Document:

EXHIBIT 10-1

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT
BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT
TO REGISTRATION OR EXEMPTION THEREFROM AND THE ISSUER OF THESE SECURITIES HAS BEEN PROVIDED WITH AN OPINION OF LEGAL COUNSEL TO
THE HOLDER IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES TO THE EFFECT THAT SUCH OFFER, SALE, TRANSFER,
PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION UNDER SUCH LAWS. 

  

	Date
    of Issuance: _________, 2013	Number
    of Shares ____________
	Warrant
    No. ___	(subject
    to adjustment)

 

RIGHTSCORP,
INC.

A
NEVADA CORPORATION

 

Warrant

 

Rightscorp,
Inc., a Nevada corporation (the “Company”), for value received, hereby certifies that _______________________
(the “Initial Holder”), or its registered assigns (the Initial Holder or such registered assigns shall be referred
to as the “Registered Holder”), is entitled, subject to the terms set forth below, to purchase from the Company
at any time on or after the Exercise Date and on or before the Expiration Date, up to ___________ shares (the “Warrant
Shares”) of the Company’s common stock, $0.001 par value per share (“Common Stock”), at a purchase
price of $0.75 per share (the “Purchase Price”). The number of shares of Warrant Shares and the Purchase Price
may be adjusted from time to time pursuant to the provisions of this Warrant. As used herein, “Exercise Date”
means any date after the date hereof and prior to the Expiration Date on which the Registered Holder elects by written notice
to the Company to exercise this Warrant.

 

This
Warrant is issued pursuant to that Securities Purchase Agreement, dated as of _______, 2013, by and among the Company and the
Initial Holder.

 

1.
Exercise

 

(a)
Manner of Exercise. This Warrant may be exercised by the Registered Holder, in whole or in part, by surrendering this Warrant,
with the purchase/exercise form appended hereto as Exhibit A duly executed by such Registered Holder or by such Registered
Holder’s duly authorized attorney, at the principal office of the Company, or at such other office or agency as the Company
may designate in writing, accompanied by payment in full of the Purchase Price payable in respect of the number of shares of Warrant
Shares purchased upon such exercise. The Purchase Price may be paid by cash, check, or wire transfer.

 

(b) Effective
Time of Exercise. Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of
business on the day on which this Warrant shall have been surrendered to the Company as provided in Section 1(a) above. At
such time, the person or persons in whose name or names any certificates for Warrant Shares shall be issuable upon such
exercise as provided in Section 1(c) below shall be deemed to have become the holder or holders of record of the Warrant
Shares represented by such certificates.

 

(c)
Delivery to Holder. As soon as practicable after the exercise of this Warrant, in whole or in part, and in any event within
ten (10) days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered
Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct:

 

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(i)a
certificate or certificates for the number of shares of Warrant Shares to which such Registered Holder shall be entitled, and

 

(ii)in
case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate
on the face or faces thereof for the number of shares of Warrant Shares equal (without giving effect to any adjustment therein)
to the number of such shares called for on the face of this Warrant minus the number of such shares purchased by the Registered
Holder upon such exercise as provided in Section 1(a) above.

 

2.
Adjustments.

 

(a) Stock
Splits and Dividends. If outstanding shares of the Company’s Common Stock shall be subdivided into a greater
number of shares or a dividend in Common Stock shall be paid in respect of Common Stock, then the Purchase Price in effect
immediately prior to such subdivision or at the record date of such dividend shall simultaneously with the effectiveness of
such subdivision or immediately after the record date of such dividend be proportionately reduced. If outstanding shares of
Common Stock shall be combined into a smaller number of shares, then the Purchase Price in effect immediately prior to such
combination shall, simultaneously with the effectiveness of such combination, be proportionately increased. When any
adjustment is required to be made in the Purchase Price, the number of shares of Warrant Shares purchasable upon the exercise
of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares issuable
upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Purchase Price in effect
immediately prior to such adjustment, by (ii) the Purchase Price in effect immediately after such adjustment.

 

(b) Reclassification,
Etc. In case of any reclassification or change of the outstanding securities of the Company or of any reorganization of
the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this
Warrant) or any similar corporate reorganization on or after the date hereof, then and in each such case the Registered
Holder, upon the exercise hereof at any time after the consummation of such reclassification, change, reorganization, merger
or conveyance, shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the
exercise hereof prior to such consummation, the stock or other securities or property to which such holder would have been
entitled upon such consummation if such holder had exercised this Warrant immediately prior thereto, all subject to further
adjustment as provided in this Section 2; and in each such case, the terms of this Section 2 shall be applicable to the
shares of stock or other securities properly receivable upon the exercise of this Warrant after such consummation.

 

(c) Adjustment
Certificate. When any adjustment is required to be made in the Warrant Shares or the Purchase Price pursuant to this
Section 2, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the
facts requiring such adjustment, (ii) the Purchase Price after such adjustment and (iii) the kind and amount of stock or
other securities or property into which this Warrant shall be exercisable after such adjustment.

 

3. Transfers.

 

(a) Unregistered
Security. This Warrant and the Warrant Shares have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), and may not be sold, pledged, distributed, offered for sale, transferred or otherwise
disposed of in the absence of (i) an effective registration statement under the Act as to this Warrant or such Warrant Shares
and registration or qualification of this Warrant or such Warrant Shares under any applicable U.S. federal or state
securities law then in effect, or (ii) an opinion of counsel, reasonably satisfactory to the Company, that such registration
or qualification is not required. Each certificate or other instrument for Warrant Shares issued upon the exercise of this
Warrant shall bear a legend substantially to the foregoing effect.

 

(b)
Transferability. Subject to the provisions of Section 3(a) hereof, this Warrant and all rights hereunder are transferable,
in whole or in part, upon surrender of the Warrant with a properly executed assignment (in the form of Exhibit B hereto)
at the principal office of the Company.

 

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(c)
Warrant Register. The Company will maintain a register containing the names and addresses of the Registered Holders of
this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder
as the absolute owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank,
the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding
any notice to the contrary. Any Registered Holder may change such Registered Holder’s address as shown on the warrant register
by written notice to the Company requesting such change.

 

4.
No Impairment. The Company will not, by amendment of its charter or through reorganization, consolidation, merger, dissolution,
sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will (subject to Section 11 below) at all times in good faith assist in the carrying out of all such terms and in
the taking of all such action as may be necessary or appropriate in order to protect the rights of the Registered Holder against
impairment.

 

5.
Termination. This Warrant (and the right to purchase securities upon exercise hereof) shall terminate eighteen (18) months
from the date of issuance of this Warrant (the “Expiration Date”).

 

6.
Notices of Certain Transactions. In the event:

 

(a)
the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time deliverable upon
the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or
to receive any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any
other right, to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right,
or

 

(b)
of any capital reorganization of the Company, any reclassification of the capital stock of the Company, or any consolidation or
merger of the Company with or into another corporation, or

 

(c)of
the voluntary or involuntary dissolution, liquidation or winding-up of the Company, then, and in each such case, the Company will
mail or cause to be mailed to the Registered Holder a notice specifying, as the case may be, (i) the date on which a record is
to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution
or right, or (ii) the effective date on which such reclassification, reorganization, consolidation, merger, dissolution, liquidation
or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Warrant Shares shall
be entitled to exchange their shares of Warrant Shares (or such other stock or securities) for securities or other property deliverable
upon such reclassification, reorganization, consolidation, merger, dissolution, liquidation or winding-up. Such notice shall be
mailed at least ten (10) days prior to the record date or effective date for the event specified in such notice.

 

7.
Reservation of Stock. The Company will at all times reserve and keep available out of its authorized but unissued stock,
solely for the issuance and delivery upon the exercise of this Warrant and other similar Warrants, such number of its duly authorized
shares of Common Stock as from time to time shall be issuable upon the exercise of this Warrant and other similar Warrants. All
of the shares of Common Stock issuable upon exercise of this Warrant and other similar Warrants, when issued and delivered in
accordance with the terms hereof and thereof, will be duly authorized, validly issued, fully paid and non-assessable, subject
to no lien or other encumbrance other than restrictions on transfer arising under applicable securities laws and restrictions
imposed by Section 3 hereof.

 

8. Exchange
of Warrants. Upon the surrender by the Registered Holder of any Warrant or Warrants, properly endorsed, to the Company
at the principal office of the Company, the Company will, subject to the provisions of Section 3 hereof, issue and deliver to
or upon the order of such Holder, at the Company’s expense, a new Warrant or Warrants of like tenor, in the name of
such Registered Holder or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes)
may direct, calling in the aggregate on the face or faces thereof for the number of shares of Common Stock called for on the
face or faces of the Warrant or Warrants so surrendered.

 

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9.
Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety
if reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.

 

10.
Notices. Any notice required or permitted by this Warrant shall be in writing and shall be deemed sufficient upon receipt,
when delivered personally or by courier, overnight delivery service or confirmed facsimile, or forty-eight (48) hours after being
deposited in the regular mail as certified or registered mail (airmail if sent internationally) with postage prepaid, addressed
(a) if to the Registered Holder, to the address of the Registered Holder most recently furnished in writing to the Company and
(b) if to the Company, to the address set forth below or subsequently modified by written notice to the Registered Holder.

 

11. No
Rights as Stockholder. Until the exercise of this Warrant, the Registered Holder shall not have or exercise any rights
by virtue hereof as a stockholder of the Company.

 

12.
Representations of Registered Holder. By acceptance of this Warrant, the Registered Holder hereby represents and acknowledges
to the Company that:

 

(a)
this Warrant and the Warrant Shares are “restricted securities” as such term is used in the rules and regulations
under the Securities Act and that such securities have not been and will not be registered under the Securities Act or any state
securities law, and that such securities must be held indefinitely unless registration is effected or transfer can be made pursuant
to appropriate exemptions;

 

(b)
the Registered Holder has read, and fully understands, the terms of this Warrant set forth on its face and the attachments hereto,
including the restrictions on transfer contained herein;

 

(c)
the Registered Holder is purchasing for investment for its own account and not with a view to or for sale in connection with any
distribution of this Warrant and the Warrant Shares and it has no intention of selling such securities in a public distribution
in violation of the federal securities laws or any applicable state securities laws; provided that nothing contained herein will
prevent the Registered Holder from transferring such securities in compliance with the terms of this Warrant and the applicable
federal and state securities laws; and

 

(d)
the Company may affix one or more legends, including a legend in substantially the following form (in addition to any other legend(s),
if any, required by applicable state corporate and/or securities laws) to certificates representing Warrant Shares:

 

“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT
BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT
TO REGISTRATION OR EXEMPTION THEREFROM AND THE ISSUER OF THESE SECURITIES HAS BEEN PROVIDED WITH AN OPINION OF LEGAL COUNSEL TO
THE HOLDER IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES TO THE EFFECT THAT SUCH OFFER, SALE, TRANSFER,
PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION UNDER SUCH LAWS.”

 

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13.
No Fractional Shares. No fractional shares will be issued in connection with any exercise hereunder. In lieu of any fractional
shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the fair
market value of one such share on the date of exercise, as determined in good faith by the Company’s Board of Directors.

 

14. Amendment
or Waiver. Any term of this Warrant may be amended or waived upon written consent of the Company and the Registered
Holder.

 

15.
Headings. The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning
of any provision of this Warrant.

 

16. Governing
Law. This Warrant shall be governed, construed and interpreted in accordance with the laws of the State of Nevada,
without giving effect to principles of conflicts of law.

 

[Remainder
of Page Intentionally Left Blank]

 

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SIGNATURE

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed and delivered by its authorized officer as of the date
first above written.

 

	 	RIGHTSCORP,
    INC., a Nevada corporation
	 	 	 
	 	Signed:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

  

    	 

    	 

    

 

EXHIBIT
A

 

PURCHASE/EXERCISE
FORM

 

	To:	RIGHTSCORP,
    INC.	Dated:_________________

 

The
undersigned, pursuant to the provisions set forth in the attached Warrant No. ___ hereby irrevocably elects to purchase _____
shares of the Common Stock covered by such Warrant and herewith makes payment of $_________, representing the full purchase price
for such shares at the price per share provided for in such Warrant.

 

The
undersigned acknowledges that it has reviewed the representations and warranties contained in Section 12 of the Warrant and by
its signature below hereby makes such representations and warranties to the Company as of the date hereof.

 

The
undersigned further acknowledges that it has reviewed that certain Securities Purchase Agreement, dated as of ________, 2013,
among the Company and certain holders of the Company’s securities (as amended from time to time) and agrees to be bound
by such provisions.

 

	 	Signature:	 
	 	 	 
	 	Name (print):	 
	 	 	 
	 	Title (if applic.)	 
	 	 	 
	 	Company (if applic.):	 

 

    	 

    	 

    

 

EXHIBIT
B

 

ASSIGNMENT
FORM

 

FOR
VALUE RECEIVED, _________________________________________ hereby sells, assigns and transfers all of the rights of the undersigned
under the attached Warrant with respect to the number of shares of Common Stock covered thereby set forth below, to:

 

	Name
                                                                                                                of Assignee
	 	Address/Fax
                                                                                                                Number
	 	No.
                                                                                                                of Shares

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

	Dated:	 	 	Signature:	 
	 	 	 	 	 
	 	 	 	Witness:EXHIBIT 10-2

 

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

 

RIGHTSCORP,
INC.

a
Delaware corporation

 

10%
SECURED CONVERTIBLE NOTE

 

	$_______	__________,	2013	Note
    No :__

 

FOR
VALUE RECEIVED, RIGHTSCORP, INC., a Delaware corporation (the “Borrower”), hereby promises to pay __________(the
“Holder”) the principal sum of Twenty Five Thousand Dollars ($_____), with interest accruing thereon, on
the date which is nine (9) months from the date hereof (the “Maturity Date”), if not sooner paid or
converted as provided herein.

 

This
10% Secured Convertible Note (this “Note”) is issued by the Borrower as a series of 10% secured
convertible notes (collectively, the “Notes”) in an aggregate principal amount not to exceed Six Hundred
Thousand Dollars ($600,000) in a transaction exempt from the registration requirements of the Securities Act of 1933, as
amended. Said issuance is pursuant to the terms of a Note Purchase Agreement between the Borrower,
the Holder and certain other holders of the Notes, dated of even date herewith (the “Note Purchase
Agreement”), and shall be governed by the terms of such Note Purchase Agreement. Unless otherwise separately
defined herein, all capitalized terms used in this Note shall have the same meaning as is set forth in the Note Purchase
Agreement.

 

ARTICLE
I

GENERAL
PROVISIONS

 

1.1Interest
Rate. Interest payable on this Note shall accrue at the annual rate of ten percent (10%) and be payable in arrears on the
Maturity Date, accelerated or otherwise, when the principal and accrued but unpaid interest shall be due and payable, or sooner
as described below.

 

1.2Prepayment.
Provided that an Event of Default, nor an event which with the passage of time or the giving of notice could become an Event
of Default, has not occurred, the Borrower may, upon five (5) days prior written notice, prepay
all, or less than all, of the principal and accrued interest of this Note together with the amount of interest that would
have been payable on the amount of this Note that is being prepaid through the Maturity Date. In the event that the Borrower
has received additional debt and/or equity financing of at least One Million Two Hundred Thousand Dollars ($1,200,000), the
Borrower shall, upon five (5) days prior written notice, prepay all of the principal and accrued interest of this Note
together with the amount of interest that would have been payable on the amount of this Note that is being prepaid through
the Maturity Date. In each case, the Holder may exercise its conversion rights during such five (5) day notice periods. Any
prepayment shall be without prepayment charge or penalty other than as set forth in this Section 1.2.

 

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1.3Security
Interest. This Note, along with all the other Notes, shall be secured by all the assets of the Company pursuant to the terms
and conditions of the Security Agreement executed by the Borrower and each of the Holders.

 

ARTICLE
II

CONVERSION
RIGHTS

 

The
Holder shall have the right to convert the principal and any interest due under this Note into shares of the Borrower’s
Series B Preferred Stock (the “Series B Preferred Stock”) or, at the option of the Holder, shares of the
Borrower’s Series A Preferred Stock(the “Series A Preferred Stock”) as set forth below.

 

2.1.Conversion
into the Borrower’s Preferred Stock.

 

(a)The
Holder shall have the right,at the closing of the Borrower’s Series B Preferred Stock offering, to convert
any outstanding and unpaid principal portion of this Note and accrued interest into fully paid and non-assessable shares
of Series B Preferred Stock or, at the option of the Holder, into fully paid and non-assessable shares of Series A
Preferred Stock as such stock exists on the date of issuance of this Note, in each case at the Conversion Price (as defined
in Section 2.1(b) hereof). In the event that the Borrower’s Series B Preferred Stock offering has not been consummated
prior to the Maturity Date, this Note may, at the option of the Holder, be converted into fully paid and non-assessable
shares of Series A Preferred Stock, at the Conversion Price. The number of shares of Common Stock to be issued upon each
conversion of this Note shall be determined by dividing that portion of the principal of the Note and interest, if any, to be
converted, by the Conversion Price. Upon delivery to the Borrower of a completed Notice of Conversion, a form of which is
annexed hereto as Exhibit A, Borrower shall issue and deliver to the Holder that number of shares of Series B
Preferred Stock or Series A Preferred Stock, as the case may be, for the portion of the Note converted in accordance with the
foregoing.

 

(b)The
conversion price per share shall be equal to thirty-seven cents ($0.37) (the “Conversion Price”).

 

(c)During
the period the conversion right exists, Borrower will reserve from its authorized and unissued Preferred Stock not less than an
amount of Preferred Stock equal to one hundred percent (100%) of the amount of shares of Preferred Stock issuable upon the full
conversion of this Note and an amount of Common Stock equal to one hundred percent (100%) of the amount of shares of Common Stock
issuable upon the full conversion of the Preferred Stock issuable upon the full conversion of this Note. Borrower represents that
upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. Borrower agrees that its issuance of
this Note shall constitute full authority to its officers, agents, and transfer agents who are charged with the duty of executing
and issuing stock certificates to execute and issue the necessary certificates for shares of Preferred Stock upon the conversion
of this Note.

 

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2.2Method
of Conversion. This Note may be converted by the Holder in whole or in part as described in Section 2.1(a) hereof. Upon partial
conversion of this Note, a new Note containing the same date and provisions of this Note shall, at the request of the Holder,
be issued by the Borrower to the Holder for the principal balance of this Note and interest which shall not have been converted
or paid.

 

ARTICLE
III

EVENT
OF DEFAULT

 

The
occurrence of any of the following events of default (“Event of Default”) shall, at the option of the Holder
hereof, make all sums of principal and interest then remaining unpaid hereon and all other amounts payable hereunder immediately
due and payable, upon demand, without presentment, or grace period, all of which hereby are expressly waived, except as set forth
below:

 

3.1Failure
to Pay Principal or Interest. The Borrower fails to pay any unpaid principal and interest under this Note on the Maturity
Date or the earlier occurrence of another Event of Default hereunder; provided that the Borrower fails to make such payment within
five (5) business days after written notice from the Holder of such non-payment.

 

3.2Liquidation.
Any dissolution, liquidation or winding up of Borrower or any substantial portion of its business.

 

3.3Cessation
of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts
as such debts become due.

 

3.4Receiver
or Trustee. The Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment
of a receiver or trustee for it or for a substantial part of its property or business; or such a receiver or trustee shall otherwise
be appointed.

 

3.5Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under any bankruptcy law or any
law, or the issuance of any notice in relation to such event, for the relief of debtors shall be instituted by or against the
Borrower and is not discharged by the Borrower within thirty (30) days.

 

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ARTICLE
IV

MISCELLANEOUS

 

4.1Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder hereof 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 privilege. All rights and remedies existing hereunder are cumulative
to, and not exclusive of, any rights or remedies otherwise available.

 

4.2Notices.
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: (i) if to the Company, to: 3100 Donald Douglas Loop,
North, Santa Monica, California 90405, with a copy by fax only to: Dennis J. Hawk, Esq. at (310) 510-6769, and (ii) if
to the Subscriber, to: the address and fax number indicated on the signature page to the Note Purchase.

 

4.3Amendment
Provision. The term “Note” and all references thereto, as used throughout this instrument, shall mean this instrument
as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

4.4Assignability.
This Note shall be binding upon the Borrower and its successors and assigns and shall inure to the benefit of the Holder and its
successors and assigns. The Borrower may not assign its obligations under this Note.

 

4.5Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of Delaware
without regard to conflicts of laws principles that would result in the application of the substantive laws of another jurisdiction.
Any action brought by either party against the other concerning the transactions contemplated by this Note must be brought
only in the state or federal courts located in the State of Delaware. Both parties agree to submit to the jurisdiction of such
courts. In the event that any provision of this Note is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall
be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under
any law shall not affect the validity or unenforceability of any other provision of this Note.

 

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4.6Maximum
Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges
in excess of the maximum rate permitted by applicable law. In the event that the rate of interest required to be paid or other
charges hereunder exceed the maximum rate permitted by applicable law, any payments in excess of such maximum rate shall be credited
against amounts owed by the Borrower to the Holder and thus refunded to the Borrower.

 

4.7Non-Business
Days. Whenever any payment or any action to be made shall be due on a Saturday, Sunday or a public holiday under the laws
of the State of Delaware, such payment may be due or action shall be required on the next succeeding business day and, for such
payment, such next succeeding day shall be included in the calculation of the amount of accrued interest payable on such date.

 

4.8Shareholder
Status. The Holder shall not have rights as a shareholder of the Borrower with respect to unconverted portions of this Note.
However, the Holder will have the rights of a shareholder of the Borrower with respect to the Preferred Stock to be received after
delivery by the Holder of a Conversion Notice to the Borrower.

 

    	5

    	 

    

 

IN
WITNESS WHEREOF, this Note has been executed and delivered as a sealed instrument on the date first above written by the duly
authorized representative of the Company.

 

	 	RIGHTSCORP,INC.
	 	 	 
	 	By:	
	 	Name:	Christopher
    Sabec
	 	Title:	Chief
    Executive Officer

 

    	6

    	 

    

 

Exhibit
A

 

NOTICE
OF CONVERSION

 

(To be executed
by the Registered Holder in order to convert the Note)

 

The
undersigned hereby elects to convert $_________ of the principal and $_________ of the interest due on the Note issued by
RIGHTSCORP,INC. on ______________
___, 2012 into shares of Preferred Stock of RIGHTSCORP,INC. (the
“Borrower”) according to the conditions set forth in such Note, as of the date written
below.

 

	Date
    of Conversion:	 
	 	 
	Conversion
    Price: Thirty-seven cents ($0.37) 
	 	 
	Shares
    To Be Delivered:	 
	 	 
	Signature:	 
	 	 
	Print
    Name:	 
	 	 
	Address:	 
	 	 
	Social
                                                         Security/Employer

        Identification
Number:
	 

 

 

    	7

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