Document:

Exhibit
10.59

 

THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 3(b) OF THE SECURITIES ACT OF 1933, AS AMENDED,
AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE “1933 ACT)

 

us
$40,000.00

 

REPLACEMENT
NOTE- ORIGINALLY ISSUED 7-20-2006 IN THE AMOUNT OF $1,250,000.00 AND RE-ASSIGNED ON 12-31-10 IN THE AMOUNT OF $341,123.00
IN PRINCIPAL AND $227,140 IN ACCRUED INTEREST

 

COROWARE,
INC.

12%
CONVERTIBLE REDEEMABLE NOTE

DUE MARCH 11, 2015

 

FOR
VALUE RECEIVED, Coroware, Inc. (the “Company”) promises to pay to the order of LG CAPITAL FUNDING, LLC and its authorized
successors and permitted assigns (“Holder”), the aggregate principal face amount of Forty Thousand dollars exactly
(U.S. $40,000.00) on March 11, 2015 (“Maturitv Date”) and to pay interest on the principal amount outstanding here-
under at the rate of 12% per annum commencing on March 11, 2014. The interest will be paid to the Holder in whose name this Note is registered
on the records of the Company regarding registration and transfers of this Note. The principal of, and interest on, this Note are payable
at 1218 Union Street, Suite #2, Brooklyn, NY 11225 initially, and if changed, last appearing on the records of the Company as designated
in writing by the Holder hereof from time to time. The Company will pay each interest payment and the outstanding principal due upon
this Note before or on the Maturity Date, less any amounts required by law to be deducted or withheld, to the Holder of this Note by
check or wire transfer addressed to such Holder at the last address appearing on the records of the Company. The forwarding of such
check or wire transfer shall constitute a payment of outstanding principal hereunder and shall satisfy and discharge the liability for
principal on this Note to the extent of the sum represented by such check or wire transfer. Interest shall be payable in Common Stock
(as defined below) pursuant to paragraph 4(b) herein.

 

This
Note is subject to the following additional provisions:

 

1.
This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the
Holder surrendering the same. No service charge will be made for such registration or transfer or exchange, except that Holder shall
pay any tax or other governmental charges payable in connection therewith.

 

    	 

    	 

    

 

2.
The Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.

 

3.
This Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended (“Act”) and
applicable state securities laws. Any attempted transfer to a non-qualifying party shall be treated by the Company as void. Prior to
due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this Note is
duly registered on the Company’s records as the owner hereof for all other purposes, whether or not this ote be overdue, and neither
the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this Note electing to exercise the
right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth in Section 4(a), and any prospective
transferee of this Note, also is required to give the Company written confirmation that this Note is being converted (“Notice
of Conversion”) in the form annexed hereto as Exhibit A. The date of receipt (including receipt by telecopy) of such
Notice of Conversion shall be the Conversion Date.

 

4.
(a) The Holder of this Note is entitled, at its option, at any time after 180 days, and after full cash payment for the shares convertible
hereunder, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company’s
common stock (the “Common Stock”) without restrictive legend of any nature, at a price (“Conversion Price”)
for each share of Common Stock equal to 50% of the lowest closing bid price of the Common Stock as reported on the
National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may
be traded in the future (“Exchange”), for the ten prior trading days including the day upon which
a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method
of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to included the same day
closing price). If the shares have not been delivered within 3 business days, the Notice of Conversion may be rescinded. Such conversion
shall be effectuated by the Company delivering the shares of Common Stock to the Holder within 3 business days of receipt by the Company
of the Notice of Conversion. Once the Holder has received such shares of Common Stock, the Holder shall surrender this Note to the Company,
executed by the Holder evidencing such Holder’s intention to convert this Note or a specified portion hereof, and accompanied by
proper assignment hereof in blank. Accrued but unpaid interest shall be subject to conversion. No fractional shares or scrip representing
fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share.

 

(b)
Interest on any unpaid principal balance of this Note shall be paid at the rate of 12% per annum. Interest shall be paid by the Company
in Common Stock (“Interest Shares”). The Holder may, at any time, send in a Notice of Conversion to the Company for Interest
Shares based on the formula provided in Section 4(a) above. The dollar amount converted into Interest Shares shall be all or a portion
of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.

 

    	2

     

    

 

(c)
This Note may not be prepaid.

 

(d)
Upon (i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related
transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Stock,
or (iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving entity
(other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification,
conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii)
being referred to as a “Sale Event”), then, in each case, the Company shall, upon request of the Holder, redeem this Note
in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the election of the
Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into
shares of Common Stock immediately prior to such Sale Event at the Conversion Price.

 

(e)
In case of any Sale Event in connection with which this Note is not re- deemed or converted, the Company shall cause effective provision
to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this Note
into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification, capital
reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could have been purchased
upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing
provisions shall similarly apply to successive Sale Events. If the consideration received by the holders of Common Stock is other than
cash, the value shall be as determined by the Board of Directors of the Company or successor person or entity acting in good faith.

 

5.
No provision of this Note shall alter or impair the obligation of the Com- pany, which is absolute and unconditional, to pay the principal
of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

 

6.
The Company hereby expressly waives demand and presentment for pay- ment, notice of non-payment, protest, notice of protest, notice of
dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder
and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.

 

7.
The Company agrees to pay all costs and expenses, including reasonable attorneys’ fees and expenses, which may be incurred by the
Holder in collecting any amount due under this Note.

 

8.
If one or more of the following described “Events of Default” shall occur:

 

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

 

    	3

     

    

 

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

 

(c)
The Company shall fail to perform or observe, in any respect, any cove- nant, term, provision, condition, agreement or obligation of
the Company under this Note; or

 

(d)
The Company shall (1) become insolvent; (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 Company or for a substantial part of its property or business without its
consent and shall not be discharged within thirty (30) days after such appointment; or

 

(f)
Any governmental agency or any court of competent jurisdiction at the in- stance of any governmental agency shall assume custody or control
of the whole or any substantial portion of the properties or assets of the Company; 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 Company 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 in- strument into which the Company has entered and failed to cure
such default within the appropriate grace period; or

 

(i)
The Company shall have its Common Stock delisted from an exchange (including the OTCBB 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;

 

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

 

(k)
The Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business
days of its receipt of a Notice of Conversion; or

 

    	4

     

    

 

(l)
The Company shall not replenish the reserve set forth in Section 12, with- in 3 business days of the request of the Holder.

 

Then,
or at any time thereafter, unless cured, 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 be 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 8(k) 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 Company. This penalty shall increase to
$500 per day beginning on the 10th day.

 

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

 

9.
In case any provision of this Note is held by a court of competent jurisdic- tion to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the
validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

 

10.
Neither this Note nor any term hereof may be amended, waived, dis- charged or terminated other than by a written instrument signed by
the Company and the Holder.

 

11.
The Company represents that it is not a “shell” issuer and has never been a “shell” issuer or that if it previously
has been a “shell” issuer that at least 12 months have passed since the Company has reported form 10 type information indicating
it is no longer a “shell issuer. Further. The Company will instruct its counsel to either (i) write a 144- 3(a)(9) opinion to
allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel.

 

12.
The Company will issue irrevocable transfer agent instructions reserving 322,000,000 shares of Common Stock for conversion under this
Note. The reserve shall be replenished as needed to allow for conversions of this Note. Upon full conversion of this Note, the reserve
representing this Note shall be cancelled.

 

13.
The Company will give the Holder direct notice of any corporate actions including but not limited to name changes, stock splits, recapitalizations
etc. This notice shall be given
to the Holder as soon as possible under law.

  

14.
This Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be performed
within the State of New York and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company hereby
mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York. This Agreement may
be executed in counterparts, and the facsimile transmission of an executed counterpart:to this Agreement shall be effective as an original.

 

    	5

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed by an officer thereunto duly authorized.

 

	Dated:	 	 	 

 

	 	 	COROWARE, INC.
	 	 	 
	 	 	By:	             
	 	 	Title:	 

 

    	6

     

    

 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

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

 

The
undersigned hereby irrevocably elects to convert $ ________of the above Note into ________ Shares of Common Stock of
Coroware, Inc. (“Shares”) according to the conditions
set forth in such Note, as of the date written below.

 

If
Shares are to be issued in the name of a person other than the undersigned, the w1dersigned will pay all transfer and other taxes and
charges payable with respect thereto.

 

Date
of Conversion: ________________________________________________________

Applicable
Conversion Price: ________________________________________________

Signature:
______________________________________________________________

[Print
Name of Holder and Title of Signer]

	Address:	______________________________________________________________
	 	______________________________________________________________

 

SSN
or EIN: ____________________________

Shares
are to be registered in the following name: _____________________________________________

 

Name: ______________________________________________________

Address: ____________________________________________________

Tel: _____________________________________________

Fax:
 _____________________________________________

SSN
or EIN:  _______________________________________

 

Shares
are to be sent or delivered to the following account:

 

Account
Name: ___________________________________________________________

Address:
 ________________________________________________________________

 

    	7Exhibit
10.60

 

THIS
SECURED CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND THIS SECURED CONVERTIBLE NOTE, THE SECURITIES AND ANY INTEREST THEREIN MAY
NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS, WHICH, IN THE OPINION OF COUNSEL FOR THE LENDER, WHICH
COUNSEL AND OPINION ARE REASONABLY SATISFACTORY TO COUNSEL FOR THIS CORPORATION, IS AVAILABLE.

 

AMENDED
AND RESTATED SECURED CONVERTIBLE PROMISSORY NOTE

 

	$10,750.00 	New York, New York
	 	January 28, 2011

 

FOR
VALUE RECEIVED, the undersigned, CoroWare, Inc., a Delaware corporation (referred to herein as the “Borrower”), with offices
at 4056 148th Avenue NE, Redmond, Washington 98052, hereby unconditionally promises to pay to the order of Barclay Lyons, LLC, its endorsees,
successors and assigns (the “Lender”), in lawful money of the United States, at such address as the Lender may from time
to time designate, the principal sum of Ten Thousand Dollars ($10,750.00) (the “Loan”), This Note shall mature and become
due and payable in full on or after January 28, 2011, or on demand by the holder (the “Maturity Date”).

 

1. Terms
of Repayment. Principal of and interest on this Note shall be paid by the Borrower as follows:

 

(i)
Upon written demand by Lender at any time, Borrower shall pay all principal and interest, unless otherwise converted (as defined in
Section 2. Below). Interest shall accrue at a rate of Twenty-One Percent (21%) per annum.

 

(ii)
The Borrower further agrees that, if any payment made by the Borrower or any other person is applied to this Note and is at any time
annulled, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or
repaid, or the proceeds of any property hereafter pledged as security for this Note is required to be returned by Lender to the
Borrower, its estate, trustee, receiver or any other party, including, without limitation, under any bankruptcy law, state or
federal law, common law or equitable cause, then, to the extent of such payment or repayment, the Borrower’s liability
hereunder (and any lien, security interest or other collateral securing such liability) shall be and remain in full force and
effect, as fully as if such payment had never been made, or, if prior thereto any such lien, security interest or other collateral
hereunder securing the Borrower’s liability hereunder shall have been released or terminated by virtue of such cancellation or
surrender, this Note (and such lien, security interest or other collateral) shall be reinstated in full force and effect, and such
prior cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the obligations of the Borrower
in respect to the amount of such payment (or any lien, security interest or other collateral securing such obligation).

 

    	 

     

    

 

2. Conversion.

 

(i)
The Lender shall have the option, at any time, to convert the outstanding principal of this Note into fully-paid and non-assessable
shares of Borrower’s Common Stock at fifty percent (50%) discount to the average “Fair Market Value” (the
“Conversion Rate”) but not to exceed Five Cents ($0.05) per share. However, should the Borrower effect a forward split,
the ceiling price of Five Cents ($0.05) per share shall be discounted down according to the split ratio and notwithstanding the
preceding, the ceiling price shall be negotiable at the Lender’s request. “Fair Market Value” on a date shall be
the average of the daily closing prices for the Five (5) consecutive trading days before such date excluding any trades which are
not bona fide arm’s length transactions. The closing price for each day shall be (a) if such security is listed or admitted
for trading on any national securities exchange, the last sale price of such security, regular way, or the mean of the closing bid
and asked prices thereof if no such sale occurred, in each case as officially reported on the principal securities exchange on which
such security are listed, or (b) if quoted on NASDAQ or any similar system of automated dissemination of quotations of securities
prices then in common use the mean between the closing high bid and low asked quotations of such security in the over-the-counter
market as shown by NASDAQ or such similar system of automated dissemination of quotations of securities prices, as reported by any
member firm of the New York Stock Exchange selected by the Lender. If such security is quoted on a national securities or central
market system in lieu of a market or quotation system described above, the closing price shall be determined in the manner set forth
in clause (a) of the preceding sentence if bid and asked quotations are reported but actual transactions are not, and in the manner
set forth in clause (b) of the preceding sentence if actual transactions are reported.

 

(ii)
In no event shall the Lender 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 Lender and its affiliates (other than shares
of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the
unexercised or unconverted portion of any other security of the borrower subject to a limitation on conversion or exercise analogous
to the limitations contained herein) and (2) the number of shares of common stock issuable upon the conversion of the portion of
this note with respect to which the determination of this proviso is being made, which would result in beneficial ownership by the
holder and its affiliates of more than Four Point Nine Nine Per Cent (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 (rhe “Exchange Act), and Regulations 13D – G thereunder, except as
otherwise provided in clause (1) of such proviso.

 

(iii)
To exercise any conversion, the holder of this Note shall surrender the Note to the Borrower during usual business hours at the
offices of the Borrower, accompanied by a written notice in the form attached hereto as Exhibit A, Notice of Conversion, and made a
part hereof.

 

(iv)
As promptly as practicable after the surrender of this Note by the Lender, the Borrower shall deliver or cause to be delivered to
the Lender, certificates for the full number of Shares issuable upon conversion of this Note, in accordance with the provisions
hereof, together with a duly executed new Note of the Borrower in the form of this Note for any principal amount not so converted.
Such conversion shall be deemed to have been made at the time that this Note was surrendered for conversion and the notice specified
herein shall have been received by the Borrower.

 

    	 

     

    

 

(v)
The number of shares issuable upon conversion of this Note or repayment by the Borrower in shares shall be proportionately adjusted
if the Borrower shall declare a dividend of capital stock on its capital stock, or subdivide its outstanding capital stock into a
larger number of shares by reclassification, stock split or otherwise, which adjustment shall be made effective immediately after
the record date in the case of a dividend, and immediately after the effective date in the case of a subdivision. The number of
shares issuable upon conversion of this Note or any part thereof shall be proportionately adjusted in the amount of securities for
which the shares have been changed or exchanged in another transaction for other stock or securities, cash and/or any other property
pursuant to a merger, consolidation or other combination. The Borrower shall promptly provide the holder of this Note with notice of
any events mandating an adjustment to the conversion ratio, or for any planned merger, consolidation, share exchange or sale of the
Borrower, signed by the President and Chief Executive Officer of Borrower.

 

(vi)
The Borrower is unconditionally, and without regard to the liability of any other person, liable for the payment and performance of
this Note and such liability shall not be affected by an extension of time, renewal, waiver, or modification of this Note or the
release, substitution, or addition of collateral for this Note. Each person signing this Note consents to any and all extensions of
time, renewals, waivers, or modifications, as well as to release, substitution, or addition of guarantors or collateral security,
without affecting the Borrower’s liabilities hereunder. Lender is entitled to the benefits of any collateral agreement,
guarantee, security agreement, assignment, or any other documents which may be related to or are applicable to the debt evidenced by
this Note, all of which are collectively referred to as “Loan Documents” as they now exist, may exist in the future,
have existed, and as they may be amended, modified, renewed, or substituted.

 

3.
Fees and Requirements for Funding. The Borrower hereby agrees that funding this note is conditioned
on the following:

 

(i)
Two Thousand Five Hundred Dollars ($2,500.00) shall be paid immediately out of the proceeds of this Note to Brinen & Associates,
LLC for legal fees and expenses incurred by the Lender and hereby agreed to be paid by the Borrower

 

(ii)
Eight Thousand Two Hundred Fifty Dollars ($8,250.00) of the proceeds of this Note may be used unconditionally by the
Borrower

 

(iii)
No funding of this Note shall occur until an original signed copy is Brinen & Associates, LLC at 7 Dey Street, Suite 1503, New
York, NY 10007

 

4. Liability
of the Borrower. The Borrower is unconditionally, and without regard to the liability of any other person, liable for the
payment and performance of this Note and such liability shall not be affected by an extension of time, renewal, waiver, or
modification of this Note or the release, substitution, or addition of collateral for this Note. Each person signing this Note
consents to any and all extensions of time,
renewals, waivers, or modifications, as well as to release, substitution, or addition of guarantors or collateral security, without
affecting the Borrower’s liabilities hereunder. Lender is entitled to the benefits of any collateral agreement, guarantee,
security agreement, assignment, or any other documents which may be related to or are applicable to the debt evidenced by this Note,
all of which are collectively referred to as “Loan Documents” as they now exist, may exist in the future, have existed,
and as they may be amended, modified, renewed, or substituted.

 

    	 

     

    

 

5. Representations
and Warranties. The Borrower represents and warrants as follows: (i) the Borrower is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware; (ii) the execution, delivery and performance by the Borrower
of this Note are within the Borrower’s powers, have been duly authorized by all necessary action, and do not contravene (A)
the Borrower’s certificate of incorporation or (B) bylaws or (x) any law or (y) any agreement or document binding on or
affecting the Borrower, not otherwise disclosed to the Lender prior to execution of this Note, (iii) no authorization or approval or
other action by, and no notice to or filing with, any governmental authority, regulatory body or third person is required for the
due execution, delivery and performance by the Borrower of this Note; (iv) this Note constitutes the legal, valid and binding
obligation of the Borrower, enforceable against the Borrower in accordance with its terms except as enforcement hereof may be
limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally and subject
to the applicability of general principles of equity; (v) the Borrower has all requisite power and authority to own and operate its
property and assets and to conduct its business as now conducted and proposed to be conducted and to consummate the transactions
contemplated hereby; (vi) the Borrower is duly qualified to conduct its business and is in good standing in each jurisdiction in
which the character of the properties owned or leased by it, or in which the transaction of its business makes such qualification
necessary; (vi) there is no pending or, to the Borrower ‘s knowledge, information or belief, threatened action or proceeding
affecting the Borrower before any governmental agency or arbitrator which challenges or relates to this Note or which may otherwise
have a material adverse effect on the Borrower; (viii) after giving effect to the transactions contemplated by this Note, the
Borrower is Solvent; (ix) the Borrower is not in violation or default of any provision of (A) its certificate of incorporation or
by-laws, each as currently in effect, or (B) any instrument, judgment, order, writ, decree or contract, statute, rule or regulation
to which the Borrower is subject not otherwise disclosed to the Lender prior to the execution of this Note, and (x) this Note is
validly issued, free of any taxes, liens, and encumbrances related to the issuance hereof and is not subject to preemptive right or
other similar right of members of the Borrower, and (xi) the Borrower has taken all required action to reserve for issuance such
number of shares of Common Stock as may be issuable from time to time upon conversion of this Note.

 

6. Covenants. So
long as any principal or interest is due hereunder and shall remain unpaid, the Borrower will, unless the Lender shall otherwise
consent in writing:

 

 (i) Maintain and preserve its existence, rights and privileges;

 

(ii)
Other than a financing (i.e. revolving credit facility, note payable) for up to $100,000, the Company will not incur any
indebtedness, other than indebtedness incurred in the ordinary course of business or outstanding on the date hereof, unless such
indebtedness is subordinated to the prior payment in full of this Note on terms reasonably satisfactory to the Lender;

 

(iii)
Not (i) directly or indirectly sell, lease or otherwise dispose of (A) any of its property or assets other than in its ordinary
course of business or (B) substantially all of its properties and assets, in the aggregate, to any person(s), whether in one
transaction or in a series of transactions over any period of time, (ii) merge into or with or consolidate with any other person or
(iii) adopt any plan or arrangement for the dissolution or liquidation of the Borrower;

 

(iv)
Give written notice to Lender upon the occurrence of an Event of Default (as defined below) or any event but for the giving of
notice or lapse of time, or both, would constitute an Event of Default within five (5) Business Days of such event;

 

    	 

     

    

 

(v)
Not use the proceeds from the issuance of this Note in any way for any purpose that entails a violation of, or is inconsistent with,
Regulation U of the Board of Governors of the Federal Reserve System of the United States of America.

 

 (vi) Comply in all material respects with all applicable laws (whether federal, state or local and whether statutory. administrative or judicial or other) and with every applicable lawful governmental order (whether administrative or judicial);

 

 (vii) Not redeem or repurchase any of its capital stock;

 

(viii)
Not (i) make any advance or loan to any person, firm or corporation, except for reasonable travel or business expenses advanced to
the Company’s employees or independent contractors in the ordinary course of business, or (ii) acquire all or substantially
all of the assets of another entity;

 

(ix)
Not prepay any indebtedness, except for trade payables incurred in the ordinary course of the Borrower’s business;
and

 

(x)
Not take any action which would impair the rights and privileges of this Note set forth herein or the rights and privileges of the
holder of this Note.

 

7. Events
of Default. Each and any of the following shall constitute a default and, after expiration of a grace period, if any, shall
constitute an “Event of Default” hereunder:

 

(i)
the nonpayment of principal, late charges or any other costs or expenses promptly when due of any amount payable under this Note or
the nonpayment by the Borrower of any other obligation to the Lender;

 

(ii)
an Event of Default under this Note (other than a payment default described above), or any other failure of the Borrower to observe
or perform any present or future agreement of any nature whatsoever with Lender, including, without limitation, any covenant set
forth in this Note;

 

(iii)
if Borrower shall commence any case, proceeding or other action: (i) under any existing or future law of any jurisdiction, domestic
or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered
with respect to it, or seeking to adjudicate it bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
liquidation, dissolution, composition or other relief with respect to it or its debts; or (ii) seeking appointment of a receiver,
trustee, custodian or other similar official for it or for all or any substantial part of its property, or the Borrower shall make a
general assignment for the benefit of its creditors; or (iii) there shall be commenced against the Borrower any case, proceeding or
other action of a nature referred to above or seeking issuance of a warrant of attachment, execution, distraint or similar process
against all or any substantial part of its property, which case, proceeding or other action results in the entry of any order for
relief or remains undismissed, undischarged or unhanded for a period of sixty (60) days; or (iii) the Borrower shall take any action
indicating its consent to, approval of, or acquiescence in, or in furtherance of, any of the acts set forth; or (iv) the Borrower
shall generally not, or shall be unable to, pay its debts as they become due or shall admit in writing its inability to pay its
debts;

 

    	 

     

    

 

(iv)
any representation or warranty made by the Borrower or any other person or entity under this Note or under any other Loan Documents
shall prove to have been incorrect in any material respect when made;

 

(v)
an event of default or default shall occur and be continuing under any other material agreement, document or instrument binding upon
the Borrower including, without limitation, any instrument for borrowed money in excess of fifty thousand dollars ($50,000) (whether
or not any such event of default or default is waived by the holder thereof) and including, without limitation, under any other
Transaction Document (as defined in the Securities Purchase Agreement);

 

(vi)
the entry of any judgment against Borrower or any of its property for an amount in excess of fifty thousand dollars ($50,000) that
remains unsatisfied for thirty (30) days;

 

(vii)
any material adverse change in the condition or affairs (financial or otherwise) of the Borrower shall occur which, in the sale
opinion of the Lender, increases its risk with respect to loans evidenced by this Note;

 

(viii)
the sale of all or substantially all of the assets, or change in ownership or the dissolution, liquidation, merger, consolidation,
or reorganization of Borrower without the Lender’s prior written consent; or

 

 (ix) the Borrower’s shares of Common Stock are suspended from trading or delisted from trading on the Over the Counter Bulletin Board.

 

8. Lender’s
Rights Upon Default. Upon the occurrence of any Event of Default, the Lender may, at its sole and exclusive option, do any
or all of the following, either concurrently or separately: (a) accelerate the maturity of this Note and demand immediate payment in
full, whereupon the outstanding principal amount of the Note and all obligations of Borrower to Lender, together with accrued
interest thereon and accrued charges and costs, shall become immediately due and payable without presentment, demand, protest or
further notice of any kind, all of which are hereby expressly waived; and (b) exercise all legally available rights and
privileges.

 

9. Default
Interest Rate. Upon an Event of Default, without any further action on the Part of Lender, interest will thereafter accrue
at the rate equal to the lesser of (i) 15% per annum or (ii) the highest rate permitted by applicable law, per annum (the Default
Rate”), until all outstanding principal, interest and fees are repaid in full by Borrower.

 

10.
Security. This Note shall be secured by the following (each, a “Security Document”): (a) a security interest
in any and all of Borrower’s tangible or intangible assets, including any and all intellectual property, already acquired or hereinafter
acquired, including but not limited to: machinery, inventory, accounts receivable, cash, computers, hardware, etc. (the “Property”);
(b) a security agreement executed by Borrower granting a seniority interest in the Property; and (c) a personal continuing guaranty signed
and executed by Lloyd Spencer in favor of Lender.

 

11.
Usury. In no event shall the amount of interest paid or agreed to be paid hereunder exceed the highest lawful rate permissible
under applicable law. Any excess amount of deemed interest shall be null and void and shall not interfere with or affect the Borrower’s
obligation to repay the principal of and interest on the Note. This confirms that the Borrower and, by its acceptance of this Note, the
Lender intend to contract in strict compliance with applicable usury laws from time to time in effect. Accordingly, the Borrower and
the Lender stipulate and agree that none of the terms and provisions contained herein shall ever be construed to create a contract to
pay, for the use or forbearance of money, interest in excess of the maximum amount of interest permitted to be charged by applicable
law from time to time in effect.

 

    	 

     

    

 

 12. 
No Prepayment. This Note may not he prepaid in whole or in part, at any time, without the prior written consent of the
Lender.

 

13.
Costs of Enforcement. Borrower hereby covenants and agrees to indemnify, defend and hold Lender harmless from and against
all costs and expenses, including reasonable attorneys’ fees and their costs, together with interest thereon at the Prime Rate,
incurred by Lender in enforcing its rights under this Note; or if Lender is made a party as a defendant in any action or proceeding arising
out of or in connection with its status as a lender, or if Lender is requested to respond to any subpoena or other legal process issued
in connection with this Note; or reasonable disbursements arising out of any costs and expenses, including reasonable attorneys’
fees and their costs incurred in any bankruptcy case; or for any legal or appraisal reviews, advice or counsel performed for Lender following
a request by Borrower for waiver, modification or amendment of this Note or any of the other Loan Documents.

 

14. Governing
Law. This Note shall be binding upon and inure to the benefit of the Borrower and the Lender and their respective successors
and assigns; provided that the Borrower may not assign this Note, in whole or in part, by operation of law or otherwise, without the
prior written consent of the Lender. The Lender may assign or otherwise participate out all or part of, or any interest in, its rights
and benefits hereunder and to the extent of such assignment or participation such assignee shall have the same rights and benefits against
the Borrower as it would have had if it were the Lender. This Note, and any claims arising out of relating to this Note, whether in contract
or tort, statutory or common law, shall be governed exclusively by, and construed in accordance with the laws of the State of Georgia
without regard to principles of conflicts of laws.

 

15. Jurisdiction. THE
BORROWER CONSENTS THAT ANY LEGAL ACTION OR PROCEEDING AGAINST IT UNDER, ARISING OUT OF OR IN ANY MANNER RELATING TO THIS NOTE, OR
ANY OTHER INSTRUMENT OR DOCUMENT EXECUTED AND DELIVERED IN CONNECTION HEREWITH SHALL BE BROUGHT EXCLUSIVELY IN ANY COURT OF THE
STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. THE BORROWER, BY THE EXECUTION AND
DELIVERY OF THIS NOTE, EXPRESSLY AND IRREVOCABLY CONSENTS AND SUBMITS TO THE PERSONAL JURISDICTION OF ANY OF SUCH COURTS IN ANY SUCH
ACTION OR PROCEEDINGS. THE BORROWER AGREES THAT PERSONAL JURISDICTION OVER IT MAY BE OBTAINED BY THE DELIVERY OF A SUMMONS BY
PERSONAL DELIVERY OR OVERNIGHT COURIER AT THE ADDRESS PROVIDED IN SECTION 15 OF THIS NOTE. ASSUMING DELIVERY OF THE SUMMONS IN
ACCORDANCE WITH THIS PROVISION, THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES ANY ALLEGED LACK OF PERSONAL JURISDICTION,
IMPROPER VENUE OR FORUM NON-CONVENIENS OR ANY SIMILAR BASIS.

 

    	 

     

    

 

16. Miscellaneous. (a)
Borrower hereby waives protest, notice of protest, presentment, dishonor, and demand. (b) Time is of the essence for each of
Borrower’s covenants under this Note. (c) The rights and privileges of Lender under this Note shall inure to the benefit of
its successors and assigns. All obligations of Borrower in connection with this Note shall bind Borrower’s successors and
assigns, and Lender’s conversion rights shall succeed to any successor securities to Borrower’s common stock. (d) If any
provision of this Note shall for any reason be held to be invalid or unenforceable, such invalidity or un enforceability shall not
affect any other provision hereof, but this Note shall be construed as if such invalid or unenforceable provision had never been
contained herein. (e) The waiver of any Event of Default or the failure of Lender to exercise any right or remedy to which it may be
entitled shall not be deemed a waiver of any subsequent Event of Default or Lender’s right to exercise that or any other right
or remedy to which Lender is entitled. No delay or omission by Lender in exercising, or failure by Lender to exercise on anyone or
more occasions, shall be construed as a waiver or novation of this Note or prevent the subsequent exercise of any or all such
rights. (f) This Note may not be waived, changed, modified, or discharged orally, but only in writing.

 

17.
Notice, Etc. Any notice required by the provisions of this Note will be in writing and will be deemed effectively given: (a) upon
personal delivery to the party to be notified; (b) when sent by confirmed telex or facsimile if sent during normal business hours of
the recipient; if not, then on the next business day; (c) five (5) days after having been sent by registered or certified mail, return
receipt requested, postage prepaid; or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt, and delivered as follows:

 

If
to the Borrower:

Lloyd Spencer

President
and CEO

CoroWare, Inc.,

4056
148th Avenue NE

Redmond, Washington 98052

 

If
to Lender:

 

Barclay
Lyons, LLC

c/o
Brinen & Associates, LLC

7 Dey Street, Suite 1503

New York, NY 10007

 

or,
as to each party, at such other address as shall be designated by such party in a written notice to the other parties.

 

18.
Definitions. As used herein, the term “Solvent” shall mean, with respect to any person or entity on a particular date,
that on such date (i) the fair value of the property of such person or entity is not less than the total amount of the liabilities of
such person or entity, (ii) the present fair salable value of the assets of such person or entity is not less than the amount required
to pay the probable liability on such person’s existing debts as they become absolute and matured, (iii) such person or entity
is able to realize upon its assets and pay its debts and other liabilities, (iv) such person or entity does not intend to, and does not
believe that it will, incur debts or liabilities beyond such person or entity’s ability to pay as such debts and liabilities mature
and (v) such person or entity is not engaged in business or a transaction, and is not about to engage in a business or a transaction,
for which such person’s or entity’s property would constitute unreasonably small capital. As used herein, the term “Securities
Purchase Agreement,” shall mean the Securities Purchase Agreement dated the date hereof among the Borrower, the Lender and the
other purchasers identified therein.

 

(REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK/

 

(SIGNATURE
PAGE TO FOLLOW.I

 

    	 

     

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Secured Convertible Promissory Note as of the date first set forth above.

 

	 	CoroWare Inc.,
	 	 	 
	 	/s/ Lloyd Spencer
	 	By:	Lloyd Spencer
	 	 	President & CEO

 

    	 

     

    

 

EXHIBIT
A

 

NOTICE OF CONVERSION

 

(to
be signed upon conversion of the Note)

 

TO:
CoroWare; Inc.:

 

The
undersigned, the holder of the foregoing Note, hereby surrenders such Note for conversion into shares of Common Stock of CoroWare, Inc.,
and requests that the certificates for such shares be issued in the name of _________________ and delivered
to, _________________, whose address is __________________________

 

	Dated:	 	 	 
	 	 	 	 
	 	 	 	 

    

    

	 	 	 	(signature)
	 	 	 	 
	 	 	 	 

    

    

	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    

	 	 	 	 
	 	 	 	(address)

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