Document:

Exhibit
10.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADAMAS
ONE CORP.

 

 

 

 

 

SENIOR
SECURED CONVERTIBLE NOTE

PURCHASE
AGREEMENT

 

 

 

 

 

August
23, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adamas
Convertible Note Purchase Agreement

     

     

    

ADAMAS
ONE CORP.

 

SENIOR
SECURED CONVERTIBLE NOTE

PURCHASE
AGREEMENT

 

This
Senior Secured Convertible Note Purchase Agreement (the “Agreement”) is made as of the 23rd day of August,
2022 by and between Adamas One Corp., a Nevada corporation (the “Company”) and the Subscriber listed on Exhibit
A attached to this Agreement (the “Subscriber”).

 

RECITALS

 

WHEREAS,
the Company and the Subscriber are executing and delivering this Agreement in reliance upon an exemption from securities registration
afforded by the provisions of Section 4(a)(2) and/or Regulation D (“Regulation D”) as promulgated by the United States
Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”);

 

WHEREAS,
the Company is seeking funding up to the maximum aggregate amount of Four Million One Hundred Thousand Dollars and 00/100 ($4,100,000)
(the “Offering Amount”), in a private placement offering as more particularly described below (the “Offering”);
provided that the Company may, in its sole discretion increase or decrease the Offering Amount without notice to the Subscriber;

 

WHEREAS,
pursuant to the Offering, the Company shall, against payment therefor, issue and sell to the Subscriber, and the Subscriber shall purchase,
as provided herein, the Company’s eight percent (8%) interest bearing senior secured convertible promissory note maturing one (1)
year after the date of issue (the “Maturity Date”), substantially in the form of Senior Secured Convertible Promissory
Note attached hereto as Exhibit B and shall receive the Warrants (as defined below) (the “Note”, and together
with the Warrants and Warrant Shares (as hereinafter defined) are collectively referred to herein as the “Securities”)
at the closing of such purchase;

 

NOW,
THEREFORE, in consideration of the mutual covenants and other agreements contained in this Agreement, the Company and the Subscriber
hereby agree as follows:

 

AGREEMENT

 

		1.	Purchase
                                            and Sale of Notes.

 

(a)       Sale
and Issuance of the Note. The Subscriber, intending to be legally bound, hereby irrevocably subscribes for and agrees to purchase,
at the Closing (defined below), the Note at 100% of the principal amount set forth on the signature page hereto (the “Purchase
Price”). This subscription is submitted to the Company in accordance with and subject to the terms and conditions described
in this Agreement. The Subscriber’s obligations hereunder are several and not joint obligations and no Subscriber shall have any
liability to any person or entity (“Person”) for the performance or non-performance of any obligation by any other
Subscriber hereunder.

 

(b)       Subscription
Proceeds. All subscription proceeds received pursuant to this Agreement shall be wired directly to the Company pursuant to the
terms of this Agreement. Following payment by the Company of its costs and expenses, including Offering expenses and the fees and expenses
of Alexander Capital, L.P., the placement agent for this Offering (“Placement Agent”), such funds will be used by
the Company to repurchase all of the outstanding secured debt previously issued by the Company (the “Outstanding Notes”).

 

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(c)       Payment.
Payment of the Purchase Price shall be due and payable within five (5) Business Days after execution and delivery of this Agreement by
the Subscriber to the Company, unless otherwise agreed to by the Company. The Subscriber shall be required to deliver to the Company
the Purchase Price in cash by wire transfer of immediately available funds as instructed in writing by the Company. For purposes of this
Agreement, a “Business Day” is any day other than a Saturday, Sunday or Federally observed holiday.

 

(d)       Acknowledgement.
By executing this Agreement, the Subscriber acknowledges that: (i) the Subscriber: (A) is a sophisticated investor, who is able to financially
afford the loss of its entire investment, (B) has performed its own due diligence of the Company, its management and this Offering; (C)
has been informed of various matters, and has had the opportunity to ask Company management questions, relating to the Company, its business,
management, financial condition, and prospects, including but not limited to, this Agreement, the Note, the Warrant Agreement attached
hereto as Exhibit C, the Security Agreement and the Registration Rights Agreement attached hereto as Exhibit D (together,
the “Offering Documents”) to its satisfaction; (ii) the Subscriber is an “accredited investor” as such
term is defined in Rule 501 of Regulation D; (iii) the Subscriber is not and has not been the subject of any “bad actor disqualifying
event,” as described in Rule 506(d); and (iv) the Subscriber has relied upon its own determination and the advice of its legal
counsel, accountants, financial and tax advisers and other “purchaser representatives” regarding its decision to purchase
the Note and not on the Company or the Placement Agent or any counsel or representative thereof.

 

(e)       [RESERVED].

 

(f)       Conversion
Rights. The Subscriber acknowledges that the Note contains conversion rights that permits the Subscriber to convert the outstanding
principal and accrued interest on the Note into shares of common stock, $0.001 par value per share (“Common Stock”),
of the Company (“Conversion Shares”) at a price that reflects a 20% discount from the price paid by investors in any
transaction by the Company (“Conversion Price”) that occurs after the Closing Date with the principal purpose of raising
equity capital in a private or public sale of its Common Stock in any amount (a “Qualifying Transaction”), provided,
however, that in the event that the Company has not completed its Initial Public Offering within 90 days after the Closing, then the
Conversion Price will be amended to a price that reflects a 30% discount from the price paid by investors in any transaction by the Company.
For purposes of this Agreement, “Initial Public Offering” means an underwritten public offering pursuant to an effective
registration statement under the Securities Act, other than pursuant to a registration statement on Form S-4 or Form S-8 or any similar
or successor form, of Common Stock after the date hereof with aggregate gross proceeds to the Company in an amount equal to or greater
than $15 million and which results in the Common Stock being listed on any tier of the Nasdaq Stock Market, the New York Stock Exchange
or the NYSE American.

 

(g)       Warrants.
As further inducement for Subscriber to enter into this Agreement, the Company will deliver to Subscriber at the Closing a three year
warrant (“Warrant”) to purchase Common Stock of the Company in an amount equal to thirty-three and one-third percent
(33.33%) of the number of shares received by Subscriber, from time to time, from the conversion of the Note, which number of shares will
increase to an amount equal to fifty percent (50%) of the number of shares received by Subscriber from the conversion of the Note (the
“Warrant Shares”) if within 90 days after the Closing either: (x) the Company has not completed its Initial Public
Offering, or (y) the Warrant Shares are not registered for resale pursuant to an effective resale registration statement declared effective
by the Securities and Exchange Commission (“SEC”). The exercise price of the Warrants shall be equal to the Conversion
Price multiplied by 1.25.

 

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		(h)	Closing;
                                            Delivery.

 

(i)       The
purchase and sale of the Notes by the Company to the Subscribers shall occur at one or more closings of the Offering on a date or dates
selected by the Company after the satisfaction of all conditions to its obligation to close as set forth in Section 6, provided that
any such closing date shall not exceed ten (10) days after all conditions to the Company’s obligations to close have been satisfied,
unless the Company rejects the subscription in whole or in part by written notice to the Subscriber and the return of the Subscriber’s
Purchase Price payment (without deduction and without interest) within such time period (each a “Closing” and the
date of such Closing, the “Closing Date”). Closing on the purchase and sale of the Note shall be consummated on such
date as the Company accepts the Subscriber’s offer to purchase the Note as evidenced by the Company’s counter-execution of
the signature page to this Agreement. The Company shall, promptly thereafter, deliver to the Subscriber fully executed Offering Documents.

 

		2.	Representations
and Warranties of the Company. The Company hereby represents and warrants to each Subscriber that as of the date of this Agreement
and as of the Closing Date:

 

(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 Nevada 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
so to qualify would have a material adverse effect on its business or properties. The Company has the corporate power and authority to
own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to
transact, to execute and deliver the Offering Documents and to perform the provisions hereof and thereof.

 

(b)       Authorization.
The Offering Documents have been duly authorized by all necessary corporate action of the Company and 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 respective terms except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance,
and other laws of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to
the availability of specific performance, injunctive relief, or other equitable remedies.

 

(c)       No
Conflicts. The execution, delivery and performance of the Offering Documents by the Company, the consummation by the Company
of the transactions contemplated by the Offering Documents, and the issuance of the Note and Warrants and performance by the Company
of its obligations under the Offering Documents, will not: (a) result in a violation of the Company’s Articles of Incorporation,
any other certificate of designations, preferences and rights of any outstanding series of common stock of the Company, or the Company’s
By-Laws, (b) conflict with, or constitute a default or an event which with notice or lapse of time or both would become a default under,
or give to others any rights of termination, amendment, acceleration or cancellation of, any material agreement, note and/or other indebtedness,
lease, license or instrument, or (c) result in a violation of any law, rule, regulation, order, judgment or decree (including federal
and state Shares laws and regulations and the rules and regulations of FINRA) applicable to the Company or any of its subsidiaries (“Subsidiaries”)
or by which any property or asset of the Company or any of its Subsidiaries is bound or affected. The Company and its Subsidiaries own
or possess all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and
trade names, or rights thereto, without known conflict with the rights of others, necessary or appropriate to conduct its business as
presently conducted.

 

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(d)       Consents.
The Company is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court
or governmental agency or any regulatory or self-regulatory agency in order for it to execute, deliver or perform any of its obligations
under or contemplated by the Offering Documents. Except as otherwise provided in the Offering Documents, all consents, authorizations,
orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected
on or prior to the date hereof. The Company and its Subsidiaries are unaware of any facts or circumstances which might prevent the Company
from obtaining or effecting any of the foregoing.

 

(e)       No
General Solicitation. None of the Company, its Subsidiaries, any of their affiliates, and any person acting on their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act)
in connection with the offer or sale of the Shares.

 

(f)       No
Integrated Offering. None of the Company, its Subsidiaries, any of their affiliates, and any Person acting on their behalf has,
directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that
would require registration of any of the Shares under the Securities Act by causing this Offering of Securities to be integrated with
prior offerings by the Company for purposes of the Securities Act or any applicable stockholder approval provisions, including without
limitation, under the Company’s organizational documents or otherwise. None of the Company, its Subsidiaries, their affiliates
and any Person acting on their behalf will take any action or steps referred to in the preceding sentence that would require registration
of any of the Shares under the Securities Act by causing the Offering of the Shares to be integrated with other offerings, or otherwise.

 

(g)       Absence
of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government
agency, self-regulatory organization or body, or arbitrator pending or, to the knowledge of the Company, threatened against the Company,
the Common Stock or any of the Company’s officers or directors in their capacities as such, and, to the knowledge of the Company,
there is no reason to believe that there is any basis for any such proceeding.

 

(h)       Title.
The Company has good and marketable title to all material properties and tangible assets owned by it, free and clear of all liens,
charges, encumbrances or restrictions, except as such as are not significant or important in relation to the Company’s business;
all of the material leases and subleases under which the Company is the lessor or sublessor of properties or assets or under which the
Company holds properties or assets as lessee or sublessee are in full force and effect, and the Company is not in default in any material
respect with respect to any of the terms or provisions of any of such leases or subleases, and to the Company’s knowledge no material
claim has been asserted by anyone adverse to rights of the Company as lessor, sublessor, lessee or sublessee under any of the leases
or subleases mentioned above, or affecting or questioning the right of the Company to continued possession of the leased or subleased
premises or assets under any such lease or sublease. The Company owns, leases or licenses all such properties as are necessary to its
operations.

 

(i)       Solvency.
The Company is not insolvent as defined by the law of the State in which it was organized or in any State where it conducts its business.
The Company (i) is paying its debts as they become due, (ii) has not filed, and does not intend to file, or has not consented by answer
or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy,
for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) has not made, and does not intend to make, an assignment of any substantial part of its property for the benefit of its creditors, (iv) has not consented and does not intend to consent to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, and (v) has not taken and does not intend to take any corporate action for the purpose of any of the foregoing.

 

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(j)       Registration
Rights. Except as set forth herein, no other Person has any right to cause the Company to effect the registration under the Securities
Act of any shares of the Common Stock of the Company.

 

(k)       Securities
Law Compliance. The offer, offer for sale, and sale of the Securities has not been registered with the SEC. The Securities are
to be offered, offered for sale and sold in reliance upon the exemptions from the registration requirements of Section 5 of the Securities
Act. The Company will conduct the Offering in compliance with the requirements of Regulation D under the Securities Act, and the Company
will file all appropriate notices of offering with the SEC. The Company is not disqualified from the exemption under Regulation D by
virtue of the disqualification contained in Rule 507 thereof or otherwise.

 

(l)       Issuance
of Warrant Shares. The issuance, sale and delivery of the Warrant Shares have been duly authorized and reserved for issuance
by all requisite corporate action by the Company and, upon issuance in accordance with the Offering Documents, shall be: (a) duly
authorized, validly issued, fully paid and non-assessable, (b) free from all taxes, liens and charges with respect to the issue
thereof except that may be created by the Subscriber, and (c) entitled to the rights and preferences set forth in this Agreement and
the Warrant Agreement. Assuming (i) the accuracy of the information provided by the respective Subscribers in this Agreement, and
(ii) that all of the offerees and Subscribers are “accredited investors” as such term is defined in Rule 501 of Regulation
D, the offer and sale of the Note and the Warrants pursuant to the terms of this Agreement are and will be exempt from the
registration requirements of the Securities Act and the rules and regulations promulgated thereunder.

 

(m)       Intellectual
Property. The Company owns or possesses sufficient legal rights to all trademarks, service marks, trade names, domain names,
copyrights, trade secrets, licenses, information, proprietary rights and processes, and patents (in each instance, as used by it in connection
with its business) without any known conflict with, or infringement of, the rights of others, which represent all intellectual property
rights necessary to the conduct of the Company’s business as now conducted and as presently contemplated to be conducted, the lack
of which would have a material adverse effect on the business, assets (including intangible assets), liabilities, revenues, profits,
financial condition, prospects, or property of the Company, taken together as a whole (“Material Adverse Effect”).
There are no outstanding options, licenses, or agreements of any kind relating to the foregoing, nor is the Company bound by or a party
to any options, licenses or agreements of any kind with respect to the patents, trademarks, service marks, trade names, domain names,
copyrights, trade secrets, licenses, information, proprietary rights and processes of any other person or entity, except, in either case,
for agreements between the Company and its own directors, employees or consultants and/or standard end-user, object code, internal-use
software license and support/maintenance agreements. No product of the Company or any of its Subsidiaries infringes in any respect with
any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other
right owned by any other Person.

 

(n)       Brokers.
Except for the Placement Agent whose fees and expenses will be paid by the Company, neither the Company nor any of its officers,
directors, employees or stockholders has employed any broker or finder in connection with the transactions contemplated herein.

 

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(o)       Compliance
with Law. The Company and each of the Subsidiaries have conducted and are conducting their respective businesses in compliance
in all material respects with all applicable laws. The Company and the Subsidiaries have in full force and effect all certificates, approvals,
authorizations and permits from all regulatory authorities and agencies necessary to own, lease or operate their respective properties
and assets and conduct their respective businesses, and neither the Company nor any Subsidiary has received any notice of legal proceedings
relating to the revocation or modification of any such certificate, approval, authorization or permit, except for such certificates,
approvals, authorizations or permits with respect to which the failure to hold would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect.

 

(p)       Acknowledgment
Regarding the Subscriber’s Purchase of the Securities. The Company’s Board of Directors has approved the execution
of the Offering Documents and the issuance and sale of the Securities, based on its own independent evaluation and determination that
the terms of the Offering Documents are reasonable and fair to the Company and in the best interests of the Company and its stockholders.
The Company and each of its Subsidiaries are entering into this Agreement and the Offering Documents to which they are party, and the
Company is issuing and selling the Note, voluntarily and without economic duress. The Company has retained independent legal counsel
of its own choosing to review the Offering Documents and advise the Company with respect thereto. The Company acknowledges and agrees
that the Subscriber is acting solely in the capacity of an arm’s length purchaser with respect to the Securities and the transactions
contemplated hereby and that neither the Subscriber nor any person affiliated with the Subscriber is acting as a financial advisor to,
or a fiduciary of, the Company (or in any similar capacity) with respect to execution of the Offering Documents or the issuance of the
Securities or any other transaction contemplated hereby.

 

(q)       Disclosure.
None of the representations and warranties of the Company appearing in this Agreement or any information appearing in any Exhibit hereto,
when considered together as a whole, contains, or on any Closing Date will contain, any untrue statement of a material fact or omits,
or on any Closing Date will omit, to state any material fact required to be stated herein or therein in order for the statements herein
or therein, in light of the circumstances under which they were made, not to be misleading.

 

3.       Representations
and Warranties of Subscriber. Subscriber hereby represents and warrants to the Company that:

 

(a)       Authorization.
Such Subscriber is of the age of majority in the State of its residence, not under a disability and not under duress, and thus has
full power and authority to enter into this Agreement. This Agreement, when executed and delivered by the Subscriber, will constitute
a valid and legally binding obligation of the Subscriber, enforceable in accordance with its terms, except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors’
rights generally, and as limited by laws relating to the availability of a specific performance, injunctive relief, or other equitable
remedies.

 

(b)       Purchase
Entirely for Own Account. This Agreement is made with the Subscriber in reliance upon the Subscriber’s representation to
the Company, which by the Subscriber’s execution of this Agreement, the Subscriber hereby confirms, that the Securities to be acquired
by the Subscriber will be acquired for investment for the Subscriber’s own account, not as a nominee or agent, and not with a view
to the resale or distribution of any part thereof, and that the Subscriber has no present intention of selling, granting any participation
in, or otherwise distributing the same. By executing this Agreement, the Subscriber further represents that the Subscriber does not presently
have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such person or
to any third Person, with respect to any of the Securities. The Subscriber has not been formed for the specific purpose of acquiring
any of the Securities.

 

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(c)       Knowledge. The
Subscriber 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. By executing and delivering this Agreement, the
Subscriber acknowledges and agrees that it has not received any private placement memorandum or prospectus for the Offering but has
instead performed and relied solely upon its own due diligence on the Company, its management and this Offering to its satisfaction,
that it has had the opportunity to request and review such documents as the Company has been able to provide without undue effort or
expense and to ask questions about Company, its management and this Offering to Company management and is satisfied with its review
of such documents and with such answers, and has had the opportunity to obtain the advice of its own counsel, accountants, tax or
financial advisor(s) or “purchaser representative” as defined in Regulation D under the Securities Act. The Subscriber has
not utilized or relied upon any other information, document, instrument, discussion or otherwise, whether from the Company or the
Placement Agent, in making its decision to purchase the Note.

 

(d)       Restricted
Securities. The Subscriber understands that the Securities have not been, and, except for the Company’s obligations under
the Registration Rights Agreement, will not be, registered under 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 Subscriber’s representations as expressed herein. The Subscriber understands that the Securities are “restricted securities”
under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Subscriber must hold the Securities indefinitely
unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification
requirements is available. The Subscriber 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 Subscriber’s control, and which the Company is
under no obligation and may not be able to satisfy. Therefore, the Subscriber acknowledges that it will be required to hold the Securities
for an indefinite period of time after purchase.

 

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

 

(f)       Legends.
The Subscriber 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 BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, 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 REASONABLY SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.”

 

(ii)       Any
legend required by the Blue-Sky laws of any state to the extent such laws are applicable to the shares represented by the certificate
so legend.

 

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

 

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(h)       No
Other Representations. Except for the representations and warranties set forth in this Agreement, the Subscriber makes no other
representations or warranties to the Company.

 

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

 

(a)       Representations
and Warranties. The representations and warranties of the Company contained in Section 2 shall be true and correct on and as
of the Closing Date with the same effect as though such representations and warranties had been made on and as of the date 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 Securities pursuant to this Agreement shall be obtained
by the Company and be effective as of the Closing.

 

(c)       Delivery.
The Company shall have delivered to the Company fully executed Offering Documents and copies of all resolutions duly adopted by the Board
of Directors of the Company, or any such other documentation of the Company approving the Agreement, the Offering Documents and any of
the transactions contemplated hereby or thereby.

 

(d)       Performance.
The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required
by the Offering Documents to be performed, satisfied or complied with by it at or prior to such Closing.

 

(e)       Consents
and Permits. The Company must have obtained and delivered to the Subscriber copies of all necessary permits, approvals, and registrations
necessary to effect this Agreement, the Transaction Documents and any of the transactions contemplated hereby or thereby, including confirmation
to the Subscriber’s reasonable satisfaction, that the obligations of the Company to the holders of the Outstanding Notes will be
terminated at the Closing.

 

(f)       Perfection
of Security Interest; Evidence of Lien Release. The Subscriber shall have, to the extent possible, perfected certain security
interest granted in the assets and collateral of the Company and its Subsidiaries described in the Security Agreement. To the extent
that the Subscriber has not perfected the security interest granted in the assets and collateral of the Company and its Subsidiaries
as described in the Security Agreement, then, at the expense of the Company, the Company and its Subsidiaries shall immediately take
all steps necessary and required to perfect the Subscriber’s security interest in the assets and collateral of the Company and
its Subsidiaries.

 

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

 

(a)       Representations
and Warranties. The representations and warranties of each Subscriber contained in Section 3 shall be true 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 Securities pursuant to this Agreement shall be obtained
and effective as of the Closing.

 

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(c)       Delivery.
The Subscriber shall have delivered to the Company: (i) a dated and executed signature page to this Agreement, with all blanks properly
completed and (ii) the Purchase Price to the Company.

 

		6.	Covenants
                                            of the Company. Until all Notes have been paid in full, the Company:

 

(a)       will,
and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them
is subject, including, without limitation, all applicable environmental laws, and will obtain and maintain in effect all licenses, certificates,
permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct
of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental
rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental
authorizations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect on the Company;

 

(b)       will,
and will cause each of its Subsidiaries to, operate its business in the usual and customary matter, and maintain its relationships with
its employees, customers, vendors and suppliers and will, and will cause each of its Subsidiaries to, maintain and keep, or cause to
be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear),
so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section shall not
prevent the Company or any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance
is desirable in the conduct of its business and the Company has concluded that such discontinuance could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect;

 

(c)       will
not and will not permit any Subsidiary to engage in any business if, as a result, the general nature of the business in which the Company
and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business
in which the Company and its Subsidiaries, taken as a whole, are engaged on the date of this Agreement;

 

(d)       will,
and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their
respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including
deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of
entities of established reputations engaged in the same or a similar business and similarly situated;

 

(e)       will,
and will cause each of its Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and discharge all
taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or
any of their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become
delinquent and all claims for which sums have become due and payable that have or might become a lien on properties or assets of the
Company or any Subsidiary, provided that neither the Company nor any Subsidiary need pay any such tax, assessment, charge, levy or claim
if: (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith
and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with Generally
Accepted Accounting Principles (“GAAP”) on the books of the Company or such Subsidiary, or (ii) the nonpayment of
all such taxes, assessments, charges, levies and claims in the aggregate could not reasonably be expected to have a Material Adverse
Effect;

 

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(f)       will
at all times preserve and keep in full force and effect its corporate existence and will at all times preserve and keep in full force
and effect the corporate existence of each of its Subsidiaries (unless merged into the Company or a wholly-owned Subsidiary) and all
rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure
to preserve and keep in full force and effect such corporate existence, right or franchise could not, individually or in the aggregate,
have a Material Adverse Effect;

 

(g)       will,
and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements
of any governmental authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case may be;

 

(h)       will
not, while any Note is outstanding, (i) issue any debt that shall rank in right of payment or collection senior to, or on a parity with,
the Note nor shall the Company take any action that shall incur a prior or additional lien or encumbrance upon the collateral securing
the Company’s payment obligations under the Note or take any action that would impair or endanger the said collateral, or (ii)
authorize or issue any preferred stock or other equity that ranks senior to the Common Stock;

 

(i)       will
not, and will not permit any Subsidiary to, sell, lease or otherwise dispose of more than forty percent (40%) of the assets of the Company
and its Subsidiaries on a consolidated basis unless the Company utilizes the net proceeds received from such sale, lease or other disposition
to pay or pre-pay all of the then outstanding principal and accrued and unpaid interest and any fees due and payable on all of the Notes
then outstanding;

 

(j)       will
not, and will not permit any of its Subsidiaries to, consolidate with or merge with any other Person unless prior to the date of the
consummation of such merger or consolidation, the Company pays or pre-pays all of the then outstanding principal and accrued and unpaid
interest and any fees due and payable on all of the Notes then outstanding;

 

(k)       will
not, and will not permit any of its Subsidiaries to, take any action or omit to take any action that would circumvent the covenants set
forth herein or create substantial doubt as to whether the Company will, at any time after the Closing Date, be able to pay the Note
prior to the Maturity Date;

 

(l)       will
at all times reserve and keep available out of its authorized but unissued shares of Common Stock, as applicable, solely for the purpose
of effecting the conversion of the Note into Conversion Shares and the exercise of the Warrants into Warrant Shares, such number of shares
of its duly authorized shares of Conversion Shares and Warrant Shares as will from time to time be sufficient to effect the conversion
of the Note into Conversion Shares and the exercise of the Warrants into Warrant Shares in full. If at any time the number of authorized
but unissued Conversion Shares or Warrant Shares is not sufficient to effect the conversion of the Note into Conversion Shares and/or
the exercise of the Warrants into Warrant Shares, the Company will take such action as may, in the reasonable opinion of its counsel,
be necessary to increase its authorized but unissued Conversion Shares and Warrant Shares to such number as is sufficient for such purpose,
including engaging in commercially reasonable efforts to obtain the requisite stockholder approval of any necessary amendment to its
articles of incorporation. The Company further agrees that (1) all Conversion Shares that may be issued upon the conversion of the rights
represented by the Note and (2) all Warrant Shares that may be issued upon the exercise of the rights represented by the Warrants will
be duly authorized and will be validly issued, fully paid and non-assessable, free from all taxes, liens, charges and preemptive rights
with respect to the issuance thereof, other than restrictions imposed by federal and state securities laws;

 

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(m)       unless
it shall have first delivered to the Subscriber, at least five (5) Business Days prior to the closing of such Future Offering (as
defined herein), written notice describing the proposed Future Offering, including the terms and conditions thereof and proposed
definitive documentation to be entered into in connection therewith, and providing the Subscriber an option during the five (5)
Business Day period following delivery of such notice (the “Notice Period”) to purchase the securities being
offered in the Future Offering on the same terms as contemplated by such Future Offering (the “Offered
Securities”) (the limitations referred to in this sentence and the preceding sentence are collectively referred to as the
“Right of First Refusal”) (and subject to the exceptions described below), the Company will not conduct any
equity financing (including debt with an equity component) (“Future Offerings”). In the event the terms and
conditions of a proposed Future Offering are amended in any respect after delivery of the notice to the Subscriber concerning the
proposed Future Offering, the Company shall deliver a new notice to the Subscriber describing the amended terms and conditions of
the proposed Future Offering and the Subscriber thereafter shall have an option during such new Notice Period to purchase the
Offered Securities on the same terms as contemplated by such proposed Future Offering, as amended. The foregoing sentence shall
apply to successive amendments to the terms and conditions of any proposed Future Offering. The Right of First Refusal shall not
apply to any transaction involving (i) issuances of securities in the Initial Public Offering or (ii) issuances of securities as
consideration for a merger, consolidation or purchase of assets, or in connection with any strategic partnership or joint venture
(the primary purpose of which is not to raise equity capital). The Right of First Refusal also shall not apply to the issuance of
securities upon exercise or conversion of the Company’s options, warrants or other convertible securities outstanding as of
the date hereof or to the grant of additional options or warrants, or the issuance of additional securities, under any Company stock
option or restricted stock plan approved by the shareholders of the Company after the date hereof; and

 

(n)       will
grant the Subscriber, if the Subscriber elects not to exercise the Right of First Refusal, a further right of participation (the “Right
of Participation”), exercisable during the Notice Period, to purchase such percentage of the Offered Securities in the Subscriber’s
discretion, not to exceed 50%, on the terms and conditions of the proposed Future Offering.

 

		7.	Registration;
                                            Exchange; Substitution of the Notes.

 

(a)       The
Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes. The name
and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes
shall be registered in such register. Prior to due presentment for registration of transfer, the Person in whose name any Note shall
be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected
by any notice or knowledge to the contrary.

 

(b)       Upon
surrender of any Note to the Company at the Company’s principal executive office as set forth in Section address and to the attention
of the designated officer (all as specified in Section 8(f), for registration of transfer or exchange (and in the case of a surrender
for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such
holder’s attorney duly authorized in writing and accompanied by the relevant name, address and other information for notices of
each transferee of such Note or part thereof), within ten (10) Business Days thereafter, the Company shall execute and deliver, at the
Company’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor,
in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to
such Person as such holder may request and shall be substantially in the form of the Note originally issued hereunder. Each such new
Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date
of the surrendered Note if no interest shall have been paid thereon. The Company may require payment of a sum sufficient to cover any
stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of
less than $10,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one
Note may be in a denomination of less than $10,000. Any transferee, by its acceptance of a Note registered in its name (or the name of
its nominee), shall be deemed to have made the representation set forth in Section 3.

 

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(c)       Upon
receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of
any Note, and (i) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it, or (ii) in the case of mutilation,
upon surrender and cancellation thereof, the Company at its own expense shall execute and deliver not more than five (5) Business Days
following satisfaction of such conditions, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall
have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note
if no interest shall have been paid thereon.

 

		8.	Miscellaneous.

 

(a)       Survival;
Breach. Sections 2, 3 6, 7, and this Section 8 shall survive the execution and delivery of this Agreement and the Notes, the purchase
or transfer by any Subscriber of any Note or portion thereof or interest therein and the payment of any Note, the conversion of the Notes,
the exercise of the Warrants, and may be relied upon by the Company and any subsequent holder of a Note, regardless of any investigation
made at any time by or on behalf of such Subscriber or any other holder of a Note. All statements contained in any certificate or other
instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the
Company under this Agreement. Any breach of such representations, warranties and/or covenants of this Agreement shall be considered to
be an Event of Default under the Note and a breach of this Agreement.

 

(b)       Successors
and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the parties hereto.
This Agreement is not assignable by the Company and is assignable by the Subscriber only upon the proper and lawful transfer of the Note.
This Agreement shall inure to the benefit of the Subscriber’s successors, heirs, personal representatives and permitted assigns.
Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective
successors and permitted assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement.

 

(c)       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.

 

(d)       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. Executed counterparts of this Agreement may be delivered by facsimile transmission or by delivery of a scanned
counterpart in portable document format (PDF) by e-mail. The signatures in the facsimile or PDF data file will be deemed to have the
same force and effect as if the manually signed counterpart had been delivered to the other party in person.

 

(e)       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.

 

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(f)       Notices.
All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively
given upon the earlier of actual receipt or: (a) personal delivery to the party to be notified, (b) when sent, if sent by electronic
mail or facsimile during normal business hours of the recipient upon confirmation of receipt, and if not sent during normal business
hours, then on the recipient’s next business day upon confirmation of receipt, (c) five (5) days after having been sent by registered
or certified mail, return receipt requested, postage prepaid, or (d) one Business Day after deposit with a nationally recognized overnight
courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall be sent
to the respective parties at their address as set forth below, or to such e-mail address, facsimile number or address as subsequently
modified by written notice given in accordance with this Section. If notice is given to the Company to 17767 N. Perimeter Dr., Suite
B115, Scottsdale, Arizona 85255, with a copy (which shall not constitute notice) shall also be sent to Greenberg Traurig LLP, 18565 Jamboree
Road, Suite 500, Irvine, CA 92612, Attention: Raymond A. Lee, Esq., email: leer@gtlaw.com, fax: (949) 708-6501, and if notice
is given to the Subscriber, a copy (which shall not constitute notice) shall also be given to the Placement Agent, Alexander Capital,
L.P., 17 State Street, New York, New York 10004, with a copy (which shall not constitute notice) to Carmel, Milazzo & Feil, LLP,
55 West 39th Street, 18th Floor, New York, NY 10018, Attention: Ross David Carmel, Esq., email: rcarmel@cmfllp.com,
fax: (646) 838-1314.

 

(g)       Finder’s
Fee. Each Subscriber 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 each Subscriber or any of its officers, employees, or representatives is responsible. The Company agrees to
indemnify and hold harmless each Subscriber 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.

 

(h)       Amendments
and Waivers. Any term of this Agreement may be amended or waived only with the written consent of the Company and the holders
of at least a majority of the then outstanding principal balance of the Notes. Any amendment or waiver effected in accordance with this
Section 8(g) shall be noticed in writing to all Note holders and shall be binding upon each Subscriber and each transferee of the Securities,
each future holder of all such Securities, and the Company.

 

(i)       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.

 

(j)       Entire
Agreement. This Agreement, and the documents referred to herein 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.

 

(k)       Exculpation
Among Subscribers. Each Subscriber 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 Subscriber agrees that no Subscriber
nor the Placement Agent nor any of the respective controlling persons, officers, directors, partners, agents, or employees thereof shall
be liable for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the Securities.

 

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(l)       Stockholders,
Officers and Directors Not Liable. In no event shall any stockholder, officer or director of the Company be liable for any amounts
due or payable pursuant to the Note.

 

(m)       Legends.
Certificates evidencing the Conversion Shares and Warrant Shares shall not contain any legend: (i) while a registration statement covering
the Conversion Shares or Warrant Shares is effective under the Securities Act, (ii) following any sale of such Conversion Shares or Warrant
Shares pursuant to Rule 144, (iii) while such Conversion Shares or Warrant Shares are eligible for sale without restriction under Rule
144 and the Subscriber has taken all requisite steps to have such legend removed, or (iv) if such legend is not required under applicable
requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the SEC). The Company
shall cause its counsel to issue any legal opinion or instruction required by the Company’s transfer agent to comply with the requirements
set forth in this Section. At such time as a legend is no longer required for the Conversion Shares or Warrant Shares under this Section,
the Company will, no later than five (5) Business Days following the delivery by the Subscriber to the Company or the Company’s
transfer agent of a certificate representing Conversion Shares or Warrant Shares containing a restrictive legend (such fifth Business
Day, the “Legend Removal Date”), deliver or cause to be delivered to the Subscriber a certificate representing such
Conversion Shares or Warrant Shares that is free from all restrictive and other legends. In addition to any other remedies available
to the Subscriber, the Company shall pay to the Subscriber, in cash, as partial liquidated damages and not as a penalty, for each $1,000.00
of Conversion Shares or Warrant Shares (based on the volume weighted average price of the Common Stock on the date such Conversion Shares
or Warrant Shares are submitted to the Company or the Company’s transfer agent) delivered for removal of the restrictive or other
legend, $5.00 per Business Day for each Business Day after the Legend Removal Date until such Conversion Shares or Warrant Shares are
delivered without a legend. The Company may not make any notation on its records or give instructions to any transfer agent of the Company
that enlarge the restrictions on transfer set forth in this Section except as it may reasonably determine are necessary or appropriate
to comply or to ensure compliance with those applicable laws that are enacted or modified after the Closing.

 

(n)       Indemnification
of the Subscriber. The Company will indemnify and hold the Subscriber, its Affiliates and their respective directors, officers,
managers, shareholders, members, partners, employees and agents and permitted successors and assigns (each, a “Subscriber Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation and defense (collectively, “Losses”)
that any such Subscriber Party may suffer or incur as a result of or relating to:

 

(i)        any breach or inaccuracy of any representation, warranty, covenant or agreement made by the Company in any Offering Document;

 

(ii)        any
misrepresentation made by the Company in any Offering Document; and

 

(iii)       any
proceeding before or by any court, public board, government agency, self-regulatory organization or body based upon, or resulting from
the execution, delivery, performance or enforcement of any of the Offering Documents or the consummation of the transactions contemplated
thereby, and whether or not the Subscriber is party thereto by claim, counterclaim, crossclaim, as a defendant or otherwise, or if such
proceeding is based upon, or results from, any of the items set forth in clauses (i) through (ii) above.

 

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In
addition to the indemnity contained herein, the Company will reimburse each Subscriber Party for its reasonable legal and other expenses
(including the cost of any investigation, preparation and travel in connection therewith) incurred in connection therewith, as such expenses
are incurred. The provisions of this Section shall survive the termination or expiration of this Agreement.

 

[Signature
Pages Follow]

 

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

 

	 	COMPANY:
	 	 	 
	 	ADAMAS ONE CORP.
	 	 	 
	 	By: 	/s/
    John Gardina 
	 	 	John
    Gardina
	 	 	Chief
    Executive Officer
	 	 	 
	 	 	Address:   17767 N. Perimeter Dr., Suite B115 Scottsdale, AZ 85255

 

[Signature
Page to Convertible Note Purchase Agreement]

     

     

    

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

 

	 	SUBSCRIBER:
	 	 	 
	 	DIGITAL POWER LENDING, LLC
	 	 	 
	 	By: 	/s/
    David J. Kaztoff 
	 	 	David
    J. Kaztoff
	 	 	Manager

 

[Signature
Page to Convertible Note Purchase Agreement]

     

     

    

EXHIBIT
INDEX

 

	Exhibit
    A -	Schedule
    of Subscribers
	 	 
	Exhibit
    B -	Form
    of Promissory Note
	 	 
	Exhibit
    C-	Warrant
    Agreement
	 	 
	Exhibit
    D-	Registration
    Rights Agreement

 

[Exhibit
List to Convertible Note Purchase Agreement]

     

     

    

EXHIBIT
A

 

SCHEDULE
OF SUBSCRIBERS

 

	Name/Address
    and Facsimile	 	 	 
	Number/E-Mail
    Address/Telephone Number of	 	Original
    Principal	 
	Subscriber	 	Amount
    of Note	 
	 	 	 	 
	Digital
    Power Lending, LLC	 	$4,100,000.00	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	With
    a copy to (which shall not constitute notice):Exhibit
10.25

 

SENIOR
SECURED CONVERTIBLE PROMISSORY NOTE

 

NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. 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.

 

	Original
    Issue Date: August 23, 2022	Principal
    Amount: $4,100,000.00
	Note
    No. 10	 

 

8%
SENIOR SECURED CONVERTIBLE PROMISSORY NOTE

 

This
8% SENIOR SECURED CONVERTIBLE PROMISSORY NOTE is issued by ADAMAS ONE CORP., a Nevada corporation (the “Company” or
“Borrower”), having its principal place of business at 17767 N. Perimeter Dr., Suite B115, Scottsdale, Arizona 85255,
designated as its eight percent (8%) Senior Secured Convertible Note will be due and payable by the Company at any time on or after one
(1) year from the Original Issue Date noted above upon demand by the Holder unless extended pursuant to the terms herein (the “Note”
and, collectively with the other 8% Senior Secured Convertible Promissory Notes issued by the Company pursuant to the Senior Secured
Convertible Note Purchase Agreement (the “Notes”). This Note is offered and issued pursuant to the Senior Secured
Convertible Note Purchase Agreement (the “Agreement”) which is incorporated herein by reference as if set out in full
and is made a part hereof, and if there is any conflict between the terms of this Note and the Agreement, the terms of the Agreement
shall govern. Terms not defined in this Note shall have the definitions ascribed to them in the Agreement.

 

FOR
VALUE RECEIVED, the Company promises to pay to Digital Power Lending, LLC, or its registered assigns and successors (the “Holder”)
in accordance with the Agreement and the terms hereof the principal sum of $4,100,000.00 (“Principal Amount”) plus
all of the accrued interest noted herein and all other amounts owing pursuant to the terms of the Agreement and this Note. will be due
and payable by the Company on August 23, 2023 (the “Maturity Date”) or such earlier date as this Note is required
or permitted to be repaid as provided hereunder, and to pay interest to the Holder on the then outstanding principal amount of this Note
in accordance with the provisions hereof. All payments under or pursuant to this Note shall be made without setoff, counterclaim or other
defense, in United States Dollars in immediately available funds to the Holder at the address of the Holder set forth in the Agreement
or at such other place as the Holder may designate from time to time in writing to the Company or by wire transfer of funds to the Holder’s
account as instructed in writing by the Holder. All payments received by the Holder will be applied first to any expenses to which it
is entitled, then to accrued Interest (and/or Default Interest), and any remainder applied to the unpaid principal amount. Whenever any
payment hereunder is due on a day other than a Business Day, such payment will be made on the immediately following Business Day. Upon
payment in full of the outstanding principal balance of this Note and all accrued and unpaid Interest thereon and other Obligations hereunder
or upon the conversion of all Obligations hereunder, this Note will be automatically cancelled. This Note is subject to the following
additional provisions:

    1

     

    

Section
1. Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Note, capitalized terms not otherwise
defined herein shall have the meanings set forth in the Agreement.

 

Section
2. Interest.

 

(a)       Interest
Calculations. Interest shall be calculated at the rate of eight percent (8.0%), unless the Default Interest Rate (defined below)
is applicable, on the basis of a 360-day year, consisting of twelve thirty (30) calendar day periods, and shall accrue daily commencing
on the date of this Note (“Interest”), until payment in full or conversion of the outstanding principal, together
with all accrued and unpaid interest, fees, expenses, liquidated damages and other amounts which may become due hereunder (the “Obligation”),
has been made. Interest shall cease to accrue on the Conversion Date with respect to the Obligation converted, provided that the Company
actually delivers the Conversion Shares within the time period required by Section 3(c)(i) herein.

 

(b)       Default
Interest Rate. Following the occurrence of an Event of Default under Section 8 hereof, this Note shall accrue interest at an annual
interest rate of fifteen percent (15%) (the “Default Interest Rate” being “Default Interest”).

 

(c)       No
Prepayment. The Company may not prepay any portion of the principal amount, plus all accrued and unpaid Interest and all other Obligations
of this Note without the prior written consent of the Holder, which consent may be withheld by Holder in its sole discretion.

 

Section
3. Conversion.

 

(a)       Optional
Conversion. Subject to Section 3(e) below, at any time while this Note is outstanding (“Conversion Date”), at
the discretion of the Holder, the Holder may elect, upon written notice to the Company as set forth in Annex B, to convert
all or any portion of the Principal Amount of the Note, plus all then accrued and unpaid Interest, into Conversion Shares of the
Company at the Conversion Price as set forth in the Agreement.

 

		(b)	Conversion
                                            Warrants. At the closing of the Agreement, the Company shall issue to Holder a Warrant
                                            to purchase the Common Stock of the Company as set forth in the Agreement (the “Warrant
                                            Shares”).

 

		(c)	Mechanics
                                            of Conversion.

 

(i)       Delivery
of Certificate Upon Conversion; Payment of Transfer Taxes. Not later than three (3) Business Days after the Conversion Date (the
“Share Delivery Date”), the Company shall deliver, or cause to be delivered, to the Holder a certificate or certificates
representing the Conversion Shares. If Conversion Shares are to be issued in the name of a Person other than the present Holder, the
Holder will pay all transfer taxes payable with respect thereto and will deliver the Note for cancellation. No fee will be charged to
the Holder for any conversion, except for such transfer taxes, if any. In lieu of issuing fractional Conversion Shares upon conversion
of all or any portion of this Note, the Company shall pay cash in an amount equal to the product of the then applicable Conversion Price
Per Conversion Share and the number of fractional shares that would otherwise be issuable hereunder. If less than all of the outstanding
principal amount of this Note is converted pursuant to the terms of the Agreement and this Note, the Company will additionally deliver
to the Holder an amended and restated Note, containing an original principal amount equal to that portion of the then-outstanding principal
amount not converted containing the other terms and provisions of this Note and otherwise in form and substance reasonably satisfactory
to the Holder. Upon the conversion of this Note, all rights of the Holder, except the right to receive the Conversion Shares in accordance
with the Agreement and this Note, will cease as to that portion of the Note so converted and this Note will no longer be deemed to be
outstanding as to that portion of the Note so converted.

    2

     

    

(ii)       Failure
to Deliver Certificates. If, upon conversion pursuant to Section 3(a), such Conversion Share certificate or certificates are not
delivered to or as directed by the applicable Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice
to the Company at any time on or before its receipt of such certificate or certificates to rescind such Conversion, in which event the
Company shall promptly return to the Holder any original Note delivered to the Company.

 

(iii)       Obligation
Absolute. The Company’s obligations to issue and deliver the Conversion Shares upon conversion of this Note in accordance
with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any
waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the
same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other
Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and
irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with
the issuance of such Conversion Shares; provided, however, that such delivery shall not operate as a waiver by the Company of any
such action the Company may have against the Holder.

 

(d)       Adjustment.
The number of Conversion Shares issuable upon conversion of this Note or any portion thereof (or any shares of stock or other securities
or property at the time receivable or issuable upon conversion of this Note or any portion thereof) and the Conversion Price therefor
are subject to adjustment upon the occurrence of any of the following events between the Original Issue Date and the date that all Obligations
hereunder are repaid or this Note is converted into Conversion Shares:

 

(i)       Adjustment
Upon Issuance of Common Stock. If, while this Note is outstanding, the Company effects a Subsequent Financing (as herein defined),
or in accordance with this Section 3(d) is deemed to have effected a Subsequent Financing, any shares of Common Stock (including the
issuance or sale of shares of Common Stock owned or held by or for the account of the Company) issued or sold or deemed to have been
issued or sold) for a consideration per share (the “New Issuance Price”) less than a price equal to the Conversion Price
in effect immediately prior to such issue or sale or deemed issuance or sale (such Conversion Price then in effect is referred to as
the “Applicable Price”) (the foregoing a “Dilutive Issuance”),then immediately after such Dilutive
Issuance, the Conversion Price then in effect shall be reduced (and in no event increased) to the price per share equal to the New Issuance
Price.

 

For all purposes of the foregoing (including, without limitation, determining the adjusted Conversion Price and consideration per
share under this Section 3(d)), the following shall be applicable:

 

(1)       Issuance
of Options. If the Company in any manner grants or sells any Options (as herein defined) and the lowest price per share for which
one share of Common Stock is issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible
Securities issuable upon exercise of any such Option is less than the Applicable Price, then such share of Common Stock shall be deemed
to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such price per
share. For purposes of this Section 3(d)(i)(1), the “lowest price per share for which one share of Common Stock is issuable upon
the exercise of any such Options or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any
such Option” shall be equal to (A) the sum of the lowest amounts of consideration (if any) received or receivable by the Company
with respect to any one share of Common Stock upon the granting or sale of such Option, upon exercise of such Option and upon conversion,
exercise or exchange of any Convertible Security (as herein defined) issuable upon exercise of such Option minus (B) the sum of all amounts
paid or payable to the holder of such Option (or any other Person) upon the granting or sale of such Option, upon exercise of such Option
and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option plus the value of any other
consideration received or receivable by, or benefit conferred on, the holder of such Option (or any other Person). Except as contemplated
below, no further adjustment of the Conversion Price shall be made upon the actual issuance of such shares of Common Stock or of such
Convertible Securities upon the exercise of such Options or upon the actual issuance of such shares of Common Stock upon conversion,
exercise or exchange of such Convertible Securities.

    3

     

    

(2)       Issuance
of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and the lowest price per share
for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof is less than the Applicable Price,
then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the
issuance or sale of such Convertible Securities for such price per share. For the purposes of this Section 3(d)(i)(2), the “lowest
price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof” shall be equal
to (A) the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to one share of Common
Stock upon the issuance or sale of the Convertible Security and upon conversion, exercise or exchange of such Convertible Security minus
(B) the sum of all amounts paid or payable to the holder of such Convertible Security (or any other Person) upon the issuance or sale
of such Convertible Security plus the value of any other consideration received or receivable by, or benefit conferred on, the holder
of such Convertible Security (or any other Person). Except as contemplated below, no further adjustment of the Conversion Price shall
be made upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities,
and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of this Note has
been or is to be made pursuant to other provisions of this Section 3(d), except as contemplated below, no further adjustment of the Conversion
Price shall be made by reason of such issue or sale.

 

(3)       Change
in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the additional consideration,
if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible
Securities are convertible into or exercisable or exchangeable for shares of Common Stock increases or decreases at any time, the Conversion
Price in effect at the time of such increase or decrease shall be adjusted to the Conversion Price which would have been in effect at
such time had such Options or Convertible Securities provided for such increased or decreased purchase price, additional consideration
or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section
3(d)(i)(3), if the terms of any Option or Convertible Security that was outstanding as of the date of issuance of this Note are increased
or decreased in the manner described in the immediately preceding sentence, then such Option or Convertible Security and the shares of
Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such
increase or decrease. No adjustment pursuant to this Section 3(d) shall be made if such adjustment would result in an increase of the
Conversion Price then in effect.

 

(4)       Calculation
of Consideration Received. If any Option or Convertible Security is issued in connection with the issuance or sale or deemed issuance
or sale of any other securities of the Company, together comprising one integrated transaction, (A) such Option or Convertible Security
(as applicable) will be deemed to have been issued for consideration equal to the Black Scholes Consideration Value (as herein defined)
thereof and (B) the other securities issued or sold or deemed to have been issued or sold in such integrated transaction shall be deemed
to have been issued for consideration equal to the difference of (1) the aggregate consideration received by the Company, minus
(2) the Black Scholes Consideration Value of each such Option or Convertible Security (as applicable). If any Common Stock, Options or
Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be
deemed to be the net amount of consideration received by the Company therefor. If any Common Stock, Options or Convertible Securities
are issued or sold for a consideration other than cash, the amount of such consideration received by the Company will be the fair value
of such consideration, except where such consideration consists of publicly traded securities, in which case the amount of consideration
received by the Company for such securities will be the arithmetic average of the VWAP (as herein defined) of such security for each
of the five (5) Business Days immediately preceding the date of receipt. If any Common Stock, Options or Convertible Securities are issued
to the owners of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration
therefor will be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is attributable
to such Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash or publicly
traded securities will be determined jointly by the Company and the Holder. If such parties are unable to reach agreement within ten
(10) days after the occurrence of an event requiring valuation (the “Valuation Event”), the fair value of such consideration
will be determined within five (5) Business Days after the tenth (10th) day following such Valuation Event by an independent,
reputable appraiser jointly selected by the Company and the Holder. The determination of such appraiser shall be final and binding upon
all parties absent manifest error and the fees and expenses of such appraiser shall be borne by the Company.

    4

     

    

(5)       Record
Date. If the Company takes a record of the holders of Common Stock for the purpose of entitling them (A) to receive a dividend or
other distribution payable in Common Stock, Options or in Convertible Securities or (B) to subscribe for or purchase shares of Common
Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or sale of the shares of Common
Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of
the granting of such right of subscription or purchase (as the case may be).

 

(6)       Definitions. For purposes of this Note, the following terms shall have the following meanings:

 

“Black
Scholes Consideration Value” means the value of the applicable Option or Convertible Security (as the case may be) as of the
date of issuance thereof calculated using the Black Scholes Option Pricing Model obtained from the “OV” function on Bloomberg
utilizing (i) an underlying price per share equal to the Closing Sale Price of the Common Stock on the Business Day immediately preceding
the public announcement of the execution of definitive documents with respect to the issuance of such Option or Convertible Security
(as the case may be), (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term
of such Option or Convertible Security (as the case may be) as of the date of issuance of such Option or Convertible Security (as the
case may be) and (iii) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function
on Bloomberg (determined utilizing a 365 day annualization factor) as of the Business Day immediately following the date of issuance
of such Option or Convertible Security (as the case may be).

 

“Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price and
the last closing trade price, respectively, for 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 average of the bid prices, or the ask prices, respectively,
of all of the market makers for such security as reported by the principal market or exchange on which the Common Stock then currently
trades or is quoted. 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 in accordance with the procedures in Section 9(i). All such determinations
shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

“Convertible
Securities” means any capital stock or other security of the Company that is at any time and under any circumstances directly
or indirectly convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any capital
stock or other security of the Company (including, without limitation, Common Stock).

    5

     

    

“Options”
means any rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

 

“Subsequent
Financing” means an offering of any equity security or any equity-linked or related security (including, without limitation,
any “equity security” (as that term is defined under Rule 405 promulgated under the Securities Act), any Convertible Securities,
debt (with or related to equity), any preferred stock or any purchase rights) other than (i) the Company's issuance of Common Stock or
the issuance or grants of options to purchase Common Stock to eligible officers, employees or directors of, or consultants to, the Company,
pursuant to the Company's stock option plans and employee stock purchase plans as they now exist or the issuance of Common Stock or the
issuance or grants of options to purchase Common Stock pursuant to amendments to existing stock incentive or employee stock purchase
plans or new stock incentive or employee stock purchase plans adopted after the date of this Agreement which are approved by the Board
of Directors so long as such issuances in the aggregate do not exceed 10% of the total shares of Common Stock issued and outstanding,
as of the original issue date of this Note and (ii) the exercise or conversion of Options or Convertible Securities issued and outstanding
as of the original issue date of this Note, provided, however, that any amendments to such Options or Convertible Securities shall be
deemed a Subsequent Financing.

 

“VWAP”
means, for any security as of any date, the dollar volume-weighted average price for such security on the principal securities exchange
or securities market on which such security is then traded during the period beginning at 9:30:01 a.m., New York time, and ending at
4:00:00 p.m., New York time, as reported by Bloomberg through its “Volume at Price” function or, if the foregoing does not
apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin board for
such security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg,
or, if no dollar volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the three highest
Closing Bid Prices and the three lowest closing ask prices of all of the market makers for such security as reported by the principal
market or exchange on which the Common Stock then currently trades or is quoted. If VWAP cannot be calculated for such security on such
date on any of the foregoing bases, the VWAP 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 in accordance with the procedures in Section 9(i). All such determinations shall be appropriately adjusted for any
stock dividend, stock split, stock combination or other similar transaction during such period.

 

(ii)       The
Conversion Price of this Note will be proportionally adjusted to reflect any stock dividend, stock split, reverse stock split, reclassification,
recapitalization or other similar event affecting the number of outstanding Conversion Shares.

 

(iii)       In
case of any reorganization, reclassification or similar event involving the Company (or of any other corporation the stock or other securities
of which are at the time receivable on the conversion of this Note) after the Original Issue Date, or in case, after such date, the Company
(or any such corporation) shall consolidate with or merge with another entity, then, and in each such case, the Holder, upon the conversion
of this Note at any time after the consummation of such reorganization, consolidation or merger, will be entitled to receive, in lieu
of the stock or other securities and property receivable upon the conversion of this Note prior to such consummation, the stock or other
securities or property to which the Holder would have been entitled upon the consummation of such reorganization, consolidation or merger
if the Holder had converted this Note immediately prior thereto, subject to further adjustment as provided in this Note, and, in such
case, appropriate adjustment (as determined in good faith by the Board of Directors of the Company) will be made in the application of
the provisions in this Section with respect to the rights and interests thereafter of the Holder, to the end that the provisions set
forth in this Section will thereafter be applicable, as nearly as reasonably may be, in relation to any securities or other property
thereafter deliverable upon the conversion of this Note. The successor or purchasing corporation in any such reorganization, consolidation
or merger (if other than the Company) will duly execute and deliver to the Holder a supplement hereto reasonably acceptable to the Holder
acknowledging such entity’s obligations under this Note and, in each such case, the terms of the Note will be applicable to the
shares of stock or other securities or property receivable upon the conversion of this Note after the consummation of such reorganization,
consolidation or merger.

    6

     

    

(iv)       In
case all the authorized Conversion Shares of the Company is converted, pursuant to the Company’s Articles of Incorporation, into
other securities or property, or the Common Stock otherwise ceases to exist, then, in such case, the Holder, upon conversion of this
Note at any time after the date on which the Common Stock is so converted or ceases to exist (the “Termination Date”),
will receive, in lieu of the number of Conversion Shares that would have been issuable upon such exercise immediately prior to the Termination
Date (the “Former Number of Conversion Shares”), the stock and other securities and property which the Holder would
have been entitled to receive upon the Termination Date if the Holder had converted this Note with respect to the Former Number of Conversion
Shares immediately prior to the Termination Date (all subject to further adjustment as provided in this Note).

 

(v)       The
Company will, at its expense, cause an authorized officer promptly to prepare a written certificate showing each adjustment or readjustment
of the Conversion Price or the number of Conversion Shares or other securities issuable upon conversion of this Note and cause such certificate
to be delivered to the Holder in accordance with the notice provisions of the Agreement. The certificate will describe the adjustment
or readjustment and include a description in reasonable detail of the facts on which the adjustment or readjustment is based. The form
of this Note need not be changed because of any adjustment in the Conversion Price or in the number of Conversion Shares issuable upon
its conversion.

 

(e)       Limitations
on Exercises and Exchanges. Notwithstanding anything to the contrary contained in this Note, this Note shall not be convertible by
the Holder hereof to the extent (but only to the extent) that the Holder or any of its affiliates would beneficially own in excess of
9.99% of the number of shares of Common Stock outstanding after giving effect to the issuance of shares of Common Stock issuable upon
conversion of the Note calculated in accordance with Section 13(d) of the Exchange Act (the “Maximum Percentage”).
To the extent the above limitation applies, the determination of whether this Note shall be convertible or exchangeable (vis-à-vis
other convertible, exercisable or exchangeable securities owned by the Holder or any of its affiliates) and of which such securities
shall be exercisable or exchangeable (as among all such securities owned by the Holder) shall, subject to such Maximum Percentage limitation,
be determined on the basis of the first submission to the Company for conversion, exercise or exchange (as the case may be). No prior
inability to convert or exchange this Note pursuant to this paragraph shall have any effect on the applicability of the provisions of
this paragraph with respect to any subsequent determination of convertibility or exchangeability. For the purposes of this paragraph,
beneficial ownership and all determinations and calculations (including, without limitation, with respect to calculations of percentage
ownership) shall be determined in accordance with Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder.
The provisions of this paragraph shall be implemented in a manner otherwise than in strict conformity with the terms of this paragraph
to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Maximum Percentage beneficial
ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such Maximum
Percentage limitation. The limitations contained in this paragraph shall apply to a successor Holder of this Note. For any reason at
any time, upon the written or oral request of the Holder, the Company shall within two (2) Business Days confirm orally and in writing
to the Holder the number of shares of Common Stock then outstanding, including by virtue of any prior conversion or exercise or exchange
of convertible or exercisable or exchangeable securities into shares of Common Stock, including, without limitation, pursuant to this
Note or securities issued pursuant to the Purchase Agreement, including any Warrants issued in conjunction with this Note.

 

Section
4. Tax Treatment. The Holder and the Company agree to treat this Note and the Obligations evidenced hereby as Indebtedness
for federal, state, local and foreign tax purposes.

    7

     

    

Section
5. Use of Proceeds. The Company shall use the proceeds of this Note as set forth in the Agreement.

 

Section
6. Ranking. The Obligations of the Company under this Note shall be senior to all other existing and future indebtedness and
equity of the Company. Upon any Liquidation Event (as hereinafter defined), the Holder will be entitled to receive, before any distribution
or payment is made upon, or set apart with respect to, any indebtedness of the Company or any class of capital stock of the Company,
an amount equal to the outstanding Principal Amount plus all accrued interest thereon (if any) plus all expenses due hereunder. For purposes
of this Note, “Liquidation Event” means a liquidation pursuant to a filing of a petition for bankruptcy under applicable
law or any other insolvency or debtor’s relief, an assignment for the benefit of creditors, or a voluntary or involuntary liquidation,
dissolution or winding up of the affairs of the Company.

 

Section
7. Secured Note. The full Principal Amount of this Note, all accrued and unpaid Interest and all expenses and other Obligations
due and payable hereunder is secured by the Collateral (as defined in the Security Agreement) identified and described as security therefor
in the Security Agreement (as amended and in effect from time to time, the “Security Agreement”) by and between the
Company and the Holder and dated the date of this Note as set forth in Annex A hereto which is incorporated herein and made a
part hereof (“Security Agreement”).

 

Section
8. Events of Default.

 

(a)       “Event
of Default” means, wherever used herein, any of the following events (whatever the reason for such event and whether such event
shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order,
rule or regulation of any administrative or governmental body):

 

(i)       any
default in the payment of; (A) the Principal Amount of, or interest on, this Note and other amounts owing to a Holder under this Note,
as and when the same shall become due and payable (whether on a Conversion Date, or the Maturity Date or by acceleration or otherwise)
which default is not cured within three (3) Business Days; or

 

(ii)       the
Company shall fail to observe or perform any other covenant or agreement contained in the Note, the Security Agreement, the Warrant or
the Agreement which failure is not cured, if possible to cure, within the earlier to occur of: (A) thirty (30) days after notice of such
failure sent by the Holder or by any other Holder to the Company or (B) forty-five (45) days after the Company has become or should have
become aware of such failure; or

 

(iii)       any
representation or warranty made in this Note, the Warrant, the Security Agreement or the Agreement or any written statement by the Company
pursuant hereto or thereto or any other report, financial statement or certificate made or delivered by the Company to the Holder or
any other Holder shall be untrue or incorrect in any material respect as of the date when made or deemed made; or

 

(iv)       the
Company’s notice to the Holder, including by way of public announcement, at any time, of its inability to comply or its intention
not to comply with proper requests for conversion of this Note into Conversion Shares or the failure to timely deliver the Conversion
Shares or the Warrant Shares as required by this Note, the Warrant or the Agreement; or

 

(v)       any
default in the performance or observance of any material covenant, condition or agreement contained in the Agreement, the Warrant or
the Security Agreement or any other document related to this transaction that is not covered by any other provisions of this Section;
or

 

(vi)       at
any time the Company shall fail to have a sufficient number of shares of Conversion Shares or Warrant Shares authorized, reserved and
available for issuance to satisfy the potential conversion in full (disregarding for this purpose any and all limitations of any kind
on such conversion) of this Note or upon exercise of the Warrant, respectively; or

    8

     

    

(vii)       unless
otherwise approved in writing in advance by the Holder, a Change of Control shall be consummated by the Company. A “Change of
Control” will occur, as determined in good faith by the

 

Holder,
when: (A) when a Person (or Persons acting as a group) acquires (by transfer or issuance) stock that, together with stock already owned
by such Person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company;
or (B) when any Person (or more than one Person acting as a group) acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such Person or Persons) ownership of stock of the Company possessing 30% or more of the total
voting power of the stock; or (C) a majority of the members of the Company’s board of directors are replaced during any 12-month
period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s board of directors
before the date of the appointment or election; or (D) one unrelated Person (or more than one unrelated Person acting as a group) acquires
within a 12-month period, assets (including stock or other assets) from the Company’s business that have a total gross fair market
value equal to 40% or more of the total gross fair market value of all of the assets of the business immediately before such acquisition
or acquisitions; or

 

(viii)       the
Company or any of its Subsidiaries shall: (A) apply for or consent to the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of all or a substantial part of its property or assets; (B) make a general assignment for
the benefit of its creditors; (C) commence a voluntary case under the United States Bankruptcy Code (as now or hereafter in effect) or
under the comparable laws of any jurisdiction (foreign or domestic); (D) file a petition seeking to take advantage of any bankruptcy,
insolvency, moratorium, reorganization or other similar law affecting the enforcement of creditors’ rights generally; (E) acquiesce
in writing to any petition filed against it in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect)
or under the comparable laws of any jurisdiction (foreign or domestic); (F) take any action to dissolve its corporate existence, wind
up its operations or liquidate its assets; (G) issue a notice of bankruptcy or winding down of its operations or issue a press release
regarding same; or (H) take any action under the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing; or

 

(ix)       a
proceeding or case shall be commenced in respect of the Company or any of its Subsidiaries, without its application or consent, in
any court of competent jurisdiction, seeking: (A) the liquidation, reorganization, moratorium, dissolution, winding up, or
composition or readjustment of its debts; (B) the appointment of a trustee, receiver, custodian, liquidator or the like of it or of
all or any substantial part of its assets in connection with the liquidation or dissolution of the Company or any of its
Subsidiaries; or (C) similar relief in respect of it under any law providing for the relief of debtors, and such proceeding or case
described in clause (A), (B) or (C) shall continue undismissed, or unstayed and in effect, for a period of forty-five (45) days or
any order for relief shall be entered in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect) or
under the comparable laws of any jurisdiction (foreign or domestic) against the Company or any of its Subsidiaries or action under
the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing shall be taken with respect to the Company or
any of its Subsidiaries and shall continue undismissed, or unstayed and in effect for a period of forty-five (45) days;
or

 

(x)       the
occurrence of a Material Adverse Effect in respect of the Company, or the Company and its Subsidiaries taken as a whole as determined
in good faith by the Holder; or

 

(xi)       the
Company fails to complete the Initial Public Offering within 90 days after the Closing.

    9

     

    

(b)       Remedies
Upon Event of Default. Upon the occurrence of any Event of Default, the Company shall, as promptly as possible but in any event within
one Business Day of the occurrence of such Event of Default, notify the Holder of the occurrence of such Event of Default, describing
the event or factual situation giving rise to the Event of Default and specifying the relevant subsection or subsections of Section 7(a)
hereof under which such Event of Default has occurred. If Any Event of Default occurs:

 

(i)       as
of the date of the Event of Default if there is no cure period, or on the date immediately following the last day of any cure period,
the interest rate on this Note shall change to the Default Interest Rate and such interest shall commence to accrue at that rate on such
date, which Default Interest shall be paid in cash to the Holder by the Company on the last Business Day of each of March, June, September
and December; and,

 

(ii)       as
of the date of the Event of Default if there is no cure period, or on the date immediately following the last day of any cure period,
the Holder shall have the right, in its sole and absolute discretion, to declare all or any portion of the outstanding Principal
Amount and all accrued and unpaid Interest and all expenses due hereunder immediately due and payable in cash without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the Company. In connection with such acceleration described herein,
the Holder need not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind (other than
the Holder’s election to declare such acceleration), and the Holder may immediately and without expiration of any grace period
enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Any acceleration
may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of the
Note until such time, if any, as the Holder receives full payment pursuant to this Section. No such rescission or annulment shall affect
any subsequent Event of Default or impair any right consequent thereon. In addition, upon the occurrence and during the continuation
of an Event of Default, the Holder, in its sole and absolute discretion, may exercise or otherwise enforce any one or more of the Holder's
rights, powers, privileges, remedies and interests under this Note, the Agreements, the other transaction documents and applicable law.
No course of dealing or delay on the part of the Holder shall operate as a waiver thereof or otherwise prejudice the rights of the Holder.
No remedy conferred hereby shall be exclusive of any other remedy referred to herein or now or hereafter available at law, in equity,
by statute or otherwise. Upon the payment in full of all amounts owing hereunder (including, without limitation, principal, interest,
and all other amounts owing hereunder), the Holder shall promptly surrender this Note for cancellation to or as directed by the Company;
and,

 

(iii)       number
of Warrant Shares for which the Warrant will be exercisable will increase to an amount equal to fifty percent (50%) of the number of
shares received by Subscriber from the conversion of the Note; and,

 

(iv)       take
all other action under law or equity to enforce and collect the Obligations due hereunder in any order and in any manner as the Holder
may determine in its sole discretion.

 

Section
9. Miscellaneous.

 

(a)       Notices.
Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation,
any Notice of Conversion, shall be in writing and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized
overnight courier service, addressed to the Company at the address set forth above (or such other address as the Company may specify
for such purposes by notice to the Holder delivered in accordance with this Section 9(a)), its facsimile number or its email address,
as applicable. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing
and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized overnight courier service addressed to
each Holder at such Holder’s address appearing on the books of the Company (or such other address as the Holder may specify for
such purposes by notice to the Company delivered in accordance with this Section 9(a)), such Holder’s facsimile number or email
address, as applicable. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest
of: (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment
to the email address set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on any date with receipt
acknowledged, (ii) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile at
the facsimile number or email attachment to the email address set forth on the signature pages attached hereto on a day that is not a
Business Day or later than 5:30 p.m. (New York City time) on any Business Day with receipt acknowledged, (iii) the fourth Business Day
following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (iv) upon actual receipt by the party
to whom such notice is required to be given.

    10

     

    

(b)       Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the Obligations of the Company,
which are absolute and unconditional, to pay the principal of, and accrued interest and any expenses, as applicable, on this Note at
the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company. The
Company will not by amendment of its articles of incorporation or bylaws, or through reorganization, consolidation, merger, dissolution,
issue or sale of securities, sale of assets or any other voluntary action, willfully avoid or seek to avoid the observance or performance
of any of the terms of this Note, but will at all times in good faith assist in the carrying out of all such terms and in the taking
of all such action as may be necessary or appropriate in order to protect the rights of the Holder under this Note against wrongful impairment.
The Company shall not set-off any amounts due under this Note. The obligations of the Company and the Holder set forth herein shall be
binding upon the successors and assigns of each such party, whether or not such successors or assigns are permitted by the terms herein.

 

(c)       Lost
or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note,
a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss,
theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company as set forth in the Agreement.

 

(d)       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflict of laws thereof.
This Note shall not be interpreted or construed with any presumption against the party causing this Note to be drafted. Each party hereby
irrevocably waives personal service of process and consents to process being served in any action or proceeding relating to the enforcement
or interpretation of this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery)
to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any
other manner permitted by applicable law. If any party shall commence an action or proceeding to enforce any provisions of this Note,
then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other
costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

(e)       Waiver.
Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver
of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Company or the Holder
to insist upon strict adherence to any term of this Note on one (1) or more occasions shall not be considered a waiver or deprive that
party of the right thereafter to insist upon strict adherence to that term or any other term of this Note on any other occasion. Any
waiver by the Company or the Holder must be in writing and signed by the waiving party. The Company hereby waives presentment, demand,
notice of nonpayment, protest and all other demands’ and notices in connection with the delivery, acceptance, performance and enforcement
of this Note, AND DOES HEREBY WAIVE TRIAL BY JURY. The Company further acknowledges that the transaction of which this Note is a part
is a commercial transaction, and to the extent allowed by applicable law, hereby waives its right to notice and hearing with respect
to any prejudgment remedy which the Holder or its successors or assigns may desire to use.

    11

     

    

(f)       Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision
is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it
shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable
rate of interest due hereunder shall automatically be lowered to equal the maximum rate permitted by law. The Company covenants (to the
extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit
or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion
of the principal of or interest on this Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which
may affect the covenants or the performance of this Note, and the Company (to the extent it may lawfully do so) hereby expressly waives
all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution
of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

(g)       Additional
Provisions Regarding 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 at law or in equity (including a decree of specific
performance and/or other injunctive relief), and nothing herein shall limit the Holder’s right to pursue actual and consequential
damages for any failure by the Company to comply with the terms of this Note. The Company covenants to the Holder that there shall be
no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with
respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall
not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company
acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for
any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder
shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened breach,
without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information
and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the Company’s compliance with the
terms and conditions of this Note.

 

(h)       Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day.

 

(i)       Dispute
Resolution. In the case of a dispute as to the determination of the Conversion Price or the arithmetic calculation of the Conversion
Shares (as the case may be), the Company or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations
(as the case may be) via facsimile (i) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute
to the Company or the Holder (as the case may be) or (ii) if no notice gave rise to such dispute, at any time after the Holder or the
Company (as the case may be) learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to agree
upon such determination or calculation (as the case may be) within three (3) Business Days of such disputed determination or arithmetic
calculation being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business Days submit
via facsimile (a) the disputed arithmetic calculation of the Conversion Shares and the disputed determination of the Conversion Price
to an independent, reputable investment bank selected by the Holder, with the consent of the Company (which may not be unreasonably withheld,
conditioned or delayed), or (b) if acceptable to the Holder, the disputed arithmetic calculation of the Conversion Shares and the disputed
determination of the Conversion Price to the Company’s independent, outside accountant. The Company shall cause at its expense the
investment bank or the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify
the Company and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations
or calculations (as the case may be). Such investment bank’s or accountant’s determination or calculation (as the case may
be) shall be binding upon all parties absent demonstrable error. The fees and expenses of such investment bank or accountant shall be
borne by the parties in the same proportion as the respective amounts by which the investment bank’s or accountant’s determination
differs from such party’s calculation.

    12

     

    

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

 

(k)       Counterparts.
This Note 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. Executed counterparts of this Note may be delivered by facsimile transmission or by delivery of a scanned counterpart
in portable document format (PDF) by e-mail. The signatures in the facsimile or PDF data file will be deemed to have the same force and
effect as if the manually signed counterpart had been delivered to the other party in person.

 

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

 

(Signature
Pages Follow)

    13

     

    

IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

 

COMPANY
(AS BORROWER):

 

ADAMAS
ONE CORP.,

a
Nevada corporation

 

	By: 	/s/
    John Grdina

John
    Grdina

Chief
Executive Officer

 

HOLDER
(AS LENDER):

 

DIGITAL
POWER LENDING, LLC

 

	By: 	/s/
    David J. Katzoff

David
J. Katzoff

Manager

     

     

    

FORM
OF CONVERSION NOTICE

 

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

 

The
undersigned hereby irrevocably elects to convert $ ________________ of the Principal Amount and all accrued interest of the above Note
No. 10 into shares of Common Stock of ADAMAS ONE CORP. at the Conversion Price according to the terms and conditions of said Note and
agreements related thereto, as of the date written below.

 

Date
of Conversion: ___________________, 202__

 

	 	[HOLDER]
	 	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	Address:

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