Document:

Blueprint

 

 Exhibit 10.3

 

 CONTRACT SERVICE AGREEMENT

 

This
Service Agreement (“Agreement”) is entered effective
as of the 1st day of October, 2018, between VIVI HOLDINGS, INC., a Delaware
corporation (the “Company”), whose address is 951
Yamato Road, Suite 101, Boca Raton, FL 33431 and Alejandro
Villicana as contracted to Vivi Holdings, Inc., whose address is
listed below his signature (“Contractor”).

 

 

BACKGROUND

 

WHEREAS, the Company desires to hire the
Contractor;

 

WHEREAS, Contractor desires to be hired by
the Company and understands this Agreement and acknowledges that he
has been given a fair opportunity to discuss it with an
attorney.

 

NOW, THEREFORE, in consideration of the
representations, covenants and promises contained in this Agreement
and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and
Contractor, each intending to be legally bound, agree as
follows:

 

TERMS

 

1. Background.
The Background statements set forth above are true and correct and
are incorporated into this Agreement.

 

2. Term of
Service. The Company
hereby employs Contractor as its Chief Controller Officer to
perform the duties described in Section 3 and Contractor hereby
accepts such Service by the Company, on the terms and conditions
herein contained and subject to the policies and procedures adopted
by the Company from time to time, for a term of one year commencing
on October 1, 2018 (the “Term”).

 

3. Duties.

 

A. General Duties. As Chief
Controller Officer of the Company, Contractor will have general
responsibility for the oversight of the accounting and financial
reporting of the Company and such other powers and duties customary
to such position. Contractor shall perform her duties and
obligations hereunder diligently, faithfully and completely, and
with Contractor’s application of her abilities, skills and
judgment and in accordance with ethical and professional standards.
More specifically as described in the Job Description
attached.

 

B. Additional Activities.
Contractor agrees that during the Term
of this Agreement she shall not: (i) engage in other business
activities of any kind which would give rise to a conflict of
interest for Contractor with respect to her duties and obligations
to the Company and under this Agreement, (ii) directly or
indirectly, engage in any activities which may damage the business
of the Company or which may adversely affect the goodwill,
reputation or business relations of the Company with its customers,
the public generally or with any of its other
Contractors.

 

4. Compensation.
The Company shall pay Contractor a base monthly salary of $8,000.00
(the “Compensation”).

 

(a) 

Bonus -
Contractor will be eligible to participate in a bonus program
commensurate with Contractor’s performance and the
profitability of the Company should the Company Board of Directors
implement a bonus program. All determinations of the payment and
amounts of a bonus, if awarded, shall be at the sole discretion of
the Company’s Board of Directors, based upon the
recommendations given to the Board by the managers of the Company.
The Board may amend and change the bonus program at any time in its
sole discretion. In the event the Board of Directors implements a
bonus program, notwithstanding the Contractor will be eligible to
participate, does not mean that any bonus award will necessarily be
granted to Contractor. Any such bonus grant is completely at the
discretion of the Board of Directors.

 

(b) 

Equity Incentive
Plan. Contractor will be eligible to participate in the 2018
Equity Incentive Plan (the “Plan”) should the Company Board of
Directors implement such a plan. All determinations of any award
under the Plan, if awarded, shall be at the sole discretion of the
Company’s Board of Directors. The Board may amend and change
the Plan at any time in its sole discretion. In the event the Board
of Directors implements a Plan, notwithstanding the Contractor will
be eligible to participate, does not mean that any award under the
Plan will necessarily be granted to Contractor. Any such Plan award
is completely at the discretion of the Board of
Directors.

 

5. Benefits.
During the Term, Contractor shall have the ability to participate
in the benefits, adopted by the Company for its Contractors
similarly situated to Contractor, such as health (the
“Benefits”). The
Contractor shall be entitled to take vacation days, and
sick/personal days in each calendar year as determined by Company
policy.

 

 

1

 

 

6. Reimbursement of
Expenses.
During the Term, the Company may
reimburse Contractor for all preapproved ordinary and necessary
business expenses, incurred by him in connection with the
performance of her responsibilities and duties hereunder.
Reimbursement of any such expenses subject to submission by
Contractor to the Company of vouchers itemizing such expenses in a
form satisfactory to the Company, properly identifying the nature,
amount and business purpose of any such expenditure, in accordance
with the then current policies established by the
Manager.

 

7. Termination.

 

A. With Cause. This Agreement may
be terminated by the Company “for cause”, subject to
the cure period as specified below, in any of the following
circumstances:

 

(i) Contractor commits
any act or acts of fraud, misappropriation or
dishonesty;

 

(ii) Contractor
intentionally fails to perform or is negligent in the performance
of her duties or obligations or Contractor violates any provision
of this Agreement, including, but not limited to, the restrictive
covenants;

 

(iii) Contractor
violates any other agreement between the Company and Contractor or
for the benefit of Company or otherwise fails to comply with the
standards, directions, policies and regulations of the
Company;

 

(iv) Contractor
is convicted, pleads guilty to, or pleads no contest to a felony
crime or any crime involving dishonesty, fraud or violence in any
state or federal court within the United States; or

 

(v) Contractor engages
in any illegal or inappropriate activity which, in the sole and
absolute discretion of the Company, is detrimental to the
reputation, goodwill or business operations of the Company or which
reflects adversely upon, or has an adverse impact on, the
Company.

 

The
Company agrees to provide the Contractor with written notice of the
for cause circumstances and provide the Contractor with a cure
period of 20 days to correct the deficiency as noted by the
Company. Should the Contractor fail to cure the for cause
deficiency within said 20 day period, then a termination by the
Company for cause under this Section 7.A shall be effective
immediately after the expiration of the cure period set forth in
the foregoing sentence without further notice to
Contractor.

 

B. Without Cause. The
Contractor’s Term of Service may be terminated by the Company
for any reason or no reason, to be effective upon thirty (30) days prior written notice
given by the Company to Contractor.

C. Event of
Disability.                                            If,
during the Term, Contractor shall be unable to perform the material
parts of Contractor’s duties (a) for a period exceeding
ninety (90) consecutive
calendar days, or (b) for a total of one hundred eighty (180) non-consecutive
calendar days during any period of twelve (12) consecutive months,
by reason of illness or incapacity as determined by a physician
mutually acceptable to the Company and Contractor (either referred
to herein as an “Event of
Disability”), the Contractor’s Term of Service
may be terminated by the Company. A termination by the Company
under this Section
7.A shall be
effective immediately upon the date set forth in a written notice
of termination delivered by the Company to Contractor.

 

D. Death. The Contractor’s
Term of Service shall immediately terminate upon the date of the
death of Contractor.

 

8. The
Party's Rights on Termination.

 

A. No Further Compensation. Upon
termination as set forth in Section 7, Contractor shall not be
entitled to any further compensation or benefits.

 

B. Severance. No severance will be due under this
Agreement.

 

C. Full Settlement. The payments
provided under this Agreement are in full settlement of any claims
Contractor may have against the Company arising out of
Contractor’s termination, including, but not limited to, any
claims for discrimination or wrongful discharge; provided, however,
any rights or obligations of the parties under any other agreement
or plan, such as any pension, stock option, shareholder or other
plan or agreement shall be governed by such other plan or
agreement.

 

9. Contractor's Duty
of Loyalty and Fiduciary Obligations. Contractor has a
fiduciary obligation to the Company, which requires Contractor to
exercise due diligence and good faith in any dealings which may
affect the Company and to always act in the Company's best
interests. During the Term, Contractor shall not engage in any
transaction or other act which could be detrimental to the Company,
beneficial to any of the Company's competitors, or which could
otherwise constitute a conflict of interest. During the Term,
Contractor shall devote Contractor’s efforts and ability on a
full-time basis to the Company. Contractor shall not
“freelance” or otherwise sell any product or perform
any service competitive with any product or service offered by the
Company, on a full time, part time, or any other basis, other than
for the Company. This shall not apply to services performed by
Contractor, without compensation, for any bona fide nonprofit,
charitable, civic, religious, or community organization so long as
such services do not constitute a conflict of interest or violate
other provisions of this Agreement.

 

 

2

 

 

10. Representations of
Contractor. Contractor represents and warrants to the
Company that he is not subject to any restriction or
non-competition covenant in favor of a former employer or any other
person or entity, and that the execution of this Agreement by
Contractor and her provision of
services to the Company and the performance of her obligations
hereunder will not violate or be a breach of any agreement with a
former employer or any other person or entity. Further, Contractor
agrees to indemnify the Company for any claim, including but not
limited to attorneys’ fees and expenses of investigation, by
any such third party that such third party may now have or may
hereafter have against the Company based upon any noncompetition
agreement, invention or secrecy agreement between Contractor and
such third party.

 

11. Covenant Not to
Solicit or Compete.

 

A. No
Solicitation. The Contractor
shall not, during the Service Term and the twenty four (24) month
period following the Service Term (the “Restriction
Period”) directly or
indirectly, solicit, entice, persuade, induce or cause any
Contractor, officer, manager, director, consultant, agent or
independent contractor of the Company to terminate his, her or its
Service, consultancy or other engagement by the Company to become
employed by or engaged by any individual, entity, corporation,
partnership, association, or other organization (collectively,
“Person”) other than the Company, or approach any
such Contractor, officer, manager, director, consultant, agent or
independent contractor for any of the foregoing purposes, or
authorize or assist in the taking of any of such actions by any
Person.

 

B. Prohibited
Actions. The Contractor shall
not, during the Restriction Period, directly or indirectly,
solicit, entice, persuade, induce or cause:

 

1. any
Person who either was a customer of the Company at any time during
the Service Term or is a customer of the Company at any time during
the Restriction Period; or

 

2. any
lessee, vendor or supplier to, or any other Person who had or has a
business relationship with, the Company at any time during the
Service Term or the Restriction Period;

 

(the
Persons referred to in items (i) and (ii) above, collectively, the
“Prohibited
Persons”) to enter into a business relationship with
any other Person for the same or similar services, activities or
goods that any such Prohibited Person purchased from, was engaged
in with or provided to, the Company or to reduce or terminate such
Prohibited Person’s business relationship with the Company;
and the Contractor shall not, directly or indirectly, approach any
such Prohibited Person for any such purpose, or authorize or assist
in the taking of any of such actions by any Person.

 

C. Terms.
For purposes of this Section
11, the terms
“Contractor”, “consultant”,
“agent”, and “independent contractor” shall
include any Persons with such status at any time during the three
(3) months preceding any solicitation in
question.

 

D. Referrals.
Nothing in this Section 11
shall be interpreted as prohibiting
the Contractor from referring business to a consultant, agent,
lessee, vendor or supplier of the Company so long as the
consultancy or other engagement with the Company is not adversely
affected thereby.

 

E. Non-Competition.
Except as otherwise provided in this Agreement, the Contractor
shall not, anywhere within the Restricted
Territory, as hereinafter
defined, directly or indirectly, alone or in association with any
other Person, directly or indirectly, (i) acquire, or own in any
manner, any interest in any Person that engages in the Business or
that engages in any business, activity or enterprise that competes
with any aspect of the Business, or (ii) be interested in (whether
as an owner, director, officer, partner, member, lender,
shareholder, vendor, consultant, Contractor, advisor, agent,
independent contractor or otherwise), or otherwise participate in
the management or operation of, any Person that engages in any
business, activity or enterprise that competes with any aspect of
the Business. For purposes hereof, Restricted Territory shall mean
the World.

 

12. Protection
of Confidential Information.
The Contractor acknowledges that prior to the Service Date the
Contractor has had access to, and during the course of the
Contractor’s Service hereunder will have access to,
significant Confidential Information (defined below). During the
Restriction Period, (i) the Contractor shall maintain all
Confidential Information in strict confidence and shall not
disclose any Confidential Information to any other Person, except
as necessary in connection with the performance of the
Contractor’s duties and obligations under this Agreement, or
as the Contractor may be compelled to disclose by law and (ii) the
Contractor shall not use any Confidential Information for any
purpose whatsoever except in connection with the performance of the
Contractor’s duties and obligations under this
Agreement.

 

For
purposes of this Agreement, “Confidential Information” shall
mean any and all information pertaining to the Company and the
Business, whether such information is in written form or
communicated orally, visually or otherwise, that is proprietary,
non-public or relates to any trade secret, including, but not
limited to, (i) information, observations and data obtained by the
Contractor while employed by the Company concerning the Business,
(ii) products or services, (iii) fees, costs and pricing
structures, (iv) designs, (v) analyses, (vi) drawings, photographs
and reports, (vii) computer software, including operating systems,
applications and program listings, (viii) flow charts, manuals and
documentation, (ix) data bases, (x) accounting and business
methods, (xi) inventions, devices, new developments, methods and
processes, whether patentable or unpatentable and whether or not
reduced to practice, (xii) customers, suppliers, clients and
customer, supplier and client lists, (xiii) other copyrightable
works, (xiv) marketing plans and trade secrets, and (xv) all
similar and related information in whatever form. Notwithstanding
the foregoing, “Confidential Information” shall not
include information that (i) is or becomes generally available to,
or known by, the public through no fault of the Contractor, or (ii)
is independently acquired or developed by the Contractor without
violating any of her
obligations under this Agreement.

 

13. Inventions.
The Contractor shall disclose promptly to the Company any and all
conceptions and ideas for inventions, improvements, and valuable
discoveries, whether patentable or not, which are conceived or made
by the Contractor solely or jointly with another during the period
of Service or within one (1) year thereafter and which are related
to the business or activities of the Company. The Contractor hereby
assigns and agrees to assign all her interest therein to Company or
its nominee. Whenever requested by the Company, the Contractor
shall execute any and all applications, assigns or other
instruments that the Company shall deem necessary to apply for and
obtain Letters of Patents of the United States or any foreign
country or to otherwise protect the Company’s interest
therein. These obligations shall continue beyond termination of
Service with respect to inventions, improvements and valuable
discoveries, whether patentable or not, conceived, made or acquired
by the Contractor during the period of Service or within one year
thereafter, and shall be binding upon the Contractor’s heirs,
assigns, executors, administrators and other legal
representatives.

 

 

3

 

 

14. Return
of Property. All
correspondence, reports, charts, products, records, designs,
patents, plans, manuals, sales and marketing material, memorandum,
advertising materials, customer lists, distributor lists, vendor
lists, telephones, beepers, portable computers, and any other such
data, information or property collected by or delivered to the
Contractor by or on behalf of the Company, their representatives,
customers, suppliers or others and all other materials compiled by
the Contractor which pertain to the business of the Company shall
be and shall remain the property of the Company and shall be
delivered to the Company promptly upon its request at any time and
without respect upon completion or other termination of the
Contractor’s Service hereunder for any
reason.

 

15. Representations
of the Contractor. The
Contractor represents and warrants to the Company that he is not
subject to any restriction or non-competition covenant in favor of
a former employer or any other person or entity, and that the
execution of this Agreement by the Contractor and her provision of
services to the Company and the performance of her obligations
hereunder will not violate or be a breach of any agreement with a
former employer or any other person or entity. Further, the
Contractor agrees to indemnify the Company for any claim, including
but not limited to attorneys’ fees and expenses of
investigation, by any such third party that such third party may
now have or may hereafter have against the Company based upon any
noncompetition agreement, invention or secrecy agreement between
the Contractor and such third party.

 

16. Certain
Additional Agreements.

 

A. Legitimate
Interest. The Contractor agrees
that it is a legitimate interest of the Company and reasonable and
necessary for the protection of the goodwill and business of the
Company, which are valuable to the Company, that the Contractor
make the covenants contained in Sections 11, 12, 13,
14 and 15 (the
“Selected
Covenants”).

 

B. Fair
and Reasonable. The parties
acknowledge that (i) the type and periods of restriction imposed in
the Selected Covenants are fair and reasonable and are reasonably
required to protect and maintain the proprietary and other
legitimate business interests of the Company, as well as the
goodwill associated with the Business conducted by the Company,
(ii) the Business conducted by the Company extends throughout the
United States, and (iii) the time, scope, geographic area and other
provisions of the Selected Covenants have been specifically
negotiated by sophisticated commercial parties represented by
experienced legal counsel.

 

C. Illegality.
In the event that any covenant contained in this Agreement,
including, without limitation, any of the Selected Covenants shall
be determined by any court of competent jurisdiction to be illegal,
invalid or unenforceable by reason of its extending for too great a
period of time or over too great a geographical area or by reason
of its being too extensive in any other respect, (i) such covenant
shall be interpreted to extend over the maximum period of time for
which it may be legal, valid and enforceable, as applicable, and/or
over the maximum geographical area as to which it may be legal,
valid and enforceable, as applicable, and/or to the maximum extent
in all other respects as to which it may be legal, valid and
enforceable, as applicable, all as determined by such court making
such determination, and (ii) in its reduced form, such covenant
shall then be legal, valid and enforceable, as applicable, but such
reduced form of covenant shall only apply with respect to the
operation of such covenant in the particular jurisdiction in or for
which such adjudication is made. It is the intention of the parties
that such covenants shall be enforceable to the maximum extent
permitted by applicable law.

 

17. Specific
Performance. The Contractor
acknowledges that any breach or threatened breach of the covenants
contained in the Selected Covenants will cause the Company material
and irreparable damage, the exact amount of which will be difficult
to ascertain and that the remedies at law for any such breach or
threatened breach will be inadequate. Accordingly, the Contractor
agrees that the Company shall, in addition to all other available
rights and remedies (including, but not limited to, seeking such
damages as either of them can show it has sustained by reason of
such breach), be entitled to specific performance and injunctive
relief in respect of any breach or threatened breach of any of the
Selected Covenants, without being required to post bond or other
security and without having to prove the inadequacy of the
available remedies at law or irreparable harm.

 

A.
Notwithstanding anything to the contrary in this Agreement to the
contrary, in the event the Company is declared to have been in
material default of this Agreement by final arbitration in a forum
selected by the parties or final adjudication in any court, Section
11 of this Agreement shall terminate and not be operative for any
period of time thereafter.

 

18. Survivability of
Provisions. The
provisions of Section
11 through Section
17 of this Agreement shall survive the termination of this
Agreement by either party, and shall apply to any other services
provided by Contractor whether as an independent contractor and/or
through an agency relationship with the Company.

 

19. Jurisdiction,
Venue, Governing Law. Personal jurisdiction over the parties
may be properly exercised, and exclusive venue for any action
arising out of or related to this Agreement shall be in the state
and federal courts of Palm
Beach County, Florida. Florida law shall govern the
validity, construction, enforcement of, and all other matters
relating to this Agreement, including the remedies available for
its breach.

 

20. Severability.
If a court of competent jurisdiction determines that any provision
of this Agreement is too broad or extensive to permit enforcement
to its full extent, then any such provision shall be enforced to
the maximum extent permitted by Florida law. A judicial
determination regarding the invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or
enforceability of the remaining provisions of this Agreement, which
shall continue to be given full force and effect.

 

21. Attorneys'
Fees. In the event of
legal proceedings arising from a breach or threatened breach of
this Agreement, including any of the representations, warranties,
covenants or promises contained in this Agreement, the prevailing
party shall be entitled to recover, in addition to any other
remedy, its fees and costs including, but not limited to fees and
costs of attorneys, investigators, experts and paralegals and costs
pre-litigation, appeal, bankruptcy, and collection.

 

22. Miscellaneous.
This Agreement shall be binding upon and inure to the benefit of
the parties and their respective successors, assigns, and legal
representatives; provided, however, that the rights, duties, and
obligations of Contractor under this Agreement are personal and
cannot be delegated, assigned, or otherwise transferred by
Contractor without the prior written consent of the Company. Any
failure by either party to comply with any provision of this
Agreement may be waived, but only if such waiver is in writing and
signed by the other party. Any failure to insist upon or enforce
compliance with any provision of this Agreement shall not operate
as a waiver of, or estoppel with respect to, any other or
subsequent failure.

 

 

4

 

 

23. Headings/Gender.
Descriptive headings are for convenience only and shall not affect
the meaning or construction of any provision of this Agreement.
Whenever the context of this Agreement shall so require, the
singular shall include the plural, the male gender shall include
the female gender and neuter and vice versa.

 

24. Notices.
Any notice required or permitted to be given under this Agreement
shall be sufficient if in writing and if hand delivered, sent by
Federal Express or comparable overnight carrier, or sent by
registered or certified U.S. Mail, return receipt requested, to
address for the applicable party set at the beginning of this
Agreement.

 

25. Entire
Understanding. This
Agreement constitutes the entire understanding between the parties
with respect to the subject matter of this Agreement and supersedes
any prior or contemporaneous discussions, representations, or
agreements, whether such representations or agreements were oral or
written or express or implied. This Agreement may not be amended or
modified except by a writing signed by both Contractor and the
Company.

 

26. Interpretation.
This Agreement is the result of negotiations between the parties,
who were each given the opportunity to fully review this Agreement
and consult the services and advice of an attorney. This Agreement
shall not be construed more strictly against the Company simply
because it or its attorney was the party responsible for its
preparation. The provisions of this Agreement shall be construed as
an agreement independent of the other terms of Service with the
Company. A breach of any material provision of this Agreement
(including without limitation Section 9 through Section 13 shall be grounds for
immediate dismissal by the Company for cause. The existence of any
claim or cause of action by Contractor against the Company shall
not constitute a defense to the enforcement by the Company of
Section
9 through
Section
13.

 

27. Assignment. The
rights and obligations of the Company under this Agreement shall
inure to the benefit of and be binding upon the successors and
assigns of the Company. The Company may assign its rights and
obligations under this Agreement to any corporation, limited
liability company or other entity which controls, is controlled by,
or is under common control with, the Company, without
Contractor’s consent. In all other circumstances, the rights
and obligations of the Company under this Agreement may be assigned
with Contractor’s consent (which shall not be unreasonably
conditioned, withheld or delayed). Contractor’s obligation to
provide services hereunder may not be assigned to or assumed by any
other person or entity to any extent
whatsoever.

 

28. Counterparts.
This Agreement may be executed in any number of counterparts, each
of which counterpart will be deemed an original and each
counterpart shall be deemed one and the same instrument. An
executed facsimile of this Agreement shall be deemed an
original.

 

29. Waiver
of Jury Trial. Contractor
and Company knowingly, voluntarily and intentionally waive any
right either may have to a trial by jury regarding any litigation
based hereon or arising out of, under or in connection with this
Agreement or any course of conduct, course of dealing, statements
(whether verbal or written), or actions of either party arising
under this Agreement. This provision is a material inducement for
Company entering into this Agreement.

 

[Signature Page Immediately Follows]

 

5

 

HAVING READ THIS AGREEMENT AND INTENDING TO BE LEGALLY BOUND BY ITS
TERMS AND CONDITIONS, THE UNDERSIGNED HAS EXECUTED THIS SERVICE
AGREEMENT EFFECTIVE AS OF THE DATE FIRST SET FORTH
ABOVE.

 

 

VIVI HOLDINGS, INC.

 

 

By:

Eugenio
Santos

Director
of Human Resources

 

 

[Additional Signature Page Immediately Follows]

 

 

 

Signature Page to Service Agreement

 

 

6

 

 

CONTRACTOR REPRESENTS AND WARRANTS TO COMPANY THAT CONTRACTOR HAS
READ THIS AGREEMENT AND HAD A FAIR OPPORTUNITY TO DISCUSS IT WITH
AN ATTORNEY REGARDLESS OF WHETHER CONTRACTOR ACTUALLY DID RETAIN AN
ATTORNEY. UPON A BREACH OF CERTAIN PROVISIONS OF THIS AGREEMENT,
CONTRACTOR UNDERSTANDS THAT THIS AGREEMENT GRANTS COMPANY, AMONG
OTHER THINGS, THE RIGHT TO OBTAIN AN INJUNCTION AGAINST CONTRACTOR,
PLUS RECOVER ITS COSTS AND DAMAGES.

 

HAVING READ THIS AGREEMENT AND INTENDING TO BE LEGALLY BOUND BY ITS
TERMS AND CONDITIONS, THE UNDERSIGNED HAVE EXECUTED THIS AGREEMENT
EFFECTIVE AS OF THE DATE FIRST SET FORTH ABOVE.

 

 

CONTRACTOR:

 

 

____________________________________

Alejandro
Villicana

 

Address:

 

____________________________________

 

____________________________________

 

____________________________________

 

 

 

Signature Page to Service Agreement

 

 

7Exhibit 4.1

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.

 

	Principal Amount: $35,000.00	Issue Date: February 11, 2019

Purchase Price: $32,900.00

 

12% CONVERTIBLE NOTE

 

FOR VALUE RECEIVED, ARISTA
FINANCIAL CORP, a Nevada corporation (“Borrower” or “Company”), hereby promises to pay to the order
of JEFFERSON STREET CAPITAL, LLC, a New Jersey limited liability company, or its registered assigns (the “Holder”),
on November 6, 2019, (subject to extension as set forth below, the “Maturity Date”), the sum of $35,000.00 as set forth
herein, together with interest on the unpaid principal balance hereof at the rate of twelve percent (12%) per annum (the “Interest
Rate”) from the date of issuance hereof until this Note plus any and all amounts due hereunder are paid in full, and any
additional amounts set forth herein, including without limitation any Additional Principal (as defined herein). Interest shall
be computed on the basis of a 365-day year and the actual number of days elapsed. Any amount of principal or interest on this Note
which is not paid when due shall bear interest at the rate of twenty-four (24%) per annum from the due date thereof until the same
is paid (“Default Interest”). All payments due hereunder shall be made in lawful money of the United States of America.
All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance
with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is
not a business day, the same shall instead be due on the next succeeding day which is a business day and, in the case of any interest
payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken
into account for purposes of determining the amount of interest due on such date. As used in this Note, the term “business
day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of New York, New York
are authorized or required by law or executive order to remain closed. Each capitalized term used herein, and not otherwise defined,
shall have the meaning ascribed thereto in that certain Securities Purchase Agreement entered into by and between the Company and
Holder dated on or about the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”).
The Holder may, by written notice to the Borrower at least five (5) days before the Maturity Date (as may have been previously
extended), extend the Maturity Date to up to six (6) months following the date of the original Maturity Date hereunder.

 

This Note is free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

    1 

     

    

 

The following terms
shall apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS

 

1.1. 
Conversion Right. The Holder shall have the right, in its sole and absolute discretion, at any time from time to time, to
convert all or any part of the outstanding amount due under this Note into fully paid and non-assessable shares of Common Stock,
as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such
Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined
as provided herein (a “Conversion”); provided, however, that in no event shall the Holder be
entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the
number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may
be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion
of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained
herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which
the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more
than 4.9% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial
ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and Regulation 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, further,
however, that the limitations on conversion may be waived by the Holder upon, at the election of the Holder, not less than
61 days’ prior notice to the Borrower, and the provisions of the conversion limitation shall continue to apply until such
61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver). The number of shares
of Common Stock to be issued upon each Conversion of this Note (“Conversion Shares”) shall be determined by dividing
the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice
of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by
the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or
by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 11:59 p.m., New York, New York
time on such conversion date (the “Conversion Date”). The term “Conversion Amount” means, with respect
to any Conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such Conversion, plus (2)
accrued and unpaid interest, if any, on such principal amount being converted at the interest rates provided in this Note to the
Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the
immediately preceding clauses (1) and/or (2), plus (4) any
Additional Principal for such Conversion, plus (5) at the Holder’s option, any amounts owed to the Holder pursuant
to Sections 1.2(c) and 1.4(g) hereof.

 

    2 

     

    

 

1.2. 
Conversion Price.

 

a) 
Calculation of Conversion Price. The conversion price hereunder (the “Conversion Price”) shall equal the
lower of: (i) the closing sale price of the Common Stock on the Principal Market on the Trading Day immediately preceding the Issue
Date, and (ii) 60% of either the lowest sale price for the Common Stock on the Principal Market during the twenty (20) consecutive
Trading Days on which at least 100 shares of Common Stock were traded including and immediately preceding the Conversion Date,
or the closing bid price, whichever is lower. If an Event of Default under Section 3.9 of the Note has occurred, Holder, in its
sole discretion, may elect to use a Conversion Price which shall equal the lower of: (i) the closing sale price of the Common Stock
on the Principal Market on the Trading Day immediately preceding the Closing Date; (ii) 60% of either the lowest sale price or
the closing bid price, whichever is lower for the Common Stock on the Principal Market during any Trading Day in which the Event
of Default has not been cured. If such Common Stock is not traded on the OTCBB, OTCQB, OTC Pink, NASDAQ or NYSE, then such sale
price shall be the sale price of such security on the principal securities exchange or trading market where such security is listed
or traded or, if no sale price of such security is available in any of the foregoing manners, the average of the closing bid prices
of any market makers for such security that are listed in the “pink sheets” by the National Quotation Bureau, Inc.
If such sale price cannot be calculated for such security on such date in the manner provided above, such price shall be the fair
market value as mutually determined by the Borrower and the Holder. If the Borrower’s Common stock is chilled for deposit
at DTC, becomes chilled at any point while this Note remains outstanding or deposit or other additional fees are payable due to
a Yield Sign, Stop Sign or other trading restrictions, or if the closing sale price at any time falls below $0.275 (as appropriately
and equitably adjusted for stock splits, stock dividends, stock contributions and similar events), then an additional 15% discount
will be attributed to the Conversion Price for any and all Conversions submitted thereafter Additionally, the Borrower acknowledges
that it will take all reasonable steps necessary or appropriate, including providing a board of directors resolution authorizing
the issuance of common stock to Holder. So long as the requested sale may be made pursuant to Rule 144, the Company agrees to accept
an opinion of counsel to the Holder confirming the rights of the Holder to sell shares of Common Stock issuable or issued to Holder
on conversion of this Note pursuant to Rule 144 as promulgated by the SEC (“Rule 144”) (or if applicable pursuant to
Rule 4(a)(1) (“4(a)(1)”), as promulgated by the SEC), or at the Holder’s option, Company shall immediately and
without delay provide an opinion of counsel to the Holder confirming the rights of the Holder to sell shares of Common Stock pursuant
to Rule 144, or Rule 4(a)(1), if applicable, as such Rule 144 may be in effect from time to time, which opinion will be issued
at the Company’s expense and the conversion dollar amount will be reduced by $500.00 to cover the cost of such legal opinion.
“Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC Pink, or on the principal
securities exchange or other securities market on which the Common Stock is then being traded. Additionally, if the Company ceases
to be a reporting company pursuant to the 1934 Act or if the Note cannot be converted into free trading shares after 181 days from
the issuance date, an additional 15% discount will be attributed to the Conversion Price for any and all Conversions submitted
thereafter.

 

b) 
If at any time the Conversion Price as determined hereunder for any Conversion would be less than the par value of the Common Stock,
then the Conversion Price hereunder shall equal such par value for such Conversion and the Conversion Amount for such Conversion
shall be increased to include Additional Principal, where “Additional Principal” means such additional amount to be
added to the Conversion Amount to the extent necessary to cause the number of Conversion Shares issuable upon such Conversion to
equal the same number of Conversion Shares as would have been issued had the Conversion Price not been subject to the minimum price
set forth in this Section 1.2(b).

 

    3 

     

    

 

c) 
Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief,
the parties agree that if delivery of the free trading shares of Common Stock issuable upon conversion of this Note is not delivered
by the Deadline (as defined below) the Borrower shall pay to the Holder $250.00 per day in cash, for each day beyond the Deadline
that the Borrower fails to deliver such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following
the month in which it has accrued or, at the option of the Holder, shall be added to the principal amount of this Note, in which
event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible
into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert this Note is a valuable
right to the Holder. The damages resulting from a failure, attempt to frustrate, or interference with such conversion right are
difficult if not impossible to quantify. Accordingly, the parties acknowledge that the liquidated damages provision contained in
this Section are justified.

 

1.3. 
Authorized Shares. The Borrower covenants that the Borrower will at all times while this Note is outstanding reserve from
its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion or adjustment of this Note. The Borrower is required at all times to have authorized and
reserved six (6) times the number of shares that is actually issuable upon full conversion or adjustment of this Note (based on
the Conversion Price of the Notes in effect from time to time)(the “Reserved Amount”). Initially, the Company will
instruct the Transfer Agent to reserve three hundred twenty thousand (320,000) shares of common stock in the name of the Holder
for issuance upon conversion hereof. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully
paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which
would change the number of shares of Common Stock into which this Note shall be convertible at the then current Conversion Price,
the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common
Stock authorized and reserved, free from preemptive rights, for conversion of this Note in full. So long as this Note is outstanding
the Borrower shall instruct the Transfer Agent that upon Holder’s request it shall furnish to the Holder the then current
number of common shares issued and outstanding, the then current number of common shares authorized, the then current number of
unrestricted shares, and the then current number of shares reserved for third parties. The Borrower (i) acknowledges that it has
irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and
(ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the
duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with
the terms and conditions of this Note.

 

If, at any time the
Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note.

 

1.4. 
Method of Conversion.

 

a) 
Mechanics of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at any time
and from time to time after the Issue Date, by submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other
reasonable means of communication dispatched on the Conversion Date prior to 11:59 p.m., New York, New York time).

 

    4 

     

    

 

b) 
Book Entry upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid
balance of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted
and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as
not to require physical surrender of this Note upon each such conversion. In the event of any dispute or discrepancy, such records
of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest error.
Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this Note unless
the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon
the order of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer
taxes) may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee,
by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of
a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the
amount stated on the face hereof.

 

c) 
Payment of Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other
than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other
securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such
shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Borrower the amount
of any such tax or shall have established to the satisfaction of the Borrower that such tax has been paid.

 

d) 
Delivery of Common Stock upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission
or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided
in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder
certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt or such an event
(the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of
this Note) in accordance with the terms hereof and the Purchase Agreement.

 

e) 
Obligation of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a duly and properly executed Notice of Conversion,
the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal
amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion or adjustment, and,
unless the Borrower defaults on its obligations under this Article I, all rights with respect to the portion of this Note being
so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets,
as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s
obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence
of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any
judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation
of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit
such obligation of the Borrower to the Holder in connection with such conversion. The Conversion Date specified in the Notice of
Conversion shall be the Conversion Date so long as the Notice of Conversion is received by the Borrower before 11:59 p.m., New
York, New York time, on such date.

 

    5 

     

    

 

f) 
Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated
Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions contained in
Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit
the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through
its Deposit Withdrawal Agent Commission (“DWAC”) system. In the event that the shares of the Borrower’s Common
Stock are not deliverable via DWAC following the conversion of any amount hereunder, an additional 5% discount will be attributed
to the Conversion Price.

 

g) 
Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other
remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon
conversion or adjustment of this Note is not delivered by the Deadline, the Borrower shall pay to the Holder $250.00 per day in
cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock to the Holder. Such cash amount shall
be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder, shall
be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this
Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The
Borrower agrees that the right to convert and/or receive shares in the event of an adjustment is a valuable right to the Holder.
The damages resulting from a failure, attempt to frustrate, or interference with such conversion or adjustment right are difficult
if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section
1.4(g) are justified.

 

h) 
The Borrower acknowledges that it will take all reasonable steps necessary or appropriate, including accepting an opinion of counsel
to Holder confirming the rights of Holder to sell shares of Common Stock issued to Holder on conversion or adjustment of the Note
pursuant to Rule 144 as promulgated by the SEC (“Rule 144")(or pursuant to any other exemption from registration under
the Securities Act), as such Rule may be in effect from time to time. So long as the requested sale may be made pursuant to Rule
144 (or pursuant to any other exemption from registration under the Securities Act) the Borrower agrees to accept an opinion of
counsel to the Holder which opinion will be issued at the Borrower’s expense.

 

i) 
Charges and Expenses. Issuance of Common Stock to Holder, or any of its assignees, upon the conversion of this Note shall
be made without charge to the Holder for any issuance fee, transfer tax, legal opinion and related charges, postage/mailing charge
or any other expense with respect to the issuance of such Common Stock. Company shall pay all Transfer Agent fees incurred from
the reservation and issuance of the Common Stock to Holder, as well as any and all other fees and charges required by the Transfer
Agent as a condition to effectuate such issuance. That notwithstanding, the Holder may in the interest of securing issuance
and/or delivery of Common Stock before the Deadline, at any time from time to time, in its sole discretion elect to pay any such
fees or charges upfront, and Company agrees that any such fees or charges as noted in this Section that are paid by the Holder
(whether from the Company’s delays, outright refusal to pay, Holder’s interest in securing issuance and/or delivery
of Common Stock before the Deadline, or otherwise), will be at Company’s expense, and the conversion amount
will automatically be reduced by that dollar amount to cover the cost of the fees or charges as noted in this Section. 

 

    6 

     

    

 

1.5. 
Restricted Securities. The shares of Common Stock issuable upon conversion or adjustment of this Note may not be sold or
transferred unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower
or its transfer agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope
customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold
or transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144
under the Act (or a successor rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate”
(as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section
1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). Any legend set forth on any stock certificate evidencing
any Conversion Shares shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer
legend if (i) the Borrower or its transfer agent shall have received an opinion of counsel  form, substance and scope customary for
opinions of counsel in comparable transactions, to the effect that a public sale or transfer of
such Common Stock may be made without registration under the Act, which opinion shall be reasonably acceptable to the Company,
or (ii) in the case of the Common Stock issued or issuable upon conversion of this Note, such security is registered for sale by
the Holder under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without
any restriction as to the number of securities as of a particular date that can then be immediately sold.

 

1.6. 
Effect of Certain Events.

 

a) 
Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially
all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which
more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of
the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall either: (i)
be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the
Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article
III) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean any individual, corporation, limited
liability company, partnership, association, trust or other entity or organization.

 

    7 

     

    

 

b) 
Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion
of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar
event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares
of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all
or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower,
then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the
terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion,
such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted
in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such
case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the
provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities
or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section
1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen
(15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record
date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event
or sale of assets (during which time, for clarification, the Holder shall be entitled to convert this Note) and (b) the resulting
successor or acquiring entity assumes by written instrument the obligations of this Section 1.6(b). The above provisions shall
similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

c) 
Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire
its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any
dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock
of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion
of this Note as of or after (in the event of a stock dividend) the date of record for determining shareholders entitled to such
Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common
Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination
of shareholders entitled to such Distribution. Such assets shall be held in escrow by the Company pending any such conversion

 

d) 
Purchase Rights. If, at any time when any Notes are issued and outstanding, the Borrower issues any convertible securities
or rights to purchase stock, warrants, securities or other property (the “Purchase Rights”) pro rata to the record
holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares
of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on conversion contained herein)
immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no such record
is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights.

 

e) 
Stock Dividends and Stock Splits. If the Company, at any time while this Note is outstanding: (A) pays a stock dividend
or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any securities
convertible into or exercisable for Common Stock; (B) subdivides outstanding shares of Common Stock into a larger number of shares;
(C) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares; or
(D) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Company, then
the Conversion Price (and each sale or bid price used in determining the Conversion Price) shall be subject to equitable adjustments
for such events.

 

    8 

     

    

 

f) 
Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date
in the case of a subdivision, combination or re-classification.

 

g) 
Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the
events described in this Section 1.6, the Borrower, at its expense, shall promptly compute such adjustment or readjustment and
prepare and furnish to the Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon
which such adjustment or readjustment is based. The Borrower shall, upon the written request at any time of the Holder, furnish
to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect
and (iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would
be received upon conversion of the Note.

 

1.7. 
Revocation. If any Conversion Shares are not received by the Deadline, the Holder may revoke the applicable Conversion pursuant
to which such Conversion Shares were issuable. This Note shall remain convertible after the Maturity Date hereof until this Note
is repaid or converted in full.

 

1.8. 
Prepayment. Notwithstanding anything to the contrary contained in this Note, subject to the terms of this Section, at any
time during the period beginning on the Closing Date and ending on the date which is six (6) months following the Issue Date (“Prepayment
Termination Date”), Borrower shall have the right, exercisable on not less than five (5) Trading Days prior written notice
to the Holder of this Note, to prepay up to the outstanding balance on this Note (principal and accrued interest), in full, in
accordance with this Section. Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered
to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay
the Note, and (2) the date of prepayment which shall be not more than fifteen (15) Trading Days from the date of the Optional Prepayment
Notice; and (3) the amount (in dollars) that the Borrower is paying. Notwithstanding Holder’s receipt of the Optional Prepayment
Notice the Holder may convert, or continue to convert the Note in whole or in part until the Optional Prepayment Amount (as defined
herein) is paid to the Holder. On the date fixed for prepayment (the “Optional Prepayment Date”), the Borrower shall
make payment of the Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the Holder
in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date.  If the Borrower exercises
its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash (the “Optional Prepayment
Amount”) equal to the Prepayment Factor (as defined below), multiplied by the sum of: (w) the then outstanding principal
amount of this Note plus (x)
accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y)
Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z)
any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.  If the Borrower delivers an Optional Prepayment
Notice and fails to pay the Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the
Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this Section. After the Prepayment
Termination Date, the Borrower shall have no right to prepay this Note. For purposes hereof, the “Prepayment Factor”
shall equal one hundred and forty five percent (145%), provided that such Prepayment factor shall equal one hundred and thirty
percent (130%) if the Optional Prepayment Date occurs on or before the date which is ninety (90) days following the Issue Date
hereof. 

 

    9 

     

    

 

ARTICLE
II. CERTAIN COVENANTS

 

2.1. 
Distributions on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall not
without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether
in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the
form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution
in respect of its capital stock except for distributions pursuant to any shareholders’ rights plan which is approved by a
majority of the Borrower’s disinterested directors.

 

2.2. 
[Intentionally Omitted].

 

2.3. 
[Intentionally Omitted]. 

 

2.4. 
Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s
written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business.
Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

 

2.5. 
Advances and Loans. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the
Holder’s written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including,
without limitation, officers, directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits or advances
in existence or committed on the date hereof and which the Borrower has informed Holder in writing prior to the date hereof.

 

2.6. 
Charter. So long as the Borrower shall have any obligations under this Note, the Borrower shall not amend its charter documents,
including without limitation its certificate of incorporation and bylaws, in any manner that materially and adversely affects any
rights of the Holder.

 

2.7. 
Transfer Agent. The Borrower shall not change its transfer agent without the prior written consent of the Holder. Any replacement
of the transfer agent by the Borrower, or resignation by the transfer agent without a replacement transfer agent consented to by
the Holder prior to such replacement taking effect shall constitute an Event of Default hereunder.

 

2.8. 
Section 3(a)(9) or 3(a)(10) Transaction. So long as this Note is outstanding, the
Borrower shall not enter into any transaction or arrangement structured in accordance with, based upon, or related or pursuant
to, in whole or in part, either Section 3(a)(9) of the Securities Act (a “3(a)(9) Transaction”) or Section 3(a)(l0)
of the Securities Act (a “3(a)(l0) Transaction”). In the event that the Borrower does enter into, or makes any issuance
of Common Stock related to a 3(a)(9) Transaction or a 3(a)(10) Transaction while this Note is outstanding, a liquidated damages
charge of 25% of the outstanding principal balance of this Note, but not less than Ten Thousand Dollars $10,000, will be assessed
and will become immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance
of this Note.

 

    10 

     

    

 

ARTICLE
III. EVENTS OF DEFAULT

 

Any one or more of
the following events which shall occur and/or be continuing shall constitute an event of default (each, an “Event of Default”):

 

3.1. 
Failure to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on
this Note, whether at maturity, upon acceleration or otherwise.

 

3.2. 
Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens
in writing that it will not honor its obligation to do so at any time following the execution hereof or) upon exercise by the Holder
of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer
agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder
upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent
not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated
form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note
as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders
its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on
any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and
when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations
described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not
to honor its obligations shall not be rescinded in writing) for five (5) business days after the Holder shall have delivered a
Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall
be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the
Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer
agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty eight (48)
hours of a demand from the Holder.

 

3.3. 
Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note
and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of three
(3) days after written notice (via email) thereof to the Borrower from the Holder.

 

3.4. 
Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement,
statement, certificate, or any other document given in writing pursuant hereto or in connection herewith (including, without limitation,
the Purchase Agreement, and/or the due diligence questionnaire provided by the Borrower to the Holder on or around the Issue Date),
shall be false or misleading in any material respect when made and/ or the breach of which has (or with the passage of time will
have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

    11 

     

    

 

3.5. 
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise be appointed.

 

3.6. 
Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary
of the Borrower or any of its property or other assets for more than $50,000.00, and shall remain unvacated, unbonded or unstayed
for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

 

3.7. 
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary,
for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any
subsidiary of the Borrower.

 

3.8. 
Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTCBB,
or OTCQB, OTC Pink or an equivalent replacement exchange, NASDAQ, the NYSE or AMEX.

 

3.9. 
Failure to Comply with the Exchange Act. The Borrower shall fail to comply in any material respect with the reporting requirements
of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

 

3.10. 
Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.11. 
Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally
unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue
as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.12. 
Maintenance of Assets. The failure by Borrower, during the term of this Note, to maintain any material intellectual
property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).

 

3.13. 
Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC
for any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the
result of such restatement would, by comparison to the unrestated financial statement, have constituted a material adverse effect
on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.14. 
Reverse Splits. The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written notice
to the Holder.

 

3.15. 
Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails
to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form
as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares
of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

 

    12 

     

    

 

3.16. 
Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents,
a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after
the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under
this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights
and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement
or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1)
the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory
notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this
Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future
debt of Borrower to the Holder.

 

Upon the occurrence and during the continuation
of any Event of Default specified in Article III of the Note exercisable through the delivery of written notice to the Borrower
by such Holders (the “Default Notice”), the Note shall become immediately due and payable and the Borrower shall pay
to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the greater of (i) 175% times the
sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest
on the unpaid principal amount of this Note to the date of payment (the “Mandatory Repayment Date”) plus (y)
Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the
Holder pursuant to Section and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the
amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Sum”) or (ii) the “parity
value” of the Default Sum to be prepaid, where parity value means (a) the highest number of shares of Common Stock issuable
upon conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately
preceding the Mandatory Repayment Date as the “Conversion Date” for purposes of determining the lowest applicable Conversion
Price, unless the Default Event arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion
Date shall be the Conversion Date), multiplied by (b) the highest Closing Price for the Common Stock during the
period beginning on the date of first occurrence of the Event of Default and ending one day prior to the Mandatory Repayment Date
(the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without
demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation,
legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at
law or in equity.

 

If the Borrower fails to pay the Default
Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall have the right
at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares),
to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common
Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. The Holder may still convert
any amounts due hereunder, including without limitation the Default Sum, until such time as this Note has been repaid in full.

 

3.17. Inside Information.
The Borrower or its officers, directors, and/or affiliates attempt to transmit, convey, disclose, or any actual transmittal, conveyance,
or disclosure by the Borrower or its officers, directors, and/or affiliates of, material non-public information concerning the
Borrower, to the Holder or its successors and assigns, which is not immediately cured by Borrower’s filing of a Form 8-K
pursuant to Regulation FD on that same date.

 

3.18 Bid Price.
The Borrower shall lose the “bid” price for its Common Stock ($0.0001 on the “Ask” with zero market
makers on the “Bid” per Level 2) and/or a market (including the OTC Pink, OTCQB or an equivalent replacement exchange).

 

    13 

     

    

 

3. 19 Market Loss.
If at any time while this Note is outstanding the Borrower’s Common Stock trades below $0.01, the principal amount of the
Note shall automatically and without further action increase by twenty-five thousand dollars ($25,000.00), and at the sole option
of the Holder, the Company shall within fifteen (15) calendars days from Holder’s direction to so, obtain the necessary shareholder
and board of director approvals (if applicable), and file the requisite documents with FINRA, to effectuate a reverse split.

 

ARTICLE
IV. MISCELLANEOUS

 

4.1. 
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative
to, and not exclusive of, any rights or remedies otherwise available.

 

4.2. 
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall
be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or
certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or
(iv) transmitted by hand delivery, telegram, email or facsimile, addressed as set forth below or to such other address as such
party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given
hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile or email, with accurate confirmation generated
by the transmitting facsimile machine or computer, at the address, email or number designated in the Purchase Agreement (if delivered
on a business day during normal business hours where such notice is to be received), or the first business day following such delivery
(if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur.

 

4.3. 
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and
the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
(and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then
as so amended or supplemented.

 

4.4. 
Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit
of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined
in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral
in connection with a bona fide margin account or other lending arrangement.

 

4.5. 
Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

    14 

     

    

 

4.6. 
Governing Law. This Note shall be governed by and construed in accordance with the
laws of the State of Nevada without regard to conflicts of laws principles that would result in the application of the substantive
laws of another jurisdiction. Any action brought by either party against the other concerning the transactions
contemplated by this Agreement must be brought only in the civil or state courts of New Jersey or in the federal courts located
in the State and county of New Jersey. Both parties and the individual signing this Agreement on behalf of the Borrower
agree to submit to the jurisdiction of such courts. The prevailing party shall be entitled to recover from the other
party its reasonable attorney’s fees and costs. In the event that any provision of this Note is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or unenforceability of any other provision of this Note. Nothing contained
herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Borrower in
any other jurisdiction to collect on the Borrower’s obligations to Holder, to realize on any collateral or any other security
for such obligations, or to enforce a judgment or other decision in favor of the Holder. This Note shall be deemed
an unconditional obligation of Borrower for the payment of money and, without limitation to any other remedies of Holder, may be
enforced against Borrower by summary proceeding pursuant to New York Civil Procedure Law and Rules Section 3213 or any similar
rule or statute in the jurisdiction where enforcement is sought. For purposes of such rule or statute, any other document
or agreement to which Holder and Borrower are parties or which Borrower delivered to Holder, which may be convenient or necessary
to determine Holder’s rights hereunder or Borrower’s obligations to Holder are deemed a part of this Note, whether
or not such other document or agreement was delivered together herewith or was executed apart from this Note.

 

4.7. 
Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding principal
amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest on such
interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note
may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty and
is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the sale
of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant
to this Note. The Borrower and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to
the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of
Common Stock.

 

4.8. 
Disclosure. Upon receipt or delivery by the Company of any notice in accordance with
the terms of this Note, unless the Company has in good faith determined that the matters relating to such notice do not constitute
material, non-public information relating to the Company or any of its Subsidiaries, the Company shall within four (4) Trading
Days after any such receipt or delivery, publicly disclose such material, non-public information on a Current Report on Form 8-K
or otherwise. In the event that the Company believes that a notice contains material, non-public information relating to the Company
or any of its Subsidiaries, the Company so shall indicate to such Holder contemporaneously with delivery of such notice, and in
the absence of any such indication, the Holder shall be allowed to presume that all matters relating to such notice do not constitute
material, non-public information relating to the Company or its Subsidiaries.

 

    15 

     

    

 

4.9. 
Notice of Corporate Events. Except as otherwise provided below, the Holder of this Note shall have no rights as a Holder
of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Borrower shall provide the Holder
with prior notification of any meeting of the Borrower’s shareholders (and copies of proxy materials and other information
sent to shareholders). In the event of any taking by the Borrower of a record of its shareholders for the purpose of determining
shareholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe for, purchase or
otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share of any class or any
other securities or property, or to receive any other right, or for the purpose of determining shareholders who are entitled to
vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of the Borrower or any
proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder, at least twenty
(20) days prior to the record date specified therein (or thirty (30) days prior to the consummation of the transaction or event,
whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right
or other event, and a brief statement regarding the amount and character of such dividend, distribution, right or other event to
the extent known at such time. The Borrower shall make a public announcement of any event requiring notification to the Holder
hereunder substantially simultaneously with the notification to the Holder in accordance with the terms of this Section 4.9.

 

4.10. 
Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that
the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened
breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

4.11. 
Usury. This Note shall be subject to the anti-usury limitations contained in the Purchase Agreement.

 

(Remainder of Page intentionally left blank)

 

IN WITNESS WHEREOF, Borrower has caused
this Note to be signed in its name by its duly authorized officer as of the Issue Date first set forth above.

 

ARISTA FINANCIAL CORP

 

	By:	 	 
	 	Name: Paul Patrizio	 
	 	Title: Chief Executive Officer 	 

 

    16 

     

    

 

EXHIBIT A

 

NOTICE OF CONVERSION

The undersigned hereby elects to convert
principal under the 12% Convertible Note of ARISTA FINANCIAL CORP., a Nevada corporation (the Company”), into shares
of common stock (the “Common Stock”), of the Company according to the conditions hereof, as of the date written
below. If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned will pay
all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested
by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes,
if any.

 

By the delivery of
this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common Stock does not
exceed the amounts specified under Section 1.1 of this Note, as determined in accordance with Section 13(d) of the Exchange Act.

 

The undersigned agrees
to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the
aforesaid shares of Common Stock pursuant to any prospectus.

 

Conversion calculations:

 

	 	Issue Date of Note: _______________________________________
	 	Date to Effect Conversion:
    __________________________________
	 	 
	 	Conversion Price: _________________________________________
	 	Principal Amount of Note to be Converted: ___________________
	 	Less applicable fees under the Note:
    ___________________________
	 	Amount of Note to be Converted:
    _____________________________
	 	 
	 	Interest Accrued on Account
	 	of Conversion at Issue: _____________________________________
	 	 
	 	Additional Principal on Account of Conversion
	 	Pursuant to Section 1.2(b) of the Note: __________________________
	 	 
	 	Number of shares of Common Stock to be issued:__________________
	 	_______________________________________________________
	 	Remaining Balance of Note*: _________________________________
	 	 
	 	Signature:
    ________________________________________________
	 	 
	 	Name: ___________________________________________________
	 	 
	 	Address for Delivery of Common Stock
    Certificates: _________________
	 	_________________________________________________________
	 	_________________________________________________________ 
	 	 
	 	Or
	 	 
	 	DWAC Instructions:
	 	DTC No: ______________________
	 	Account No: ___________________

 

*Remaining Balance does not include accrued
interest, or if applicable, any default sums, automatic increases in principal, other fees or penalties (with the exception of
1.2(c) fees), which have accrued or may be accruing as may be described more fully in the Note or Purchase Agreement.”

 

    17

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