Document:

Exhibit
4.1

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS NOTE 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: $137,500 

Date:
November 21, 2017

 

FORM
OF SECURED CONVERTIBLE PROMISSORY NOTE

 

PositiveID
Corp., (hereinafter called the “Company”), hereby promises to pay to the order of GHS Investments, LLC,
a Nevada Limited Liability Company, or its registered assigns (the “Holder”) the sum of up to $137,500 on the Maturity
Date (as defined below), together with any interest as set forth herein, and to pay interest on the unpaid principal balance hereof
at the rate of Ten percent (10%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”)
until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. This Note is being
issued with a $12,500 original issuance discount (“OID”) to offset transaction costs.

 

The
principal sum (and corresponding interests) due to the Holder shall be prorated based on the consideration actually paid by the
Holder in accordance with the Securities Purchase Agreement of same date. The Company is not required to repay any unfunded portion
of this Note. The Maturity Date for each funded tranche shall be Twelve (12) months from the date on which the funds are received
by the Company.

 

This
Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein.. Interest shall commence accruing
on the date that the Note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed.
All payments due hereunder (to the extent not converted into common stock) shall be made in lawful money of the United States
of America. Following any Event of Default, interest shall accrue at the lesser of Twenty Percent (20%) per annum or the maximum
interest permitted by Law.

 

    	 

    	 

    

 

All
payments shall be made at such address as the Holder shall hereafter give to the Company 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 the supporting documents of same date (attached hereto).

 

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 Company and will not impose personal liability upon the holder thereof.

 

The
following terms shall apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS

 

1.1
Conversion Right. The Holder shall have the right and at any time from the execution of this Note to convert all or any
part of the outstanding and unpaid principal amount of 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 Company 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 Company 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 4.99% 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 Regulations 13D-G thereunder. The number of shares of Common Stock to be issued upon each conversion
of this Note 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, (the “Notice of Conversion”), delivered to the Company
by the Holder in accordance with the Sections 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 Company before 6:00 p.m., New York, New York
time on such conversion date (the “Conversion Date”). Notwithstanding the foregoing, the term “4.99%”
above shall be replaced with “9.99%” following any Event of Default if the Holder, in its sole discretion and in writing,
elects to demand the replacement. If the term “4.99%” is replaced with “9.99%” pursuant to the preceding
sentence, such increase to “9.99%” shall remain at 9.99% until decreased by the Holder in writing.

 

The
number of shares of Common Stock to be issued upon each conversion of this Note 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,
(the “Notice of Conversion”), delivered to the Company by the Holder in accordance with the Sections below.

 

    	 

    	 

    

 

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) at the Company’s option, accrued and unpaid interest, if any,
on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Company’s
option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4)
at the Holder’s option, any amounts owed to the Holder.

 

1.2
Conversion Price.

 

(a)
Calculation of Conversion Price. Holder, at its discretion, shall have the right to convert this Note in its entirety or
in part(s) into common stock of the Company valued at a thirty-seven and a half percent (37.5%) discount off of the lowest closing
bid price for the Company’s common stock during the twenty (20) trading days immediately preceding a conversion date, as
reported by Quotestream Media.

 

If
at any time after the execution of this Note, the Company experiences a “DTC Chill,” the Conversion Price Discount
shall be increased by five percent (5%). If at any time following the execution of this Note, the Company becomes ineligible to
participate in the DTC’s “DWAC” system, the Conversion Price Discount will be increased by five percent (5%).
Following any Event of Default, the Conversion Price discount shall be increased by five percent (5%).

 

1.3
Authorized Shares. The Company covenants that during the period the conversion right exists the Company will 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 of this Note. The Company is required at all times to have authorized and reserved three
times the number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the Notes
in effect from time to time)(the “Reserved Amount”). The Reserved Amount shall be increased from time to time in accordance
with the Company’s obligations.

The
Company represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition,
if the Company shall issue any securities or make any change to its capital structure which would change the number of shares
of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Company 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 the outstanding Notes.

 

The
Company (i) acknowledges that it will irrevocably instruct 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 Company does not maintain the Reserved Amount it will be considered an Event of Default as defined in this Note.

 

    	 

    	 

    

 

1.4
Method of Conversion.

 

(a)
Mechanics of Conversion. This Note may be converted by the Holder in whole or in part at any time from time to time after
the Issue Date, by (A) submitting to the Company a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication
dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time).

 

(b)
Surrender of Note 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 Company unless
the entire unpaid principal amount of this Note is so converted. The Holder and the Company 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 Company, 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 Holder shall, prima facie, be controlling and determinative in the absence of manifest
error. 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 Company 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 Company 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 Company the amount
of any such tax or shall have established to the satisfaction of the Company that such tax has been paid.

 

(d)
Delivery of Common Stock Upon Conversion. Upon receipt by the Company 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, the Company 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 (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.

 

Within
Five (5) business days of having received common stock pursuant to a Notice of Conversion and prior to having traded any shares
from that specific conversion, Holder may elect to rescind the Notice of Conversion and return the shares, at Holder’s expense,
to the Company’s Transfer Agent. In the event of such rescission, the principal amount outstanding under this Note shall
be adjusted to include the Conversion Amount which was deducted from the Note as part of the rescinded Notice of Conversion.

 

    	 

    	 

    

 

(e)
Obligation of Company to Deliver Common Stock. Upon receipt by the Company of a 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, and, unless the Company 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 Company’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 Company 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 Company, and irrespective of any other circumstance which might otherwise limit such obligation
of the Company 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 Company before 6:00 p.m., New York, New York time,
on such date.

 

(f)
Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Company 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 Company 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 Broker with DTC through its
Deposit Withdrawal Agent Commission (“DWAC”) system.

 

(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 of this Note is not delivered by the Deadline the Company shall pay to the Holder $2,000 per day in cash, for each
day beyond the Deadline that the Company 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 (by written notice to the Company
by the first day of the month following the month in which it has accrued), 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 Company agrees that the right to convert is a
valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right
are difficult if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages provision contained
in this Section are justified. Any delay or failure of performance by the Company hereunder shall be excused if and to the extent
caused by Force Majeure. For purposes of this agreement, Force Majeure shall mean a cause or event that is not reasonably foreseeable
and not caused by the Company, including acts of God, fires, floods, explosions, riots wars, hurricanes, etc.

 

    	 

    	 

    

 

1.5
Concerning the Shares. The shares of Common Stock issuable upon conversion 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 Company 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 Company who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who
is an Accredited Investor. Except as otherwise provided herein (and subject to the removal provisions set forth below), until
such time as the shares of Common Stock issuable upon conversion of this Note have been registered 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, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included
in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption
that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
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.”

 

The
legend set forth above shall be removed and the Company shall issue to the Holder a new certificate therefore free of any
transfer legend if (i) the Company or its transfer agent shall have received an opinion of counsel, in 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 accepted by the Company so that the sale
or transfer is effected or (ii) in the case of the Common Stock 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. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to
the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it
will be considered an Event of Default pursuant to this note.

 

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 Company, the effectuation by the Company of a transaction or series of related transactions in which
more than 50% of the voting power of the Company is disposed of, or the consolidation, merger or other business combination of
the Company with or into any other Person (as defined below) or Persons when the Company is not the survivor shall either: (i)
be deemed to be an Event of Default (as defined in Article III) pursuant to which the Company 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.

    	 

    	 

    

 

(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 Company shall be changed into the same or a different number
of shares of another class or classes of stock or securities of the Company or another entity, or in case of any sale or conveyance
of all or substantially all of the assets of the Company other than in connection with a plan of complete liquidation of the Company,
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 Company 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 the Holder shall be entitled to convert this Note) and (b) the resulting successor
or acquiring entity (if not the Company) 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 Company 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 Company’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 after 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.

 

    	 

    	 

    

 

(d)
Adjustment Due to Dilutive Issuance. If, at any time when any Notes are issued and outstanding, the Borrower issues or
sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock in connection
with a financing transaction based on a variable price formula (the “Alternative Variable Price Formula”) that is
more favorable to the investor in such financing transaction than the formula for calculating the Conversion Price in effect on
the date of such issuance (or deemed issuance) of such shares of Common Stock (a “Dilutive Issuance”), then immediately
upon the Dilutive Issuance, the formula for the Conversion Price will be adjusted to match the Alternative Variable Price Formula.
If it is unclear whether the Alternative Variable Price Formula is better or worse, then Holder, in its sole discretion, may elect
at the time of such issuance whether to switch to the Alternative Variable Price Formula or not.

(e) Purchase
Rights. If, at any time when any Notes are issued and outstanding, the Company 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.

 

(f)
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 Company, at its expense, shall promptly compute such adjustment or readjustment and
prepare and furnish to the Holder of a certificate setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Company 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
Security As Security for the Company’s obligations contained herein and in all Notes issued by the Company to the
Holder, the Holder shall be granted an unconditional secured interest in and to, any and all property of the Company and its subsidiaries,
of any kind or description, tangible or intangible, whether now existing or hereafter arising or acquired until the balance of
all Notes has been reduced to $0. However such security interest shall be behind the security interests previously in place with
three other creditors as set forth in the Security Agreement dated August 11, 2016 (“Security Agreement”.

 

1.8
Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than
the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the Reserved
Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights as a
Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for
such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because
of a failure by the Company to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received
certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect
to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a
holder of Common Stock by so notifying the Company) the Holder shall regain the rights of a Holder of this Note with respect to
such unconverted portions of this Note and the Company shall, as soon as practicable, return such unconverted Note to the Holder
or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted.
In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right to receive
Conversion Default Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any subsequent
Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance
with Section 1.3) for the Company’s failure to convert this Note.

 

    	 

    	 

    

 

1.9
Prepayment. Company may prepay this Note, in accordance with the following schedule: If within 60 calendar days from the
execution of this Note, 120% of all outstanding principal and interest due on each outstanding Note in one payment; After 60 calendar
days from the execution of the note and within 120 days from execution, 127.5% of all outstanding principal and interest due on
each outstanding Note in one payment. Between 121 and 180 days from the date of execution, the Note may be prepaid for 135% of
all outstanding amounts due on each outstanding Note in one payment. After 180 days from the date of execution the Note shall
only be prepaid upon written approval from the Holder.

 

ARTICLE
II. CERTAIN COVENANTS

 

2.1
Distributions on Capital Stock. So long as the Company shall have any obligation under this Note, the Company 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 Company’s disinterested directors.

 

2.2
Restriction on Stock Repurchases. So long as the Company shall have any obligation under this Note, the Company shall not
without the Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property
or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the
Company or any warrants, rights or options to purchase or acquire any such shares.

 

2.3
Borrowings. So long as the Company shall have any obligation under this Note, the Company shall not, without providing
the Holder with the right of first refusal, create, incur, assume guarantee, endorse, contingently agree to purchase or otherwise
become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the endorsement of
negotiable instruments for deposit or collection, or suffer to exist any liability for borrowed money, except (a) borrowings in
existence or committed on the date hereof and of which the Issuer has informed Holder in writing prior to the date hereof, (b)
indebtedness to trade creditors or financial institutions incurred in the ordinary course of business or (c) borrowings, the proceeds
of which shall be used to repay this Note. Holder shall have 3 business days from receipt of the terms of any potential borrowings
to confirm if they want to provide such financing on similar terms.

 

2.4
Sale of Assets. So long as the Company shall have any obligation under this Note, the Company 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 Company shall have any obligation under this Note, the Company 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 Company, except loans, credits or advances
(a) in existence or committed on the date hereof and which the Company has informed Holder in writing prior to the date hereof,
(b) made in the ordinary course of business or (c) not in excess of $50,000.

 

ARTICLE
III. EVENTS OF DEFAULT

 

If
any of the following events of default (each, an “Event of Default”) shall occur:

 

3.1
Failure to Pay Principal or Interest. The Company 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 Company 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) 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 Company 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 three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an
obligation of the Company 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 Company to its transfer agent.
If at the option of the Holder, the Holder advances any funds to the Company’s transfer agent in order to process a conversion,
such advanced funds shall be paid by the Company to the Holder within forty eight (48) hours of a demand from the Holder.

 

3.3
Breach of Covenants. The Company breaches any covenant or other term or condition contained in this Note and any collateral
documents including but not limited to the Purchase Agreement.

 

3.4 Breach
of Representations and Warranties. Any representation or warranty of the Company made herein or in any
agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without
limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and 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.

 

    	 

    	 

    

 

3.5
Receiver or Trustee. The Company or any subsidiary of the Company 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 Company or any subsidiary
of the Company or any of its property or other assets for more than $50,000, 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 Company or any
subsidiary of the Company.

 

3.8
Delisting of Common Stock. The Company shall fail to maintain, in good standing, the listing of the Common Stock on the
OTCQB or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market or the New York Stock Exchange.

 

3.9
Failure to Comply with the Exchange Act. The Company shall fail to comply, in a timely manner, with the reporting requirements
of the Exchange Act; and/or the Company shall cease to be subject to the reporting requirements of the Exchange Act.

 

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

 

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

 

3.12
Maintenance of Assets. The failure by Company 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 Company 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 original financial statement, have constituted a material adverse effect on the
rights of the Holder with respect to this Note or supporting documents.

 

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

 

    	 

    	 

    

 

3.15
Replacement of Transfer Agent. In the event that the Company proposes to replace its transfer agent, the Company 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 Company and the Company.

 

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 Company 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
Company, 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 Company.

 

Upon
the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure
to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and
payable and the Company shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the
Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION
3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE COMPANY SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS
OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the
occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to
pay the principal hereof or interest thereon when due on this Note upon a Trading Market Prepayment Event pursuant to Section
1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, and/or 3. 15 exercisable through the delivery of
written notice to the Company by such Holders (the “Default Notice”), and upon the occurrence of an Event of
Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon
at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Company
shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the greater of (i) 150% 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 Prepayment 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 Sections 1.3 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 Prepayment 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 Prepayment 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 Company 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 Company remains in default (and so long and to the extent that
there are sufficient authorized shares), to require the Company, upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Company equal to the Default Amount divided by the Conversion Price then in
effect.

 

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, 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, with accurate confirmation
generated by the transmitting facsimile machine, at the address or number designated below (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. The addresses for such communications shall be:

 

    	 

    	 

    

 

If
to the Company, to:

 __________________

 __________________

 ________________

 

If
to the Holder:

 

GHS
Investments, LLC. 

420
Jericho Turnpike Suite 207

Jericho,
NY 11753

 

4.3
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Company 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 Company and its successors and assigns, and shall inure to be the benefit
of the Holder and its successors and assigns. 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 Company shall pay the Holder hereof costs of
collection, including reasonable attorneys’ fees.

 

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 principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Note shall be brought only in the state or federal courts located in the County, City and State of New York. The parties
to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not
assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Company and Holder waive
trial by jury. 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 or any other agreement delivered in connection herewith 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 enforceability of any other provision of any agreement. Each party
hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in
connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

4.7
Certain Amounts. Whenever pursuant to this Note the Company 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 Company 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 Company 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 Company 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
Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Securities
Purchase Agreement, the Security Agreement and supporting documents.

 

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 Company shall provide the Holder
with prior notification of any meeting of the Company’s shareholders (and copies of proxy materials and other information
sent to shareholders). In the event of any taking by the Company 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 Company or
any proposed liquidation, dissolution or winding up of the Company, the Company 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 Company 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 Company 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 Company 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 Company 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.

 

IN
WITNESS WHEREOF, Company has caused this Note to be signed in its name by its duly authorized officer:

 

	 	PositiveID
    Corp.
	 	 	 
	 	By:
    	 
	 	Print:	 
	 	Title/Date:NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXCHANGEABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A
LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPT ABLE TO THE COMPANY.
THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

CONVERTIBLE
PROMISSORY NOTE

 

	Original
    Principal Amount: $57,750.00	Issue
    Date: November 21, 2017
	Consideration
    Paid at Close: $50,000.00	 

 

PositiveID
Corporation a Deleware corporation (the “Borrower”), with its offices located at 1690 S. Congress Avenue, Suite 201,
Delray Beach, FL 33445, promises to pay to the order of Einstein Investments LLC (the “Holder”), upon the terms set
forth below, the principal sum of (fifty-seven thousand seven-hundred & fifty dollars & no cents) ($57,750.00) (this “Note”).
The Note shall bear interest at the rate of 12% per annum payable on the Maturity Date. The Note contains a $5,250 OID and Legal
Fees of $2,500 such that the Consideration Paid at Closing of this Note is $50,000. The interest will be paid to the Holder in
whose name this Note is registered on the records of the Borrower regarding registration and transfers of this Note. The principal
of, and interest on, this Note are payable at 2415 E Camelback Rd., Suite 700, Phoenix, AZ 85016, initially, and if changed, last
appearing on the records of the Borrower as designated in writing by the Holder hereof from time to time.

 

1.
Payments.

 

(a)
Unless an Event of Default shall have previously occurred and be continuing or this Note is sooner converted into shares of Borrower’s
common stock pursuant to the terms herein, the full amount of principal under this Note shall be due and payable on August 21,
2018 (the “Maturity Date”).

 

2.
Prepayments.

 

(a)
The Borrower has the right to prepay any part of the Note plus accrued interest up to 90 days from the issue date, subject to
a cash payment of the principal plus 120% interest; and 91 days through 120 for a cash payment of the principal plus 125% interest;
and 121 days through 150 for a cash payment of the principal plus 130% interest; and 151 days through 180 for a cash payment of
the principal plus 135% interest. The Borrower cannot prepay any amount outstanding after the 180th day. Such redemption
must be closed and funded within 3 days of giving notice of redemption or the right to redeem shall be null and void.

 

    	Convertible Promissory Note	page 1
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3.
Commitment Fee.

 

N/A

 

4.
Events of Default.

 

If
one or more of the following described “Events of Default” shall occur:

 

(a)
The Borrower shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the
Borrower; or

 

(b)
Any of the representations or warranties made by the Borrower herein or in any certificate or financial or other written statements
heretofore or hereafter furnished by or on behalf of the Borrower in connection with the execution and delivery of this Note,
or the Convertible Promissory Note under which this note was issued shall be false or misleading in any respect; or

 

(c)
The Borrower shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation
of the Borrower under this Note or any other note issued to the Holder; or

 

(d)
The Borrower shall (1) become insolvent (which does not include a “going concern opinion); (2) admit in writing its inability
to pay its debts generally as they mature; (3) make an assignment for the benefit of creditors or commence proceedings for its
dissolution; (4) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part
of its property or business; (5) file a petition for bankruptcy relief, consent to the filing of such petition or have filed against
it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable; or

 

(e)
A trustee, liquidator or receiver shall be appointed for the Borrower or for a substantial part of its property or business without
its consent and shall not be discharged within sixty (60) days after such appointment; or

 

(f)
Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody
or control of the whole or any substantial portion of the properties or assets of the Borrower; or

 

(g)
One or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000)
in the aggregate, shall be entered or filed against the Borrower or any of its properties or other assets and shall remain unpaid,
unvacated, unbonded or unstayed for a period of fifteen (15) days or in any event later than five (5) days prior to the date of
any proposed sale thereunder; or

 

(h)
Defaulted on or breached any term of any other note of similar debt instrument into which the Borrower has entered and failed
to cure such default within the appropriate grace period; or

 

(i)
The Borrower shall have its Common Stock delisted from an exchange (including the OTC Markets exchange) or, if the Common Stock
trades on an exchange, then trading in the Common Stock shall be suspended for more than 10 consecutive days or ceases to file
its 1934 act reports with the SEC;

 

    	Convertible Promissory Note	page 2
                                                                                                                                                                                                                                                                                      of 14

    	 

    

 

(j)
If a majority of the members of the Board of Directors of the Borrower on the date hereof are no longer serving as members of
the Board;

 

(k)
The Borrower shall not deliver to the Holder the Common Stock pursuant to Section 5 herein without restrictive legend within 3
business days of its receipt of a Notice of Conversion which includes an Opinion of Counsel expressing an opinion which supports
the removal of a restrictive legend; or

 

(l)
The Borrower shall not replenish the reserve set forth in Section 5(d)(xv), within 3 business days of the request of the Holder.

 

(m)
The Borrower’s Common Stock has a closing bid price of less than $0.0007 per share for at least 5 consecutive trading days;
or

 

(n)
The aggregate dollar trading volume of the Borrower’s Common Stock is less than $10,000 in any 5 consecutive trading days;
or

 

(o)
The Borrower shall cease to be “current” in its filings with the Securities and Exchange Commission; or

 

(p)
The Borrower shall lose the “bid” price for its stock in a market (including the OTC marketplace or other exchange)

 

Then,
or at any time thereafter, the sole remedy of which is to allow the Holder to cancel both this Note and the Holder Issued Note,
and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall
not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder’s sole discretion,
the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any
kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments
contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce
any and all of the Holder’s rights and remedies provided herein or any other rights or remedies afforded by law. Upon an
Event of Default, interest shall accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted
by current law, then at the highest rate of interest permitted by law. In the event of a breach of Section 5(b)(ii) the penalty
shall be $250 per day the shares are not issued beginning on the 4th day after the conversion notice was delivered
to the Borrower. This penalty shall increase to $500 per day beginning on the 10th day. The penalty for a breach of
Section 4(p) shall be an increase of the outstanding principal amounts by 20%. In case of a breach of Section 4(i), the outstanding
principal due under this Note shall increase by 50%. Further, if a breach of Section 4(o) occurs or is continuing after the 6-month
anniversary of the Note, then the Holder shall be entitled to use the lowest closing bid price during the delinquency period as
a base price for the conversion. For example, if the lowest closing bid price during the delinquency period is $0.01 per share
and the conversion discount is 50% the Holder may elect to convert future conversions at $0.005 per share.

 

    	Convertible Promissory Note	page 3
                                                                                                                                                                                                                                                                                      of 14

    	 

    

 

If
the Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging
an attorney, then if the Holder prevails in such action, the Holder shall be reimbursed by the Borrower for its attorneys’
fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

5.
Conversion of Note. In addition to any remedies available to the Holder in Section 4 hereof, upon the occurrence of an
Event of Default of this Note, including the failure to pay any amounts owed by the Maturity Date, this Note shall be convertible
into shares of the Borrower’s Common Stock, on the terms and conditions set forth in this Section 5.

 

(a)
Conversion Right. Subject to the provisions of Section 5(c), at any time or times on or after the Issuance Date, the Holder
shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and
nonassessable shares of Common Stock in accordance with Section 5(b), at the Conversion Price (as defined below). The number of
shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to this Section 5(a) shall be equal to the quotient
of dividing the Conversion Amount by the Conversion Price. The Borrower shall not issue any fraction of a share of Common Stock
upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Borrower shall
round such fraction of a share of Common Stock up to the nearest whole share. The Borrower shall pay any and all transfer agent
fees, legal fees, costs and any other fees or costs that may be incurred or charged in connection with the issuance of shares
of the Borrower’s Common Stock to the Holder arising out of or relating to the conversion of this Note.

 

(i)
” Conversion Amount ” means the portion of the Original Principal Amount and Interest to be converted, plus
any penalties, redeemed or otherwise with respect to which this determination is being made.

 

(ii)”Conversion
Price” means the Discount Percentage Conversion Price, where the “Discount Percentage Conversion Price”
shall equal 62.5% of the lowest closing bid price during the twenty (20) Trading Day Period immediately prior to the date of conversion
(representing a discount rate of 37.5%) on which the Holder elects to convert all or part of this Note, subject to adjustment
as provided in this Note.

 

(b)
Mechanics of Conversion.

 

(i)
Optional Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”),
the Holder shall (A) transmit by email, facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York, NY
Time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit A (the “ Conversion
Notice “) to the Borrower. On or before the third Business Day following the date of receipt of a Conversion Notice (the
” Share Delivery Date “), the Borrower shall (A) if legends are not required to be placed on certificates of Common
Stock pursuant to the then existing provisions of Rule 144 of the Securities Act of 1933 (“Rule 144”) and provided
that the Transfer Agent is participating in the Depository Trust Borrower’s (“DTC”) Fast Automated Securities
Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder’s
or its designee’s balance account with DTC through its Deposit Withdrawal Agent Commission system or (B) if the Transfer
Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified
in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common
Stock to which the Holder shall be entitled which certificates shall not bear any restrictive legends unless required pursuant
the Rule 144. If this Note is physically surrendered for conversion and the outstanding Principal of this Note is greater than
the Principal portion of the Conversion Amount being converted, then the Borrower shall, upon request of the Holder, as soon as
practicable and in no event later than three (3) Business Days after receipt of this Note and at its own expense, issue and deliver
to the holder a new Note representing the outstanding Principal not converted. The Person or Persons entitled to receive the shares
of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such
shares of Common Stock upon the transmission of a Conversion Notice.

 

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(ii)
Borrower’s Failure to Timely Convert. If within three (3) Trading Days after the Borrower’s receipt of the
facsimile or email copy of a Conversion Notice the Borrower shall fail to issue and deliver to Holder via “DWAC/FAST”
electronic transfer the number of shares of Common Stock to which the Holder is entitled upon such holder’s conversion of
any Conversion Amount (a “ Conversion Failure ”), the Original Principal Amount of the Note shall increase by $250
per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the Borrower.
This penalty shall increase to $500 per day beginning on the 10th day until the Borrower issues and delivers a certificate
to the Holder or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which the Holder
is entitled upon such holder’s conversion of any Conversion Amount (under Holder’s and Borrower’s expectation
that any damages will tack back to the Issuance Date). Borrower will not be subject to any penalties once its transfer agent processes
the shares to the DWAC system. If the Borrower fails to deliver shares in accordance with the timeframe stated in this Section,
resulting in a Conversion Failure, the Holder, at any time prior to selling all of those shares, may rescind any portion, in whole
or in part, of that particular conversion attributable to the unsold shares and have the rescinded conversion amount returned
to the Outstanding Balance with the rescinded conversion shares returned to the Borrower (under Holder’s and Borrower’s
expectations that any returned conversion amounts will tack back to the original date of the Note).

 

(iii)
DWAC/FAST Eligibility. If the Borrower fails for any reason to deliver to the Holder the Shares by DWAC/FAST electronic
transfer (such as by delivering a physical stock certificate), or if there is a Conversion Failure as defined in Section 5(b)(ii),
and if the Holder incurs a Market Price Loss, then at any time subsequent to incurring the loss the Holder may provide the Borrower
written notice indicating the amounts payable to the Holder in respect of the Market Price Loss and the Borrower must make the
Holder whole by either of the following options at Holder’s election:

 

Market
Price Loss = [(Highest VWAP for the 30 trading days on or after the day of exercise) x (Number of conversion shares)]

 

Option
A – Pay Market Price Loss in Cash. The Borrower must pay the Market Price Loss by cash payment, and any such cash payment
must be made by the third business day from the time of the Holder’s written notice to the Borrower.

 

Option
B – Add Market Price Loss to Outstanding Balance. The Borrower must pay the Market Price Loss by adding the Market Price
Loss to the Outstanding Balance (under Holder’s and the Borrower’s expectation that any Market Price Loss amounts
will tack back to the Issuance Date).

 

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In
the event that the conversion shares are not deliverable by DWAC/FAST electronic transfer an additional 10% discount to the Conversion
Price will apply. In the event the Borrower experiences a DTC “Chill” on its shares, the conversion price shall be
decreased to 52.5% instead of 62.5% while that “Chill” is in effect.

 

(iv)
Par Value True-Up. In the event that the Conversion Price is less than Par Value on the Conversion Date, the Holder may
elect to submit a Conversion Notice (attached hereto as Exhibit A) with a conversion price equal to the Borrower’s Par Value.
In addition, upon written notice from the Holder in the form attached hereto as Exhibit C (the “True-Up Notice”),
the Holder may require the Borrower, at the Holder’s election, to either (A) issue and deliver to the Holder a number of
shares of Common Stock as equals (X) the Conversion Amount divided by 60% of the lowest trade occurring during the twenty (20)
consecutive Trading Days immediately preceding the applicable Conversion Date, less (Y) the Conversion Amount divided by the Par
Value (Any additional shares of Common Stock issuable pursuant to this Section 5(b)(iv) shall be referred to herein as “True-Up
Shares”), or (B) add to the Outstanding Balance a dollar amount equal to the number of True-Up Shares (as calculated above)
multiplied by the high trade price on the Conversion Date (Any dollar amount added to the Outstanding Balance pursuant to this
Section 5(b)(iv) shall be referred to herein as the “True-Up Balance”) (under Holder’s and the Borrower’s
expectation that any True-Up Balance amounts will tack back to the Issuance Date).

 

(v)
Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless (A) the full
Conversion Amount represented by this Note is being converted or (B) the Holder has provided the Borrower with prior written notice
(which notice may be included in a Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note.
The Holder and the Borrower shall maintain records showing the Principal and Interest 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 conversion.

 

(c)
Limitations on Conversions or Trading.

 

(i)
Beneficial Ownership. The Borrower shall not effect any conversions of this Note and the Holder shall not have the right
to convert any portion of this Note or receive shares of Common Stock as payment of interest hereunder to the extent that after
giving effect to such conversion or receipt of such interest payment, the Holder, together with any affiliate thereof, would beneficially
own (as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated thereunder) in excess of 4.99%
of the number of shares of Common Stock outstanding immediately after giving effect to such conversion or receipt of shares as
payment of interest. Since the Holder will not be obligated to report to the Borrower the number of shares of Common Stock it
may hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common
Stock in excess of 4.99% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially
owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction
contained in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the
limitation contained in this Section applies, the determination of which portion of the principal amount of this Note is convertible
shall be the responsibility and obligation of the Holder. If the Holder has delivered a Conversion Notice for a principal amount
of this Note that, without regard to any other shares that the Holder or its affiliates may beneficially own, would result in
the issuance in excess of the permitted amount hereunder, the Borrower shall notify the Holder of this fact and shall honor the
conversion for the maximum principal amount permitted to be converted on such Conversion Date in accordance with Section 5(a)
and, any principal amount tendered for conversion in excess of the permitted amount hereunder shall remain outstanding under this
Note. In the event that the Market Capitalization of the Borrower falls below $350,000 the term “4.99%” above shall
be permanently replaced with “9.99%”. “Market Capitalization” shall be defined as the product of (a) the
closing price of the Common Stock of the Common stock multiplied by (b) the number of shares of Common Stock outstanding as reported
on the Borrower’s most recently filed Form 10-K or Form 10-Q. The provisions of this Section may be waived by Holder upon
not less than 65 days prior written notification to the Borrower.

 

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(ii)
Capitalization. So long as this Note is outstanding, upon written request of the Holder, the Borrower shall furnish to
the Holder the then-current number of common shares issued and outstanding, the then-current number of common shares authorized,
and the then-current number of shares reserved for third parties.

 

(d)
Other Provisions.

 

(i)
Terms of Future Financings. So long as this Note is outstanding, upon any issuance by the Borrower or any of its subsidiaries
of any security (or upon any amendment to any existing security) with any term more favorable to the holder of such security or
with a term in favor of the holder of such security that was not similarly provided to the Holder in this Note, then the Borrower
shall notify the Holder of such additional or more favorable term and such term, shall become a part of the Note and adjusted
downward for the benefit of the Holder. The types of terms contained in another security that may be more favorable to the holder
of such security include, but are not limited to, terms addressing conversion discounts, conversion lookback periods, interest
rates, original issue discounts, stock sale price, private placement price per share, and warrant coverage. All remedies herein
are cumulative.

 

(ii)
All calculations under this Section 5 shall be rounded up to the nearest $0.00001 or whole share.

 

(iii)
Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section
4 herein for the Borrower’s failure to deliver certificates representing shares of Common Stock upon conversion within the
period specified herein and such Holder shall have the right to pursue all remedies available to it at law or in equity including,
without limitation, a decree of specific performance and/or injunctive relief, in each case without the need to post a bond or
provide other security. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant
to any other Section hereof or under applicable law.

 

(iv)
Adjustment of Conversion Price

 

Until
this Note has been paid in full or converted in full, the Conversion Price shall be subject to adjustment from time to time as
follows:

 

(v)
Adjustment for Stock Splits and Combinations. If Borrower shall at any time or from time to time after the original date
of issuance of this Note, effect a stock split of the outstanding Common Stock, the applicable Conversion Price in effect immediately
prior to the stock split shall be proportionately decreased. If Borrower shall at any time or from time to time after the original
date of issuance of this Note, combine the outstanding shares of Common Stock, the applicable Conversion Price in effect immediately
prior to the combination shall be proportionately increased. Any adjustments under this Section shall be effective at the close
of business on the date the stock split or combination occurs.

 

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(vi)
Adjustments for Subsequent Equity Sales. If, at any time while this Note is outstanding, the Borrower, as applicable, sells
or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any
sale, grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person
to acquire shares of Common Stock at an effective price per share that is lower than the then Conversion Price (such lower price,
the “Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if
the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price
adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights
per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price
per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion
Price on such date of the Dilutive Issuance), then the Conversion Price shall be reduced to equal the Base Conversion Price. Such
adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no
adjustment will be made under this Section 5(d)(vi) in respect of an Exempt Issuance. The Borrower shall notify the Holder in
writing, no later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject to this
Section 5(d)(vi), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price
and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether
or not the Borrower provides a Dilutive Issuance Notice pursuant to this Section 5(d)(vi), upon the occurrence of any Dilutive
issuance, the Holder is entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the
date of such Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion Price in the Notice
of Conversion. “Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees,
officers or directors of the Borrower pursuant to any existing stock or option plan or any stock or option plan duly adopted after
the date hereof for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members
of a committee of non-employee directors established for such purpose, (b) shares of Common Stock issued to employees, officers
or directors of the Borrower in lieu of cash compensation for services rendered to the Borrower, (c) securities issued upon the
exercise or exchange of or conversion of any securities issued hereunder and/or other securities exercisable or exchangeable for
or convertible into shares of Common Stock issued and outstanding on the date of this Note provided that such securities have
not been amended since the date of this Note to increase the number of such securities or to decrease the exercise price, exchange
price or conversion price of such securities, and (d) securities issued pursuant to acquisitions or strategic transactions approved
by a majority of the disinterested directors of the Borrower, provided that any such issuance shall only be to a Person (or to
the equity holders of a Person) which is, itself or through its subsidiaries, an operating Borrower or an owner of an asset in
a business synergistic with the business of the Borrower and shall provide to the Borrower additional benefits in addition to
the investment of funds, but shall not include a transaction in which the Borrower is issuing securities primarily for the purpose
of raising capital or to an entity whose primary business is investing in securities.

 

(vii)
Adjustments for Certain Dividends and Distribution. If Borrower shall at any time or from time to time after the original
date of issuance of this Note, make or issue or set a record date for the determination of holders of Common Stock entitled to
receive a dividend or other distribution payable in shares of Common Stock, then, and in each event, the applicable Conversion
Price in effect immediately prior to such event shall be decreased as of the time of such issuance or, in the event such record
date shall have been fixed, as of the close of business on such record date, by multiplying, the applicable Conversion Price then
in effect by a fraction: the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately
prior to the time of such issuance or the close of business on such record date; and the denominator of which shall be the total
number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business
on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution.

 

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(viii)
Adjustment for Other Dividends and Distributions. If Borrower shall at any time or from time to time after the original
date of issuance of this Note, make or issue or set a record date for the determination of holders of Common Stock entitled to
receive a dividend or other distribution payable in other than shares of Common Stock, then, and in each event, an appropriate
revision to the applicable Conversion Price shall be made and provision shall be made (by adjustments of the Conversion Price
or otherwise) so that the holders of this Note shall receive upon conversions thereof, in addition to the number of shares of
Common Stock receivable thereon, the number of securities of Borrower which they would have received had this Note been converted
into Common Stock on the date of such event and had thereafter, during the period from the date of such event to and including
the Conversion Date, retained such securities (together with any distributions payable thereon during such period), giving application
to all adjustments called for during such period under this Section with respect to the rights of Holder; provided, however, that
if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the
date fixed therefor, the Conversion Price shall be adjusted pursuant to this paragraph as of the time of actual payment of such
dividends or distributions.

 

(ix)
Adjustment for Reclassification. Exchange or Substitution. If the Common Stock issuable upon conversion of this Note at
any time or from time to time after the original date of issuance of this Note shall be changed to the same or different number
of shares of any class or classes of stock, whether by reclassification, exchange, substitution or otherwise (other than by way
of a stock split or combination of shares or stock dividends provided for herein, or a reorganization, merger, consolidation,
or sale of assets provided for herein, then, and in each event, an appropriate revision to the Conversion Price shall be made
and provisions shall be made (by adjustments of the Conversion Price or otherwise) so that the Holder shall have the right thereafter
to convert this Note into the kind and amount of shares of stock and other securities receivable upon reclassification, exchange
substitution or other change, by holders of the number of shares of Common Stock into which such Note might have been converted
immediately prior to such reclassification, exchange, substitution or other change, all subject to further adjustment as provided
herein.

 

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(x)
Consideration for Stock. In case any shares of Common Stock or any Common Stock Equivalents (defined as “rights”
or warrants or options to purchase any Common Stock or Convertible Securities (defined as “securities convertible into or
exchangeable for, directly or indirectly, Common Stock”) shall be issued or sold: in connection with any merger or consolidation
in which Borrower is the surviving corporation (other than any consolidation or merger in which the previously outstanding shares
of Common Stock of Borrower shall be changed to or exchanged for the stock or other securities of another corporation), the amount
of consideration therefor shall be, deemed to be the fair value, as determined reasonably and in good faith by the Board of Directors
of Borrower, of such portion of the assets and business of the non-surviving corporation as such Board may determine to be attributable
to such shares of Common Stock, Convertible Securities, rights or warrants or options, as the case may be; or in the event of
any consolidation or merger of Borrower in which Borrower is not the surviving corporation or in which the previously outstanding
shares of Common Stock of Borrower shall be changed into or exchanged for the stock or other securities of another corporation,
or in the event of any sale of all or substantially all of the assets of Borrower for stock or other securities of any corporation,
then upon the closing of such transaction, this Note will automatically be redeemable for a payment equal to 150% of the outstanding
principal amount of this Note (including accrued interest) (the “Change of Control Preference Amount”); or
Borrower shall be deemed to have issued a number of shares of its Common Stock for stock or securities or other property of
the other corporation computed on the basis of the actual exchange ratio on which the transaction was predicated, and for a consideration
equal to the fair market value on the date of such transaction of all such stock or securities or other property of the other
corporation. If any such calculation results in adjustment of the applicable Conversion Price, or the number of shares of Common
Stock issuable upon conversion of the Note, the determination of the applicable Conversion Price or the number of shares of Common
Stock issuable upon conversion of the Note immediately prior to such merger, consolidation or sale, shall be made after giving
effect to such adjustment of the number of shares of Common Stock issuable upon conversion of the Note. In the event Common Stock
is issued with other shares or securities or other assets of Borrower for consideration which covers both, the consideration computed
as provided in this Section shall be allocated among such securities and assets as determined in good faith by the Board of Directors
of Borrower; or for services, other than as permitted pursuant to Section 4(d)(x), the amount of consideration therefor shall
be deemed to be the par value of the Common Stock.

 

(xi)
Record Date. In case Borrower shall take record of the holders of its Common Stock for the purpose of entitling them to
subscribe for or purchase Common Stock or Convertible Securities, then the date of the issue or sale of the shares of Common Stock
shall deemed to be such record date.

 

(xii)
No Impairment. The Borrower shall not, by amendment of its Articles of Incorporation, Bylaws, Operating Agreement or other
constitutional documents, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale
of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed
or performed hereunder by the Borrower, but will at all times in good faith, assist in the carrying out of all the provisions
of this Section and in the taking of all such action as may be necessary or appropriate in order to protect the conversion
rights of the Holder against impairment. In the event a Holder shall elect to convert any portion of the Note as provided herein,
Borrower cannot refuse conversion based on any claim that such Holder or anyone associated or affiliated with such Holder has
been engaged in any violation of law, violation of an agreement to which such Holder is a party or for any reason whatsoever,
unless, an injunction from a court, or notice, restraining and or adjoining conversion of all or of the Note shall have issued
and Borrower posts a surety bond for the benefit of such Holder in an amount equal to one hundred percent (100%) of the amount
of the Note that the Holder has elected to convert, which bond shall remain in effect until the completion of arbitration/litigation
of the dispute and the proceeds of which shall be payable to such Holder (as liquidated damages) in the event it obtains judgment.

 

(xiii)
Certificates as to Adjustments. Upon occurrence of each adjustment or readjustment of the Conversion Price or number of
shares of Common Stock issuable upon conversion of this Note pursuant to this Section, Borrower at its expense shall promptly
compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting forth
such adjustment and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. Borrower shall,
upon written request of the Holder, at any time, furnish or cause to be furnished to the Holder a like certificate setting forth
such adjustments and readjustments, the applicable Conversion Price in effect at the time, and 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 the conversion of this
Note. Notwithstanding the foregoing, Borrower shall not be obligated to deliver a certificate unless such certificate would reflect
an increase or decrease of at least one percent (1%) of such adjusted amount.

 

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(xiv)
Issue Taxes. The Borrower shall pay any and all issue and other taxes, excluding federal, state or local income taxes,
that may be payable in respect of any issue or delivery of shares of Common Stock on conversion of this Note pursuant thereto;
provided however, that the Borrower shall not be obligated to pay any transfer taxes resulting from any transfer requested
by the Holder in connection with any such conversion.

 

(xv)
Reservation of Common Stock. The Borrower shall issue Irrevocable Transfer Agent Instructions reserving 99,891,892 Common
Stock shares with their Stock Transfer Agent in Holder’s name pursuant to the “Irrevocable Transfer Agent Instruction
Letter” attached hereto as Exhibit B. The Reservation Shares are held with the Stock Transfer Agent in good faith until
either the time of Conversion or Maturity Date. In the event the Borrower chooses to prepay the Note, the Transfer Agent will
return the Reservation Shares to Borrower. In the event that the Reservation Share amount is insufficient, the Holder will from
time to time provide the Stock Transfer Agent with written notice to increase the number of shares of Common Stock so reserved,
without any further action or confirmation of the Borrower. Borrower shall at all times when this Note shall be outstanding, reserve
and keep available out of its authorized but unissued Common Stock, 4x the number of shares of Common Stock as shall from time
to time be sufficient to effect the conversion of this Note. Borrower shall, from time to time in accordance with DELEWARE law,
increase the authorized number of shares of Common Stock if at any time the unissued number of authorized shares shall not be
sufficient to satisfy Borrower’ obligations under this Section. The Borrower will instruct its Transfer Agent to
provide the outstanding share information to the Holder in connection with its conversions. Upon full conversion of this Note,
any shares remaining in the Share Reserve shall be cancelled.

 

(xvi)
Piggy Back Registration. N/A

 

(xvii)
Regulatory Compliance. If any shares of Common Stock to be reserved for the purpose of conversion of this Note or any interest
accrued thereon require registration or listing with or approval of any governmental authority stock exchange or other regulatory
body under any federal or state law or regulation or otherwise before such shares may be validly issued or delivered upon conversion,
Borrower shall, at its sole cost and expense, in good faith and as expeditiously as possible, endeavor to secure such registration,
listing or approval, as the case may be.

 

(xviii)
Filings. The Borrower shall include the Note in its next scheduled SEC filing whether that shall be a 10Q or 10K.

 

6.
No Waiver of the Holder’s Rights. All payments of principal shall be made without setoff, deduction or counterclaim.
No delay or failure on the part of the Holder in exercising any of its options, power or rights, nor any partial or single exercise
of its options, powers or rights shall constitute a waiver thereof or of any other option, power or right, and no waiver on the
part of the Holder of any of its options, powers, or rights shall constitute a waiver of any other option, power or right. Borrower
hereby waives presentment of payment, protest, and all notices or demands in connection with the delivery, acceptance, performance,
default or endorsement of this Note. Acceptance by the Holder of less than the full amount due and payable hereunder shall in
no way limit the right of the Holder to require full payment of all sums due and payable hereunder in accordance with the terms
hereof.

 

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7.
Modifications. No term or provision contained herein may be modified, amended or waived except by written agreement or
consent signed by the party to be bound thereby.

 

8.
Cumulative Rights and Remedies: Usury. The rights and remedies of the Holder expressed herein are cumulative and not exclusive
of any rights and remedies otherwise available under this Note, or applicable law (including at equity). The election of the Holder
to avail itself of any one or more remedies shall not be a bar to any other available remedies, which the Borrower agrees the
Holder may take from time to time. If it shall be found that any interest paid or payable hereunder violates applicable laws governing
usury, the applicable rate of interest due hereunder shall be reduced to the maximum permitted rate of interest under such law,
and any interest previously paid in excess of such legal limit shall be returned to the Borrower by the Holder.

 

9.
Severability. If any provision of this Note is declared by a court of competent jurisdiction to be in any way invalid,
illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any person
or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.

 

10.
Successors and Assigns. This Note shall be binding upon the Borrower and its successors and shall inure to the benefit
of the Holder and its successors and assigns. The term “Holder” as used herein, shall also include any endorsee,
assignee or other holder of this Note.

 

11.
Lost or Stolen Promissory Note. If this Note is lost, stolen, mutilated or otherwise destroyed, the Borrower shall execute
and deliver to the Holder a new promissory note containing the same terms, and in the same form, as this Note. In such event,
the Borrower may require the Holder to deliver to the Borrower an affidavit of lost instrument and customary indemnity in respect
thereof as a condition to the delivery of any such new promissory note.

 

12.
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.

 

13.
Expenses. At the Closing, the Borrower shall reimburse Holder for expenses incurred by them in connection with the negotiation,
preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith
(“Documents”), including, without limitation, reasonable attorneys’ and consultants’ fees and expenses,
transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents or any
consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of
restructuring the transactions contemplated by the Documents. When possible, the Borrower must pay these fees directly, otherwise
the Borrower must make immediate payment for reimbursement to the Holder for all fees and expenses immediately upon written notice
by the Holder or the submission of an invoice by the Holder. The Borrower’s obligation with respect to this transaction
is to reimburse Holder’s expenses shall be $2,500 in legal fees, which shall be deducted from the Note when funded.

 

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13.
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be
governed by and construed and enforced in accordance with the internal laws of the State of Arizona, without regard to the principles
of conflicts of law thereof. Each of the Borrower and the Holder agree that all legal proceedings concerning the interpretations,
enforcement and defense of this Note shall be commenced in the State and federal courts sitting in the city of Phoenix, County
of Maricopa (the “Phoenix Courts”). Each of the Borrower and Holder hereby irrevocably submits to the exclusive jurisdiction
of the Phoenix Courts for the adjudication of any dispute hereunder (including with respect to the enforcement of this Note),
and hereby irrevocably waives, and agrees not to assert in any suite, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, or that such suit, action or proceeding is brought in an inconvenient forum. Each
of the Borrower and the Holder hereby irrevocably waives personal service of process and consents to process being served in any
such suit, action or preceding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to the other at the address in effect for notices to it under this Note and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. Each of the Borrower and the Holder hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this
Note or the transactions contemplated hereby.

 

14.
Notice. 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, 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, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated below (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. The Holder is to be notified by the Borrower, within five (5) business days, in accordance with this Section 14, of the
existence or occurrence of any Events of Default. The addresses for such communications shall be:

 

	If
                                         to the Borrower, at:

         

        PositiveID
        Corporation

        Attn:
        William Caragol

        1690
        S. Congress Avenue, Suite 201

        Delray
        Beach, FL 33445
	If
                                         to the Holder, at:

         

        Einstein
        Investments LLC

        Attn:
        Kevyn Green

        2415
        E Camelback Rd., Suite 700

        Phoenix,
        AZ 85016

 

    	Convertible Promissory Note	page 13
                                                                                                                                                                                                                                                                                      of 14

    	 

    

 

IN
WITNESS WHEREOF, the Borrower has caused this Note to be duly executed by an officer thereunto as of this date first-above written.

 

PositiveID
Corporation

 

	By:	/s/
    William Caragol	 
	Name:

                                                                              Title:
	William
                                         Caragol

        CEO
	 

 

EINSTEIN
INVESTMENTS LLC

 

	By:	/s/
    Kevyn Green	 
	Name:

                                                                              Title:
	Kevyn
                                         Green

        President
	 

 

SUBSCRIPTION
AMOUNT:

 

Principal
Amount of Note: $57,750.00

 

Purchase
Price: $50,000.00

 

Note:
$57,750.00, less $5,250 in OID and less $2,500 in legal fees.

 

    	Convertible Promissory Note	page 14
                                                                                                                                                                                                                                                                                      of 14

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