DocuSign Envelope ID: C8907BDC-4F3B-47B6-B4A3-198EB576CE74

         

        SBA Loan #6317357403
	
        Exhibit 10.1

        Doc # L-01-0233279-01

         

        Application #3300070808




 






	

         


        


         
	

        U.S. Small Business Administration


         


         


        NOTE


         


        (SECURED

        DISASTER LOANS)


         
	Date: 05.14.2020
	

        Loan Amount: $150,000.00

	

        Annual Interest Rate: 3.75%




 




	SBA Loan # 6317357403	Application #3300070808





  




		1.	PROMISE TO PAY: In return for a loan, Borrower promises to pay to the order of SBA the

amount of one hundred and fifty thousand and 00/100 Dollars ($150,000.00), interest on the unpaid principal balance,

and all other amounts required by this Note.





 




		2.	DEFINITIONS: A) “Collateral” means any property taken as security for payment

of this Note or any guarantee of this Note. B) “Guarantor” means each person or entity that signs a guarantee

of payment of this Note. C) “Loan Documents” means the documents related to this loan signed by Borrower, any

Guarantor, or anyone who pledges collateral.





 




		3.	PAYMENT TERMS: Borrower must make all payments at the place SBA designates. Borrower

may prepay this Note in part or in full at any time, without notice or penalty. Borrower must pay principal and interest payments

of $731.00 every month

beginning Twelve (12) months from the date of the Note. SBA will apply each installment payment first to pay interest

accrued to the day SBA receives the payment and will then apply any remaining balance to reduce principal. All remaining principal

and accrued interest is due and payable Thirty (30) years from the date of the Note.





  




		4.	DEFAULT: Borrower is in default under this Note if Borrower does not make a payment when

due under this Note, or if Borrower: A) Fails to comply with any provision of this Note, the Loan Authorization and Agreement,

or other Loan Documents; B) Defaults on any other SBA loan; C) Sells or otherwise transfers, or does not preserve

or account to SBA’s satisfaction for, any of the Collateral or its proceeds; D) Does not disclose, or anyone acting

on their behalf does not disclose, any material fact to SBA; E) Makes, or anyone acting on their behalf makes, a materially

false or misleading representation to SBA; F) Defaults on any loan or agreement with another creditor, if SBA believes the

default may materially affect Borrower’s ability to pay this Note; G) Fails to pay any taxes when due; H) Becomes

the subject of a proceeding under any bankruptcy or insolvency law; I) Has a receiver or liquidator appointed for any part

of their business or property; J) Makes an assignment for the benefit of creditors; K) Has any adverse change in

financial condition or business operation that SBA believes may materially affect Borrower’s ability to pay this Note; L)

Dies; M) Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without SBA’s

prior written consent; or, N) Becomes the subject of a civil or criminal action that SBA believes may materially affect

Borrower’s ability to pay this Note.





 




		5.	SBA’S RIGHTS IF THERE IS A DEFAULT: Without notice or demand and without giving

up any of its rights, SBA may: A) Require immediate payment of all amounts owing under this Note; B) Have recourse

to collect all amounts owing from any Borrower or Guarantor (if any); C) File suit and obtain judgment; D) Take possession

of any Collateral; or E) Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without

advertisement.





 




		6.	SBA’S GENERAL POWERS: Without notice and without Borrower’s consent, SBA may:

A) Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses; B) Collect

amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral.

Among other things, the expenses may include payments for property taxes, prior liens, insurance, appraisals, environmental remediation

costs, and reasonable attorney’s fees and costs. If SBA incurs such expenses, it may demand immediate reimbursement from

Borrower or add the expenses to the principal balance; C) Release anyone obligated to pay this Note; D) Compromise,

release, renew, extend or substitute any of the Collateral; and E) Take any action necessary to protect the Collateral or

collect amounts owing on this Note.





 


 


 


SBA FORM 147 B (5-00)




     



     



    



 




		7.	FEDERAL LAW APPLIES: When SBA is the holder, this Note will be interpreted and enforced

under federal law, including SBA regulations. SBA may use state or local procedures for filing papers, recording documents, giving

notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or

local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law

to deny any obligation, defeat any claim of SBA, or preempt federal law.





 




		8.	GENERAL PROVISIONS: A) All individuals and entities signing this Note are jointly and

severally liable. B) Borrower waives all suretyship defenses. C) Borrower must sign all documents required at any

time to comply with the Loan Documents and to enable SBA to acquire, perfect, or maintain SBA’s liens on Collateral. D)

SBA may exercise any of its rights separately or together, as many times and in any order it chooses. SBA may delay or forgo

enforcing any of its rights without giving up any of them. E) Borrower may not use an oral statement of SBA to contradict

or alter the written terms of this Note. F) If any part of this Note is unenforceable, all other parts remain in effect.

G) To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment,

demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that SBA did not obtain any guarantee;

did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain the fair market value of Collateral

at a sale. H) SBA may sell or otherwise transfer this Note.





 




		9.	MISUSE OF LOAN FUNDS: Anyone who wrongfully misapplies any proceeds of the loan will

be civilly liable to SBA for one and one- half times the proceeds disbursed, in addition to other remedies allowed by law.





 




		10.	BORROWER’S NAME(S) AND SIGNATURE(S): By signing below, each individual or entity

acknowledges and accepts personal obligation and full liability under the Note as Borrower.





 




 









	 	Quest Patent Research Corporation	 
	 	 	 
	 	/s/ Jon C. Scahill	 
	 	Jon C. Scahill, Owner/Officer	 





 











     



     



    



 


	
        DocuSign Envelope ID: C8907BDC-4F3B-47B6-B4A3-198EB576CE74


 

        SBA Loan #6317357403
	
        

        Doc # L-01-0233279-01

         

        Application #3300070808



 




		U.S. Small Business

Administration


                                                                                                                                                                              




SECURITY AGREEMENT
















 












	SBA Loan #:	6317357403
	Borrower:	Quest Patent Research Corporation
	Secured Party:	The Small Business Administration, an Agency of the U.S. Government
	Date:	

        05.14.2020

	

        Note Amount:


        
	

        $150,000.00












  






		1.	DEFINITIONS.












 




Unless otherwise specified, all terms used

in this Agreement will have the meanings ascribed to them under the Official Text of the Uniform Commercial Code, as it may be

amended from time to time, (“UCC”). “SBA” means the Small Business Administration, an Agency of the U.S.

Government.




 




		2.	GRANT OF SECURITY INTEREST.









 




For value received, the Borrower grants to

the Secured Party a security interest in the property described below in paragraph 4 (the “Collateral”).




 




		3.	OBLIGATIONS SECURED.









 




This Agreement secures the payment and performance

of: (a) all obligations under a Note dated 05.14.2020, made by Quest Patent Research Corporation , made payable to Secured Lender,

in the amount of $150,000.00 (“Note”), including all costs and expenses (including

reasonable attorney’s fees), incurred by Secured Party in the disbursement, administration and collection of the loan evidenced

by the Note; (b) all costs and expenses (including reasonable attorney’s fees), incurred by Secured Party in the protection,

maintenance and enforcement of the security interest hereby granted; (c) all obligations of the Borrower in any other agreement

relating to the Note; and (d) any modifications, renewals, refinancings, or extensions of the foregoing obligations.




 




		4.	COLLATERAL DESCRIPTION.









 




The

Collateral in which this security interest is granted includes the following property that Borrower now owns or shall

acquire or create immediately upon the acquisition or creation thereof: all tangible and intangible personal property,

including, but not limited to: (a) inventory, (b) equipment, (c) instruments, including promissory notes (d) chattel paper,

including tangible chattel paper and electronic chattel paper, (e) documents, (f) letter of credit rights, (g) accounts,

including health-care insurance receivables and credit card receivables, (h) deposit accounts, (i) commercial tort claims,

(j) general intangibles, including payment intangibles and software and (k) as-extracted collateral as such terms may from

time to time be defined in the Uniform Commercial Code. The security interest Borrower grants includes all accessions,

attachments, accessories, parts, supplies and replacements for the Collateral, all products, proceeds and collections thereof

and all records and data relating thereto.




 


 


 


SBA Form 1059 (09-19) Previous Editions are obsolete.









     



     



    



 


	
        DocuSign Envelope ID: C8907BDC-4F3B-47B6-B4A3-198EB576CE74


 

        SBA Loan #6317357403
	
        

        Doc # L-01-0233279-01

         

        Application #3300070808



 




		5.	RESTRICTIONS ON COLLATERAL TRANSFER.









 




Borrower will not sell, lease, license or otherwise

transfer (including by granting security interests, liens, or other encumbrances in) all or any part of the Collateral or Borrower’s

interest in the Collateral without Secured Party’s written or electronically communicated approval, except that Borrower

may sell inventory in the ordinary course of business on customary terms. Borrower may collect and use amounts due on accounts

and other rights to payment arising or created in the ordinary course of business, until notified otherwise by Secured Party in

writing or by electronic communication.




 




		6.	MAINTENANCE AND LOCATION OF COLLATERAL; INSPECTION; INSURANCE.









 




Borrower must promptly notify Secured Party

by written or electronic communication of any change in location of the Collateral, specifying the new location. Borrower hereby

grants to Secured Party the right to inspect the Collateral at all reasonable times and upon reasonable notice. Borrower must:

(a) maintain the Collateral in good condition; (b) pay promptly all taxes, judgments, or charges of any kind levied or assessed

thereon; (c) keep current all rent or mortgage payments due, if any, on premises where the Collateral is located; and (d) maintain

hazard insurance on the Collateral, with an insurance company and in an amount approved by Secured Party (but in no event less

than the replacement cost of that Collateral), and including such terms as Secured Party may require including a Lender’s

Loss Payable Clause in favor of Secured Party. Borrower hereby assigns to Secured Party any proceeds of such policies and all unearned

premiums thereon and authorizes and empowers Secured Party to collect such sums and to execute and endorse in Borrower’s

name all proofs of loss, drafts, checks and any other documents necessary for Secured Party to obtain such payments.




 




		7.	CHANGES TO BORROWER’S LEGAL STRUCTURE, PLACE OF

BUSINESS, JURISDICTION OF ORGANIZATION, OR NAME.









 




Borrower must notify Secured Party by written

or electronic communication not less than 30 days before taking any of the following actions: (a) changing or reorganizing the

type of organization or form under which it does business; (b) moving, changing its place of business or adding a place of business;

(c) changing its jurisdiction of organization; or (d) changing its name. Borrower will pay for the preparation and filing of all

documents Secured Party deems necessary to maintain, perfect and continue the perfection of Secured Party’s security interest

in the event of any such change.




 




		8.	PERFECTION OF SECURITY INTEREST.









 




Borrower

consents, without further notice, to Secured Party’s filing or recording of any documents necessary to perfect,

continue, amend or terminate its security interest. Upon request of Secured Party, Borrower must sign or otherwise

authenticate all documents that Secured Party deems necessary at any time to allow Secured Party to acquire, perfect,

continue or amend its security interest in the Collateral. Borrower will pay the filing and recording costs of any documents

relating to Secured Party’s security interest. Borrower ratifies all previous filings and recordings, including

financing statements and notations on certificates of title. Borrower will cooperate with Secured Party in obtaining a

Control Agreement satisfactory to Secured Party with respect to any Deposit Accounts or Investment Property, or in otherwise

obtaining control or possession of that or any other Collateral.




 


 


 


SBA Form 1059 (09-19) Previous Editions are obsolete.









     



     



    



 


	
        DocuSign Envelope ID: C8907BDC-4F3B-47B6-B4A3-198EB576CE74


 

        SBA Loan #6317357403
	
        

        Doc # L-01-0233279-01

         

        Application #3300070808



 




		9.	DEFAULT.









 




Borrower

is in default under this Agreement if: (a) Borrower fails to pay, perform or otherwise comply with any provision of this

Agreement; (b) Borrower makes any materially false representation, warranty or certification in, or in connection with, this

Agreement, the Note, or any other agreement related to the Note or this Agreement; (c) another secured party or judgment

creditor exercises its rights against the Collateral; or (d) an event defined as a “default” under the

Obligations occurs. In the event of default and if Secured Party requests, Borrower must assemble and make available all

Collateral at a place and time designated by Secured Party. Upon default and at any time thereafter, Secured Party may

declare all Obligations secured hereby immediately due and payable, and, in its sole discretion, may proceed to enforce

payment of same and exercise any of the rights and remedies available to a secured party by law including those available to

it under Article 9 of the UCC that is in effect in the jurisdiction where Borrower or the Collateral is located. Unless

otherwise required under applicable law, Secured Party has no obligation to clean or otherwise prepare the Collateral for

sale or other disposition and Borrower waives any right it may have to require Secured Party to enforce the security interest

or payment or performance of the Obligations against any other person.




 




		10.	FEDERAL RIGHTS.









 




When SBA is the holder of the Note, this Agreement

will be construed and enforced under federal law, including SBA regulations. Secured Party or SBA may use state or local procedures

for filing papers, recording documents, giving notice, enforcing security interests or liens, and for any other purposes. By using

such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax or liability. As to this Agreement,

Borrower may not claim or assert any local or state law against SBA to deny any obligation, defeat any claim of SBA, or preempt

federal law.




 




		11.	GOVERNING LAW.









 




Unless SBA is the holder of the Note, in which

case federal law will govern, Borrower and Secured Party agree that this Agreement will be governed by the laws of the jurisdiction

where the Borrower is located, including the UCC as in effect in such jurisdiction and without reference to its conflicts of laws

principles.




 




		12.	SECURED PARTY RIGHTS.









 




All rights conferred in this Agreement on Secured

Party are in addition to those granted to it by law, and all rights are cumulative and may be exercised simultaneously. Failure

of Secured Party to enforce any rights or remedies will not constitute an estoppel or waiver of Secured Party’s ability to

exercise such rights or remedies. Unless otherwise required under applicable law, Secured Party is not liable for any loss or damage

to Collateral in its possession or under its control, nor will such loss or damage reduce or discharge the Obligations that are

due, even if Secured Party’s actions or inactions caused or in any way contributed to such loss or damage.




 




		13.	SEVERABILITY.









 




If any provision of this Agreement is unenforceable,

all other provisions remain in effect.




 


 


 


SBA Form 1059 (09-19) Previous Editions are obsolete.




     



     



    



 


	
        DocuSign Envelope ID: C8907BDC-4F3B-47B6-B4A3-198EB576CE74


 

        SBA Loan #6317357403
	
        

        Doc # L-01-0233279-01

         

        Application #3300070808



 




		14.	BORROWER CERTIFICATIONS.









 




Borrower certifies that: (a) its Name (or Names)

as stated above is correct; (b) all Collateral is owned or titled in the Borrower’s name and not in the name of any other

organization or individual; (c) Borrower has the legal authority to grant the security interest in the Collateral; (d) Borrower’s

ownership in or title to the Collateral is free of all adverse claims, liens, or security interests (unless expressly permitted

by Secured Party); (e) none of the Obligations are or will be primarily for personal, family or household purposes; (f) none of

the Collateral is or will be used, or has been or will be bought primarily for personal, family or household purposes; (g) Borrower

has read and understands the meaning and effect of all terms of this Agreement.




 




		15.	BORROWER NAME(S) AND SIGNATURE(S).









 




By signing or otherwise authenticating below,

each individual and each organization becomes jointly and severally obligated as a Borrower under this Agreement.




 




 









	 	Quest Patent Research Corporation	 
	 	 	 
	 	/s/ Jon C. Scahill	Date: 5/14/2020
	 	Jon C. Scahill, Owner/Officer	 



 


 


 


SBA Form 1059 (09-19) Previous Editions are obsolete.