaries, and the Company agrees that the Holders shall not have
any duty of confidentiality to the Company or any of its Subsidiaries and shall not have any duty to the Company or any of its Subsidiaries
not to trade on the basis of such information.

 

 

 

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(e)              
Use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending the
effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(f)               
Furnish to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto,
including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent
requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated
by reference) promptly after the filing of such documents with the Commission, provided that any such item which is available on the EDGAR
system (or successor thereto) need not be furnished in physical form.

 

(g)              
Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus
and any amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(d).

 

(h)              
 Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification) of
such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United
States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during
the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions
of the Registrable Securities covered by each Registration Statement, provided that the Company shall not be required to qualify generally
to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction
where it is not then so subject or file a general consent to service of process in any such jurisdiction.

 

(i)                
If requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free, to the
extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations
and registered in such names as any such Holder may request.

 

(j)                
Upon the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances taking
into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature
disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration Statement or a supplement
to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading. If the Company notifies the Holders in accordance
with clauses (iii) through (vi) of Section 3(d) above to suspend the use of any Prospectus until the requisite changes to such Prospectus
have been made, then the Holders shall suspend use of such Prospectus. The Company will use its best efforts to ensure that the use of
the Prospectus may be resumed as promptly as is practicable. The Company shall be entitled to exercise its right under this Section 3(j)
to suspend the availability of a Registration Statement and Prospectus, subject to the payment of partial liquidated damages otherwise
required pursuant to Section 2(d), for a period not to exceed 60 calendar days (which need not be consecutive days) in any 12-month period.

 

(k)              
Otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission under the Securities
Act and the Exchange Act, including, without limitation, Rule 172 under the Securities Act, file any final Prospectus, including any supplement
or amendment thereof, with the Commission pursuant to Rule 424 under the Securities Act, promptly inform the Holders in writing if, at
any time during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof,
the Holders are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions
as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder.

 

 

 

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(l)                
The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common
Stock beneficially owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive
control over the shares. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration
of the Registrable Securities solely because any Holder fails to furnish such information within three Trading Days of the Company’s
request, any liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise
occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

 

4.        Registration
Expenses. All fees and expenses incident to the performance of or compliance with, this Agreement by the Company shall be borne by
the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to
in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees
and expenses of the Company’s counsel and independent registered public accountants) (A) with respect to filings made with the Commission,
(B) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed for trading, and (C)
in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in writing (including, without limitation,
fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities),
(ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities), (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the
Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation
of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred
in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and
expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. In no event shall
the Company be responsible for any broker or similar commissions of any Holder or, except to the extent provided for in the Transaction
Documents, any legal fees or other costs of the Holders.

 

5.        Indemnification.

 

(a)              
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold
harmless each Holder, the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities
as principal as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees
(and any other Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any
other title) of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents and employees (and any other Persons with
a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each such
controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities,
costs (including, without limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred,
arising out of or relating to (1) any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any
Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or
relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
(in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading or (2)
any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or
regulation thereunder, in connection with the performance of its obligations under this Agreement, except to the extent, but only to the
extent, that (i) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the
Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s
proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly
for use in a Registration Statement, such Prospectus or in any amendment or supplement thereto (it being understood that the Holder has
approved Annex A hereto for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi),
the use by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing
that the Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of
the Advice contemplated in Section 6(c). The Company shall notify the Holders promptly of the institution, threat or assertion of any
Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company is aware. Such indemnity
shall remain in full force and effect regardless of any investigation made by or on behalf of such indemnified person and shall survive
the transfer of any Registrable Securities by any of the Holders in accordance with Section 6(f).

 

 

 

    	 	7	 

     

    

 

(b)              
Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors,
officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: any untrue or alleged
untrue statement of a material fact contained in any Registration Statement, any Prospectus, or in any amendment or supplement thereto
or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances
under which they were made) not misleading (i) to the extent, but only to the extent, that such untrue statement or omission is contained
in any information so furnished in writing by such Holder to the Company expressly for inclusion in such Registration Statement or such
Prospectus or (ii) to the extent, but only to the extent, that such information relates to such Holder’s information provided in
the Selling Stockholder Questionnaire or the proposed method of distribution of Registrable Securities and was reviewed and expressly
approved in writing by such Holder expressly for use in a Registration Statement (it being understood that the Holder has approved Annex
A hereto for this purpose), such Prospectus or in any amendment or supplement thereto. In no event shall the liability of a selling Holder
be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating
to this Section 5 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement or omission)
received by such Holder upon the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification
obligation.

 

(c)              
Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is
sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume the defense
thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses
incurred in connection with defense thereof, provided that the failure of any Indemnified Party to give such notice shall not relieve
the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be
finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure
shall have materially and adversely prejudiced the Indemnifying Party.

 

An Indemnified
Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in
writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding
and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named parties to any such Proceeding
(including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and counsel to the Indemnified Party
shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified
Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to
employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense
thereof and the reasonable fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying Party).
The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent
shall not be unreasonably withheld or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified Party,
effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes
an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

Subject to the
terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent
incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall
be paid to the Indemnified Party, as incurred, within ten (10) Trading Days of written notice thereof to the Indemnifying Party, provided
that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such
actions for which such Indemnified Party is finally determined by a court of competent jurisdiction (which determination is not subject
to appeal or further review) not to be entitled to indemnification hereunder.

 

 

 

 

    	 	8	 

     

    

 

(d)              
Contribution. If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to
hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such
Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party
in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any
action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material
fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount
paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement,
any reasonable attorneys’ or other fees or expenses incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such
party in accordance with its terms.

 

The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or
by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding
paragraph. In no event shall the contribution obligation of a Holder of Registrable Securities be greater in amount than the dollar amount
of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section 5 and the amount of any
damages such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission)
received by it upon the sale of the Registrable Securities giving rise to such contribution obligation.

 

The indemnity and
contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified
Parties.

 

6.        Miscellaneous.

 

(a)              
Remedies. In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement,
each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. Each of the Company and each
Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any
of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of
such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate.

 

(b)              
No Piggyback on Registrations; Prohibition on Filing Other Registration Statements. Except for piggyback registration rights
held by Aegis Capital, and the shares of Common Stock issuable upon exercise of the warrants issued to the Placement Agent in the transactions
contemplated by the Purchase Agreement, neither the Company nor any of its security holders (other than the Holders in such capacity pursuant
hereto) may include securities of the Company in any Registration Statements other than the Registrable Securities. The Company shall
not file any other registration statements until all Registrable Securities are registered pursuant to a Registration Statement that is
declared effective by the Commission, provided that this Section 6(b) shall not prohibit the Company from filing amendments to registration
statements filed prior to the date of this Agreement so long as no new securities are registered on any such existing registration statements.

 

(c)              
Discontinued Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice
from the Company of the occurrence of any event of the kind described in Section 3(d)(iii) through (vi), such Holder will forthwith discontinue
disposition of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company will
use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company agrees and acknowledges
that any periods during which the Holder is required to discontinue the disposition of the Registrable Securities hereunder shall be subject
to the provisions of Section 2(d).

 

 

 

    	 	9	 

     

    

 

(d)              
Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be
in writing and signed by the Company and the Required Holders. If a Registration Statement does not register all of the Registrable Securities
pursuant to a waiver or amendment done in compliance with the previous sentence, then the number of Registrable Securities to be registered
for each Holder shall be reduced pro rata among all Holders and each Holder shall have the right to designate which of its Registrable
Securities shall be omitted from such Registration Statement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of a Holder or some Holders and that does not directly or indirectly
affect the rights of other Holders may be given only by such Holder or Holders of all of the Registrable Securities to which such waiver
or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the first sentence of this Section 6(d). No consideration (other than the reimbursement of
legal fees) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement
unless the same consideration also is offered to all of the parties to this Agreement.

 

(e)              
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be delivered as set forth in the Purchase Agreement.

 

(f)               
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns
of each of the parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations
hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Each Holder may assign
their respective rights hereunder in the manner and to the Persons as permitted under Section 5.7 of the Purchase Agreement.

 

(g)              
No Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall
the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities,
that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions
hereof.

 

(h)              
Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together
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, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or by e-mail delivery of a “.pdf” format data file or any electronic signature complying with the
U.S. federal ESIGN Act of 2000 (e.g., www.docusign.com), such signature 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 facsimile or “.pdf” signature page
were an original thereof.

 

(i)                
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be determined in accordance with the provisions of the Purchase Agreement.

 

(j)                
Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(k)              
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by
such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.

 

(l)                
Headings. The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not
be deemed to limit or affect any of the provisions hereof.

 

 

 

 

    	 	10	 

     

    

 

(m)            
Independent Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not
joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations
of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action
taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture
or any other kind of group or entity, or create a presumption that the Holders are in any way acting in concert or as a group or entity
with respect to such obligations or the transactions contemplated by this Agreement or any other matters, and the Company acknowledges
that the Holders are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations
or transactions. Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights arising out
of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose.
The use of a single agreement with respect to the obligations of the Company contained was solely in the control of the Company, not the
action or decision of any Holder, and was done solely for the convenience of the Company and not because it was required or requested
to do so by any Holder. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and
a Holder, solely, and not between the Company and the Holders collectively and not between and among Holders.

 

********************

 

(Signature
Pages Follow)

 

 

 

 

 

 

    	 	11	 

     

    

 

IN WITNESS WHEREOF, the parties
have executed this Registration Rights Agreement as of the date first written above.

 

	 	
    VOLCON, INC.

     

     

	 	
    By:/s/ Jordan D. Davis

    Name: Jordan D. Davis

    Title: Chief Executive Officer

     

 

 

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

    	 	12	 

     

    

 

[SIGNATURE
PAGE OF HOLDERS TO VLCN RRA]

 

 

Name of Holder: Empery Asset Master, LTD

By: Empery Asset Management, LP, its authorized agent

 

Signature of Authorized Signatory of Holder: /s/ Brett S.
Director

 

Name of Authorized Signatory: Brett S. Director

 

Title of Authorized Signatory: General Counsel of Empery Asset Management,
LP, its authorized agent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGES CONTINUE]

 

    	 	13	 

     

    

 

[SIGNATURE
PAGE OF HOLDERS TO VLCN RRA]

 

 

Name of Holder: Empery Tax Efficient, LP

By: Empery Asset Management, LP, its authorized agent

 

Signature of Authorized Signatory of Holder: /s/ Brett S.
Director

 

Name of Authorized Signatory: Brett S. Director

 

Title of Authorized Signatory: General Counsel of Empery Asset Management,
LP, its authorized agent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGES CONTINUE]

 

 

    	 	14	 

     

    

 

[SIGNATURE
PAGE OF HOLDERS TO VLCN RRA]

 

 

Name of Holder: Empery Debt Opportunity Fund, LP

By: Empery Asset Management, LP, its authorized agent

 

Signature of Authorized Signatory of Holder: /s/ Brett S.
Director

 

Name of Authorized Signatory: Brett S. Director

 

Title of Authorized Signatory: General Counsel of Empery Asset Management,
LP, its authorized agent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[SIGNATURE PAGES CONTINUE]

 

 

    	 	15	 

     

    

 

Annex A

 

Plan of Distribution

 

Each Selling Stockholder (the
“Selling Stockholders”) of the securities and any of their pledgees, assignees and successors-in-interest may, from
time to time, sell any or all of their securities covered hereby on the principal Trading Market or any other stock exchange, market or
trading facility on which the securities are traded or in private transactions. These sales may be at fixed or negotiated prices. A Selling
Stockholder may use any one or more of the following methods when selling securities:

 

		·	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

		·	block trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the
block as principal to facilitate the transaction;

 

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		·	an exchange distribution in accordance with the rules of the applicable exchange;

 

		·	in the over-the-counter market;

 

		·	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

 

		·	privately negotiated transactions;

 

		·	settlement of short sales;

 

		·	in transactions through broker-dealers that agree with the Selling Stockholders to sell a specified number of such securities at a
stipulated price per security;

 

		·	through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

 

		·	a combination of any such methods of sale; or

 

		·	any other method permitted pursuant to applicable law.

 

The Selling Stockholders may
also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933, as amended (the “Securities
Act”), if available, rather than under this prospectus.

 

Broker-dealers engaged by
the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts
from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts
to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a
customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown in
compliance with FINRA Rule 2121.

 

 

 

 

    	 	16	 

     

    

 

In connection with the sale
of the securities or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers or other financial
institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they assume. The Selling
Stockholders may also sell securities short and deliver these securities to close out their short positions, or loan or pledge the securities
to broker-dealers that in turn may sell these securities. The Selling Stockholders may also enter into option or other transactions with
broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer
or other financial institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution
may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

 

The Selling Stockholders and
any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters” within the meaning
of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any
profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities
Act. Each Selling Stockholder has informed the Company that it does not have any written or oral agreement or understanding, directly
or indirectly, with any person to distribute the securities.

 

The Company is required to
pay certain fees and expenses incurred by the Company incident to the registration of the securities. The Company has agreed to indemnify
the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

 

We agreed to keep this prospectus
effective until the earlier of (i) the date on which the securities may be resold by the Selling Stockholders without registration and
without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for the Company to be in compliance
with the current public information under Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the securities
have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale securities
will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in
certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable
state or an exemption from the registration or qualification requirement is available and is complied with.

 

Under applicable rules and
regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market
making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement
of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules
and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the common stock by the Selling
Stockholders or any other person. We will make copies of this prospectus available to the Selling Stockholders and have informed them
of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule
172 under the Securities Act).

 

SELLING SHAREHOLDERS

 

The common stock being offered
by the selling shareholders are those issuable to the selling shareholders upon exercise of the notes and the warrants. For additional
information regarding the issuances of those shares of common stock underlying the notes and warrants, see “Private Placement of
Notes and Warrants” above. We are registering the shares of common stock underlying the notes and warrants in order to permit the
selling shareholders to offer the shares for resale from time to time. Except for the ownership of the notes and the warrants, the selling
shareholders have not had any material relationship with us within the past three years.

 

The table below lists the
selling shareholders and other information regarding the beneficial ownership of the shares of common stock by each of the selling shareholders.
The second column lists the number of shares of common stock beneficially owned by each selling shareholder, based on its ownership of
the notes and warrants, as of ________, 2022, assuming conversion of the notes and exercise of the warrants held by the selling shareholders
on that date, without regard to any limitations on conversions or exercises.

 

 

 

 

    	 	17	 

     

    

 

The third column lists the
shares of common stock being offered by this prospectus by the selling shareholders.

 

In accordance with the terms
of a registration rights agreement with the selling shareholders, this prospectus generally covers the resale of the sum of (i) the maximum
number of shares of common stock issuable upon conversion of the notes, determined as if the outstanding notes were converted in full
and (ii) the maximum number of shares of common stock issuable upon exercise of the related warrants, determined as if the outstanding
warrants were exercised in full, in each case, as of the trading day immediately preceding the date this registration statement was initially
filed with the SEC, each as of the trading day immediately preceding the applicable date of determination and all subject to adjustment
as provided in the registration right agreement, without regard to any limitations on the conversion of the notes or the exercise of the
warrants. The fourth column assumes the sale of all of the shares offered by the selling shareholders pursuant to this prospectus.

 

Under the terms of the notes,
a selling shareholder may not convert the notes to the extent such conversion would cause such selling shareholder, together with its
affiliates and attribution parties, to beneficially own a number of shares of common stock which would exceed 9.99% of our then outstanding
common stock following such conversion, excluding for purposes of such determination shares of common stock issuable upon conversion of
such notes or exercise of such warrants which have not been converted or exercised. Under the terms of the warrants, a selling shareholder
may not exercise the warrants to the extent such exercise would cause such selling shareholder, together with its affiliates and attribution
parties, to beneficially own a number of shares of common stock which would exceed 4.99% of our then outstanding common stock following
such exercise, excluding for purposes of such determination shares of common stock issuable upon conversion of such notes or exercise
of such warrants which have not been converted or exercised. The number of shares in the second and fourth columns do not reflect these
limitations. The selling shareholders may sell all, some or none of their shares in this offering. See "Plan of Distribution."

 

	

Name of Selling Shareholder	Number of shares of Common Stock Owned Prior to Offering	Maximum Number of shares of Common Stock to be Sold Pursuant to this Prospectus	Number of shares of Common Stock Owned After Offering

 

 

 

 

 

 

    	 	18	 

     

    

 

Annex C

 

VOLCON,
INC.

 

Selling Stockholder Notice and Questionnaire

 

The undersigned beneficial
owner of common stock (the “Registrable Securities”) of Volcon, Inc., a Delaware corporation (the “Company”),
understands that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”)
a registration statement (the “Registration Statement”) for the registration and resale under Rule 415 of the Securities
Act of 1933, as amended (the “Securities Act”), of the Registrable Securities, in accordance with the terms of the
Registration Rights Agreement (the “Registration Rights Agreement”) to which this document is annexed. A copy of the
Registration Rights Agreement is available from the Company upon request at the address set forth below. All capitalized terms not otherwise
defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

 

Certain legal consequences
arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly, holders and beneficial
owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or
not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The undersigned beneficial
owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include the Registrable Securities owned
by it in the Registration Statement.

 

 

 

 

 

 

 

 

    	 	19	 

     

    

 

The undersigned hereby provides the following
information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

		1.	Name.

 

		(a)	Full Legal Name of Selling Stockholder

	 	 
	 	 

 

		(b)	Full Legal Name of Registered Holder (if not the same as (a) above) through
which Registrable Securities are held:

	 	 
	 	 

 

		(c)	Full Legal Name of Natural Control Person (which means a natural person
who directly or indirectly alone or with others has power to vote or dispose of the securities covered by this Questionnaire):

	 	 
	 	 

 

2. Address for Notices to Selling Stockholder:

	 
	 
	 
	Telephone:

                                 

	Fax:

                                 

	Contact Person:
 

 

 

3. Broker-Dealer Status:

		(a)	Are you a broker-dealer?

 

Yes ☐                     No ☐

 

		(b)	If “yes” to Section 3(a), did you receive your Registrable Securities
as compensation for investment banking services to the Company?

 

Yes ☐                     No ☐

 

	 	Note:	If “no” to Section 3(b), the Commission’s staff has indicated that you should
be identified as an underwriter in the Registration Statement.

 

		(c)	Are you an affiliate of a broker-dealer?

 

Yes ☐                     No ☐

 

 

 

    	 	20	 

     

    

 

		(d)	If you are an affiliate of a broker-dealer, do you certify that you purchased
the Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold,
you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

 

Yes ☐                     No ☐

 

	 	Note:	If “no” to Section 3(d), the Commission’s staff has indicated that you should
be identified as an underwriter in the Registration Statement.

 

4. Beneficial Ownership of Securities
of the Company Owned by the Selling Stockholder.

 

Except as set forth below in this
Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than the securities issuable
pursuant to the Purchase Agreement.

 

		(a)	Type and Amount of other securities beneficially owned by the Selling Stockholder:

	 	 
	 	 

 

5. Relationships with the Company:

 

Except as set forth below, neither
the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities
of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or
affiliates) during the past three years.

 

State any exceptions here:

	 	 
	 	 
	 	 

 

The undersigned agrees to
promptly notify the Company of any material inaccuracies or changes in the information provided herein that may occur subsequent to the
date hereof at any time while the Registration Statement remains effective; provided, that the undersigned shall not be required to notify
the Company of any changes to the number of securities held or owned by the undersigned or its affiliates.

 

By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and
the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements thereto.
The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of
the Registration Statement and the related prospectus and any amendments or supplements thereto.

 

IN WITNESS WHEREOF the undersigned,
by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized
agent.

 

	Date: 	 	 	Beneficial Owner: 
	 	 	 	 
	 	 	 	By:
	 	 	 	 
	 	 	 	Name:
	 	 	 	Title:

 

PLEASE FAX A COPY (OR EMAIL A .PDF COPY) OF
THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE TO:

 

 

 

    	 	21EXHIBIT 10.3

 

[FORM OF SENIOR CONVERTIBLE NOTE]

 

NEITHER THIS SECURITY NOR THE SECURITIES INTO
WHICH THIS SECURITY IS CONVERTIBLE HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES. ANY TRANSFEREE OF THIS NOTE
SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE, INCLUDING SECTIONS 3(c)(iii) AND 18(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS
NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNT SET FORTH ON THE FACE HEREOF PURSUANT
TO SECTION 3(c)(iii) OF THIS NOTE.

 

THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE
DISCOUNT ("OID"). PURSUANT TO TREASURY REGULATION §1.1275-3(b)(1), [•], A REPRESENTATIVE OF THE COMPANY HEREOF WILL,
BEGINNING TEN DAYS AFTER THE ISSUANCE DATE OF THIS NOTE, PROMPTLY MAKE AVAILABLE TO THE HOLDER UPON REQUEST THE INFORMATION DESCRIBED
IN TREASURY REGULATION §1.1275-3(b)(1)(i). [•] MAY BE REACHED AT TELEPHONE NUMBER [•].

 

Volcon,
Inc.

 

SENIOR
CONVERTIBLE NOTE

 

	Issuance Date:  August [•], 2022	Original Principal Amount: U.S. $[          ]

 

 

FOR VALUE RECEIVED, Volcon,
Inc., a Delaware corporation (the "Company"), hereby promises to pay to [Empery
Asset Master, Ltd.] [Empery Tax Efficient, LP] [Empery Debt Opportunity Fund, LP] or registered assigns (the "Holder")
in cash and/or in shares of Common Stock the amount set forth above as the Original Principal Amount (as reduced pursuant to the terms
hereof pursuant to redemption, conversion or otherwise, the "Principal") when due, whether upon the Maturity Date (as
defined below), acceleration, redemption or otherwise (in each case in accordance with the terms hereof) and to pay interest ("Interest"),
if applicable, on any outstanding Principal at the applicable Default Rate at any time during the occurrence and continuance of an Event
of Default occurring from the date set out above as the Issuance Date (the "Issuance Date") until the same becomes due
and payable, whether upon the Maturity Date, acceleration, conversion, redemption or otherwise (in each case in accordance with the terms
hereof). This Senior Convertible Note (including all Senior Convertible Notes issued in exchange, transfer or replacement hereof, this
"Note") is one of an issue of Senior Convertible Notes issued pursuant to the Securities Purchase Agreement on the Closing
Date (collectively, the "Notes" and such other Senior Convertible Notes, the "Other Notes"). Certain
capitalized terms used herein are defined in Section 31.

 

(1)              
 ORIGINAL ISSUE DISCOUNT;
PAYMENTS OF PRINCIPAL; PREPAYMENT. The Company acknowledges and agrees that this Note was issued at an original issue discount. On
the Maturity Date, if any portion of this Note remains outstanding, the Company shall pay to the Holder an amount in cash representing
all outstanding Principal, any accrued and unpaid Interest. The "Maturity Date" shall be February [•], 20241,
as may be extended at the option of the Holder (x) in the event that, and for so long as, an Event of Default (as defined in Section
4(a)) shall have occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section 1) or any event shall have
occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section 1) that with the passage of time and the
failure to cure would result in an Event of Default and/or (y) through the date that is ten (10) Business Days after the consummation
of a Change of Control in the event that a Change of Control is publicly announced or a Change of Control Notice (as defined in Section
5(b)) is delivered prior to the Maturity Date. Other than as specifically permitted by this Note, the Company may not prepay any portion
of the outstanding Principal or accrued and unpaid Interest, if any.

 

 

_________________

1
Insert date that is eighteen (18) months immediately following the Issuance Date.

 

    	 	1	 

     

    

 

(2)              
 INTEREST. No Interest
shall accrue hereunder unless and until an Event of Default has occurred. From and after the occurrence and during the continuance of
any Event of Default, Interest shall accrue hereunder at ten percent (10.0%) per annum (the "Default Rate") and shall
be computed on the basis of a 360-day year and twelve 30-day months and shall be payable, if applicable, on the Maturity Date to the
record holder of this Note in cash by wire transfer of immediately available funds pursuant to wire instructions provided by the Holder
in writing to the Company. Accrued and unpaid Interest, if any, may also be payable, at the election of the Holder, by way of inclusion
of the Interest in the Conversion Amount (as defined in Section 3(b)(i)) on each (i) Conversion Date (as defined in Section 3(c)(i))
in accordance with Section 3(c)(i) and/or (ii) upon any redemption hereunder occurring prior to the Maturity Date, including, without
limitation, upon a Bankruptcy Event of Default redemption. In the event that an Event of Default is subsequently cured (and no other
Event of Default then exists (including, without limitation, for the Company's failure to pay such Interest at the Default Rate on the
Maturity Date)), Interest shall cease to accrue hereunder as of the calendar day immediately following the date of such cure; provided
that the Interest as calculated and unpaid during the continuance of such Event of Default shall continue to apply to the extent
relating to the days after the occurrence of such Event of Default through and including the date of such cure of such Event of Default;
provided, further, that for the purpose of this Section 2, such Event of Default shall not be deemed cured unless and until
any accrued and unpaid Interest shall be paid to the Holder.

 

(3)              
 CONVERSION OF NOTES.
At any time or times after the Issuance Date, this Note shall be convertible into shares of Common Stock, on the terms and conditions
set forth in this Section 3.

 

(a)              
Conversion Right. Subject to the provisions of Section 3(d), at any time or times on or after the Issuance Date, the Holder
shall be entitled to convert all or any portion of the outstanding and unpaid Conversion Amount into fully paid and nonassessable shares
of Common Stock in accordance with Section 3(c), at the Conversion Rate (as defined below). The Company shall not issue any fraction of
a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the
Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer,
stamp and similar taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion
Amount.

 

(b)              
Conversion Rate. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to Section
3(a) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price (the "Conversion Rate").

 

(i)               
"Conversion Amount" means the sum of (x) the portion of the Principal to be converted, redeemed or otherwise with
respect to which this determination is being made, and (y) accrued and unpaid Interest, if any, with respect to such Principal.

 

(ii)             
"Conversion Price" means, as of any Conversion Date or other date of determination, $2.25, subject to adjustment
as provided herein.

 

(c)               
Mechanics
of Conversion.

 

 

 

 

    	 	2	 

     

    

 

(i)                
Optional Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a "Conversion Date"),
the Holder shall (A) transmit by electronic mail (or otherwise deliver), for delivery on or prior to 11:59 p.m., New York time, on such
date, a copy of an executed notice of conversion in the form attached hereto as Exhibit I (a "Conversion Notice")
to the Company and (B) if required by Section 3(c)(iii), but without delaying the Company's requirement to deliver shares of Common Stock
on the applicable Share Delivery Date (as defined below), surrender this Note to a common carrier for delivery to the Company as soon
as practicable on or following such date (or an indemnification undertaking with respect to this Note in the case of its loss, theft,
destruction or mutilation in compliance with the procedures set forth in Section 18(b)). No ink-original Conversion Notice shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Conversion Notice be required. On or before the
first (1st) Trading Day following the date of delivery of a Conversion Notice, the Company shall transmit by electronic mail
a confirmation of receipt of such Conversion Notice to the Holder and the Company's transfer agent (the "Transfer Agent").
On or before the earlier of (i) the second (2nd) Trading Day and (ii) the number of Trading Days comprising the Standard Settlement
Period, in each case, following the date on which the Holder has delivered the applicable Conversion Notice to the Company (a "Share
Delivery Date"), the Company shall (x) provided that the Transfer Agent is participating in the Depository Trust Company ("DTC")
Fast Automated Securities Transfer Program and (A) the applicable Conversion Shares are subject
to an effective resale registration statement in favor of the Holder or (B) if converted at a time when Rule 144 would be available for
resale of the applicable Conversion Shares by the Holder, credit such aggregate number of Conversion Shares to which the Holder
is entitled pursuant to such conversion to the Holder's or its designee's balance account with DTC through its Deposit / Withdrawal At
Custodian system, or (y) if (A) the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program or
(B) the applicable Conversion Shares are not subject to an effective resale registration statement in favor of the Holder and, if converted
at a time when Rule 144 would not be available for resale of the applicable Conversion Shares by the Holder, issue and deliver
to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number
of shares of Common Stock to which the Holder shall be entitled. If this Note is physically surrendered for conversion as required by
Section 3(c)(iii) and the outstanding Principal of this Note is greater than the Principal portion of the Conversion Amount being converted,
then the Company shall as soon as practicable and in no event later than two (2) Business Days after delivery of this Note and at its
own expense, issue and deliver to the Holder a new Note (in accordance with Section 18(d)) representing the outstanding Principal not
converted. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated
for all purposes as the record holder or holders of such shares of Common Stock on the applicable Conversion Date, irrespective of the
date such Conversion Shares are credited to the Holder's account with DTC or the date of delivery of the certificates evidencing such
Conversion Shares, as the case may be. The Company's obligations to issue and deliver shares of Common Stock in accordance with the terms
and subject to the conditions hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the
same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce
the same, or any setoff, counterclaim, recoupment, limitation or termination. While any Notes are outstanding, the Company shall use a
transfer agent that participates in the DTC Fast Automated Securities Transfer Program.

 

 

 

 

    	 	3	 

     

    

 

(ii)             
Company's Failure to Timely Convert. If the Company shall fail, for any reason or no reason, on or prior to the applicable
Share Delivery Date to issue and deliver a certificate to the Holder, if the Transfer Agent is not participating in the DTC Fast Automated
Securities Transfer Program or if converted, at a time when the applicable Conversion Shares
are not subject to an effective resale registration statement in favor of the Holder and Rule 144 would not be available for resale of
the applicable Conversion Shares by the Holder, or credit the Holder's balance account with
DTC, if the Transfer Agent is participating in the DTC Fast Automated Securities Transfer Program and (a) the applicable
Conversion Shares are subject to an effective resale registration statement in favor of the Holder or (b) if converted at a time
when Rule 144 would be available for resale of the applicable Conversion Shares by the Holder,
for the number of shares of Common Stock to which the Holder is entitled upon the Holder's conversion of any Conversion Amount (a "Conversion
Failure"), then (A) the Company shall pay cash to the Holder for each Trading Day of such Conversion Failure in an amount equal
to 1.5% of the product of (1) the sum of the number of shares of Common Stock not issued to the Holder on or prior to the applicable Share
Delivery Date and to which the Holder is entitled, and (2) any trading price of the Common Stock selected by the Holder in writing as
in effect at any time during the period beginning on the applicable Conversion Date and ending on the applicable Share Delivery Date and
(B) the Holder, upon written notice to the Company, may void its Conversion Notice with respect to, and retain or have returned, as the
case may be, any portion of this Note that has not been converted pursuant to such Conversion Notice; provided that the voiding
of a Conversion Notice shall not affect the Company's obligations to make any payments which have accrued prior to the date of such notice
pursuant to this Section 3(c)(ii) or otherwise. In addition to the foregoing, if the Company shall fail on or prior to the applicable
Share Delivery Date to issue and deliver a certificate to the Holder if (A) the Transfer Agent is not participating in the DTC Fast Automated
Securities Transfer Program or (B) the applicable Conversion Shares are not subject to an effective
resale registration statement in favor of the Holder and, if converted at a time when Rule 144 would not be available for resale of the
applicable Conversion Shares by the Holder, or credit the Holder's balance account with DTC if the Transfer Agent is participating
in the DTC Fast Automated Securities Transfer Program and (A) the applicable Conversion Shares are
subject to an effective resale registration statement in favor of the Holder or (B) if converted at a time when Rule 144 would be available
for resale of the applicable Conversion Shares by the Holder, for the number of shares of Common Stock to which the Holder is entitled
upon the Holder's conversion of any Conversion Amount or on any date of the Company's obligation to deliver shares of Common Stock as
contemplated pursuant to clause (y) below, and if on or after such Trading Day the Holder purchases (in an open market transaction or
otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of Common Stock issuable upon such conversion that the Holder
anticipated receiving from the Company (a "Buy-In"), then the Company shall, within two (2) Trading Days after the Holder's
request and in the Holder's discretion, either (x) pay cash to the Holder in an amount equal to the Holder's total purchase price (including
brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (the "Buy-In Price"),
at which point the Company's obligation to issue and deliver such certificate or credit the Holder's balance account with DTC for the
shares of Common Stock to which the Holder is entitled upon the Holder's conversion of the applicable Conversion Amount shall terminate,
or (y) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such shares of Common Stock or
credit the Holder's balance account with DTC for such shares of Common Stock and pay cash to the Holder in an amount equal to the excess
(if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) any trading price of the Common
Stock selected by the Holder in writing as in effect at any time during the period beginning on the applicable Conversion Date and ending
on the applicable Share Delivery Date. Nothing herein shall limit the Holder's right to pursue any
other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive
relief with respect to the Company's failure to timely deliver certificates representing shares of Common Stock (or to electronically
deliver such shares of Common Stock) upon conversion of this Note as required pursuant to the terms hereof.

 

 

 

 

    	 	4	 

     

    

 

(iii)           
Registration; Book-Entry. The Company shall maintain a register (the "Register") for the recordation of
the names and addresses of the holders of each Note and the Principal amount of the Notes (and stated interest thereon) held by such holders
(the "Registered Notes"). The entries in the Register shall be conclusive and binding for all purposes absent manifest
error. The Company and the holders of the Notes shall treat each Person whose name is recorded in the Register as the owner of a Note
for all purposes, including, without limitation, the right to receive payments of Principal and Interest, if any, hereunder, notwithstanding
notice to the contrary. A Registered Note may be assigned or sold in whole or in part only by registration of such assignment or sale
on the Register. Upon its receipt of a request to assign or sell all or part of any Registered Note by the Holder, the Company shall record
the information contained therein in the Register and issue one or more new Registered Notes in the same aggregate Principal amount as
the Principal amount of the surrendered Registered Note to the designated assignee or transferee pursuant to Section 18. Notwithstanding
anything to the contrary in this Section 3(c)(iii), the Holder may assign any Note or any portion thereof to an Affiliate of the Holder
or a Related Fund of the Holder without delivering a request to assign or sell the Note to the Company and the recordation of such assignment
or sale in the Register (a "Related Party Assignment"); provided, that (x) the Company may continue to deal solely
with such assigning or selling Holder unless and until the Holder has delivered a request to assign or sell the Note or portion thereof
to the Company for recordation in the Register; (y) the failure of such assigning or selling Holder to deliver a request to assign or
sell the Note or portion thereof to the Company shall not affect the legality, validity, or binding effect of such assignment or sale
and (z) such assigning or selling Holder shall, acting solely for this purpose as a non-fiduciary agent of the Company, maintain a register
(the "Related Party Register") comparable to the Register on behalf of the Company, and any such assignment or sale shall
be effective upon recordation of such assignment or sale in the Related Party Register. Notwithstanding anything to the contrary set forth
herein, upon conversion of any portion of this Note in accordance with the terms hereof, the Holder shall not be required to physically
surrender this Note to the Company unless (A) the full Conversion Amount represented by this Note is being converted or (B) the Holder
has provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this
Note upon physical surrender of this Note. The Holder and the Company shall maintain records showing the Principal and Interest, if any,
converted and/or paid (as the case may be) and the dates of such conversions, and/or payments (as the case may be) or shall use such other
method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon conversion. If
the Company does not update the Register to record such Principal and Interest converted and/or paid (as the case may be) and the dates
of such conversions and/or payments (as the case may be) within two (2) Business Days of such occurrence, then the Register shall be automatically
deemed updated to reflect such occurrence.

 

(iv)            
Pro Rata Conversion; Disputes. In the event that the Company receives a Conversion Notice from the Holder and one or more
holder of Other Notes for the same Conversion Date and the Company can convert some, but not all, of such portions of this Note and/or
the Other Notes submitted for conversion, the Company, subject to Section 3(d), shall convert from the Holder and each holder of Other
Notes electing to have Notes converted on such date, a pro rata amount of such holder's portion of the Note and its Other Notes submitted
for conversion based on the Principal amount of this Note and principal amounts of the Other Notes submitted for conversion on such date
by such holder relative to the aggregate Principal amount of this Note and all Other Notes submitted for conversion on such date. In the
event of a dispute as to the number of shares of Common Stock issuable to the Holder in connection with a conversion of this Note, the
Company shall issue to the Holder the number of shares of Common Stock not in dispute and resolve such dispute in accordance with Section
23.

 

 

 

 

    	 	5	 

     

    

 

(v)              
Mandatory Conversion. If at any time from and after the Issuance Date, (i) the Weighted Average Price of the Common Stock
for ten (10) consecutive Trading Days following the Issuance Date (the "Mandatory Conversion Measuring Period") equals
or exceeds $3.50 (as adjusted for any stock dividend, stock split, stock combination, reclassification or similar transaction after the
Subscription Date) (the "Mandatory Conversion Pricing Test") and (ii) no Equity Conditions Failure has occurred during
the period from the applicable Mandatory Conversion Notice Date through the applicable Mandatory Conversion Date (each as defined below),
the Company shall have the right to require the Holder to convert all or any portion of the Conversion Amount then remaining under this
Note (the "Mandatory Conversion Amount"), as designated in the Mandatory Conversion Notice on the Mandatory Conversion
Date (each as defined below) into fully paid, validly issued and nonassessable shares of Common Stock in accordance with Section 3(a)
hereof at the Conversion Rate as of the Mandatory Conversion Date (as defined below) (a "Mandatory Conversion"). The
Company may exercise its right to require conversion under this Section 3(c)(v) by delivering within not more than ten (10) Trading Days
following the end of such Mandatory Conversion Measuring Period a written notice thereof by electronic mail, and overnight courier to
all, but not less than all, of the holders of Notes and the Transfer Agent (the "Mandatory Conversion Notice" and the
date all of the holders of this Note and the Other Notes received such notice is referred to as the "Mandatory Conversion Notice
Date"). The Mandatory Conversion Notice shall be irrevocable. The Mandatory Conversion Notice shall (i) state (a) the Trading
Day on which the applicable Mandatory Conversion shall occur, which Trading Day shall be not sooner than the thirtieth (30th)
Trading Day immediately following the Mandatory Conversion Notice Date (a "Mandatory Conversion Date"), (b) the aggregate
Conversion Amount of the Notes which the Company has elected to be subject to Mandatory Conversion from the Holder and all of the holders
of the Other Notes pursuant to this Section 3(c)(v) (and analogous provisions under the Other Notes), (c) the number of shares of Common
Stock to be issued to the Holder on the applicable Mandatory Conversion Date and (d) certify that the Mandatory Conversion Pricing Test
has been satisfied and that there has been no Equity Conditions Failure. If there was no Equity Conditions Failure as of the applicable
Mandatory Conversion Notice Date but an Equity Conditions Failure occurred between the applicable Mandatory Conversion Notice Date and
any time through the related Mandatory Conversion Date (a "Mandatory Conversion Interim Period"), the Company shall provide
the Holder a subsequent notice to that effect. If an Equity Conditions Failure occurs (that is not waived in writing by the Holder) during
such Mandatory Conversion Interim Period, then such Mandatory Conversion shall be null and void with respect to all or any part designated
by the Holder of the unconverted Mandatory Conversion Amount and the Holder shall be entitled to all the rights of a holder of this Note
with respect to such Mandatory Conversion Amount. On the applicable Mandatory Conversion Date the Company shall deliver or shall cause
to be delivered to the Holder the number of shares of Common Stock the Holder is entitled to pursuant to Section 3(b) (provided,
however, that to the extent that the Holder will be entitled to receive upon any Mandatory Conversion a number of shares of Common
Stock which would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be
entitled to such shares of Common Stock upon a Mandatory Conversion to such extent (and shall not be entitled to beneficial ownership
of such shares of Common Stock as a result of such Mandatory Conversion (and beneficial ownership) to such extent) and such portion of
the shares of Common Stock issuable to the Holder pursuant to such Mandatory Conversion shall be held in abeyance for the Holder until
such time or times as its right thereto would not result in the Holder and the other Attribution Parties exceeding the Maximum Percentage,
at which time or times the Holder shall be granted such shares of Common Stock (and any right to receive shares of Common Stock under
this Section 3(c)(v) to be held similarly in abeyance) to the same extent as if there had been no such limitation). Notwithstanding anything
to the contrary in this Section 3(c)(v), until a Mandatory Conversion has occurred, the Mandatory Conversion Amount subject to such Mandatory
Conversion may be converted, in whole or in part, by the Holder into shares of Common Stock pursuant to Section 3(c)(i). All Conversion
Amounts converted by the Holder after a Mandatory Conversion Notice Date shall reduce the Mandatory Conversion Amount of this Note required
to be converted on the related Mandatory Conversion Date, unless the Holder otherwise indicates in the applicable Conversion Notice. If
the Company elects to cause a Mandatory Conversion pursuant to Section 3(c)(v), then it must simultaneously take the same action in the
same proportion with respect to the Other Notes.

 

 

 

 

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(d)              
Beneficial Ownership Conversion Limitations. Notwithstanding anything to the contrary contained herein, the Company shall
not issue any shares of Common Stock pursuant to the terms of this Note, and the Holder shall not have the right to any shares of Common
Stock otherwise issuable pursuant to the terms and conditions of this Note and any such issuance shall be null and void and treated as
if never made, to the extent that after giving effect to such issuance, the Holder together with the other Attribution Parties collectively
would beneficially own in excess of 9.99% (the "Maximum Percentage") of the number of shares of Common Stock outstanding
immediately after giving effect to such issuance. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock
beneficially owned by the Holder and the other Attribution Parties shall include the number of shares of Common Stock held by the Holder
and all other Attribution Parties plus the number of shares of Common Stock issuable pursuant to the terms of this Note with respect to
which the determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be issuable
(i) pursuant to the terms of the remaining, nonconverted portion of this Note beneficially owned by the Holder or any of the other Attribution
Parties and (ii) upon exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including,
without limitation, any convertible notes or convertible preferred stock or warrants, including the Other Notes and Warrants) beneficially
owned by the Holder or any other Attribution Party subject to a limitation on conversion or exercise analogous to the limitation contained
in this Section 3(d). For purposes of this Section 3(d), beneficial ownership shall be calculated in accordance with Section 13(d) of
the Exchange Act. For purposes of determining the number of outstanding shares of Common Stock the Holder may acquire pursuant to the
terms of the Note without exceeding the Maximum Percentage, the Holder may rely on the number of outstanding shares of Common Stock as
reflected in (i) the Company's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
public filing with the SEC, as the case may be, (ii) a more recent public announcement by the Company or (iii) any other written notice
by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding (the "Reported Outstanding
Share Number"). If the Company receives a Conversion Notice from the Holder at a time when the actual number of outstanding shares
of Common Stock is less than the Reported Outstanding Share Number, the Company shall notify the Holder in writing of the number of shares
of Common Stock then outstanding and, to the extent that such Conversion Notice would otherwise cause the Holder's beneficial ownership,
as determined pursuant to this Section 3(d), to exceed the Maximum Percentage, the Holder shall notify the Company of a reduced number
of shares of Common Stock to be purchased pursuant to such Conversion Notice. For any reason at any time, upon the written or oral request
of the Holder, the Company shall within one (1) Trading Day confirm orally and in writing or by electronic mail to the Holder the number
of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving
effect to the conversion or exercise of securities of the Company, including this Note, by the Holder and any other Attribution Party
since the date as of which the Reported Outstanding Share Number was reported. In the event that the issuance of shares of Common Stock
to the Holder upon conversion of this Note would result in the Holder and the other Attribution Parties being deemed to beneficially own,
in the aggregate, more than the Maximum Percentage of the number of outstanding shares of Common Stock (as determined under Section 13(d)
of the Exchange Act), the number of shares so issued by which the Holder's and the other Attribution Parties' aggregate beneficial ownership
would exceed the Maximum Percentage (the "Excess Shares") shall be deemed null and void and shall be cancelled ab initio
and any portion of the Conversion Amount so converted shall be reinstated, and the Holder shall not have the power to vote or to transfer
the Excess Shares. Upon delivery of a written notice to the Company, the Holder may from time to time increase or decrease the Maximum
Percentage to any other percentage not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum
Percentage will not be effective until the sixty-first (61st) day after such notice is delivered to the Company and (ii) any
such increase or decrease will apply only to the Holder and the other Attribution Parties and not to any other holder of Notes that is
not an Attribution Party of the Holder. For purposes of clarity, the shares of Common Stock issuable pursuant to the terms of this Note
in excess of the Maximum Percentage shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes
of Section 13(d) or Rule 16a-1(a)(1) of the Exchange Act. The provisions of this paragraph shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this Section 3(d) to the extent necessary to correct this paragraph (or any portion
of this paragraph) which may be defective or inconsistent with the intended beneficial ownership limitation contained in this Section
3(d) or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitation contained in
this paragraph may not be waived and shall apply to a successor holder of this Note.

 

(4)              
 RIGHTS
UPON EVENT OF DEFAULT.

 

(a)              
Event of Default. Each of the following events or failure to comply therewith shall constitute an "Event of Default"
and each of the events described in clauses (vii) and (viii) shall also constitute a "Bankruptcy Event of Default":

 

 

 

 

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(i)               
the failure of the applicable Registration Statement required to be filed pursuant to the Registration Rights Agreement to be filed
within on or prior to the date that is fifteen (15) days after the applicable Filing Date (as defined in the Registration Rights Agreement)
or to be declared effective by the SEC on or prior to the date that is thirty (30) days after the applicable Effectiveness Date (as defined
in the Registration Rights Agreement), or, while the applicable Registration Statement is required to be maintained effective pursuant
to the terms of the Registration Rights Agreement, the effectiveness of the applicable Registration Statement lapses for any reason (including,
without limitation, the issuance of a stop order) or is unavailable to any holder of the Notes for sale of all of such holder's Registrable
Securities in accordance with the terms of the Registration Rights Agreement, and such lapse or unavailability continues for a period
of fifteen (15) consecutive days or for more than an aggregate of thirty (30) days in any 365-day period (other than as permitted pursuant
to the Registration Rights Agreement);

 

(ii)             
the suspension of the Common Stock from trading on an Eligible Market for a period of two (2) consecutive Trading Days or for more
than an aggregate of ten (10) Trading Days in any 365-day period or the failure of the Common Stock to be listed on an Eligible Market;

 

(iii)           
the Company's (A) failure to cure a Conversion Failure by delivery of the required number of shares of Common Stock within five
(5) Trading Days after the applicable Conversion Date or (B) notice, written or oral, to the Holder or any holder of the Other Notes,
including by way of public announcement or through any of its agents, at any time, of its intention not to comply with a request for conversion
of this Note or any Other Notes into shares of Common Stock that is tendered in accordance with the provisions of this Note or the Other
Notes, other than pursuant to Section 3(d) (and analogous provisions under the Other Notes);

 

(iv)            
at any time following the fifth (5th) consecutive Business Day that the Holder's Authorized Share Allocation (as defined
in Section 10(a)) is less than the Holder's Pro Rata Amount of the Required Reserve Amount (as defined in Section 10(a));

 

(v)              
the Company's failure to pay to the Holder any amount of Principal, Interest, Redemption Price or other amounts when and as due
under this Note or any other Transaction Document, except, in the case of a failure to pay Interest when and as due, in which case only
if such failure continues for a period of at least an aggregate of two (2) Business Days;

 

(vi)            
any default under, redemption of or acceleration prior to maturity of any Indebtedness of the Company or any of its Subsidiaries
other than with respect to this Note or any Other Notes;

 

(vii)          
the Company or any of its Subsidiaries, pursuant to or within the meaning of Title 11, U.S. Code, or any similar federal, foreign
or state law for the relief of debtors (collectively, "Bankruptcy Law"), (A) commences a bankruptcy voluntary case, (B)
consents to the entry of an order for relief against it in an involuntary bankruptcy case, (C) consents to the appointment of a receiver,
trustee, assignee, liquidator or similar official (a "Custodian"), (D) makes a general assignment for the benefit of
its creditors or (E) admits in writing that it is generally unable to pay its debts as they become due;

 

(viii)         
a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (A) is for relief against the Company
or any of its Subsidiaries in an involuntary case, (B) appoints a Custodian of the Company or any of its Subsidiaries or (C) orders the
liquidation of the Company or any of its Subsidiaries;

 

(ix)            
a final judgment or judgments for the payment of money aggregating in excess of $250,000 are rendered against the Company or any
of its Subsidiaries and which judgments are not, within sixty (60) days after the entry thereof, bonded, discharged or stayed pending
appeal, or are not discharged within sixty (60) days after the expiration of such stay; provided, however, that any judgment
which is covered by insurance or an indemnity from a credit worthy party shall not be included in calculating the $250,000 amount set
forth above so long as the Company provides the Holder a written statement from such insurer or indemnity provider (which written statement
shall be reasonably satisfactory to the Holder) to the effect that such judgment is covered by insurance or an indemnity and the Company
or such Subsidiary (as the case may be) will receive the proceeds of such insurance or indemnity within thirty (30) days of the issuance
of such judgment;

 

 

 

 

    	 	8	 

     

    

 

(x)            
other than as specifically set forth in another clause of this Section 4(a), the Company or any of its Subsidiaries breaches any
representation, warranty, covenant or other term or condition of any Transaction Document, except, in the case of a breach of a covenant
or other term or condition of any Transaction Document which is curable, only if such breach continues for a period of at least an aggregate
of five (5) Business Days;

 

(xi)           
any breach or failure in any respect to comply with either Sections 14 or 15 of this Note;

 

(xii)         
any material damage to, or loss, theft or destruction of a material amount of property of the Company, whether or not insured,
or any strike, lockout, labor dispute, embargo, condemnation, act of God or public enemy, or other casualty which causes, for more than
fifteen (15) consecutive days, the cessation or substantial curtailment of revenue producing activities at any facility of the Company
or any Subsidiary, if any such event or circumstance would reasonably be expected to have a Material Adverse Effect;

 

(xiii)       
a false or inaccurate certification (including a false or inaccurate deemed certification) by the Company that the Equity Conditions
are satisfied or that there has been no Equity Conditions Failure or as to whether any Event of Default has occurred;

 

(xiv)        
any Material Adverse Effect occurs;

 

(xv)         
the Company fails to remove any restrictive legend on any certificate or any shares of Common Stock issued to the Holder upon conversion
or exercise (as the case may be) of any Securities (as defined in the Securities Purchase Agreement) (including this Note) as and when
required by such Securities or the Securities Purchase Agreement, unless otherwise then prohibited by applicable federal securities laws,
and any such failure remains uncured for at least five (5) Trading Day;

 

(xvi)       
the electronic transfer by the Company of shares of Common Stock through the Depository Trust Company or another established clearing
corporation is no longer available or is subject to a "chill"; or

 

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

 

(b)              
Redemption Right. At any time after the earlier of the Holder's receipt of an Event of Default Notice (as defined in Section
15(f)) and the Holder becoming aware of an Event of Default, the Holder may require the Company to redeem (an "Event of Default
Redemption") all or any portion of this Note by delivering written notice thereof (the "Event of Default Redemption Notice")
to the Company, which Event of Default Redemption Notice shall indicate the portion of this Note the Holder is electing to require the
Company to redeem. Each portion of this Note subject to redemption by the Company pursuant to this Section 4(b) shall be redeemed by the
Company in cash by wire transfer of immediately available funds at a price equal to the greater of (x) the product of (A) the applicable
Redemption Premium and (B) the Conversion Amount being redeemed and (y) the product of (A) the Conversion Amount being redeemed and (B)
the quotient determined by dividing (I) the greatest Closing Sale Price of the shares of Common Stock during the period beginning on the
date immediately preceding such Event of Default and ending on the date the Holder delivers the Event of Default Redemption Notice, by
(II) the lowest Conversion Price in effect during such period, in addition to any and all other amounts due hereunder (the "Event
of Default Redemption Price"). Redemptions required by this Section 4(b) shall be made in accordance with the provisions of Section
11. To the extent redemptions required by this Section 4(b) are deemed or determined by a court of competent jurisdiction to be prepayments
of the Note by the Company, such redemptions shall be deemed to be voluntary prepayments. Notwithstanding anything to the contrary in
this Section 4, but subject to Section 3(d), until the Event of Default Redemption Price is paid in full, the Conversion Amount submitted
for redemption under this Section 4(b) may be converted, in whole or in part, by the Holder into Common Stock pursuant to Section 3. The
parties hereto agree that in the event of the Company's redemption of any portion of the Note under this Section 4(b), the Holder's damages
would be uncertain and difficult to estimate because of the parties' inability to predict future interest rates and the uncertainty of
the availability of a suitable substitute investment opportunity for the Holder. Accordingly, any Event of Default Redemption Premium
due under this Section 4(b) is intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder's actual loss of
its investment opportunity and not as a penalty.

 

 

 

 

    	 	9	 

     

    

 

(c)              
Redemption upon Bankruptcy Event of Default. Notwithstanding anything to the contrary herein, and notwithstanding any conversion
that is then required or in process, upon any Bankruptcy Event of Default, whether occurring prior to or following the Maturity Date,
the Company shall immediately pay to the Holder an amount in cash representing the product of (A) the applicable Redemption Premium and
(B) of all outstanding Principal, accrued and unpaid Interest, if any, in addition to any and all other amounts due hereunder (the "Bankruptcy
Event of Default Redemption Price"), without the requirement for any notice or demand or other action by the Holder or any other
Person; provided that the Holder may, in its sole discretion, waive such right to receive payment upon a Bankruptcy Event of Default,
in whole or in part, and any such waiver shall not affect any other rights of the Holder hereunder, including any other rights in respect
of such Bankruptcy Event of Default, any right to conversion, and any right to payment of the Event of Default Redemption Price or any
other Redemption Price, as applicable. Redemptions required by this Section 4(c) shall be made in accordance with the provisions of Section
11.

 

(5)              
RIGHTS UPON FUNDAMENTAL TRANSACTION AND CHANGE OF CONTROL.

 

(a)              
Assumption. If, at any time while this Note is outstanding, the Company, directly or indirectly, in one or more related
transactions effects any Fundamental Transaction or a Fundamental Transaction occurs or is consummated, then, upon any subsequent conversion
of this Note, the Holder shall have the right to receive, for each share of Common Stock that would have been issuable upon such conversion
immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in
Section 3(d) on the conversion of this Note), the number of shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and any additional consideration (the "Alternate Consideration") receivable
as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Note is convertible immediately
prior to such Fundamental Transaction (without regard to any limitation in Section 3(d) on the conversion of this Note). For purposes
of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the
Company shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of
any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or
property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any conversion of this Note following such Fundamental Transaction. The Company shall cause any successor entity in a
Fundamental Transaction in which the Company is not the survivor (the "Successor Entity") to assume in writing all of
the obligations of the Company under this Note and the other Transaction Documents in accordance with the provisions of this Section 5(a)
pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Note a
security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Note which is convertible
for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common
Stock acquirable and receivable upon conversion of this Note (without regard to any limitations on the conversion of this Note) prior
to such Fundamental Transaction, and with a conversion price which applies the conversion price hereunder to such shares of capital stock
(but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such
shares of capital stock, such number of shares of capital stock and such conversion price being for the purpose of protecting the economic
value of this Note immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form
and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall be added to the term
"Company" under this Note (so that from and after the occurrence or consummation of such
Fundamental Transaction, each and every provision of this Note and the other Transaction Documents referring to the "Company"
shall refer instead to each of the Company and the Successor Entity or Successor Entities, jointly and severally), and the Successor Entity
or Successor Entities, jointly and severally with the Company, may exercise every right and power of the Company prior thereto and the
Successor Entity or Successor Entities shall assume all of the obligations of the Company prior thereto under this Note and the other
Transaction Documents with the same effect as if the Company and such Successor Entity or Successor Entities, jointly and severally, had
been named as the Company in this Note.

 

 

 

 

    	 	10	 

     

    

 

(b)              
Redemption Right. No sooner than twenty-five (25) days nor later than twenty (20) days prior to the consummation of a Change
of Control, but not prior to the public announcement of such Change of Control, the Company shall deliver written notice thereof via electronic
mail and overnight courier to the Holder (a "Change of Control Notice") setting
forth a description of such transaction in reasonable detail and the anticipated Change of Control Redemption Date (as defined in Section
11(a)) if then known. At any time during the period beginning on the earlier to occur of (x) any oral or written agreement by the
Company or any of its Subsidiaries, upon consummation of which the transaction contemplated thereby would reasonably be expected to result
in a Change of Control, (y) the Holder becoming aware of a Change of Control and (z) the Holder's receipt of a Change of Control Notice
and ending twenty-five (25) Trading Days after the date of the consummation of such Change of Control, the Holder may require the Company
to redeem (a "Change of Control Redemption") all or any portion of this Note by delivering written notice thereof ("Change
of Control Redemption Notice") to the Company, which Change of Control Redemption Notice shall indicate the Conversion Amount
the Holder is electing to require the Company to redeem. The portion of this Note subject to redemption pursuant to this Section 5(b)
shall be redeemed by the Company in cash by wire transfer of immediately available funds at a price equal to the greater of (x) the Conversion
Amount being redeemed and (y) the product of (A) the Conversion Amount being redeemed and (B) the quotient determined by dividing (I)
the greatest Closing Sale Price of the shares of Common Stock during the period beginning on the date immediately preceding the earlier
to occur of (x) the consummation of the Change of Control and (y) the public announcement of such Change of Control and ending on the
date the Holder delivers the Change of Control Redemption Notice, by (II) the lowest Conversion Price in effect during such period (the
"Change of Control Redemption Price"). Redemptions required by this Section 5 shall be made in accordance with the provisions
of Section 11 and shall have priority to payments to stockholders in connection with a Change of Control. To the extent redemptions required
by this Section 5(b) are deemed or determined by a court of competent jurisdiction to be prepayments of the Note by the Company, such
redemptions shall be deemed to be voluntary prepayments. Notwithstanding anything to the contrary in this Section 5, but subject to Section
3(d), until the Change of Control Redemption Price is paid in full, the Conversion Amount submitted for redemption under this Section
5(b) may be converted, in whole or in part, by the Holder into Common Stock pursuant to Section 3. The parties hereto agree that in the
event of the Company's redemption of any portion of the Note under this Section 5(b), the Holder's damages would be uncertain and difficult
to estimate because of the parties' inability to predict future interest rates and the uncertainty of the availability of a suitable substitute
investment opportunity for the Holder. Accordingly, any Change of Control redemption premium due under this Section 5(b) is intended by
the parties to be, and shall be deemed, a reasonable estimate of the Holder's actual loss of its investment opportunity and not as a penalty.

 

(6)              
DISTRIBUTION OF ASSETS; RIGHTS UPON ISSUANCE OF PURCHASE RIGHTS.

 

(a)              
Distribution of Assets. If the Company shall, on or after the Subscription Date, declare or make any dividend or other distributions
of its assets (or rights to acquire its assets) to any or all holders of shares of Common Stock, by way of return of capital or otherwise
(including without limitation, any distribution of cash, stock or other securities, property, Options, evidence of Indebtedness or any
other assets by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
(a "Distribution"), then the Holder will be entitled to such Distribution as if the Holder had held the number of shares
of Common Stock acquirable upon complete conversion of this Note (without taking into account any limitations or restrictions on the convertibility
of this Note) immediately prior to the date on which a record is taken for such Distribution or, if no such record is taken, the date
as of which the record holders of Common Stock are to be determined for such Distributions (provided, however, that to the
extent that the Holder's right to participate in any such Distribution would result in the Holder and the other Attribution Parties exceeding
the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent (and shall not be entitled
to beneficial ownership of such shares of Common Stock as a result of such Distribution (and beneficial ownership) to such extent) and
the portion of such Distribution shall be held in abeyance for the Holder until such time or times as its right thereto would not result
in the Holder and the other Attribution Parties exceeding the Maximum Percentage, at which time or times the Holder shall be granted such
Distribution (and any Distributions declared or made on such initial Distribution or on any subsequent Distribution to be held similarly
in abeyance) to the same extent as if there had been no such limitation).

 

(b)              
Purchase Rights. If at any time on or after the Subscription Date the Company grants, issues or sells any Options, Convertible
Securities or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of Common Stock
(the "Purchase Rights"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights,
the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable
upon complete conversion of this Note (without taking into account any limitations or restrictions on the convertibility of this Note)
immediately prior to the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record
is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such
Purchase Rights (provided, however, that to the extent that the Holder's right to participate in any such Purchase Right
would result in the Holder and the other Attribution Parties exceeding the Maximum Percentage, then the Holder shall not be entitled to
participate in such Purchase Right to such extent (and shall not be entitled to beneficial ownership of such shares of Common Stock as
a result of such Purchase Right (and beneficial ownership) to such extent) and such Purchase Right to such extent shall be held in abeyance
for the Holder until such time or times as its right thereto would not result in the Holder and the other Attribution Parties exceeding
the Maximum Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold
on such initial Purchase Right or on any subsequent Purchase Right to be held similarly in abeyance) to the same extent as if there had
been no such limitation).

 

 

 

 

    	 	11	 

     

    

 

(7)              
  ADJUSTMENTS TO CONVERSION
PRICE. The Conversion Price will be subject to adjustment from time to time as provided in this Section 7.

 

(a)               Adjustment of Conversion
Price upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Subscription Date subdivides (by
any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a
greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced. If the
Company at any time on or after the Subscription Date combines (by combination, reverse stock split or otherwise) one or more classes
of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination
will be proportionately increased. Any adjustment under this Section 7(a) shall become effective at the close of business on the
date the subdivision or combination becomes effective.

 

(b)              
Voluntary Adjustment by Company. The Company may at any time during the term of this Note, with the prior written consent
of the Required Holders, reduce the then current Conversion Price to any amount and for any period of time deemed appropriate by the Board
of Directors of the Company.

 

(8)              
OPTIONAL PREPAYMENT. The Company may prepay (each, an "Optional Prepayment") the Note in whole or in part
at any time or from time to time by paying the Holder the Optional Prepayment Price in cash by wire transaction of immediately available
funds with respect to the Conversion Amount being prepaid; provided, however, that the aggregate Conversion Amount under
this Note and the Other Notes being prepaid in any Optional Prepayment pursuant to this Section 8 (and analogous provisions under the
Other Notes) shall be at least $250,000, or such lesser amount that then remains outstanding under this Note and the Other Notes. The
Company may exercise its right to require prepayment under this Section 8 by delivering a written notice thereof by electronic mail and
overnight courier to the Holder and all, but not less than all, of the holders of the Other Notes (an "Optional Prepayment Notice"
and the date all of the holders of the Notes received such notice is referred to as the "Optional Prepayment Notice Date").
Each Optional Prepayment Notice shall be irrevocable. Each Optional Prepayment Notice shall (i) state the date on which the Optional Prepayment
shall occur (the "Optional Prepayment Date"), which date shall not be less than thirty (30) Trading Days following the
applicable Optional Prepayment Notice Date, (ii) state the aggregate Conversion Amount of the Notes which the Company has elected to be
subject to Optional Prepayment from the Holder and all of the other holders of the Other Notes pursuant to this Section 8 (and analogous
provisions under the Other Notes) on the related Optional Prepayment Date, (iii) state the aggregate Optional Prepayment Price with respect
to the Conversion Amount of Notes that the Company has elected to be subject to the Optional Prepayment (which may be required to be changed
if the Optional Prepayment Price with respect to the applicable Conversion Amount being prepaid will be calculated pursuant to clause
(ii) of the definition of Optional Prepayment Price), (iv) state whether there has been an Equity Conditions Failure and (v) contain a
certification by the Company that it does not have knowledge of any pending, proposed or intended Fundamental Transaction that is reasonably
likely to occur within six (6) months of the applicable Optional Prepayment which has not been publicly announced. If the Company confirmed
that there was no Equity Conditions Failure as of the applicable Optional Prepayment Notice Date but an Equity Conditions Failure occurred
between the applicable Optional Prepayment Notice Date and any time through the related Optional Prepayment Date (an “Optional
Prepayment Interim Period”), the Company shall provide the Holder a subsequent notice to that effect, which notice shall (x)
indicate that the Optional Prepayment Price with respect to the applicable Conversion Amount being prepaid will be calculated pursuant
to clause (ii) of the definition of Optional Prepayment Price instead of clause (i) of such definition and (y) again contain a certification
by the Company that it does not have knowledge of any pending, proposed or intended Fundamental Transaction that is reasonably likely
to occur within six (6) months of the applicable Optional Prepayment which has not been publicly announced. Immediately prior to the related
Optional Prepayment Date, the Company shall provide the Holder with the final Optional Prepayment Price with respect to the applicable
Conversion Amount being prepaid. If the Company elects to cause an Optional Prepayment pursuant to this Section 8, then it must simultaneously
take the same action in the same proportion with respect to the Other Notes. Notwithstanding anything to the contrary contained in this
Section 8, if the Company seeks to effect an Optional Prepayment with respect to any Conversion Amount and a pending, proposed or intended
Fundamental Transaction has been publicly announced at any time prior to the Optional Prepayment Date which has not been abandoned, terminated
or consummated, at the option of the Holder (without regard to any limitation in Section 3(d) on the conversion of this Note), in lieu
of receiving from the Company the Optional Prepayment Price in cash, the Holder shall instead have the right to receive upon consummation
of the applicable Fundamental Transaction, the number of shares of Common Stock of the successor or acquiring corporation or of the Company,
if it is the surviving corporation, and any additional consideration receivable as a result of such Fundamental Transaction by a holder
of the number of shares of Common Stock for which the applicable Conversion Amount is convertible immediately prior to such Fundamental
Transaction (without regard to any limitation in Section 3(d) on the conversion of this Note).

 

(9)              
NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of
Incorporation or Bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution,
issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of
this Note, and will at all times in good faith carry out all of the provisions of this Note and take all action as may be required to
protect the rights of the Holder of this Note.

 

 

 

    	 	12	 

     

    

 

(10)          
RESERVATION OF AUTHORIZED SHARES.

 

(a)              
Reservation. From and after the date the Issuance Date, the Company shall reserve a number of authorized and otherwise unreserved
shares of Common Stock to satisfy its obligation to issue shares of Common Stock pursuant to the terms of this Note and the Other Notes
equal to the maximum number of Conversion Shares issuable pursuant to the terms of the Notes (without regard to any limitation in Section
3(d) on the conversion of this Note) (the "Required Reserve Amount"). So long as any of this Note and the Other Notes
are outstanding, the Company shall take all action necessary to reserve and keep available out of its authorized and unissued Common Stock
the Required Reserve Amount solely for the purpose of issuing shares of Common Stock pursuant to the terms of this Note and the Other
Notes. The initial number of shares of Common Stock reserved for issuances pursuant to the terms of this Note and the Other Notes and
each increase in the number of shares so reserved shall be allocated pro rata among the Holder and the holders of the Other Notes based
on the Principal amount of this Note and the Other Notes held by each holder at the Closing (as defined in the Securities Purchase Agreement)
(the "Authorized Share Allocation"). In the event that a holder shall sell or otherwise transfer this Note or any of
such holder's Other Notes, each transferee shall be allocated a pro rata portion of such holder's Authorized Share Allocation with respect
to the portion of the Notes being transferred. Any shares of Common Stock reserved and allocated to any Person which ceases to hold any
Notes shall be allocated to the Holder and the remaining holders of Other Notes, pro rata based on the Principal amount of this Note and
the Other Notes then held by such holders.

 

(b)              
Insufficient Authorized Shares. If at any time while any of the Notes remain outstanding the Company does not have a sufficient
number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon conversion of the Notes
at least a number of shares of Common Stock equal to the Required Reserve Amount (an "Authorized Share Failure"), then
the Company shall immediately take all action necessary to increase the Company's authorized shares of Common Stock to an amount sufficient
to allow the Company to reserve the Required Reserve Amount for the Notes then outstanding. Without limiting the generality of the foregoing
sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60)
days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an
increase in the number of authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder
with a proxy statement and shall use its best efforts to solicit its stockholders' approval of such increase in authorized shares of Common
Stock and to cause its Board of Directors to recommend to the stockholders that they approve such proposal. Notwithstanding the foregoing,
if during any such time of an Authorized Share Failure, the Company is able to obtain the written consent of a majority of the shares
of its issued and outstanding Common Stock to approve the increase in the number of authorized shares of Common Stock, the Company may
satisfy this obligation by obtaining such consent and submitting for filing with the SEC an Information Statement on Schedule 14C. If,
upon any conversion of this Note, the Company does not have sufficient authorized shares to deliver in satisfaction of such conversion,
then unless the Holder elects to rescind such attempted conversion, the Holder may require the Company to pay to the Holder within two
(2) Trading Days of the applicable attempted conversion, cash in an amount equal to the product of (i) the number of shares of Common
Stock that the Company is unable to deliver pursuant to this Section 10, and (ii) the highest Closing Sale Price of the Common Stock during
the period beginning on the date of the applicable Conversion Date and ending on the date the Company makes the applicable cash payment.

 

(11)          
REDEMPTIONS.

 

(a)              
Mechanics. The Company shall deliver the applicable Event of Default Redemption Price to the Holder within three (3) Business
Days after the Company's receipt of the Holder's Event of Default Redemption Notice; provided that upon a Bankruptcy Event of Default,
the Company shall deliver the applicable Bankruptcy Event of Default Redemption Price in accordance with Section 4(c) (as applicable,
the "Event of Default Redemption Date"). If the Holder has submitted a Change of Control Redemption Notice in accordance
with Section 5(b), the Company shall deliver the applicable Change of Control Redemption Price to the Holder (i) concurrently with the
consummation of such Change of Control if such notice is received prior to the consummation of such Change of Control and (ii) within
three (3) Business Days after the Company's receipt of such notice otherwise (such date, the "Change of Control Redemption Date").
The Company shall deliver the applicable Optional Prepayment Price to the Holder on the applicable Optional Prepayment Date. The Company
shall pay the applicable Redemption Price to the Holder in cash by wire transfer of immediately available funds pursuant to wire instructions
provided by the Holder in writing to the Company on the applicable due date. In the event of a redemption of less than all of the Conversion
Amount of this Note, the Company shall promptly cause to be issued and delivered to the Holder a new Note (in accordance with Section
18(d)) representing the outstanding Principal which has not been redeemed and any accrued Interest on such Principal which shall be calculated
as if no Redemption Notice has been delivered. In the event that the Company does not pay a Redemption Price to the Holder within the
time period required, at any time thereafter and until the Company pays such unpaid Redemption Price in full, the Holder shall have the
option, in lieu of redemption, to require the Company to promptly return to the Holder all or any portion of this Note representing the
Conversion Amount that was submitted for redemption and for which the applicable Redemption Price has not been paid. Upon the Company's
receipt of such notice, (x) the applicable Redemption Notice shall be null and void with respect to such Conversion Amount, (y) the Company
shall immediately return this Note, or issue a new Note (in accordance with Section 18(d)) to the Holder representing such Conversion
Amount to be redeemed and (z) the Conversion Price of this Note or such new Notes shall be adjusted to the lesser of (A) the Conversion
Price as in effect on the date on which the applicable Redemption Notice is voided and (B) the lowest Closing Bid Price of the Common
Stock during the period beginning on and including the date on which the applicable Redemption Notice is delivered to the Company and
ending on and including the date on which the applicable Redemption Notice is voided.

 

 

 

    	 	13	 

     

    

 

(b)              
Redemption by Other Holders. Upon the Company's receipt of notice from any of the holders of the Other Notes for redemption
or repayment as a result of an event or occurrence substantially similar to the events or occurrences described in Section 4(b), Section
5(b) or Section 8 or pursuant to corresponding provisions set forth in the Other Notes (each, an "Other Redemption Notice"),
the Company shall immediately, but no later than one (1) Business Day of its receipt thereof, forward to the Holder by electronic mail
a copy of such notice. If the Company receives a Redemption Notice and one or more Other Redemption Notices, during the seven (7) Business
Day period beginning on and including the date which is three (3) Business Days prior to the Company's receipt of the Holder's Redemption
Notice and ending on and including the date which is three (3) Business Days after the Company's receipt of the Holder's Redemption Notice
and the Company is unable to redeem all principal, interest and other amounts designated in such Redemption Notice and such Other Redemption
Notices received during such seven (7) Business Day period, then the Company shall redeem, a pro rata amount from the Holder and each
holder of the Other Notes based on the Principal amount of this Note and the Other Notes submitted for redemption pursuant to such Redemption
Notice and such Other Redemption Notices received by the Company during such seven (7) Business Day period.

 

(c)               Insufficient
Assets. If upon a Redemption Date, the assets of the Company are insufficient to pay the applicable Redemption Price, the
Company shall (i) take all appropriate action reasonably within its means to maximize the assets available for paying the applicable
Redemption Price, (ii) redeem out of all such assets available therefor on the applicable Redemption Date the maximum possible
portion of the applicable Redemption Price that it can redeem on such date, pro rata among the Holder and the holders of the Other
Notes to be redeemed in proportion to the aggregate Principal amount of this Note and the Other Notes outstanding on the applicable
Redemption Date and (iii) following the applicable Redemption Date, at any time and from time to time when additional assets of the
Company become available to pay the balance of the applicable Redemption Price of this Note and the Other Notes, the Company shall
use such assets, at the end of the then current fiscal quarter, to pay the balance of such Redemption Price of this Note and the
Other Notes, or such portion thereof for which assets are then available, on the basis set forth above at the applicable Redemption
Price, and such assets will not be used prior to the end of such fiscal quarter for any other purpose. Interest on the Principal
amount of this Note and the Other Notes that have not been redeemed shall continue to accrue until such time as the Company redeems
this Note and the Other Notes. The Company shall pay to the Holder the applicable Redemption Price without regard to the legal
availability of funds unless expressly prohibited by applicable law or unless the payment of the applicable Redemption Price could
reasonably be expected to result in personal liability to the directors of the Company.

 

(12)          
VOTING RIGHTS. The Holder shall have no voting rights as the holder of this Note, except as required by law and as expressly
provided in this Note.

 

(13)          
RANK. All payments due under this Note (a) shall rank pari passu with all Other Notes and (b) shall be senior to
all other Indebtedness of the Company and its Subsidiaries.

 

(14)          
NEGATIVE COVENANTS. Except as noted below, until all of the Notes have been converted, redeemed or otherwise satisfied in
full in accordance with their terms, the Company shall not, and the Company shall not permit any of its Subsidiaries without the prior
written consent of the Required Holders to, directly or indirectly by merger or otherwise:

 

(a)              
while more than twenty percent (20.0%) of the Notes issued on the Closing Date remain outstanding, incur or guarantee, assume or
suffer to exist any Indebtedness, other than Permitted Indebtedness;

 

(b)               allow or suffer to exist
any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and
contract rights) owned by the Company or any of its Subsidiaries (collectively, "Liens") other than Permitted Liens;

 

(c)               redeem, defease, repurchase,
repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part, whether by way of open market
purchases, tender offers, private transactions or otherwise), all or any portion of any Indebtedness (other than this Note and the Other
Notes), whether by way of payment in respect of principal of (or premium, if any) or interest on, such Indebtedness if at the time such
payment is due or is otherwise made or, after giving effect to such payment, an event constituting, or that with the passage of time
and without being cured would constitute, an Event of Default has occurred and is continuing;

 

 

 

    	 	14	 

     

    

 

(d)               redeem, defease, repurchase,
repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part, whether by way of open market
purchases, tender offers, private transactions or otherwise), all or any portion of any Indebtedness (including, without limitation Permitted
Indebtedness other than this Note and the Other Notes), by way of payment in respect of principal of (or premium, if any) such Indebtedness.
For clarity, such restriction shall not preclude the payment of regularly scheduled interest payments which may accrue under such Permitted
Indebtedness;

 

(e)               redeem or repurchase
any Equity Interest of the Company;

 

(f)               declare or pay any cash
dividend or distribution on any Equity Interest of the Company or of its Subsidiaries other than wholly-owned Subsidiaries;

 

(g)              
make, any change in the nature of its business as described in the Company's most recent Annual Report filed on Form 10-K with
the SEC or modify its corporate structure or purpose; or

 

(h)               encumber, license or
otherwise allow any Liens on any Intellectual Property Rights, including, without limitation, any claims for damage by way of any past,
present, or future infringement of any of the foregoing, in each case, other than Permitted Liens;

 

(i)                enter
into, renew, extend or be a party to, any transaction or series of related transactions (including, without limitation, the
purchase, sale, lease, license, transfer or exchange of property or assets of any kind or the rendering of services of any kind)
with any Affiliate, except in the ordinary course of business in a manner and to an extent consistent with past practice and
necessary or desirable for the prudent operation of its business, for fair consideration and on terms no less favorable to it or its
Subsidiaries than would be obtainable in a comparable arm's length transaction with a Person that is not an Affiliate thereof;
or

 

(j)               issue any Notes or issue any other securities that would cause a breach or default under
the Notes.

 

(15)              AFFIRMATIVE COVENANTS. Until all of the Notes have been converted, redeemed or otherwise
satisfied in full in accordance with their terms, the Company shall, and the Company shall cause each Subsidiary to, unless otherwise
agreed to by the Required Holders, directly and indirectly:

 

(a)               maintain and preserve
its existence, rights and privileges, and become or remain duly qualified and in good standing in each jurisdiction in which the character
of the properties owned or leased by it or in which the transaction of its business makes such
qualification necessary;

 

(b)              
maintain and preserve all of its properties which are necessary or useful in the proper conduct
of its business in good working order and condition, ordinary wear and tear excepted, and comply at all times with the provisions of all
leases to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder;

 

(c)               take
all action necessary or advisable to maintain all of the Intellectual Property Rights that is necessary or material to the conduct of
its business in full force and effect;

 

(d)              
maintain insurance with responsible and reputable insurance companies or associations (including,
without limitation, comprehensive general liability, hazard, rent and business interruption insurance) with respect to its properties
(including all real properties leased or owned by it) and business, in such amounts and covering such risks as is required by any governmental
authority having jurisdiction with respect thereto or as is carried generally in accordance with sound business practice by companies
in similar businesses similarly situated;

 

 

 

    	 	15	 

     

    

 

(e)              
cause such Subsidiary formed on or after the Subscription Date to execute, and deliver to
each holder of Notes a guaranty agreement substantially in the form of the Subsidiary Guarantee (as defined in the Securities Purchase
Agreement) and all other Security Documents as requested by Required Holders, as applicable; 

 

(f)               promptly, but in any
event within one (1) Business Day, notify the Holder and the holders of the Other Notes in writing
whenever an Event of Default (an "Event of Default Notice") or an Equity
Conditions Failure occurs, and simultaneously with the delivery of such notice to the Holder and the holders of the Other Notes,
file a Current Report on Form 8-K with the SEC to state such fact; and

 

(g)               shall have on deposit
on each of September 30, 2023 and December 31, 2023, unrestricted and unencumbered cash in an aggregate amount equal to not less than
$10,000,000; provided, however, from and after the date that less than $15,000,000 of the sum of (x) the Conversion Amount
of this Note and (y) the Conversion Amounts (as defined in the Other Notes) of all Other Notes remain outstanding; the amount of such
cash that the Company is required to maintain on deposit pursuant to this Section 15(g) may be decreased on a dollar-for-dollar basis
based on the sum of (i) the Conversion Amount of this Note and (ii) the Conversion Amounts (as defined in the Other Notes) of all Other
Notes, in each case, that is then outstanding. In satisfying the requirements set forth in this Section 15(g), the Company and its Subsidiaries
shall use its working capital and lines of credit in the ordinary course of business, consistent with past practice, including, without
limitation, paying its accounts payable on terms consistent with past practice.

 

(16)          
VOTE TO ISSUE, OR CHANGE THE TERMS OF, NOTES. The affirmative vote at a meeting duly called for such purpose or the written
consent without a meeting of the Required Holders shall be required for any exchange, change or amendment or waiver of any provision to
this Note or any of the Other Notes. Any exchange, change, amendment or waiver by the Company and the Required Holders shall be binding
on the Holder of this Note and all holders of the Other Notes. The Holder hereby acknowledges and agrees that any action taken pursuant
to this Section may result in, or be perceived to result in, a disproportionate impact on the Holder compared to the impact of such action
on one or more holder(s) of Other Notes. This provision constitutes a separate right granted to each of the holders of Notes by the Company
and shall not in any way be construed as such holders acting in concert or as a group with respect to the purchase, disposition or voting
of securities or otherwise.

 

(17)          
TRANSFER. This Note and any shares of Common Stock issued upon conversion of this Note may be offered, sold, assigned or
transferred by the Holder without the consent of the Company, subject only to the provisions of Section 4.1 of the Securities Purchase
Agreement.

 

(18)          
REISSUANCE OF THIS NOTE.

 

(a)              
Transfer. If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company
will forthwith issue and deliver upon the order of the Holder a new Note (in accordance with Section 18(d) and subject to Section 3(c)(iii)),
registered as the Holder may request, representing the outstanding Principal being transferred by the Holder and, if less than the entire
outstanding Principal is being transferred, a new Note (in accordance with Section 18(d)) to the Holder representing the outstanding Principal
not being transferred. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions
of Section 3(c)(iii) following conversion or redemption of any portion of this Note, the outstanding Principal represented by this Note
may be less than the Principal stated on the face of this Note.

 

(b)              
Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the
Holder to the Company in customary form (but without any obligation to post a surety or other bond) and, in the case of mutilation, upon
surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note (in accordance with Section 18(d))
representing the outstanding Principal.

 

(c)              
Note Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the
principal office of the Company, for a new Note or Notes (in accordance with Section 18(d)) representing in the aggregate the outstanding
Principal of this Note, and each such new Note will represent such portion of such outstanding Principal as is designated by the Holder
at the time of such surrender.

 

 

 

 

    	 	16	 

     

    

 

(d)              
Issuance of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new
Note (i) shall be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining
outstanding (or in the case of a new Note being issued pursuant to Section 18(a) or Section 18(c), the Principal designated by the Holder
which, when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal
remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated
on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions as this
Note, and (v) shall represent accrued and unpaid Interest, if any, from the Issuance Date.

 

(19)          
REMEDIES, CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Note shall
be cumulative and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in
equity (including a decree of specific performance and/or other injunctive relief). No remedy contained
herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy. Nothing herein shall limit the Holder's
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. The Company covenants
to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set
forth or provided for herein with respect to payments, conversion, redemption and the like (and the computation thereof) shall be the
amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company
(or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to
the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such
breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any
breach, without the necessity of showing economic loss and without any bond or other security being required.

 

(20)          
PAYMENT OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection
or enforcement or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under
this Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company or
other proceedings affecting Company creditors' rights and involving a claim under this Note, then the Company shall pay the costs incurred
by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other
proceeding, including, but not limited to, attorneys' fees and disbursements. The Company expressly acknowledges and agrees that no amounts
due under this Note shall be affected, or limited, by the fact that the purchase price paid for this Note was less than the original Principal
amount hereof.

 

(21)          
CONSTRUCTION; HEADINGS. This Note shall be deemed to be jointly drafted by the Company and all the Purchasers and shall
not be construed against any Person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form
part of, or affect the interpretation of, this Note.

 

(22)          
FAILURE OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege. No waiver shall be effective unless it is in writing and signed
by an authorized representative of the waiving party.

 

(23)          
DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Closing Bid Price or the Closing Sale Price
or the arithmetic calculation of the Conversion Rate, the Conversion Price or any Redemption Price, the Company shall pay the applicable
Redemption Price that is not disputed or shall cause the Transfer Agent to issue to the Holder the number of shares of Common Stock that
is not disputed, and the Company shall submit the disputed determinations or arithmetic calculations via electronic mail within one (1)
Business Day of receipt, or deemed receipt, of the Conversion Notice or Redemption Notice or other event giving rise to such dispute,
as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such determination or calculation within one
(1) Business Day of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within
one (1) Business Day submit via electronic mail (a) the disputed determination of the Closing Bid Price or the Closing Sale Price to an
independent, reputable investment bank selected by the Holder and approved by the Company, such approval not to be unreasonably withheld,
conditioned or delayed, or (b) the disputed arithmetic calculation of the Conversion Rate, Conversion Price or any Redemption Price to
an independent, outside accountant, selected by the Holder and approved by the Company, such approval not to be unreasonably withheld,
conditioned or delayed. The Company, at the Company's expense, shall cause the investment bank or the accountant, as the case may be,
to perform the determinations or calculations and notify the Company and the Holder of the results no later than five (5) Business Days
from the time it receives the disputed determinations or calculations. Such investment bank's or accountant's determination or calculation,
as the case may be, shall be binding upon all parties absent demonstrable error.

 

 

 

    	 	17	 

     

    

 

(24)          
NOTICES; PAYMENTS.

 

(a)              
Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be
given in accordance with Section 5.4 of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice
of all actions taken pursuant to this Note, including in reasonable detail a description of such action and the reason therefor. Without
limiting the generality of the foregoing, the Company shall give written notice to the Holder (i) immediately upon any adjustment of the
Conversion Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least twenty (20)
Business Days prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution
upon the shares of Common Stock, (B) respect to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase
stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining rights to vote with respect
to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public
prior to or in conjunction with such notice being provided to the Holder.

 

(b)              
Payments. Whenever any payment of cash is to be made by the Company to any Person pursuant to this Note, such payment shall
be made in lawful money of the United States of America via wire transfer of immediately available funds to an account designated by the
Holder; provided, that the Holder, upon written notice to the Company, may elect to receive a payment of cash in lawful money of
the United States of America by a check drawn on the account of the Company and sent via overnight courier service to such Person at such
address as previously provided to the Company in writing (which address, in the case of each of the Purchasers, shall initially be as
set forth on the signature pages attached to the Securities Purchase Agreement). Whenever any amount expressed to be due by the terms
of this Note is due on any day which is not a Business Day, the same shall instead be due on the next succeeding day which is a Business
Day.

 

(25)          
CANCELLATION. After all Principal, any accrued Interest and any other amounts at any time owed on this Note have been paid
in full, this Note shall automatically be deemed canceled and shall not be reissued, sold or transferred.

 

(26)          
WAIVER OF NOTICE. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands
and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note and the Securities Purchase
Agreement.

 

(27)          
GOVERNING LAW; JURISDICTION; JURY TRIAL. This Note shall be governed by and construed and enforced in accordance with, and
all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws
of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New
York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. The
Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough
of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue
of such suit, action or proceeding is improper. The Company 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 the Company at the address set forth on the Company’s
signature page to the Securities Purchase Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by
law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against
the Company in any other jurisdiction to collect on the Company's obligations to the Holder, to realize on any collateral or any other
security for such obligations, or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY 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 IN CONNECTION
WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

 

 

 

    	 	18	 

     

    

 

(28)          
Severability. If any provision of this Note 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 Note so long as this Note as so modified
continues to express, without material change, the original intentions of the Company and the Holder 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 Company or the Holder or the practical realization of the benefits that would otherwise be conferred
upon the Company or the Holder. The Company and the Holder 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).

 

(29)          
DISCLOSURE. Upon receipt or delivery by the Company of any notice in accordance with the terms of this Note, unless the
Company has in good faith determined that the matters relating to such notice do not constitute material, nonpublic information relating
to the Company or its Subsidiaries, the Company shall contemporaneously with any such receipt or delivery publicly disclose such material,
nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that a notice contains material,
nonpublic information relating to the Company or its Subsidiaries, the Company so shall indicate to the Holder contemporaneously with
delivery of such notice, and in the absence of any such indication, the Holder shall be allowed to presume that all matters relating to
such notice do not constitute material, nonpublic information relating to the Company or its Subsidiaries.

 

(30)          
USURY. This Note is subject to the express condition that at no time shall the Company
be obligated or required to pay interest hereunder at a rate or in an amount which could subject the Holder to either civil or criminal
liability as a result of being in excess of the maximum interest rate or amount which the Company is permitted by applicable law to contract
or agree to pay. If by the terms of this Note, the Company is at any time required or obligated to pay interest hereunder, including by
way of an original issue discount, at a rate or in an amount in excess of such maximum rate or amount, the rate or amount of interest
under this Note shall be deemed to be immediately reduced to such maximum rate or amount and the interest payable shall be computed at
such maximum rate or be in such maximum amount and all prior interest payments in excess of such maximum rate or amount shall be applied
and shall be deemed to have been payments in reduction of the principal balance of this Note.

 

(31)          
CERTAIN DEFINITIONS. For purposes of this Note, the following terms shall have the following meanings:

 

(a)              
"Affiliate" shall have the meaning ascribed to such term in Rule 405 of the Securities Act.

 

(b)              
"Attribution Parties" means, collectively, the following Persons: (i) any investment vehicle, including, any funds,
feeder funds or managed accounts, currently, or from time to time after the Issuance Date, directly or indirectly managed or advised by
the Holder's investment manager or any of its Affiliates or principals, (ii) any direct or indirect Affiliates of the Holder or any of
the foregoing, (iii) any Person acting or who could be deemed to be acting as a Group together with the Holder or any of the foregoing
and (iv) any other Person whose beneficial ownership of the Common Stock would or could be aggregated with the Holder's and the other
Attribution Parties for purposes of Section 13(d) of the Exchange Act. For clarity, the purpose of the foregoing is to subject collectively
the Holder and all other Attribution Parties to the Maximum Percentage.

 

(c)              
"Bloomberg"
means Bloomberg Financial Markets.

 

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

 

 

 

 

    	 	19	 

     

    

 

(e)              
"Change of Control" means any Fundamental Transaction other than (i) any reorganization, recapitalization or reclassification
of the Common Stock in which holders of the Company's voting power immediately prior to such reorganization, recapitalization or reclassification
continue after such reorganization, recapitalization or reclassification to hold publicly traded securities and, directly or indirectly,
are the holders of a majority of the voting power of the surviving entity (or entities with the authority or voting power to elect the
members of the board of directors (or their equivalent if other than a corporation) of such entity or entities) after such reorganization,
recapitalization or reclassification or (ii) pursuant to a migratory merger effected solely for the purpose of changing the jurisdiction
of incorporation of the Company.

 

(f)               
"Closing Bid Price" and "Closing Sale Price" means, for any security as of any date, the last
closing bid price and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or,
if the Principal Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade
price, as the case may be, then the last bid price or last trade price, respectively, of such security prior to 4:00:00 p.m., New York
Time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market
where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last
trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported
by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of
the bid prices, or the ask prices, respectively, of any market makers for such security as reported on the Pink Open Market (f/k/a OTC
Pink) published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices). If the
Closing Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the
Closing Bid Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually
determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security,
then such dispute shall be resolved pursuant to Section 23. All such determinations to be appropriately adjusted for any stock dividend,
stock split, stock combination, reclassification or other similar transaction relating to the Common Stock during the applicable calculation
period.

 

(g)              
"Closing Date" shall have the meaning set forth in the Securities Purchase Agreement, which date is the date the
Company initially issued Notes pursuant to the terms of the Securities Purchase Agreement.

 

(h)              
 

 

(i)                
"Common Stock" means (i) the Company's shares of common stock, par value $0.00001 per share, and (ii) any
capital stock into which such Common Stock shall be changed or any capital stock resulting from a reorganization, recapitalization or
reclassification of such Common Stock.

 

(j)                
"Contingent Obligation" means, as to any Person, any direct or indirect liability, contingent or otherwise, of
that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of
the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such
liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability
will be protected (in whole or in part) against loss with respect thereto.

 

(k)              
"Conversion Shares" means shares of Common Stock issuable by the Company pursuant to the terms of any of the Notes,
including any related Interest so converted.

 

(l)               
"Convertible Securities" means any stock or securities (other than Options) directly or indirectly convertible
into or exercisable or exchangeable for shares of Common Stock.

 

(m)             
"Eligible
Market" means the Principal Market, The New York Stock Exchange, The Nasdaq Global Market, The Nasdaq Global Select Market or
the NYSE American.

 

 

 

 

    	 	20	 

     

    

 

(n)              
"Equity Conditions" means each of the following conditions:

 

(i)               
on each day during the applicable Equity Conditions Measuring Period, either (x) one or more Registration Statements required to
be filed pursuant to the Registration Rights Agreement shall be effective and available for the resale of all remaining Registrable Securities,
including the shares of Common Stock issuable upon conversion of the Conversion Amount that is subject to the applicable Mandatory Conversion
or Optional Prepayment, in accordance with the terms of the Registration Rights Agreement and there shall not have been any suspension
of such Registration Statement(s) or (y) all Registrable Securities, including the shares of Common Stock issuable upon conversion of
the Conversion Amount that is subject to the applicable Mandatory Conversion or Optional Prepayment, shall be eligible for sale without
restriction pursuant to Rule 144 (assuming that all Warrants were exercised pursuant to a cashless exercise (as described in the Warrants))
and without the need for registration under any applicable federal or state securities laws;

 

(ii)             
on each day during the applicable Equity Conditions Measuring Period, the Common Stock is designated for quotation on the Principal
Market or any other Eligible Market and shall not have been suspended from trading on such exchange or market nor shall delisting or suspension
by such exchange or market been threatened, commenced or pending either (A) in writing by such exchange or market or (B) by falling below
the then effective minimum listing maintenance requirements of such exchange or market;

 

(iii)           
during the applicable Equity Conditions Measuring Period, the Company shall have delivered shares of Common Stock pursuant to the
terms of this Note and the Other Notes and shares of Common Stock upon exercise of the Warrants to the holders on a timely basis as set
forth in Section 3(c) hereof (and analogous provisions under the Other Notes) and Section 2 of the Warrants;

 

(iv)            
the shares of Common Stock issuable upon conversion of the Conversion Amount that is subject to the applicable Mandatory Conversion
or Optional Prepayment may be issued in full without violating Section 3(d) hereof and the rules or regulations of the Principal Market
or other applicable Eligible Market;

 

(v)             
during the applicable Equity Conditions Measuring Period, the Company shall not have failed to timely make any payments within
five (5) Business Days of when such payment is due pursuant to any Transaction Document;

 

(vi)            
during the applicable Equity Conditions Measuring Period solely with respect to a Mandatory Conversion, (x) there shall not have
occurred either (A) the public announcement of a pending, proposed or intended Fundamental Transaction which has not been abandoned, terminated
or consummated, (B) an Event of Default or (C) an event that with the passage of time or giving of notice would constitute an Event of
Default and (y) the Company shall not have knowledge of any pending, proposed or intended Fundamental Transaction that is reasonably likely
to occur within six (6) months of either a Mandatory Conversion or Optional Prepayment, as applicable, which has not been publicly announced;

 

(vii)         
during the applicable Equity Conditions Measuring Period solely with respect to an Optional Prepayment, there shall not have occurred
either (A) an Event of Default or (B) an event that with the passage of time or giving of notice would constitute an Event of Default;

 

(viii)       
the Company shall have no knowledge of any fact that would cause (x) one or more Registration Statement(s) required to be filed
pursuant to the Registration Rights Agreement not to be effective and available for the resale of all remaining Registrable Securities,
including the shares of Common Stock issuable upon conversion of the Conversion Amount that is subject to the applicable Mandatory Conversion
or Optional Prepayment, in accordance with the terms of the Registration Rights Agreement, or (y) any Registrable Securities, including
the shares of Common Stock issuable upon conversion of the Conversion Amount that is subject to the applicable Mandatory Conversion or
Optional Prepayment, not to be eligible for sale without restriction pursuant to Rule 144 (or any successor thereto) promulgated under
the Securities Act and any applicable state securities laws;

 

(ix)           
during the applicable Equity Conditions Measuring Period, the Company otherwise shall have been in compliance with and shall not
have breached any provision, covenant, representation or warranty of any Transaction Document;

 

 

 

    	 	21	 

     

    

 

(x)             
during the applicable Equity Conditions Measuring Period, the Holder shall not have been in possession of any material, nonpublic
information received from the Company, any Subsidiary or its respective agent or affiliates; and

 

(xi)            
the shares of Common Stock issuable upon conversion of the Conversion Amount that is subject to applicable Mandatory Conversion
or Optional Prepayment requiring the satisfaction of the Equity Conditions are duly authorized and listed and eligible for trading without
restriction on a Qualified Eligible Market.

 

(o)              
"Equity Conditions Failure" means that on the applicable date of determination through the applicable date of
determination, the Equity Conditions have not each been satisfied or waived in writing by the Holder; provided, however,
that the Equity Condition set forth in clause (iv) of such definition is not waivable by the Holder.

 

(p)              
"Equity Conditions Measuring Period" means each day during the period beginning ten (10) Trading Days immediately
prior to the applicable date of determination and ending on and including the applicable date of determination.

 

(q)              
"Equity Interests" means (a) all shares of capital stock (whether denominated as common capital stock or preferred
capital stock), equity interests, beneficial, partnership or membership interests, joint venture interests, participations or other ownership
or profit interests in or equivalents (regardless of how designated) of or in a Person (other than an individual), whether voting or non-voting
and (b) all securities convertible into or exchangeable for any of the foregoing and all warrants, Options or other rights to purchase,
subscribe for or otherwise acquire any of the foregoing, whether or not presently convertible, exchangeable or exercisable.

 

(r)               
"Exchange Act" means the Securities Exchange Act of 1934, as amended.

 

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

 

 

 

    	 	22	 

     

    

 

(t)                
"GAAP" means United States generally accepted accounting principles, consistently applied during the periods involved.

 

(u)              
"Group" means a "group" as that term is used in Section 13(d) of the Exchange Act and as defined in
Rule 13d-5 thereunder.

 

(v)              
"Indebtedness" of any Person means, without duplication (i) all indebtedness for borrowed money, (ii) all obligations
issued, undertaken or assumed as the deferred purchase price of property or services, including (without limitation) "finance leases"
in accordance with GAAP (other than trade payables entered into in the ordinary course of business consistent with past practice), (iii)
all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (iv) all obligations
evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition
of property, assets or businesses, (v) all indebtedness created or arising under any conditional sale or other title retention agreement,
or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even
though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale
of such property), (vi) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP, is classified
as a finance lease, (vii) all indebtedness referred to in clauses (i) through (vi) above secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any mortgage, deed of trust, lien, pledge, charge, security interest
or other encumbrance of any nature whatsoever in or upon any property or assets (including accounts and contract rights) with respect
to any asset or property owned by any Person, even though the Person which owns such assets or property has not assumed or become liable
for the payment of such indebtedness, and (vii) all Contingent Obligations in respect of indebtedness or obligations of others of the
kinds referred to in clauses (i) through (vii) above.

 

(w)            
"Intellectual Property Rights" shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(x)              
"Material Adverse Effect" shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(y)              
“Optional Prepayment Price” means (i) so long as no Equity Conditions Failure has occurred during the period
beginning ten (10) Trading Days prior to the Optional Prepayment Notice Date and ending on the Prepayment Notice Date and no Equity Conditions
Failure has occurred during the Optional Prepayment Interim Period, 100% of the Conversion Amount being prepaid, and (ii) if an Equity
Conditions Failure has occurred at any time during the period beginning ten (10) Trading Days prior to the Optional Prepayment Notice
Date and ending on the Optional Prepayment Date, the greater of (x) the Conversion Amount being prepaid and (y) the product of (A) the
Conversion Amount being prepaid and (B) the quotient determined by dividing (I) the greatest Closing Sale Price of the shares of Common
Stock during the period beginning on the tenth (10th) Trading Day immediately preceding the applicable Optional Prepayment Notice Date
and ending on the Trading Day immediately preceding the Optional Prepayment Date, by (II) the lowest Conversion Price in effect during
such period.

 

(z)              
"Options" means any rights, warrants or options to subscribe for or purchase (i) shares of Common Stock or (ii)
Convertible Securities.

 

(aa)           
"Permitted Indebtedness" means (i) Indebtedness evidenced by this Note and the Other Notes, (ii) trade payables
incurred in the ordinary course of business and consistent with past practice, (iii) unsecured Indebtedness incurred by the Company that
is made expressly subordinate in right of payment to the Indebtedness evidenced by this Note, as reflected in a written agreement acceptable
to the Required Holders and approved by the Required Holders in writing, and which Indebtedness (a) does not provide at any time for the
payment, prepayment, repayment, repurchase or defeasance, directly or indirectly, of any principal or premium, if any, thereon until ninety-one
(91) days after the Maturity Date or later and (b) includes terms and conditions acceptable to the Required Holders and (iv) Indebtedness,
up to $2,500,000, in the aggregate, secured by Permitted Liens described in clauses (iv) of the definition of Permitted Liens.

 

 

 

    	 	23	 

     

    

 

(bb)          
"Permitted Liens" means (i) any Lien for taxes not yet due or delinquent or being contested in good faith by appropriate
proceedings for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien arising in the ordinary
course of business by operation of law with respect to a liability that is not yet due or delinquent, (iii) any Lien created by operation
of law, such as materialmen's liens, mechanics' liens and other similar liens, arising in the ordinary course of business with respect
to a liability that is not yet due or delinquent or that are being contested in good faith by appropriate proceedings, (iv) Liens (A)
upon or in any equipment acquired or held by the Company or any of its Subsidiaries to secure the purchase price of such equipment or
Indebtedness incurred solely for the purpose of financing the acquisition or lease of such equipment, or (B) existing on such equipment
at the time of its acquisition, provided that the Lien is confined solely to the property so acquired and improvements thereon, and the
proceeds of such equipment, (v) Liens incurred in connection with the extension, renewal or refinancing of the Indebtedness secured by
Liens of the type described in clause (iv) above, provided that any extension, renewal or replacement Lien shall be limited to the property
encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced does not increase,
(vi) leases or subleases and licenses and sublicenses granted to others in the ordinary course of the Company's business, not interfering
in any material respect with the business of the Company and its Subsidiaries taken as a whole, (vii) Liens in favor of customs and
revenue authorities arising as a matter of law to secure payments of custom duties in connection with the importation of goods and (viii)
Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 4(a)(ix).

 

(cc)           
"Person" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust,
an unincorporated organization, any other entity and any governmental entity or any department or agency thereof.

 

(dd)          
"Principal Market" means the Nasdaq Capital Market.

 

(ee)           
"Pro Rata Amount" means a fraction (i) the numerator of which is the Subscription Amount (as defined in the Securities
Purchase Agreement) paid by the initial Holder of this Note to the Company pursuant to the Securities Purchase Agreement and (ii) the
denominator of which is the aggregate Subscription Amounts paid by all the Purchasers to the Company pursuant to the Securities Purchase
Agreement.

 

(ff)             
"Purchaser" shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(gg)          
"Redemption Dates" means, collectively, the Event of Default Redemption Dates and the Change of Control Redemption
Dates and the Optional Prepayment Date, as applicable, each of the foregoing, individually,
a Redemption Date.

 

(hh)          
"Redemption Notices" means, collectively, the Event of Default Redemption Notices and the Change of Control Redemption
Notices and the Optional Prepayment Notice, each of the foregoing, individually, a Redemption Notice.

 

(ii)             
"Redemption Premium" means 125%.

 

(jj)             
"Redemption Prices" means, collectively, the Event of Default Redemption Prices and the Change of Control Redemption
Prices and the Optional Prepayment Price, each of the foregoing, individually, a Redemption Price.

 

(kk)           
"Registrable Securities" shall have the meaning ascribed to such term in
the Registration Rights Agreement.

 

(ll)             
"Registration Rights Agreement" means that certain registration rights agreement
dated as of the Subscription Date by and among the Company and the Purchasers relating to, among other things, the registration of the
resale of the shares of Common Stock issuable upon conversion of the Notes and exercise of the Warrants.

 

(mm)       
"Registration Statement" shall have the meaning ascribed to such term in
the Registration Rights Agreement.

 

(nn)          
"Related Fund" means, with respect to any Person, a fund or account managed by such Person or an Affiliate of
such Person.

 

 

 

    	 	24	 

     

    

 

(oo)          
"Required Holders" means the holders of Notes representing at least a majority of the aggregate principal amount
of the Notes then outstanding.

 

(pp)          
"SEC" means the United States Securities and Exchange Commission.

 

(qq)          
"Securities Act" means the Securities Act of 1933, as amended.

 

(rr)            
"Securities Purchase Agreement" means that certain securities purchase agreement dated as of the Subscription
Date by and among the Company and the investors listed on the signature pages attached thereto pursuant to which the Company issued the
Notes and Warrants, as may be amended, amended and restated, supplemented or otherwise modified from time to time.

 

(ss)            
"Standard Settlement Period" means the standard settlement period, expressed in a number of Trading Days, on the
principal securities exchange or securities market on which the Common Stock is then traded as in effect on the date of delivery of the
applicable Conversion Notice.

 

(tt)             
"Subject Entity" means any Person, Persons or Group or any Affiliate or associate of any such Person, Persons
or Group.

 

(uu)           
"Subscription Date" means August [22], 2022.

 

(vv)           
"Subsidiary" shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(ww)    
   "Trading Day" means any day on which the Common Stock is traded on the Principal Market, or, if
the Principal Market is not the principal trading market for the Common Stock on such day, then on the principal securities exchange
or securities market on which the Common Stock is then traded.

 

(xx)          
"Transaction Documents" shall have the meaning ascribed to such term in the Securities Purchase Agreement.

 

(yy)          
"Warrants" shall have the meaning ascribed to such term in the Securities Purchase Agreement, and shall include
all warrants issued in exchange therefor or replacement thereof.

 

[Signature Page Follows]

 

 

 

 

 

 

    	 	25	 

     

    

 

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

 

 

 

	 	Volcon, Inc.
	 	 
	 	 
	 	By:_________________________________
	 	Name:
	 	Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	26	 

     

    

 

EXHIBIT I

Volcon, Inc.

 

 

CONVERSION NOTICE

 

Reference is made to the Senior Convertible Note
(the "Note") issued to the undersigned by Volcon, Inc., a Delaware corporation (the "Company"). In accordance
with and pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of the Note indicated
below into shares of Common Stock par value $0.00001 per share (the "Common Stock") of the Company, as of the date specified
below.

 

	Date of Conversion:	 
	 	 
	Aggregate Conversion Amount to be converted or number

                                                                      of Conversion Shares to be issued upon conversion:
	 
	 
	Please confirm the following information:
	 
	Conversion Price:	 
	 	 
	If Aggregate Conversion Amount is provided above, number of shares of Common Stock to be issued:	 
	 	 
	Please issue the Common Stock into which the Note is being converted to the Holder, or for its benefit, as follows:

                      

	☐Check here if requesting delivery as a certificate to the following name and to the following address:
	 
	Issue to:	 
	 	 
	Address:	 
	Electronic Mail:	 
	 

                                                 ☐Check here if requesting delivery by Deposit/Withdrawal at Custodian as follows:

                                                  

	DTC Participant:	 
	DTC Number:	 
	Account Number:	 
	 	 
	Authorization:	 
	By:	 
	Title:	 
	Dated:	 
	 	 
	Account Number:	 
	  (if electronic book entry transfer)	 
	Transaction Code Number:	 
	  (if electronic book entry transfer)	 
	 	 	 	 	 	 	 	 	 	 

 

 

    	 	27	 

     

    

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges
this Conversion Notice and hereby directs Pacific Stock Transfer Company to issue the above indicated number of shares of Common Stock.

 

 

 

	 	Volcon, Inc.
	 	 
	 	 
	 	By:_________________________________
	 	Name:
	 	Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	28

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