Document:

ex10-1.htm

  

Exhibit
10.23

 

CONVERTIBLE NOTE

PURCHASE
AGREEMENT

 

This
Convertible Note Purchase Agreement (the “Agreement”) is entered into as of July 10, 2014, by and among Express
Technologies, Inc., a Delaware corporation (the “Company”), Bitcoin Shop Inc. a Nevada corporation (“BTCS”),
and each of the investors listed on the signature page hereto (each, a “Purchaser” and together, the “Purchasers”).

 

RECITALS

The
Company desires to issue and sell to the Purchasers and the Purchasers desire to purchase convertible promissory notes in substantially
the form attached to this Agreement as Exhibit A (the “Note” or “Notes”) which shall
be convertible on the terms stated therein into preferred equity securities of the Company.  The Notes and the preferred
equity securities issuable upon conversion thereof (and the securities issuable upon conversion of such preferred
equity securities) are collectively referred to herein as the “Securities”.

 

AGREEMENT

In
consideration of the mutual promises contained herein and other good and valuable consideration, receipt of which is hereby acknowledged,
the parties to this Agreement agree as follows:

 

1.           Purchase
and Sale of Notes.  Subject to the terms and conditions of this Agreement, each Purchaser agrees to purchase
at each Closing, and the Company agrees to sell and issue to each Purchaser at such Closing, a Note in the principal amount set
forth on the signature page hereto.  The purchase price of each Note shall be equal to 100% of the principal amount
of such Note.  The Company’s agreements with each of the Purchasers are separate agreements, and the sales of
the Notes to each of the Purchasers are separate sales.  Except as provided for in the Letter, or mutually agreed to
by the Company and BTCS the Company agrees that the aggregate principal value of the Notes sold to the Purchasers will be no greater
than $1,500,000 USD and the Note financing round will close on or before August 15, 2014 and no Notes will be sold thereafter.  Provide
further that the forgoing restriction will not prevent the Company from issuing other equity or equity linked securities (including
convertible notes which are not part of this Note financing round, convertible preferred stock, preferred stock, common stock,
etc.).

 

2.           Equity
Securities Purchase Agreement.  Each Purchaser understands and agrees that the conversion of the Notes into,
and the sale and purchase of, preferred equity securities of the Company may require such Purchaser’s execution of certain
agreements relating to the conversion or purchase and sale of such preferred equity securities, and each such Purchaser agrees
to execute and deliver such agreements as shall be reasonably requested by the Company.

 

3.           Representations
and Warranties of the Company.  The Company hereby represents and warrants to each Purchaser that:

 

(a)           Organization,
Good Standing and Qualification.  The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business
as now conducted and as proposed to be conducted.  The Company is duly qualified to transact business and is in good
standing in each jurisdiction in which the failure to so qualify would have a material adverse effect on the business, assets,
liabilities, financial condition, property or results of operation of the Company.

 

    	-1-

    	 

    

 

(b)           Authorization.  All
corporate action on the part of the Company, its members and managers necessary for the authorization, execution and delivery
of this Agreement and the authorization, sale, issuance and delivery of the Notes, and the performance of all obligations of the
Company under this Agreement and the Notes, has been taken or will be taken prior to the Initial Closing.  The Agreement
and the Notes, when executed and delivered by the Company, shall constitute valid and legally binding obligations of the Company,
enforceable against the Company in accordance with their terms except as limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, and other laws of general application affecting enforcement of creditors’ rights generally
and (ii) laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

(c)           No
Conflicts.  The execution and delivery of this Agreement and the Notes and the performance by the Company of
its obligations hereunder and thereunder will not (i) result in any violation of any term of its Certificate of Incorporation
or Bylaws or any material agreement or material obligation of the Company, (ii) be in conflict with or constitute a default under
any of the foregoing and will not result in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the
properties or assets of the Company pursuant to the foregoing, (iii) violate any statute or law or any judgment, decree, order,
regulation or rule of any court or governmental authority to which the Company or its properties is bound or subject, or (iv)
require notice to or consent of any party to any material agreement or commitment to which the Company is a party that has not
been obtained or waived prior to the Initial Closing.

 

(d)           Compliance
with Other Instruments.  The Company is not in violation or default (i) of any provisions of its Certificate
of Incorporation or Bylaws, (ii) of any judgment, order, writ or decree of any court or governmental entity, (iii) under any material
agreement, instrument, contract, license, lease, note, indenture, mortgage or purchase order to which it is a party, or
(iv) to its knowledge, of any provision of federal or state statute, rule or regulation materially applicable to the Company.

 

(e)           Securities
Law Exemptions.  Based in part on the accuracy of the representations and warranties of the Purchasers contained
in Section 4 hereof, the offer, sale and issuance of the Securities are and will be exempt from the registration requirements
of the Securities Act, and the registration, permit or qualification requirements of any applicable state securities laws.  Neither
the Company nor any agent on its behalf has solicited or will solicit any offers to sell or has offered to sell or will offer
to sell any part of the Securities to any person or persons so as to bring the sale of such Securities by the Company within the
registration provisions of the Securities Act or any state securities law.

 

(f)           Issuance
of Securities.  The Securities to be issued to the Purchaser pursuant to this Agreement, when issued and delivered
in accordance with the terms of this Agreement, will be duly and validly issued and will be fully paid and non-assessable.

 

(g)           No
Financial Advisor.  The Company acknowledges and agrees that each Purchaser is acting solely in the capacity
of an arm’s length purchaser with respect to the Securities and the transactions contemplated hereby. The Company further
acknowledges that Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with
respect to this Agreement and the transactions contemplated hereby and any advice given by any Purchaser or any of its representatives
or agents in connection with this Agreement and the transactions contemplated hereby is merely incidental to such Purchaser’s
purchase of the Securities. The Company further represents to each Purchaser that the Company’s decision to enter into this
Agreement has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(h)           Capitalization.  The
authorized and outstanding capital stock of the Company on a fully diluted basis as of the date of this Agreement and the Closing
Date (not including the Securities) is set forth on Exhibit B annexed hereto.  Except as set forth on Exhibit
B annexed hereto, there are no options, warrants, or rights to subscribe to, securities, rights, understandings or obligations
convertible into or exchangeable for or giving any right to subscribe for any shares of capital stock or other equity interest
of the Company or any of its subsidiaries.  The only officer, director, employee and consultant stock option or stock
incentive plan or similar plan currently in effect or contemplated by the Company are described on Exhibit B.  There
are no outstanding agreements or preemptive or similar rights affecting the Company’s Common Stock.

 

    	-2-

    	 

    

 

(i)           Litigation.  There
is no action, suit, proceeding, inquiry or investigation before or by any court, public board, other Governmental Entity, self-regulatory
organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its subsidiaries,
the Company’s common stock or any of the Company’s or its Subsidiaries’ officers or directors which is outside
of the ordinary course of business or individually or in the aggregate material to the Company or any of its subsidiaries. 
No director, officer or employee of the Company or any of its subsidiaries has willfully violated 18 U.S.C. §1519 or engaged
in spoliation in reasonable anticipation of litigation.  “Governmental Entity” means any nation, state,
county, city, town, village, district, or other political jurisdiction of any nature, federal, state, local, municipal, foreign,
or other government, governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department,
official, or entity and any court or other tribunal), multi-national organization or body; or body exercising, or entitled to
exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature
or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public
international organization or any of the foregoing.

 

(j)           No
Disqualification Events. To the Company’s knowledge,
none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company
participating in the offering contemplated hereby, any beneficial owner of 20% or more of the Company’s outstanding voting
equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities
Act) connected with the Company in any capacity at the time of sale (each, an “Issuer Covered Person”) is subject
to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification
Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable
care to determine whether any Issuer Covered Person is subject to a Disqualification Event.

 

(k)           Affiliated
Entities.  The Company hereby represents and warrants to each Purchaser that all representations and warranties
made in Section 3 herein shall apply to the Affiliated Entities (as defined below) as if the Company had wholly owned the Affiliated
Entities at the time of initial Note purchase as contemplated herein.

 

4.           Representations
and Warranties of the Purchasers.  Each Purchaser hereby represents and warrants, solely with respect to itself
and no in regards to any other Purchaser, to the Company that:

 

(a)           Purchase
Entirely for Own Account.  The Securities to be acquired by the Purchaser will be acquired for investment for
the Purchaser’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof,
and the Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the same.  The
Purchaser has not been formed for the specific purpose of acquiring any of the Securities.

 

(b)           Knowledge.  The
Purchaser is aware of the Company’s business affairs and financial condition and has acquired sufficient infor­mation
about the Company to reach an informed and knowledgeable decision to acquire the Securities.

 

(c)           Restricted
Securities.  The Purchaser understands that the Securities have not been, and will not be, registered under
the Securities Act of 1933, as amended (the “Securities Act”), by reason of a specific exemption from the registration
provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the
accuracy of the Purchaser’s representations as expressed herein.  The Purchaser understands that the Securities
are “Restricted Securities” under applicable U.S. federal and state securities laws and that, pursuant to these
laws, the Purchaser must hold the Securities indefinitely unless they are registered with the Securities
and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements
is available.  The Purchaser acknowledges that the Company has no obligation to register or qualify the Securities for
resale.  The Purchaser further acknowledges that if an exemption from registration or qualification is available, it
may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for
the Securities, and on requirements relating to the Company which are outside of the Purchaser’s control.

 

    	-3-

    	 

    

 

(d)           No
Public Market.  The Purchaser understands that no public market now exists for any of the securities issued
by the Company and that the Company has made no assurances that a public market will ever exist for the Securities.

 

(e)           Legends.  The
Purchaser understands that the Securities, and any securities issued in respect thereof or exchange therefor, may bear one or
all of the following legends:

 

(i)           “THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNEC­TION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO SUCH SALE OR DISTRIBUTION
MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.”

 

(ii)           Any
legend required by the Blue Sky laws of any state to the extent such laws are applicable to the securities so legended.

 

(f)           Accredited
Investor.  The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under
the Securities Act.

 

(g)           Foreign
Investors.  If the Purchaser is not a United States person (as defined by Rule 902(k) under the Securities Act),
such Purchaser hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection
with any invitation to subscribe for the Securities or any use of this Agreement, including (i) the legal requirements within
its jurisdiction for the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii)
any governmental or other consents that may need to be obtained and (iv) the income tax and other tax consequences, if any, that
may be relevant to the purchase, holding, redemption, sale or transfer of the Securities.  Such Purchaser’s subscription
and payment for, and such Purchaser’s continued beneficial ownership of the Securities, will not violate any applicable
securities or other laws of such Purchaser’s jurisdiction.  Such Purchaser also hereby represents that such Purchaser
is not a “10-Percent Shareholder” as defined in Section 871(h) of the Internal Revenue Code of 1986, as amended.

 

5.           Conditions
of the Company’s Obligations at Closing.  The obligations of the Company to each Purchaser under this
Agreement are subject to the fulfillment, on or before the applicable Closing, of each of the following conditions, unless otherwise
waived:

 

(a)           Representations
and Warranties.  The representations and warranties of the Company contained in Section 3 shall be true
in all material respects on each closing and as of the Initial Closing with the same effect as though such representations and
warranties had been made on and as of the date of the Initial Closing.

 

(b)           Qualifications.  All
authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any
state that are required in connection with the lawful issuance and sale of the Notes pursuant to this Agreement shall be obtained
and effective as of the Closing.

 

6.           Conditions
of the Purchasers’ Obligations at Closing.  The obligations of each Purchaser to the Company under this
Agreement are subject to the fulfillment, on or before the applicable Closing, of each of the following conditions, unless otherwise
waived:

 

(a)           Representations
and Warranties.  The representations and warranties of each Purchaser contained in Section 4 shall be true
in all material respects on and as of the Closing with the same effect as though such representations and warranties had been
made on and as of the Closing.

 

(b)           Qualifications.  All
authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any
state that are required in connection with the lawful issuance and sale of the Notes pursuant to this Agreement shall be obtained
and effective as of the Closing.

 

    	-4-

    	 

    

 

7.           Lock-Up
Agreement.  In connection with an initial public offering of the Company’s securities and upon request
of the Company or the underwriters managing any underwritten offering of the Company’s securities, Purchaser agrees not
to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any equity securities of
the Company, however or whenever acquired (other than those included in the registration) without the prior written consent of
the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from the effective date
of such registration as may be requested by the Company or such managing underwriters and to execute an agreement reflecting the
foregoing as may be requested by the underwriters at the time of the public offering.

 

8.           Company’s
Post-Closing Obligation. Within ninety (90) days from the date hereof (the “Deadline”), the Company
shall, have caused Digicurrency, LLC, a Washington limited liability company, Think Tank Technologies Inc, a Washington corporation,
AG Payments LLC, a Montana limited liability company, and DigiCurrency Inc, a BC Canada corporation (collectively the “Affiliated
Entities”) to (i) become wholly owned subsidiaries of the Company, or (ii) merge into the Company.  The Company
shall provide BTCS on or before the Deadline all fully executed operating agreements, share exchange agreements, purchase agreements,
merger agreements and other related documents with respect to the Affiliate Entities.  The Company agrees to provide
BTCS any documents related to follow on due diligence requested that are mutually agreed to by the Company and BTCS.  The
terms of this Section 8 may only be waived or amended with the express written consent of BTCS.

 

9.           Miscellaneous.

 

(a)           Successors
and Assigns.  The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the
respective successors and assigns of the parties.  Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities
under or by reason of this Agreement, except as expressly provided in this Agreement.

 

(b)           Governing
Law.  This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties
hereto shall be governed, construed and interpreted in accordance with the laws of the State of New York, without giving effect
to principles of conflicts of law.

 

(c)           Counterparts.
This Agreement may be executed in two or more counter­parts, each of which shall be deemed an original and all of which
together shall constitute one instrument.  This Agreement may also be executed and delivered by facsimile or other electronic
delivery of signature.

 

(d)           Titles
and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be
considered in construing or interpreting this Agreement.

 

(e)           Notices.  Any
notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon receipt, when delivered
personally or by courier, overnight delivery service or confirmed facsimile or e-mail, or forty-eight (48) hours after being deposited
in the U.S. mail as certified or registered mail with postage prepaid, if such notice is addressed to the party to be notified
at such party’s address, facsimile number or e-mail as set forth on the applicable signature page hereto or
as subsequently modified by written notice.

 

(f)           Finder’s
Fee.  Each party represents that it neither is nor will be obligated for any finder’s fee or commission
in connection with this transaction.  Each Purchaser agrees to indemnify and to hold harmless the Company from any liability
for any commission or compensation in the nature of a finder’s fee (and the costs and expenses of defending against
such liability or asserted liability) for which such Purchaser or any of its officers, employees, or representatives is responsible.  The
Company agrees to indemnify and hold harmless each Purchaser from any liability for any commission or compensation in the
nature of a finder’s fee (and the costs and expenses of defending against such liability or asserted liability) for which
the Company or any of its officers, employees or representatives is responsible.

    	-5-

    	 

    

 

(g)           Amendments
and Waivers.  Except as provided for herein, any term of this Agreement may be amended or waived only with the
written consent of the Company and the holders of a majority of the aggregate principal amount of the Notes then outstanding (a
“Majority in Interest”).  Any amendment or waiver effected in accordance with this Section 8(g)
shall be binding upon the Purchasers and each transferee of the Securities, each future holder of all such Securities, and the
Company.

 

(h)           Severability.  If
one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate
such provision in good faith, in order to maintain the economic position enjoyed by each party as close as possible to that under
the provision rendered unenforceable.  In the event that the parties cannot reach a mutually agreeable and enforceable
replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable
in accordance with its terms.

 

(i)           Entire
Agreement.  This Agreement, the Note, the side letter between BTCS and the Company (the “Letter”),
and any other the documents referred to herein, between the parties, shall constitute the entire agreement between the parties
hereto pertaining to the subject matter hereof, and any and all other written or oral agreements existing between the parties
hereto are expressly canceled.

 

(j)           Exculpation
Among Purchasers.  Each Purchaser acknowledges that it is not relying upon any person, firm or corporation,
other than the Company and its officers and directors, in making its investment or decision to invest in the Company.  Each
Purchaser agrees that no Purchaser nor the respective controlling persons, officers, directors, partners, agents, or employees
of any Purchaser shall be liable for any action heretofore or hereafter taken or omitted to be taken by any of them in connection
with the Securities.

 

[Signature Pages
Follow]

 

    	-6-

    	 

    

 

The parties have executed
this Convertible Note Purchase Agreement as of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	EXPRESS TECHNOLOGIES, INC.
	 	 	 
	 	By:	/s/ Will Wheeler
	 	Name: 	Will Wheeler
	 	Title: 	CEO
	 	 	 
	 	Address: 227 Broadway, Suite 300
	 	Santa Monica, CA 91377

 

	 	PURCHASER AND BTCS
	 	 
	 	BITCOIN SHOP, INC.
	 	 	 
	 	By:	/s/ Charles Allen
	 	Name: 	Charles Allen
	 	Title: 	CEO
	 	 	 
	 	Address: 1901 North Fort Myer Drive
	 	Suite 1105
	 	Arlington, VA 22209
	 	 	 
	 	Amount: $150,000.00ex10-2.htm

  

Exhibit
10.24

 

THIS
CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNEC­TION WITH, THE SALE OR
DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO
OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED.

 

CONVERTIBLE
PROMISSORY NOTE

 

$150,000.00
July 10, 2014

Santa
Monica, California

For
value received, EXPRESS TECHNOLOGIES, INC., a Delaware corporation (the “Company”), promises to pay to Bitcoin
Shop, Inc. (the “Holder”), the principal sum of One Hundred Fifty Thousand Dollars ($150,000.00). Interest
shall accrue from the date of this Convertible Promissory Note (this “Note”) on the unpaid principal amount
at a rate equal to five percent (5%) per annum simple interest. This Note is one of a series of Convertible Promissory Notes containing
substantially identical terms and conditions issued pursuant to that certain Convertible Promissory Note Purchase Agreement dated
as of July 10, 2014 (the “Purchase Agreement”). Such Notes are referred to herein as the “Notes”
and the holders thereof are referred to herein as the “Holders”. This Note is subject to the following terms
and conditions.

 

1.
Maturity. Unless converted pursuant to Section 2 or repaid pursuant to Section 3, the entire unpaid principal sum
of this Note, together with accrued and unpaid interest thereon, will be payable upon the demand of a Majority in Interest (as
defined below) at any time after July 10, 2015 (the “Maturity Date”). Notwithstanding the foregoing, the entire
unpaid principal sum of this Note, together with accrued and unpaid interest thereon, shall become immediately due and payable
without further action by the Holder upon (a) the liquidation, dissolution or winding up of the Company or (b) the commission
of any act of bankruptcy by the Company, the execution by the Company of a general assignment for the benefit of creditors, the
filing by or against the Company of a petition in bankruptcy or any petition for relief under the federal bankruptcy act or the
continuation of such petition without dismissal for a period of ninety (90) days or more, or the appointment of a receiver or
trustee to take possession of the property or assets of the Company.

 

2.
Conversion.

 

(a)
Conversion Upon Next Equity Financing. The entire then-outstanding principal amount of and accrued and unpaid interest
on this Note (the “Conversion Amount”) shall be automatically converted into the Company’s preferred
equity securities (the “Next Equity Securities”) issued and sold at the close of the Company’s next preferred
equity financing in a single transaction or a series of related transactions yielding gross proceeds to the Company of at least
$750,000 in the aggregate (excluding the conversion of the: i) Notes, and ii) Notes issued in connection with the exercise of
the Convertible Note Purchase Option) if consummated prior to the Maturity Date (the “Next Equity Financing”).
The number of shares of Next Equity Securities to be issued upon such conversion shall be equal to the greater of (i) the Conversion
Amount divided by the product of: (i) the per share price of the Next Equity Securities, and (ii) 0.85 (the “Next Equity
Conversion Price”) and (ii) the Conversion Amount divided by: an amount equal to $9,000,000 divided by the Company’s
Fully Diluted Capitalization (excluding the conversion of the: i) Notes, and ii) Notes issued in connection with the exercise
of the Convertible Note Purchase Option). Upon such conversion of this Note, the Holder hereby agrees to execute and deliver to
the Company all transaction documents related to the Next Equity Financing, including a purchase or exchange agreement and other
ancillary agreements, with customary representations and warranties and transfer restrictions (including a lock-up agreement in
connection with an initial public offering), and having the same terms and conditions as those agreements entered into by the
other purchasers of the Next Equity Securities.

    	-1-

    	 

    

 

(b)
Optional Conversion Upon Maturity Date. In the event that the Company has not consummated the Next Equity Financing
prior to the Maturity Date, then at the election of (i) the Holder, with respect to the Note, or (ii) the holders of a majority
of the aggregate principal amount of the Notes then outstanding (a “Majority in Interest”), with respect to
all of the Notes, this Note shall be automatically converted into such number of shares of the Company’s common stock (the
“Common Stock”) equal to (A) the Conversion Amount as of the Maturity Date divided by (B) an amount equal to
$9,000,000 divided by the Company’s Fully Diluted Capitalization immediately prior to the Maturity Date (excluding the conversion
of the: i) Notes, and ii) Notes issued in connection with the exercise of the Convertible Note Purchase Option). Upon such conversion
of this Note, the Holder hereby agrees to execute and deliver to the Company all documents reasonably requested by the Company
in connection with such conversion effective as of the Maturity Date, including a purchase or exchange agreement and, to the extent
the Holder is not already a party thereto, any other documents entered into by all existing holders of Common Stock. For the purposes
of this Note, “Fully Diluted Capitalization” shall mean the total number of the Company’s equity securities
outstanding or reserved for issuance (including any shares reserved for issuance under any equity incentive plan, option plan
or similar arrangement) as set forth in Exhibit B of the Convertible Note Purchase Agreement.

 

(c)
Mechanics and Effect of Conversion. No fractional equity securities of the Company will be issued upon conversion
of this Note. In lieu of any fractional equity securities to which the Holder would otherwise be entitled, the Company will pay
to the Holder in cash the amount of the unconverted principal and interest balance of this Note that would otherwise be converted
into such fractional equity securities. Upon conversion of this Note pursuant to this Section 2, the Holder shall surrender this
Note, duly endorsed, at the principal offices of the Company or any transfer agent of the Company. At its expense, the Company
will, as soon as practicable thereafter, issue and deliver to such Holder, at such principal office, a certificate or certificates
for the number of equity securities to which such Holder is entitled upon such conversion, together with any other securities
and property to which the Holder is entitled upon such conversion under the terms of this Note, including a check payable to the
Holder for any cash amounts payable as described herein. Upon conversion of this Note, the Company will be forever released from
all of its obligations and liabilities under this Note with regard to that portion of the principal amount and accrued interest
being converted including without limitation the obligation to pay such portion of the principal amount and accrued interest.

 

3.
Payment Terms. All payments shall be made in lawful money of the United States of America at such place as the Holder
hereof may from time to time designate in writing to the Company. Payment shall be credited first to the accrued interest then
due and payable and the remainder applied to principal. Prepayment of this Note may be made only upon the written consent of a
Majority in Interest; provided, that all of the Notes shall be prepaid on a pro rata basis.

 

4.
Transfer; Successors and Assigns. The terms and conditions of this Note shall inure to the benefit of and be binding
upon the respective successors and assigns of the parties. Notwithstanding the foregoing, the Holder may not assign, pledge, or
otherwise transfer this Note without the prior written consent of the Company, except for transfers to affiliates. Subject to
the preceding sentence, this Note may be transferred only upon surrender of the original Note for registration of transfer, duly
endorsed, or accompanied by a duly executed written instrument of transfer in form satisfactory to the Company. Thereupon, a new
convertible promissory note for the same principal amount and interest will be issued to, and registered in the name of, the transferee.
Interest and principal are payable only to the registered holder of this Note.

 

5.
Governing Law. This Note and all acts and transactions pursuant hereto and the rights and obligations of the parties
hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect
to principles of conflicts of law.

 

6.
Notices. Any notice required or permitted by this Note shall be in writing and shall be deemed sufficient upon receipt,
when delivered personally or by courier, overnight delivery service or confirmed facsimile or e-mail, or forty-eight (48) hours
after being deposited in the U.S. mail as certified or registered mail with postage prepaid, if such notice is addressed to the
party to be notified at such party’s address, facsimile number or e-mail as set forth below or as subsequently modified
by written notice.

 

    	-2-

    	 

    

 

7.
Amendments and Waivers. Any term of this Note may be amended or waived only with the written consent of the Company
and a Majority in Interest. Any amendment or waiver effected in accordance with this Section 7 shall be binding upon the
Company, the Holder and each transferee of this Note.

 

8.
Equityholders, Officers and Directors Not Liable. In no event shall any equityholder, officer or director of the
Company be liable for any amounts due or payable pursuant to this Note.

 

9.
Titles and Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be
considered in construing or interpreting this Note.

 

    	-3-

    	 

    

 

This
Note is executed and delivered as of the date first set forth above.

 

	 	COMPANY:
	 	 	 
	 	EXPRESS TECHNOLOGIES INC.
	 	 	 
	 	By: 	/s/ Will Wheeler
	 	Name: 	Will Wheeler
	 	Title: 	CEO
	 	 	 
	 	Address: 227 Broadway, Suite 300
	 	Santa Monica, CA 90401

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