Document:

Exhibit
10.34

 

AMENDMENT
NO 3

 

THIS
AMENDMENT No. 3 (the “Amendment”), is entered into with effect from the 3rd day of August 2016 (the “Effective
Date”) by and among SKYVIEW CAPITAL, LLC, a Delaware limited liability company, with its headquarters at Suite 810-N,
2000 Avenue of the Stars, Los Angeles, CA 90067 (“Skyview”); MIMIO, LLC, a Delaware limited liability company
(“Mimio” or the “Company”); MIM HOLDINGS, LLC, a Delaware limited liability company (“Holdings”),
with its principal place of business at 10951 West Pico, Los Angeles, CA 90064; and BOXLIGHT CORPORATION, a Nevada corporation
(“BOXL”). This Amendment is intended to amend the Membership Interest Purchase Agreement dated as of September 28,
2015 (the “Agreement”), as amended on November 3, 2015 (“Amendment 1”), as amended on June 30, 2016 (“Amendment
2”) among Skyview, the Company and Holdings. The Company, Holdings, and BOXL are sometimes herein collectively referred
to as the “Credit Parties” and Skyview and the Credit Parties are sometimes herein collectively referred to as the
“Parties”.

 

Recitals

 

WHEREAS,
pursuant to the Agreement and Amendment 1, Skyview sold to Holdings, all of the Membership Interests in the Company, subject to
the terms and conditions set forth in the Agreement, and

 

WHEREAS,
pursuant to Amendment 1, Skyview accepted as payment of the $3,425,000 purchase price for the Membership Interests in the Company,
a 6% $3,425,000 secured promissory note of Holdings and in the form of Exhibit A annexed to Amendment 1 (the “Purchase Note”),
and

 

WHEREAS,
effective as of May 1, 2016, BOXL purchased from an assignee of VC2 Capital Partners LLC, 100% of the membership interest in Holdings
and agreed to assume responsibility to pay the Purchase Note, when due; and

 

WHEREAS,
pursuant to Amendment 2, the amount of the Purchase Price was increased to $3,694,757.50 Purchase Note was increased to $3,660,507.50;
and

 

WHEREAS,
the Credit Parties intends to consummate (a) on or before September 30, 2016, a senior secured debt financing facility (the
“Senior Debt Facility”) from an asset based lender (the “Senior Lender”), and (b) an initial public offering
of BOXL common stock (the “BOXL IPO”); and

 

WHEREAS,
the Parties now wish to amend the Agreement, Amendment 1 and Amendment 2 (collectively, the “Skyview Purchase Agreements”)
to modify the Purchase Price and the Purchase Note, all upon the terms set out below.

 

NOW,
THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

Terms
and Conditions

 

1.
GENERAL

 

All
terms with capital letters and not otherwise defined in this Amendment shall have the same meanings given to them in the Skyview
Purchase Agreements.

 

2.
AMENDMENTS

 

2.1.
Purchase Price and Purchase Note

 

Section
2.02 of the Agreement shall be deleted and replaced with the following provisions:

 

Section
2.02. Purchase Price. The aggregate purchase price for the Membership Interests shall be Four Million and Ten Thousand
Five Hundred and Seven Dollars and Fifty Cents ($4,010,507.50) (the “Purchase Price”), payable in full by delivery
to Skyview of (a) the sum of (i) $50,000 in cash, plus (ii) accrued interest on the $3,660,507.50 Purchase Note through July 31
,2016, to be paid in cash to Skyview on or before 5:00 p.m. (PDT) on August 4, 2016), and (b) $3,960,507.50 on the Effective Date
in the form of a 6% $3,960,507.50 secured promissory note of Holdings described below and in the form of Exhibit A annexed
to this Amendment 2 (the “Purchase Note”).

 

    	 	 	Page 1 of 3
	 	CONFIDENTIAL AND RESTRICTED	 

    	 		 

    

 

The
Purchase Note, inter alia:

 

	 	(i)	shall
    bear interest at the rate of 6% per annum which shall accrue from the Closing Date and shall be payable quarterly in arrears;
	 	 	 
	 	(ii)	an
    aggregate of $2,500,000 principal amount of the Purchase Note (the “First Installment Payment”) shall be due and
    payable on or before the earlier of (A) September 30, 2016, or (B) out of the net proceeds of the Senior Debt Facility provided
    by a Senior Lender; and
	 	 	 
	 	(iii)	the
    remaining balance of the Purchase Note shall be due and payable on the earlier to occur of December 15, 2016, or the occurrence
    and continuation of an “Event of Default,” as described therein (the “Maturity Date”);
	 	 	 
	 	(iv)	the
    Company shall procure that the Purchase Note is unconditionally guaranteed by VERT CAPITAL CORP., a Delaware corporation
    (“Vert”), VC2 PARTNERS, LLC, a Delaware limited liability company and BOXL (“VC2 and, together
    with Vert and BOXL, individually and collectively, the “Guarantors”) pursuant to the Amended and Restated Guaranty
    Agreement in the form of Exhibit B annexed hereto and made a part hereof; and
	 	 	 
	 	(v)	shall
    continue to be secured by a lien on the assets of Mimio pursuant to the Security Agreement in the form of Exhibit C annexed
    to Amendment 1.

 

Until
the Purchase Note shall be paid in full, Holdings shall provide Skyview with quarterly unaudited balance sheet and statement of
operations of Mimio and such additional financial reports as Skyview may reasonably require.

 

	 	2.2.	Subordination
    Agreement
	 	 	 
	 	 	Upon
    consummation of the Senior Debt Facility and simultaneous with the payment of the First Installment Payment, Skyview hereby
    agrees to subordinate, in a manner deemed acceptable by the Senior Lender, its lien and security interest on the assets of
    Mimio and to enter into an intercreditor and subordination agreement with the Senior Lender in form and substance acceptable
    to the Senior Lender (the “Subordination Agreement”).
	 	 	 
	 	2.3	Related
    Party Indebtedness. The increased Purchase Price set forth in this Amendment 3 settles and discharges all related party obligations
    owed by Mimio to Skyview or its Affiliates as at the November 2015 Closing Date of the Purchase Agreement.

 

	3.	RATIFICATION
	 	 
	 	Except
    as specifically stated in this Amendment No. 3, all of the other terms and conditions of the Purchase Agreement are, in all
    other respects, ratified and confirmed and shall continue in full force and effect.

 

SIGNATURE
PAGE FOLLOW

 

    	 	 	Page 2 of 3
	 	CONFIDENTIAL AND RESTRICTED	 

    	 		 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment No 3 as of the date first above written.

 

	SKYVIEW
    CAPITAL, LLC	 	MIMIO,
    LLC
	 	 	 	 	 
	By:
    	          	 	By:
    	     
	 	 	 	 	 
	Name:
    	 	 	Name:
    	 
	 	 	 	 	 
	Title:
    	 	 	Title:
    	 
	 	 	 	 	 
	Date:
    	 	 	Date:
    	 

 

	MIM
    HOLDINGS, LLC	 	BOXLIGHT
    CORPORATION
	 	 	 	 	 
	By:
    	             	 	By:
    	                       
	 	 	 	 	 
	Name:
    	 	 	Name:
    	 
	 	 	 	 	 
	Title:
    	 	 	Title:
    	 
	 	 	 	 	 
	Date:
    	 	 	Date:
    	 

 

    	 	 	Page 3 of 3
	 	CONFIDENTIAL AND RESTRICTED	 

    	 		 

    

 

EXHIBIT
A

 

THIS
SECURITY HAS NOT 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 ACCEPTABLE TO THE BORROWER.

 

MIM
HOLDINGS, LLC

 

AMENDED
AND RESTATED INSTALLMENT NOTE

 

Issuance
Date: as of November 4, 2015

 

	Effective
    Date: August 3, 2016	$3,960,507.50

 

FOR
VALUE RECEIVED, MIM HOLDINGS, LLC, a Delaware corporation (referred to herein as “Borrower”)
with a business address at 10951 West Pico Boulevard, Suite 102, Los Angeles, CA 90064, hereby unconditionally agrees and promises
to pay to the order of SKYVIEW CAPITAL, LLC, a Delaware limited liability company (“Skyview”), and/or
its successors and assigns (together with Skyview, collectively, the “Holder”), at the office of Skyview at
2000 Avenue of the Stars, Suite 810-N, Los Angeles, CA 90067, or such other place as the Holder may from time to time designate,
in lawful money of the United States of America, the principal sum of THREE MILLION NINE HUNDRED NINETY THOUSAND FIVE HUNDRED
AND SEVEN DOLLARS AND FIFTY CENTS ($3,660,507.50) (the “Principal Indebtedness”), together with interest on
the outstanding Principal Indebtedness evidenced by this Note at the Interest Rate (as defined below).

 

This
Note amends, restates and supersedes in its entirety an installment note dated as of June 30, 2016 (the “Prior Note”).

 

Unless
otherwise expressly defined in this Note, all capitalized terms used herein shall have the same meaning as assigned to them in
the Membership Interest Purchase Agreement, dated as of September 28, 2015, as amended by Amendment No. 1 dated November 3, 2015,
as further amended by Amendment No. 2, dated as of June 30, 2016 and as further amended by Amendment No. 3, dated as of the Effective
Date, among Borrower, Boxlight Corporation, a Nevada corporation, as successor-in-interest to VC2 Partners LLC (“BOXL”),
Mimio, LLC, a Delaware limited liability company (“Mimio”) and Skyview (collectively, the “Purchase
Agreement”). All terms not otherwise defined in this Note shall have the same meaning as they are defined in Amendment
No. 2 to the Purchase Agreement. This Note is the Purchase Note being issued by the Borrower under the Purchase Agreement.

 

1.Principal
Indebtedness of the Note. The unpaid Principal Indebtedness under this Note, shall be due and payable as follows:

 

(a)       an
aggregate of $2,500,000 principal amount of the Purchase Note (the “First Installment Payment”) shall be due
and payable on or before the earlier of (i) September 30, 2016, or (ii) out of the new proceeds of the Senior Debt Facility provided
by a Senior Lender (the “First Installment Payment Date”); and

 

(b)       the
entire unpaid balance of the Principal Indebtedness, together with any accrued and unpaid interest at the Interest Rate hereon,
shall be due and payable on the earlier to occur of (a) the occurrence of an Event of Default (as defined herein),
or (b) December 15, 2016 (the “Final Maturity Date”).

 

2.       Interest.          Interest
shall be payable on the outstanding Principal Indebtedness (“Interest”)
at the rate of nine (6%) percent per annum (the “Interest
Rate”) and shall be calculated for actual days elapsed on the basis of a 360-day year, which results in higher interest,
charge or fee payments than if a 365-day year were used. Interest shall be payable in cash, quarterly in arrears, commencing 90
days following the Issuance Date.

 

3.       Default
Interest Rate. During any period in which an Event of Default has occurred and is continuing, Interest shall accrue on the
outstanding Principal Indebtedness at the rate per annum equal to twelve (12%) percent (the “Default
Interest Rate”), compounded monthly; provided, however, that in no event shall Borrower be obligated to pay Interest,
charges or fees at a rate in excess of the highest rate permitted by applicable law from time to time in effect.

 

    	 

    	 		 

    

 

4.
Collateral. All obligations of the Borrower under this Note shall be secured by: (i) a security interest in the assets
of Mimio, LLC and Borrower pursuant to the Security Agreement, and by the unconditional guaranty of BOXL, Vert Capital Corp. and
VC2 Partners LLC (each the “Guarantor”) pursuant to the Guaranty Agreement.

 

5.       Subordination
of Final Payment under this Note. Upon consummation of the Senior Debt Facility and simultaneous with the payment of the First
Installment Payment, the Holder hereby agrees to subordinate, in a manner deemed acceptable by the Senior Lender, its right of
payment of the unpaid Principal Indebtedness under this Note and its lien and security interest on the assets of Mimio set forth
in the Security Agreement, and to enter into an intercreditor and subordination agreement with the Senior Lender in form and substance
acceptable to the Senior Lender (the “Subordination Agreement”).

 

6.       Events
of Defaults. The Holder is hereby authorized to declare all or any part of the entire outstanding Principal Indebtedness of
this Note plus all Interest accrued thereon (the “Indebtedness”) immediately due and payable upon the occurrence
of any of the following events (each, an “Event of Default”):

 

(a)      the
failure of Borrower or any Guarantor to pay the First Installment Payment by or the First Installment Payment Date or the entire
unpaid Principal Indebtedness of this Note and all accrued Interest hereon on the Final Maturity Date, time being of the essence
to all payments due hereunder; or

 

(b)      the
breach by Borrower or any Guarantor of any material covenant or agreement on its part to be performed under the Purchase Agreement
or any document, instrument or agreement executed and delivered in connection with the transactions contemplated by the Purchase
Agreement, which breach, if capable of being cured, is not cured by Borrower within thirty (30) days after written notice of such
breach describing in reasonable detail the nature of the alleged breach has been given by Holder to Borrower and the Guarantors;
or

 

(c)       the
filing by Borrower or any Guarantor of any petition for relief under the United States Bankruptcy Code or any similar federal
or state statute, or Borrower’s or Guarantor’s consent to or acquiescence in any such filing by a third party, or
Borrower or Guarantor shall take any corporate action for the purpose of effecting, approving, or consenting to any of the foregoing;
or

 

(d)       the
making by Borrower or any Guarantor of an application for the appointment of a custodian, trustee or receiver for, or of a general
assignment for the benefit of creditors by, Borrower, or Borrower’s consent to or acquiescence in any such application by
a third party or Borrower shall take any corporate action for the purpose of effecting, approving, or consenting to any of the
foregoing; or

 

(e)       the
insolvency of Borrower or any Guarantor or the failure of Borrower or any Guarantor generally to pay its debts as such debts become
due; or

 

    	2

    	 		 

    

 

(f)      the
dissolution, winding up, or termination of the business or cessation of operations of Borrower or Guarantor (including any transaction
or series of related transactions deemed to be a liquidation, dissolution or winding up of Borrower or Guarantor pursuant to the
provisions of Borrower’s charter documents), or Borrower or Guarantor shall take any corporate action for the purpose of
effecting, approving, or consenting to any of the foregoing; or

 

(g)      the
occurrence of any “Event of Default” under and as defined in any document, instrument or agreement executed and delivered
in connection with the transactions contemplated by the Purchase Agreement that has not been cured within any applicable cure
period or waived by the Holder.

 

7.      Prepayment.
All payments shall be applied first to Interest and then to Principal Indebtedness. Borrower shall be permitted to prepay any
amounts contemplated under this Note in full or in part prior to the Maturity Date, provided that each partial prepayment shall
be applied to the remaining Installments in the inverse order of maturity.

 

8.       Governing
Law. The provisions of this Note shall be construed according to the internal substantive laws of the State of California
without regard to conflict of laws principles. If any provision of this Note is in conflict with any statute or rule of law of
the State of California or is otherwise unenforceable for any reason whatsoever, then such provision shall be deemed to be restated
so that it may be enforced to the fullest extent permitted by law, and the remainder of this Note shall remain in full force and
effect.

 

9.       Acceleration.
It is agreed that time is of the essence in the performance of this Note. Upon the occurrence and during the continuation of an
Event of Default under this Note that is not cured within the applicable cure period, if any, set forth in herein, the Holder
shall have the right and option to declare, without notice, all the remaining indebtedness of unpaid principal and interest evidenced
by this Note immediately due and payable; provided, however, that upon the occurrence of an Event of Default described in Section
6.1(c), 6.1(d), 6.1(e) or 6.1(f), the principal of and accrued interest and all other amounts due and owing under this Note
(if not then due and payable) shall become due and payable immediately, without presentment, demand, notice, protest, declaration
or any other requirement of any kind, all which Borrower expressly waives.

 

10.       Fees.
Borrower shall pay all of Holder’s reasonable fees and costs incurred in the preparation of this Note and any related documents.
If this Note is placed in the hands of an attorney for collection, by suit or otherwise, or to enforce its collection, Borrower
shall pay all reasonable costs of collection including reasonable attorneys’ fees.

 

11.       Waivers.
Borrower hereby waives diligence, presentment, demand, protest, 1notice of intent to accelerate, notice of acceleration, and any
other notice of any kind. No delay or omission on the part of the Holder in exercising any right hereunder shall operate as a
waiver of such right or of any other remedy under this Note. A waiver on any one occasion shall not be construed as a bar to or
waiver of any such right or remedy on a future occasion.

 

    	3

    	 		 

    

 

12.       Transfer.
This Note may be transferred or assigned, in whole or in part, by the Holder at any time subject to the limitations set forth
in the Purchase Agreement and herein. The term “Holder” as used herein shall also include any transferee of
this Note. Each transferee of this Note acknowledges that this Note has not been registered under the Securities Act, and may
be transferred only pursuant to an effective registration under the Securities Act or pursuant to an applicable exemption from
the registration requirements of the Securities Act.

 

13.       Priority.
All claims of the Holder to full payment of the outstanding Principal Indebtedness and accrued Interest thereon set forth herein
shall be a senior secured obligation of the Borrower and each Guarantor, subordinated only to the rights of the Senior Lender
under the Subordination Agreement.

 

14.       Prior
Note. This note amends, restates and supersedes in its entirety the Purchase Note executed and delivered in connection with
Amendment No. 2 to the Purchase Agreement (the “Prior
Note”).

 

15.       Obligation
Absolute. The obligation of Borrower to repay the Principal Indebtedness under this Note, together with all Interest accrued
thereon, is absolute and unconditional, and there exists no Borrower right of set off, recoupment, counterclaim or defense of
any nature whatsoever to payment of this Note.

 

16.       Notices.
All notices, demands and other communications provided for or permitted hereunder shall be made in writing and shall be by registered
or certified first-class mail, return receipt requested, telecopier (with receipt confirmed), courier service or personal delivery
at the addresses specified in Section 8.02 of the Purchase Agreement.

 

17.       Borrower
acknowledges that Holder’s willingness to issue this Note is based on the facts represented to Holder by Borrower as set
forth in the Purchase Agreement.

 

HOLDER
AND BORROWER IRREVOCABLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY PROCEEDING HEREAFTER INSTITUTED BY OR AGAINST HOLDER OR BORROWER
IN RESPECT OF THIS NOTE OR ARISING OUT OF ANY DOCUMENT, INSTRUMENT OR AGREEMENT EVIDENCING, GOVERNING OR SECURING THIS NOTE. BORROWER
ACKNOWLEDGES THAT THE INDEBTEDNESS EVIDENCED BY THIS NOTE IS PART OF A COMMERCIAL TRANSACTION.

 

IN
WITNESS WHEREOF, this Note has been executed by Borrower as of the day and year first set forth above.

 

	 	MIM
    HOLDINGS, LLC
	 	 	 
	 	By:	     
	 	Name:	Adam
    E. Levin
	 	Title:	Member
and Manager

 

    	4

    	 		 

    

 

EXHIBIT
B

 

AMENDED
AND RESTATED GUARANTY AGREEMENT

 

THIS
AMENDED AND RESTATED GUARANTY AGREEMENT (this “Guaranty Agreement”), dated as of August 3, 2016 (the “Effective
Date”), by BOXLIGHT CORPORATION, a Nevada corporation (“BOXL”), VERT CAPITAL CORP.,
a Delaware corporation (“Vert”), VC2 PARTNERS, LLC, a Delaware limited liability company (“VC2
and, together with Vert and BOXL, individually and collectively, the “Guarantor”) in favor of SKYVIEW
CAPITAL, LLC, a Delaware limited liability company ( “Skyview”), or its registered assigns. This
Guaranty Agreement amends and restates in its entirety a guaranty agreement among BOXL, Vert, VC2 and Skyview, dated as of June
30, 2016 (the “Prior Guaranty”).

 

PREAMBLE

 

A.       Reference
is made to that certain amended and restated installment note in $3,660,507.50 principal amount, dated the Effective Date (the
“Purchase Note”) issued by Mim Holdings, LLC, a Delaware limited liability company (the “Borrower”)
in favor of Skyview, as partial payment of the Purchase Price for the Membership Interests set forth in the Membership Interest
Purchase Agreement among VC2, the Borrower, Mimio, LLC and Skyview, dated as of September 28, 2015, as amended by Amendment No.
1, dated November 3, 2015, as further amended by Amendment No. 2, dated as of June 30, 2016 and as further amended by Amendment
No. 3 dated as of August 3, 2016 (collectively, the “Purchase Agreement”). Unless otherwise defined herein,
all capitalized terms in this Guaranty Agreement shall have the same meaning as they are defined in the Purchase Agreement.

 

B.       
An assignee of VC2 has heretofore transferred to BOXL the record and beneficial ownership of one hundred (100%) percent of the
outstanding capital stock of Borrower (the “Borrower Equity”), and Vert is an Affiliate of VC2 and the Borrower
and BOXL, and will derive benefits from the financial accommodations evidenced by the Purchase Agreement and the Purchase Note.

 

NOW,
THEREFORE, in consideration of and as a material inducement to Skyview to enter into the Purchase Note, each Guarantor has
agreed to execute this Guaranty in favor of Skyview, and each Guarantor does hereby jointly and severally represent, warrant,
covenant and agree as follows:

 

1.
Guaranty of Payment and Performance. Subject at all times to the provisions of Section 1(b) below:

 

(a)       Each
Guarantor hereby unconditionally and irrevocably guarantees to Skyview, the full and punctual payment when due (whether at stated
maturity, by pre-payment, by acceleration or otherwise), of 100% of the obligations of Borrower under the Purchase Note (the “Guaranteed
Obligation”)

 

(b)       This
Agreement and the Guaranty provided herein shall remain in full force and effect until all of the Guaranteed Obligations and the
obligations of the Borrower under the Purchase Note have been paid in full.

 

    	5

    	 		 

    

 

(c)       This
Guaranty is an absolute, unconditional and continuing guaranty of the full and punctual payment and performance of the Guaranteed
Obligations. Should the Borrower default in the payment or performance of any of the Guaranteed Obligations, the obligations of
each Guarantor hereunder with respect to such Guaranteed Obligations in default shall, upon demand by Skyview, become immediately
due and payable to Skyview, without demand or notice of any nature, all of which are expressly waived by each Guarantor.

 

(d)
Except as agreed by Skyview, in its sole discretion, Guarantor acknowledges and agrees that no distributions shall be made to
Guarantor by reason of Borrower Equity or otherwise until the Purchase Note is paid by Borrower in full.

 

2.
The Guarantor’s Agreement to Pay Enforcement Costs, etc. The Guarantor further agrees to pay to Skyview, on demand,
all costs and expenses (including court costs and legal expenses) incurred or expended by the Skyview in connection with this
Guaranty and the enforcement thereof.

 

3.
Waivers by each Guarantor; Skyview’s Freedom to Act. The Guarantor agrees that the Guaranteed Obligations will
be paid and performed strictly in accordance with their respective terms, regardless of any law, regulation or order now or hereafter
in effect in any jurisdiction affecting any of such terms or the rights of the Skyview with respect thereto. The Guarantor waives
promptness, diligence, presentment, demand, protest, notice of acceptance, notice of any Guaranteed Obligations incurred and all
other notices of any kind, all defenses which may be available by virtue of any valuation, stay, moratorium law or other similar
law now or hereafter in effect, any right to require the marshalling of assets of any other person primarily or secondarily liable
with respect to any of the Guaranteed Obligations or obligations of the Borrower, and all suretyship defenses generally. Without
limiting the generality of the foregoing, each Guarantor agrees to the provisions of any instrument evidencing, securing or otherwise
executed in connection with any Guaranteed Obligations and agrees that the obligations of each Guarantor hereunder shall not be
released or discharged, in whole or in part, or otherwise affected by (i) the failure of Skyview to assert any claim or demand
or to enforce any right or remedy against any other entity or other person primarily or secondarily liable with respect to any
of the Guaranteed Obligations; (ii) any extensions, compromise, refinancing, consolidation or renewals of any Guaranteed Obligation;
(iii) any change in the time, place or manner of payment of any of the Guaranteed Obligations or any rescissions, waivers, compromise,
refinancing, consolidation or other amendments or modifications of any of the terms or provisions of the agreements evidencing,
securing or otherwise executed in connection with any of the Guaranteed Obligations, (iv) the addition, substitution or release
of any entity or other person primarily or secondarily liable for any Guaranteed Obligation; or (v) any other act or omission
which might in any manner or to any extent vary the risk of each Guarantor or otherwise operate as a release or discharge of either
Guarantor, all of which may be done without notice to either Guarantor.

 

4.
Unenforceability of Obligations Against Borrower. If for any reason the Borrower has no legal existence or is under
no legal obligation to discharge any of the Guaranteed Obligations, or if any of the Guaranteed Obligations have become irrecoverable
from Borrower by reason of Borrower’s insolvency, bankruptcy or reorganization or by other operation of law or for any other
reason, this Guaranty shall nevertheless be binding on each Guarantor to the same extent as if each Guarantor at all times had
been the principal obligor on all such Guaranteed Obligations. In the event that acceleration of the time for payment of any of
the Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of Borrower, or for any other reason, all
such amounts otherwise subject to acceleration under the terms of the agreements evidencing, securing or otherwise executed in
connection with any Guaranteed Obligation shall be immediately due and payable by each Guarantor.

 

    	6

    	 		 

    

 

5.
Subrogation; Subordination.

 

5.1.       Waiver
of Rights. Until the final payment and performance in full of all of the Guaranteed Obligations, each Guarantor shall
not exercise and hereby waives any rights against the Borrower arising as a result of payment by each Guarantor hereunder, by
way of subrogation, reimbursement, restitution, contribution or otherwise, and will not prove any claim in competition with Skyview
in respect of any payment hereunder in any bankruptcy, insolvency or reorganization case or proceedings of any nature; and each
Guarantor will not claim any setoff, recoupment or counterclaim against Borrower in respect of any liability of either Guarantor
to Borrower.

 

5.2.       Subordination.
The payment of any amounts due with respect to any indebtedness of the Borrower for money borrowed or credit received now
or hereafter owed to each Guarantor is hereby subordinated to the prior payment in full of all of the obligations of Borrower
to Skyview. The Guarantor agrees that each Guarantor will not demand, sue for or otherwise attempt to collect any such indebtedness
of the Borrower to each Guarantor until all of the Guaranteed Obligations shall have been paid in full. If, notwithstanding the
foregoing sentence, each Guarantor shall collect, enforce or receive any amounts in respect of such indebtedness while any Guaranteed
Obligations are still outstanding, such amounts shall be collected, enforced and received by each Guarantor as trustee for Skyview
and be paid over to Skyview on account of the Guaranteed Obligations without affecting in any manner the liability of either Guarantor
under the other provisions of this Guaranty.

 

6.
Further Assurances. Each Guarantor agree that it will from time to time, at the reasonable request of Skyview, do all
such things and execute all such documents as Skyview may consider necessary or desirable to give full effect to this Guaranty
and to perfect and preserve the rights and powers of Skyview.

 

7.
Termination; Upon the indefeasible payment and performance of the obligations of Borrower to Skyview under the Purchase
Note, this Agreement shall terminate.

 

8.
Successors and Assigns. This Guaranty shall be binding upon each Guarantor, his successors and assigns, and shall inure
to the benefit of Skyview and its successors, transferees and assigns. The Guarantor may not assign any of his obligations hereunder.

 

9.
Amendments and Waivers. No amendment or waiver of any provision of this Guaranty nor consent to any departure by either
Guarantor therefrom shall be effective unless the same shall be in writing and signed by each Guarantor and Skyview. No failure
on the part of Skyview to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall
any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other
right.

 

    	7

    	 		 

    

 

10.
Notices. All notices and other communications called for hereunder shall be made in the manner set forth in the Pledge
and Security Agreement of Skyview and Guarantor of even date herewith between.

 

11.
Governing Law; Consent to Jurisdiction. THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF CALIFORNIA. Each Guarantor agrees that any suit for the enforcement of this Guaranty may be brought in the courts of Los
Angeles County, Los Angeles, California or any federal court sitting therein and consents to the nonexclusive jurisdiction of
such court and to service of process in any such suit being made upon each Guarantor by mail at the address specified by reference
in Section 12. Each Guarantor hereby waives any objection that he may now or hereafter have to the venue of any such suit or any
such court or that such suit was brought in an inconvenient court.

 

12.
Waiver of Jury Trial. EACH GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES HIS RIGHTS TO A JURY TRIAL
WITH RESPECT TO ANY LITIGATION, ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS GUARANTY, ANY RIGHTS OR OBLIGATIONS
HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY.

 

13.
Miscellaneous. This Guaranty constitutes the entire agreement of each Guarantor with respect to the matters set forth
herein. The rights and remedies herein provided are cumulative and not exclusive of any remedies provided by law or any other
agreement of Borrower to Skyview. The invalidity or unenforceability of any one or more sections of this Guaranty shall not affect
the validity or enforceability of its remaining provisions. Captions are for the ease of reference only and shall not affect the
meaning of the relevant provisions. The meanings of all defined terms used in this Guaranty shall be equally applicable to the
singular and plural forms of the terms defined.

 

[Remainder
of page intentionally left blank; signature page follows]

 

    	8

    	 		 

    

 

IN
WITNESS WHEREOF, each Guarantor has caused this Guaranty to be executed and delivered as of the date first above written.

 

	 	BOXLIGHT
    CORPORATION
	 	 
	 	By:	 
	 	Name:	Mark
    Elliott
	 	Title:
    	Chief
    Executive Officer
	 	 	 
	 	VERT
    CAPITAL CORP.
	 	 
	 	By:	 
	 	Name:	Adam
E. Levin
	 	Title:
    	Chief
    Executive Officer
	 	 	 
	 	VC2
    PARTNERS, LLC
	 	 
	 	By:	                             
	 	Name:	Adam
E. Levin
	 	Title:
    	Chief
    Executive Officer

 

    	9

    	 		 

    

 

EXHIBIT C

 

SECURITY AGREEMENT

 

This SECURITY AGREEMENT,
dated as of November 4, 2015 (as amended, supplemented or otherwise modified from time to time in accordance with the provisions
hereof, this “Agreement”), made by and among MIMIO, LLC, a Delaware limited liability company (“Mimio”
or the “Company”); MIM HOLDINGS, LLC, a Delaware limited liability company (“Buyer”), with its principal
place of business at 10951 West Pico, Los Angeles, CA 90064 ( who together with Mimio and Buyer shall be referred to as the “Grantors”),
in favor of SKYVIEW CAPITAL, LLC, a Delaware limited liability company, with its headquarters at Suite 810-N, 2000 Avenue
of the Stars, Los Angeles, CA 90067 (the “Secured Party”).

 

WHEREAS, on the
date hereof, the Secured Party has accepted as payment of the purchase price for the membership interests of Mimio, a purchase
money note from the Buyer in an aggregate unpaid principal amount not exceeding Three Million Four Hundred and Twenty-Five Thousand
Dollars ($3,425,000), as evidenced by that certain Purchase Note of even date herewith the “Purchase Note”);
and

 

WHEREAS, the Purchase Note
is guaranteed by VC2 Partners, LLC and Vert Capital Corp. (each a “Guarantor” and collectively,
the “Guarantors”), evidenced by that certain Guaranty of even date herewith delivered to the Secured Party;

 

WHEREAS, this Agreement
is given by the Grantors in favor of the Secured Party to secure the payment and performance of all of the Secured Obligations;
and

 

WHEREAS, it is a
condition to the willingness of the Secured Party to accept the Purchase Note and the other the Loan Documents that the Grantors
execute and deliver this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.       Definitions.

 

(a)       The
Purchase Note, the Guaranty of the Guarantors and this Agreement, as the same may be amended, supplemented or otherwise modified
from time to time, are collectively referred to in this Agreement as the “Loan Documents”). Capitalized terms
used but not otherwise defined herein shall have the meanings assigned to such terms in the Loan Documents. Unless otherwise specified
herein, all references to Sections and Schedules herein are to Sections and Schedules of this Agreement.

 

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(b)       Unless
otherwise defined herein, terms used herein that are defined in the UCC shall have the meanings assigned to them in the UCC. However,
if a term is defined in Article 9 of the UCC differently than in another Article of the UCC, the term has the meaning specified
in Article 9.

 

(c)       For
purposes of this Agreement, the following terms shall have the following meanings:

 

“Collateral”
has the meaning set forth in Section  2.

 

“Event of Default”
has the meaning set forth in the Purchase Note.

 

“First Priority”
means, with respect to any lien and security interest purported to be created in any Collateral pursuant to this Agreement, such
lien and security interest is the most senior lien to which such Collateral is subject (subject only to Permitted Liens).

 

“Permitted
Liens” shall mean: (a) liens in favor of Secured Party; (b) liens for taxes, assessments or other governmental charges
not delinquent or being properly contested; (c) deposits or pledges to secure obligations under worker’s compensation, social
security or similar laws, or under unemployment insurance; (d) deposits or pledges to secure bids, tenders, contracts (other than
contracts for the payment of money), leases, statutory obligations, surety and appeal bonds and other obligations of like nature
arising in the ordinary course of business; (e) liens arising by virtue of the rendition, entry or issuance against any Grantor
or any subsidiary, or any property of any Grantor or any subsidiary, of any judgment, writ, order, or decree to the extent the
rendition, entry, issuance or continued existence of such judgment, writ, order or decree (or any event or circumstance relating
thereto) has not resulted in the occurrence of an Event of Default under the Purchase Note; (f) carriers’, repairmens’,
mechanics’, workers’, materialmen’s or other like liens arising in the ordinary course of business with respect
to obligations which are not due or which are being properly contested; (g) liens placed upon fixed assets hereafter acquired to
secure a portion of the purchase price thereof, provided that any such lien shall not encumber any other property of any Grantor;
and (h) other liens incidental to the conduct of any Grantor’s business or the ownership of its property and assets which
were not incurred in connection with the borrowing of money or the obtaining of advances or credit, and which do not in the aggregate
materially detract from Secured Partys’ rights in and to the Collateral or the value of any Grantor’s property or assets
or which do not materially impair the use thereof in the operation of any Grantor’s business.

 

“Proceeds”
means “proceeds” as such term is defined in section 9-102 of the UCC and, in any event, shall include, without limitation,
all dividends or other income from the Collateral, collections thereon or distributions with respect thereto.

 

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“Secured Obligations”
has the meaning set forth in Section  3.

 

“UCC”
means the Uniform Commercial Code as in effect from time to time in the State of California or, when the laws of any other state
govern the method or manner of the perfection or enforcement of any security interest in any of the Collateral, the Uniform Commercial
Code as in effect from time to time in such state.

 

2.       Grant
of Security Interest. Each of the Grantors hereby pledges and grants to the Secured Party, and hereby creates a continuing
First Priority lien and security interest in favor of the Secured Party in and to all of its right, title and interest in and to
the following assets and properties of Grantors, wherever located, whether now existing or hereafter from time to time arising
or acquired (collectively, the “Collateral”):

 

(a)       all
fixtures and personal property of every kind and nature including all accounts, goods (including inventory and equipment), documents
(including, if applicable, electronic documents), instruments, promissory notes, chattel paper (whether tangible or electronic),
letters of credit, letter-of-credit rights (whether or not the letter of credit is evidenced by a writing), securities and all
other investment property, general intangibles (including all payment intangibles), money, deposit accounts, and any other contract
rights or rights to the payment of money; and

 

(b)       all
Proceeds and products of each of the foregoing, all books and records relating to the foregoing, all supporting obligations related
thereto, and all accessions to, substitutions and replacements for, and rents, profits and products of, each of the foregoing,
and any and all Proceeds of any insurance, indemnity, warranty or guaranty payable to the Grantors from time to time with respect
to any of the foregoing.

 

3.       Secured
Obligations. The Collateral secures the due and prompt payment and performance of:

 

(a)       the
obligations of the Grantors and the Guarantors from time to time arising under this Agreement and under the other Loan Documents,
or otherwise with respect to (i) the due and prompt payment of the principal of and premium, if any, and interest on the Purchase
Note (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding), when and as due, whether at maturity, by acceleration, upon one
or more dates set for prepayment or otherwise and (ii) all other monetary obligations, including fees, costs, attorneys’
fees and disbursements, reimbursement obligations, contract causes of action, expenses and indemnities, whether primary, secondary,
direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, fixed or otherwise (including
monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless
of whether allowed or allowable in such proceeding), of the Grantors under or in respect of the Loan Documents and this Agreement;
and

 

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(b)       all
other covenants, duties, debts, obligations and liabilities of any kind of the Grantors and the Guarantors to Secured Party under
or in respect of the Loan Documents or any other document made, delivered or given in connection with any of the foregoing, in
each case whether evidenced by a note or other writing, whether allowed in any bankruptcy, insolvency, receivership or other similar
proceeding, whether arising from an extension of credit, issuance of a letter of credit, acceptance, loan, guaranty, indemnification
or otherwise, and whether primary, secondary, direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, fixed or otherwise (all such obligations, covenants, duties, debts, liabilities, sums and expenses set forth
in Section  3 being herein collectively called the “Secured Obligations”).

 

4.       Perfection
of Security Interest and Further Assurances.

 

(a)       The
Grantors shall, from time to time, as may be required by the Secured Party with respect to all Collateral, immediately take all
actions as may be requested by the Secured Party to perfect the security interest of the Secured Party in the Collateral, including,
without limitation, with respect to all Collateral over which control may be obtained within the meaning of sections 8-106, 9-104,
9-105, 9-106 and 9-107 of the UCC, as applicable, the Grantors shall immediately take all actions as may be requested from time
to time by the Secured Party so that control of such Collateral is obtained and at all times held by the Secured Party. All of
the foregoing shall be at the sole cost and expense of the Grantors.

 

(b)       The
Grantors hereby irrevocably authorizes the Secured Party at any time and from time to time to file in any relevant jurisdiction
any financing statements and amendments thereto that contain the information required by Article 9 of the UCC of each applicable
jurisdiction for the filing of any financing statement or amendment relating to the Collateral, including any financing or continuation
statements or other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest
granted by the Grantors hereunder, without the signature of the Grantors where permitted by law, including the filing of a financing
statement describing the Collateral as all assets now owned or hereafter acquired by the Grantors, or words of similar effect.
The Grantors agrees to provide all information required by the Secured Party pursuant to this Section promptly to the Secured Party
upon request.

 

(c)       The
Grantors hereby further authorizes the Secured Party to file with the United States Patent and Trademark Office and the United
States Copyright Office (and any successor office and any similar office in any state of the United States or in any other country)
this Agreement and other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security
interest granted by the Grantors hereunder, without the signature of the Grantors where permitted by law.

 

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(d)       If
the Grantors shall at any time hold or acquire any certificated securities, promissory notes, tangible chattel paper, negotiable
documents or warehouse receipts relating to the Collateral, the Grantors shall immediately endorse, assign and deliver the same
to the Secured Party, accompanied by such instruments of transfer or assignment duly executed in blank as the Secured Party may
from time to time specify.

 

(e)       The
Grantors agrees that at any time and from time to time, at the expense of the Grantors, the Grantors will promptly execute and
deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may
be necessary or desirable, or that the Secured Party may request, in order to create and/or maintain the validity, perfection or
priority of and protect any security interest granted or purported to be granted hereby or to enable the Secured Party to exercise
and enforce its rights and remedies hereunder or under any other agreement with respect to any Collateral.

 

5.       Representations
and Warranties. Each Grantor represents and warrants as follows:

 

(a)       As
at the date this agreement, Mimio is the sole, direct, legal and beneficial owner of the Collateral, free and clear of any lien,
security interest, encumbrance, claim, option or right of others except for Permitted Liens the security interest created by this
Agreement.

 

(b)       The
grant of a security interest in the Collateral pursuant to this Agreement creates a valid and perfected First Priority security
interest in the Collateral, securing the payment and performance when due of the Secured Obligations.

 

(c)       It
has full power, authority and legal right to enter into the Loan Documents and grant a security interest in the Collateral pursuant
to this Agreement.

 

(d)       Each
of this Agreement and the Loan Documents has been duly authorized, executed and delivered by the Grantor and constitutes a legal,
valid and binding obligation of the Grantor enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and subject to equitable principles
(regardless of whether enforcement is sought in equity or at law).

 

(e)       No
authorization, approval, or other action by, and no notice to or filing with, any governmental authority or regulatory body is
required for the issuance of the Purchase Note and the grant by the Grantor of the security interest in the Collateral pursuant
to this Agreement or for the execution and delivery of the Loan Documents and this Agreement by the Grantor or the performance
by the Grantor of its obligations thereunder.

 

(f)       The
execution and delivery of the Loan Documents and this Agreement by the Grantor and the performance by the Grantor of its obligations
thereunder, will not violate any provision of any applicable law or regulation or any order, judgment, writ, award or decree of
any court, arbitrator or governmental authority, domestic or foreign, applicable to the Grantor or any of its property, or the
organizational or governing documents of the Grantor or any agreement or instrument to which the Grantor is party or by which it
or its property is bound.

 

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(g)       The
Grantor has taken all action required on its part for control (as defined in sections 8-106, 9-104, 9-105, 9-106 and 9-107 of the
UCC, as applicable) to have been obtained by the Secured Party over all Collateral with respect to which such control may be obtained
pursuant to the UCC. No person other than the Secured Party has control or possession of all or any part of the Collateral.

 

6.       Voting,
Distributions and Receivables.

 

(a)       The
Secured Party agrees that unless an Event of Default shall have occurred and be continuing, the Grantors may, to the extent the
Grantors have such right as a holder of the Collateral consisting of securities, other Equity Interests or indebtedness owed by
any obligor, vote and give consents, ratifications and waivers with respect thereto, except to the extent that, such vote would
be inconsistent with or result in any violation of any provision of the Loan Documents or this Agreement.

 

(b)       The
Secured Party agrees that the Grantors may, unless an Event of Default shall have occurred and be continuing, receive and retain
all cash dividends and other distributions with respect to the Collateral consisting of securities, other Equity Interests or indebtedness
owed by any obligor.

 

(c)       If
any Event of Default shall have occurred and be continuing, the Secured Party may, or at the request and option of the Secured
Party the Grantors shall, notify account debtors and other persons obligated on any of the Collateral of the security interest
of the Secured Party in any account, chattel paper, general intangible, instrument or other Collateral and that payment thereof
is to be made directly to the Secured Party.

 

7.       Covenants.
Each of the Grantors covenants as follows:

 

(a)       The
Grantor will not, without providing at least 10 days’ prior written notice to the Secured Party, change its legal name, identity,
type of organization, jurisdiction of organization, corporate structure, location of its chief executive office or its principal
place of business or its organizational identification number. The Grantors will, prior to any change described in the preceding
sentence, take all actions requested by the Secured Party to maintain the perfection and priority of the Secured Party’s
security interest in the Collateral.

 

(b)       The
Collateral, to the extent not delivered to the Secured Party pursuant to Section  4, will be kept at those locations
listed on the Perfection Certificate and the Grantors will not remove the Collateral from such locations without providing at least
10 days’ prior written notice to the Secured Party. The Grantor will, prior to any change described in the preceding sentence,
take all actions required by the Secured Party to maintain the perfection and priority of the Secured Party’s security interest
in the Collateral.

 

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(c)       The
Grantor shall, at its own cost and expense, defend title to the Collateral and the First Priority lien and security interest of
the Secured Party therein against the claim of any person claiming against or through the Grantor and shall maintain and preserve
such perfected First Priority security interest for so long as this Agreement shall remain in effect.

 

(d)       Mimio
will not sell, offer to sell, dispose of, convey, assign or otherwise transfer, grant any option with respect to, restrict, or
grant, create, permit or suffer to exist any mortgage, pledge, lien, security interest, option, right of first offer, encumbrance
or other restriction or limitation of any nature whatsoever on, any of the Collateral or any interest therein.

 

(e)       The
Grantors will keep the Collateral in good order and repair and will not use the same in violation of law or any policy of insurance
thereon. The Grantors will permit the Secured Party, or its designee, to inspect the Collateral at any reasonable time, wherever
located.

 

(f)       The
Grantors will pay promptly when due all taxes, assessments, governmental charges, and levies upon the Collateral or incurred in
connection with the use or operation of the Collateral or incurred in connection with this Agreement.

 

(g)       Mimio
will continue to operate its business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as
amended, and with all applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment,
storage or disposal of hazardous materials or substances.

 

8.       Secured
Party Appointed Attorney-in-Fact. The Grantors hereby appoint the Secured Party the Grantors’ attorney-in-fact, with
full authority in the place and stead of the Grantors and in the name of the Grantors or otherwise, from time to time in the Secured
Party’s discretion to take any action and to execute any instrument which the Secured Party may reasonably deem necessary
or advisable to accomplish the purposes of this Agreement (but the Secured Party shall not be obligated to and shall have no liability
to the Grantors or any third party for failure to do so or take action). This appointment, being coupled with an interest, shall
be irrevocable. The Grantors hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof.

 

9.       Secured
Party May Perform. If the Grantors fails to perform any obligation contained in this Agreement, the Secured Party may itself
perform, or cause performance of, such obligation, and the expenses of the Secured Party incurred in connection therewith shall
be payable by the Grantors; provided that the Secured Party shall not be required to perform or discharge any obligation
of the Grantors.

 

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10.       Reasonable
Care. The Secured Party shall have no duty with respect to the care and preservation of the Collateral beyond the exercise
of reasonable care. The Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the
Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Secured Party accords
its own property, it being understood that the Secured Party shall not have any responsibility for (a) ascertaining or taking action
with respect to any claims, the nature or sufficiency of any payment or performance by any party under or pursuant to any agreement
relating to the Collateral or other matters relative to any Collateral, whether or not the Secured Party has or is deemed to have
knowledge of such matters, or (b) taking any necessary steps to preserve rights against any parties with respect to any Collateral.
Nothing set forth in this Agreement, nor the exercise by the Secured Party of any of the rights and remedies hereunder, shall relieve
the Grantors from the performance of any obligation on the Grantors’ part to be performed or observed in respect of any of
the Collateral.

 

11.       Remedies
Upon Default.

 

(a)       If
any Event of Default shall have occurred and be continuing, the Secured Party, without any other notice to or demand upon the Grantors,
may assert all rights and remedies of a secured party under the UCC or other applicable law, including, without limitation, the
right to take possession of, hold, collect, sell, lease, deliver, grant options to purchase or otherwise retain, liquidate or dispose
of all or any portion of the Collateral. If notice prior to disposition of the Collateral or any portion thereof is necessary under
applicable law, written notice mailed to the Grantors at its notice address as provided in Section  15 hereof not
less than twenty (20) days prior to the date of such disposition shall constitute reasonable notice, but notice given in any other
reasonable manner shall be sufficient. So long as the sale of the Collateral is made in a commercially reasonable manner, the Secured
Party may sell such Collateral on such terms and to such purchaser(s) as the Secured Party in its absolute discretion may choose,
without assuming any credit risk and without any obligation to advertise or give notice of any kind other than that necessary under
applicable law. Without precluding any other methods of sale, the sale of the Collateral or any portion thereof shall have been
made in a commercially reasonable manner if conducted in conformity with reasonable commercial practices of creditors disposing
of similar property. At any sale of the Collateral, if permitted by applicable law, the Secured Party may be the purchaser, licensee,
assignee or recipient of the Collateral or any part thereof and shall be entitled, for the purpose of bidding and making settlement
or payment of the purchase price for all or any portion of the Collateral sold, assigned or licensed at such sale, to use and apply
any of the Secured Obligations as a credit on account of the purchase price of the Collateral or any part thereof payable at such
sale. To the extent permitted by applicable law, the Grantors waives all claims, damages and demands it may acquire against the
Secured Party arising out of the exercise by it of any rights hereunder. The Grantors hereby waives and releases to the fullest
extent permitted by law any right or equity of redemption with respect to the Collateral, whether before or after sale hereunder,
and all rights, if any, of marshalling the Collateral and any other security for the Secured Obligations or otherwise. At any such
sale, unless prohibited by applicable law, the Secured Party or any custodian may bid for and purchase all or any part of the Collateral
so sold free from any such right or equity of redemption. Neither the Secured Party nor any custodian shall be liable for failure
to collect or realize upon any or all of the Collateral or for any delay in so doing, nor shall it be under any obligation to take
any action whatsoever with regard thereto. The Grantors agrees that it would not be commercially unreasonable for the Secured Party
to dispose of the Collateral or any portion thereof by utilizing internet sites that provide for the auction of assets of the type
included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets. The
Secured Party shall not be obligated to clean-up or otherwise prepare the Collateral for sale.

 

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(b)       If
any Event of Default shall have occurred and for so long such Event of Default shall be continuing, all rights of the Grantors
to (i) exercise the voting and other consensual rights it would otherwise be entitled to exercise pursuant to Section 
6(a) and (ii) receive the dividends and other distributions which it would otherwise be entitled to receive and retain pursuant
to Section  6(b), shall immediately cease, and all such rights shall thereupon become vested in the Secured Party,
which shall have the sole right to exercise such voting and other consensual rights and receive and hold such dividends and other
distributions as Collateral.

 

(c)       If
any Event of Default shall have occurred and be continuing, any cash held by the Secured Party as Collateral and all cash Proceeds
received by the Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral
shall be applied in whole or in part by the Secured Party to the payment of expenses incurred by the Secured Party in connection
with the foregoing or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or
the rights of the Secured Party hereunder, including reasonable attorneys’ fees, and the balance of such proceeds shall be
applied or set off against all or any part of the Secured Obligations in such order as the Secured Party shall elect. Any surplus
of such cash or cash Proceeds held by the Secured Party and remaining after payment in full of all the Secured Obligations shall
be paid over to the Grantors or to whomsoever may be lawfully entitled to receive such surplus. The Grantors shall remain liable
for any deficiency if such cash and the cash Proceeds of any sale or other realization of the Collateral are insufficient to pay
the Secured Obligations and the fees and other charges of any attorneys employed by the Secured Party to collect such deficiency.

 

(d)       If
the Secured Party shall determine to exercise its rights to sell all or any of the Collateral pursuant to this Section, the Grantors
agrees that, upon request of the Secured Party, the Grantors will, at its own expense, do or cause to be done all such acts and
things as may be necessary to make such sale of the Collateral or any part thereof valid and binding and in compliance with applicable
law.

 

12.       No
Waiver and Cumulative Remedies. The Secured Party shall not by any act (except by a written instrument pursuant to Section
 14), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced
in any Default or Event of Default. All rights and remedies herein provided are cumulative and are not exclusive of any rights
or remedies provided by law.

 

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13.       Security
Interest Absolute. The Grantors hereby waives demand, notice, protest, notice of acceptance of this Agreement, notice of loans
made, credit extended, Collateral received or delivered or other action taken in reliance hereon and all other demands and notices
of any description. All rights of the Secured Party and liens and security interests hereunder, and all Secured Obligations of
the Grantors hereunder, shall be absolute and unconditional irrespective of:

 

(a)       any
illegality or lack of validity or enforceability of any Secured Obligation or any related agreement or instrument;

 

(b)       any
change in the time, place or manner of payment of, or in any other term of, the Secured Obligations, or any rescission, waiver,
amendment or other modification of the Loan Documents, this Agreement or any other agreement, including any increase in the Secured
Obligations resulting from any extension of additional credit or otherwise;

 

(c)       any
taking, exchange, substitution, release, impairment or non-perfection of any Collateral or any other collateral, or any taking,
release, impairment, amendment, waiver or other modification of any guaranty, for all or any of the Secured Obligations;

 

(d)       any
manner of sale, disposition or application of proceeds of any Collateral or any other collateral or other assets to all or part
of the Secured Obligations;

 

(e)       any
default, failure or delay, wilful or otherwise, in the performance of the Secured Obligations;

 

(f)       any
defense, set-off or counterclaim (other than a defense of payment or performance) that may at any time be available to, or be asserted
by, the Grantors against the Secured Party; or

 

(g)       any
other circumstance (including, without limitation, any statute of limitations) or manner of administering the Purchase Note or
any existence of or reliance on any representation by the Secured Party that might vary the risk of the Grantors or otherwise operate
as a defense available to, or a legal or equitable discharge of, the Grantors or any other Grantors, guarantor or surety.

 

14.       Amendments.
None of the terms or provisions of this Agreement may be amended, modified, supplemented, terminated or waived, and no consent
to any departure by the Grantors therefrom shall be effective unless the same shall be in writing and signed by the Secured Party
and the Grantors, and then such amendment, modification, supplement, waiver or consent shall be effective only in the specific
instance and for the specific purpose for which made or given.

 

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15.       Addresses
For Notices. All notices and other communications provided for in this Agreement shall be in writing and shall be given in
the manner and become effective as set forth in the Loan Documents, and addressed to the respective parties at their addresses
as specified on the signature pages hereof or as to either party at such other address as shall be designated by such party in
a written notice to each other party.

 

16.       Continuing
Security Interest; Further Actions. This Agreement shall create a continuing First Priority lien and security interest in the
Collateral and shall (a) subject to Section  17, remain in full force and effect until payment and performance in
full of the Secured Obligations, (b) be binding upon the Grantors, their successors and assigns, and (c) inure to the benefit of
the Secured Party and its successors, transferees and assigns; provided that, except for the assignment of the Membership
Interest equity in Mimio or Buyer to a Designated Assignee, the Grantors may not assign or otherwise transfer any of its
rights or obligations under this Agreement without the prior written consent of the Secured Party; provided, further, that
in no event shall such assignment to a Designated Assignee void or terminate the Secured Obligations or this Agreement or otherwise
adversely affect the Secured Obligations or Secured Party’s rights in the Collateral. Without limiting the generality of
the foregoing clause (c), any assignee of the Secured Party’s interest in any agreement or document which includes all or
any of the Secured Obligations shall, upon assignment, become vested with all the benefits granted to the Secured Party herein
with respect to such Secured Obligations.

 

17.       Termination;
Release. On the date on which all Secured Obligations have been paid and performed in full, the Secured Party will, at the
request and sole expense of the Grantors, (a) duly assign, transfer and deliver to or at the direction of the Grantors (without
recourse and without any representation or warranty) such of the Collateral as may then remain in the possession of the Secured
Party, together with any monies at the time held by the Secured Party hereunder, and (b) execute and deliver to the Grantors a
proper instrument or instruments acknowledging the satisfaction and termination of this Agreement and all other Loan Documents.

 

18.       GOVERNING
LAW. This Agreement and the Loan Documents and any claim, controversy, dispute or cause of action (whether in contract or tort
or otherwise) based upon, arising out of or relating to this Agreement or the Loan Documents (except, as to the Loan Documents,
as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance
with, the laws of the State of California.

 

19.       Counterparts.
This Agreement and any amendments, waivers, consents or supplements hereto may be executed in counterparts (and by different parties
hereto in different counterparts), each of which shall constitute an original, but all taken together shall constitute a single
contract. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in electronic (i.e., “pdf”
or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement
and the Loan Documents constitute the entire contract among the parties with respect to the subject matter hereof and supersede
all previous agreements and understandings, oral or written, with respect thereto.

  

[SIGNATURE PAGE FOLLOWS]

 

    	Security Agreement	 	 Page 11 of 11
	 	CONFIDENTIAL AND RESTRICTED	 

     

     

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the date first above written.

 

	 	MIMIO, LLC, as Grantor
	 	 	 
	 	By	          
	 	Name:	 
	 	Title:	 
	 	 	 
	 	MIM HOLDINGS, LLC, as Grantor
	 	 
	 	By	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	SKYVIEW CAPITAL, LLC, as Secured Party
	 	 	 
	 	By	 
	 	Name:	 
	 	Title:	 

 

    	Security Agreement	 	 Page 12 of 12
	 	CONFIDENTIAL AND RESTRICTEDExhibit
4.2

 

THE
ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS DEBENTURE HAVE NOT 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.

 

PERVASIP
CORP.

 

SENIOR SECURED, CONVERTIBLE,
REDEEMABLE DEBENTURE

 

Dated
as of: June 30, 2015Principal Amount:
$100,000.00

Effective
Date: November 18, 2015

Maturity
Date: November 18, 2016

 

This
SENIOR SECURED, CONVERTIBLE REDEEMABLE DEBENTURE (the
“Debenture”) is
issued, dated as of
June 30, 2015 and effective
as of November [●], 2015 (the “Effective Date”),
by PERVASIP CORP., a corporation incorporated under the laws of the State of New York
(the “Company”), to TCA GLOBAL CREDIT MASTER FUND, LP,
a limited partnership organized and existing under the laws of the Cayman Islands (together
with its permitted successors and assigns,
the “Holder”) pursuant to exemptions from registration under
the Securities Act of 1933, as amended. This Debenture is issued in connection with that certain Securities Purchase Agreement,
dated as of the date hereof, by and between the Company and the Holder (the “Purchase Agreement”).
All capitalized terms used in this Debenture and not otherwise defined herein shall have the meanings assigned to them in the Purchase
Agreement.

 

ARTICLE
I

 

Section
1.01Principal and Interest. For value
received, the Company hereby promises to
pay to the order of the Holder, by no later than November [●], 2016 (the “Maturity
Date”), in immediately available and lawful money
of the United States of America, One Hundred Thousand and No/100 United States
Dollars ($100,000.00), together with
interest on the outstanding principal amount under this Debenture, at
the rate of eighteen percent (18%)
per annum simple interest
(the “Interest Rate”)
from the Effective Date, until paid, as more specifically provided below.

 

Section
1.02 Optional Redemption Prior to Maturity. The
Company, at its option, shall have the right to redeem this
Debenture in full and for cash, at any time prior to the Maturity Date, with three
(3) business days advance written
notice (the “Redemption Notice”)
to the Holder. The amount required to redeem
this Debenture in full pursuant to this Section 1.02 shall be equal to: (i) the aggregate principal
amount then outstanding under
this Debenture; plus all accrued and
unpaid interest due under this Debenture
as of the redemption date; plus
(ii) all other costs, fees and charges due and
payable hereunder or under any other
“Transaction Documents” (as hereinafter defined) (collectively, the “Redemption
Amount”). The Company shall deliver
the Redemption Amount to the Holder on the third (3rd) business day after the date
of the Redemption Notice.

 

Section
1.03 Mandatory Redemption at Maturity. On the
Maturity Date, the Company shall redeem this Debenture for the Redemption Amount,
which Redemption Amount shall be due and payable to the Holder by no later than 2:00
P.M., EST, on the Maturity Date.

 

Section
1.04Payments.

 

(1)    
Monthly Payments.
The Company shall make monthly payments of principal and interest
to the Holder, while this Debenture is outstanding, until the Maturity
Date, based on the payment and amortization
schedule attached hereto as Schedule A.
In the event such day is not a Business Day, then said payment shall be
due on the first Business
Day thereafter occurring. 

 

(2)      
Interest Calculations;
Payment Application.
Interest shall be calculated on the basis of a
360-day year, and shall accrue
daily on the outstanding principal
amount outstanding from time to time for the actual number of days
elapsed, commencing on the Effective
Date until payment in full of the outstanding
principal, together with all accrued and
unpaid interest and other amounts which may become due
hereunder or under any Transaction Documents,
has been made. All payments received and actually
collected by Holder hereunder shall be applied
first to any costs and expenses
due or incurred hereunder or under any other Transaction Documents, second to accrued
and unpaid interest hereunder, and last to reduce
the outstanding principal balance of this Debenture.

 

(3)     
Late Fee. If all
or any portion of the
payments of principal, interest or
other charges due hereunder are not received
by the Holder within five (5) days of
the date such payment is due, then the
Company shall pay to the Holder a late charge (in addition to any other remedies that
Holder may have) equal to five percent (5%) of each
such unpaid payment or sum. Any payments
returned to Holder for any reason
must be covered by wire transfer of immediately
available funds to an account designated
by Holder, plus a $100.00 administrative fee charge.
Holder shall have no responsibility or liability
for payments purportedly made hereunder but
not actually received by Holder; and the
Company shall not be discharged from the obligation
to make such payments due to
loss of same in the mails or due to any other excuse or justification ultimately
involving facts where such payments were not
actually received by Holder.

 

Section
1.05. Manner of Payments. All sums payable
to the order of Holder hereunder shall be payable by ACH
transfer of lawful dollars of the
United States of America to the ACH
instructions set forth below, or at such
place as Holder, from time to time, may designate in writing. ACH Instructions for
all sums due and payable hereunder are as follows: 

 

	Bank Name: 	Bank of America
	Bank Address: 	100 W. 33rd Street, New York, NY 10001
	Beneficiary Account Name: 	TCA Fund Mgmt Group
	Beneficiary Account Number: 	898052439174
	ACH Transfer/Routing Number: 	063100277
	SWIFT: 	BOFAUS3N

 

ARTICLE
II

 

Section
2.01Secured Nature of Debenture. This
Debenture is being issued
in connection with the Purchase Agreement. The indebtedness evidenced by this
Debenture is secured by all of the
assets and property of the Company and various other instruments and documents
referred to in the Purchase Agreement as
the “Transaction Documents”.
All of the agreements, conditions, covenants,
provisions, representations, warranties
and stipulations contained in any of the Transaction
Documents which are to be kept and performed by
the Company are hereby made a part of this
Debenture to the same extent and with the same force and effect as if
they were fully set forth herein, and the Company
covenants and agrees to keep and perform them, or cause them to be kept or performed, strictly in accordance with
their terms.

 

ARTICLE
III

 

Section
3.01Events of Default. The occurrence
of any of the following
events shall constitute an “Event of Default”
hereunder: (i) the Company shall fail to pay any interest,
principal or other charges due under
this Debenture or any other
Transaction Documents on the date when any such payment
shall be due and payable; (ii) the Company makes an
assignment for the benefit of creditors; (iii) any order or decree is rendered
by a court which appoints or requires the appointment of a
receiver, liquidator or trustee for the
Company, and the order or decree is not vacated within thirty (30)
days from the date of entry thereof;
(iv) any order or decree is rendered by
a court adjudicating the
Company insolvent, and the order or decree is not vacated within thirty
(30) days from the date of entry thereof;
(v) the Company files a petition in bankruptcy under the provisions of any bankruptcy
law or any insolvency act; (vi) the Company admits, in writing, its inability to
pay its debts as they become due; (vii) a proceeding or
petition in bankruptcy is filed against
the Company and such proceeding
or petition is not dismissed within thirty
(30) days from the date it is filed; (viii) the Company files a petition
or answer seeking reorganization or arrangement under the bankruptcy laws
or any law or statute of
the United States or any other
foreign country or state; (ix) any
written warranty, representation, certificate or statement of the Company and/or Guarantors in this Debenture, the Purchase Agreement
or any other Transaction Document or any other agreement with Holder shall be false or misleading in any material respect when
made or deemed made; and (x) the
Company shall fail to perform, comply with or abide by any
of the stipulations, agreements, conditions and/or covenants contained in this
Debenture, the Purchase Agreement or any of the other Transaction
Documents on the part of the Company to be performed complied with or abided by, and
such failure continues or remains uncured for ten
(10) days following written notice from the Holder
to the Company.

 

Section
3.02Remedies. Upon the occurrence
of an Event of
Default that is not timely cured within
an applicable cure period hereunder,
the interest on this
Debenture shall immediately accrue at an interest rate equal
to the greater of twenty-two percent (22%) per annum or the maximum interest rate allowable by law, and,
in addition to all other rights or remedies the Holder
may have, at law or in equity,
the Holder may, in its sole discretion,
accelerate full repayment of all principal amounts outstanding hereunder,
together with accrued interest thereon, together
with all attorneys’ fees, paralegals’ fees and costs and expenses
incurred by the Holder in collecting or
enforcing payment hereof (whether such fees, costs or expenses are incurred
in negotiations, all trial and appellate levels, administrative
proceedings, bankruptcy proceedings or otherwise), and together with
all other sums due by the Company hereunder
and under the Transaction Documents, all
without any relief whatsoever from any valuation
or appraisement laws, and payment thereof may be enforced
and recovered in
whole or in part at any time by one
or more of the remedies provided
to the Holder at law, in equity, or
under this Debenture or any of the other Transaction Documents. In connection with the Holder’s rights hereunder upon
an Event of Default, the Holder
need not provide, and the Company hereby waives, any presentment, demand, protest
or other notice of any
kind, and the Holder may immediately enforce any and
all of its rights and remedies hereunder and all other remedies available to
it in equity or under applicable law.

 

ARTICLE IV

 

Section
4.01 Usury Savings Clause. Notwithstanding any
provision in this Debenture or the other Transaction Documents to the
contrary, the total liability for payments of interest and payments in the nature
of interest, including, without
limitation, all charges, fees, exactions, or other sums which may at any time
be deemed to be interest, shall not exceed the limit imposed by the usury
laws of the jurisdiction governing this Debenture or any other applicable
law. In the event the total liability of payments of interest and payments in the nature of interest, including, without
limitation, all charges, fees, exactions
or other sums which may at any time be deemed
to be interest, shall, for any reason whatsoever,
result in an
effective rate of interest, which for any month or other interest payment period
exceeds the limit imposed by the usury
laws of the jurisdiction governing this Debenture, all sums in excess of those
lawfully collectible as interest for the period in question shall, without
further agreement or notice by, between, or to any party hereto, be applied
to the reduction of the outstanding
principal balance due hereunder immediately
upon receipt of such sums by the Holder hereof, with the same
force and effect as though the Company had specifically designated such excess
sums to be so applied to the reduction of the principal balance
then outstanding, and
the Holder hereof had agreed to accept
such sums as a penalty-free payment of
principal; provided, however, that the Holder may, at any time and from time to time,
elect, by notice in writing to the Company,
to waive, reduce, or limit the collection
of any sums in excess of those lawfully collectible
as interest, rather than
accept such sums as a prepayment of the principal balance
then outstanding. It is the intention of
the parties that the Company does not intend
or expect to pay, nor does the Holder
intend or expect to charge or collect any
interest under this Debenture greater
than the highest non-usurious rate of interest
which may be charged under applicable law.

 

ARTICLE V

 

Section
5.01No Exemption. The Company hereby waives and
releases all benefit that might accrue to the Company by virtue of any present
or future laws exempting any property that may serve
as security for
this Debenture, or any other property,
real or personal, or any part of the proceeds
arising from any sale of
any such property, from attachment, levy,
or sale under execution, exemption from civil process, or
extension of time for payment; and
the Company agrees that any property that may
be levied upon pursuant to a judgment obtained by virtue hereof, on any
writ of execution issued thereon, may
be sold upon any such writ in whole or in part in any order or manner desired by Holder.

 

Section
5.02 Exercise of Remedies.
The remedies of the Holder as
provided herein and in any of the other Transaction Documents shall be
cumulative and concurrent and may
be pursued singly, successively or together, at the sole discretion of the Holder,
and may be exercised as often as occasion therefor
shall occur; and the failure to exercise any such right
or remedy shall in no event be construed as a waiver or release thereof.

 

Section
5.03 Waivers.
The Company and all others who are, or may become liable
for the payment hereof: (i) severally waive
presentment for payment, demand, notice of nonpayment or dishonor,
protest and notice of protest of
this Debenture or any other Transaction Documents,
and all other notices in connection
with the delivery, acceptance, performance, default, or enforcement
of the payment of this Debenture
and the other Transaction Documents, except as specifically
provided in this Debenture or any other Transaction Document;
(ii) expressly consent to all extensions of time, renewals or postponements of
time of payment of this Debenture and any other Transaction
Documents from time to time prior to or after the maturity of this
Debenture without notice, consent or further consideration to any
of the foregoing; (iii) expressly agree
that the Holder shall not be
required first to institute any suit, or to exhaust its remedies against the
Company or any other person or party
to become liable hereunder or against any collateral that may
secure this Debenture in order to enforce
the payment of this Debenture; and (iv) expressly agree that,
notwithstanding the occurrence of any of the foregoing (except
the express written release by the Holder
of any such person), the undersigned shall
be and remain, directly and primarily liable for
all sums due under this Debenture.

 

Section
5.04 No Waiver. Holder shall not be
deemed, by any act of omission or commission, to
have waived any of its rights or remedies hereunder unless such
waiver is in writing and
signed by Holder, and then only to
the extent specifically set forth in the
writing. A waiver on one event shall not
be construed as continuing or as a bar to or
waiver of any right or remedy to a subsequent
event.

 

ARTICLE
VI

 

Section
6.01 Notice. Any notices, consents,
waivers, or other communications required or permitted to be given under
the terms of this Debenture must be in
writing and in each case properly addressed to the party to receive the same in accordance
with the information below, and will be deemed to have been delivered: (i)
if mailed by certified mail, return receipt requested, postage prepaid and properly
addressed to the address below, then
three (3) business days after
deposit of same in a regularly
maintained U.S. Mail receptacle; or (ii) if
mailed by Federal Express, UPS
or other nationally recognized overnight courier service, next business morning
delivery, then one (1) business day after deposit of same in a
regularly maintained receptacle of such overnight courier; or (iii) if hand
delivered, then upon hand delivery thereof
to the address indicated on or
prior to 5:00 p.m ., EST,
on a business day. Any notice hand delivered after 5:00 p.m., EST,
shall be deemed delivered on the
following business day. Notwithstanding the foregoing, notice, consents, waivers or
other communications referred to in this
Debenture may be sent by facsimile, e-mail, or other method of delivery, but shall
be deemed to have been delivered only when
the sending party has
confirmed (by reply e-mail or some other form of
written confirmation from the receiving party) that the notice has been received
by the other party. The addresses and facsimile numbers for such communications
shall be as set forth below, unless such
address or information is changed
by a notice conforming to the requirements hereof.

 

	If to the Company:	Pervasip Corp.
	 	430 North Street
	White Plains, NY 10605	 
	Attention:  Paul H. Riss	 
	 	E-Mail: phriss@canalytix.com
	 	 
	With a copy to:	Kevin Kreisler, Esq. 
	(which shall not constitute notice)	5950 Shiloh Road East, Suite N 
	 	Alpharetta, GA 33305
	 	E-Mail: kkreisler@gmail.com
	 	 
	If to the Holder:	TCA Global Credit Master Fund, LP
	 	3960 Howard Hughes Parkway, Suite 500
	 	Las Vegas, NV 89196
	 	Attn: Mr. Robert Press
	 	E-Mail:  bpress@tcaglobalfund.com
	 	 
	With a copy to:	Lucosky Brookman LLP
	(which shall not constitute notice)	101 Wood Avenue South, 5th Floor 
	 	Woodbridge, NJ 08830
	 	Attn: Seth A. Brookman, Esq.
	 	E-Mail:  sbrookman@lucbro.com

 

Section
6.02 Governing Law and Venue.
The Company and Holder each
irrevocably agrees that any dispute arising under, relating to, or in connection with, directly
or indirectly, this Debenture or related
to any matter which is the subject of or incidental to this Debenture (whether
or not such claim is based upon breach of contract or tort) shall be subject to the
exclusive jurisdiction and venue of the state and/or federal courts located in Broward County, Florida. This provision is intended
to be a “mandatory” forum selection clause and governed by and interpreted
consistent with Florida law. The Company and
Holder each hereby consents to the exclusive jurisdiction
and venue of any state or
federal court having its situs in said county,
and each waives any objection based on forum non conveniens. The Company hereby
waives personal service of any and all process and
consent that all such service of process may be made by certified mail, return receipt requested, directed
to the Company, as set forth herein
in the manner provided by
applicable statute, law, rule of court
or otherwise. Except for the
foregoing mandatory forum selection clause, all terms
and provisions hereof and the rights and
obligations of the Company and
Holder hereunder shall be governed, construed and interpreted in accordance with the
laws of the State of Nevada, without reference to conflict of
laws principles.

 

Section 6.03 Severability.
In the event any one or more of the provisions of this Debenture shall for any reason be held to be invalid, illegal, or unenforceable,
in whole or in part, in any respect, or in the event that any one or more of the provisions of this Debenture operates or would
prospectively operate to invalidate this Debenture, then and in any of those events, only such provision or provisions shall be
deemed null and void and shall not affect any other provision of this Debenture. The remaining provisions of this Debenture shall
remain operative and in full force and effect and shall in no way be affected, prejudiced, or disturbed thereby.

 

Section 6.04 Entire
Agreement and Amendments. This Debenture, together with the other Transaction Documents represents the entire agreement between
the parties hereto with respect to the subject matter hereof and thereof, and there are no representations, warranties or commitments,
except as set forth herein and therein. This Debenture may be amended only by an instrument in writing executed by the parties
hereto.

 

Section 6.05 Binding
Effect. This Debenture shall be binding upon the Company and the successors and assigns of the Company and shall inure to the
benefit of the Holder and the successors and assigns of the Holder.

 

Section 6.06 Assignment.
The Holder may from time to time sell or assign, in whole or in part, or grant participations in, this Debenture and/or the obligations
evidenced hereby without the consent of the Company. The holder of any such sale, assignment or participation, if the applicable
agreement between Holder and such holder so provides, shall be: (i) entitled to all of the rights obligations and benefits of Holder
(to the extent of such holder’s interest or pa1ticipation); and (ii) deemed to hold and may exercise the rights of setoff
or banker’s lien with respect to any and all obligations of such holder to the Company (to the extent of such holder s interest
or participation), in each case as fully as though the Company was directly indebted to such holder. Holder may in its discretion
give notice to the Company of such sale, assignment or participation; however, the failure to give such notice shall not affect
any of Holder’s or such holder’s rights hereunder.

 

Section 6.07Lost
or Mutilated Debenture. If this Debenture shall be mutilated, lost, stolen or destroyed the Company shall execute and deliver,
in exchange and substitution for and upon cancellation of a mutilated Debenture or in lieu of or in substitution for a lost, stolen
or destroyed Debenture a new Debenture for the principal amount of this Debenture so mutilated, lost stolen or destroyed, but only
upon receipt of evidence of such loss, theft or destruction of such Debenture, and of the ownership hereof, reasonably satisfactory
to the Company.

 

Section
6.08 WAIVER OF JURY TRIAL. THE COMPANY
HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVES ALL RIGHT
TO A TRIAL BY JURY WITH RESPECT TO ANY
LITIGATION BASED ON THIS DEBENTURE, OR ARISING OUT
OF, UNDER OR IN CONNECTION WITH, THIS DEBENTURE OR ANY OTHER TRANSACTION DOCUMENTS,
OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN) OR ACTIONS
OF OR BETWEEN ANY PARTY HERETO, AND
THE COMPANY AGREES AND CONSENTS TO THE
GRANTING TO HOLDER OF RELIEF FROM ANY STAY ORDER
WHICH MIGHT BE ENTERED BY ANY COURT AGAINST HOLDER AND TO ASSIST HOLDER
IN OBTAINING SUCH RELIEF. THIS PROVISION IS A MATERIAL INDUCEMENT FOR HOLDER ACCEPTING THIS DEBENTURE FROM THE COMPANY. THE COMPANY’S
REASONABLE RELIANCE UPON SUCH INDUCEMENT I HEREBY ACKNOWLEDGED.

 

Section
6.09 NON-US STATUS. THE HOLDER IS A NON-US PERSON AS THAT TERM IS DEFINED
IN THE UNITED STATES INTERNAL REVENUE
CODE. IT IS HEREBY AGREED AND UNDERSTOOD THAT THE OBLIGATIONS
HEREUNDER MAY BE SOLD ONLY TO NON-U.S.
PERSON. THE INTEREST PAYABLE HEREUNDER IS PAYABLE ONLY OUTSIDE THE UNITED
STATES. ANY U.S. PERSON WHO HOLDS THIS OBLIGATION WILL
BE SUBJECT TO LIMITATIONS UNDER THE UNITED STATES
INCOME TAX LAW. BY ACCEPTING THIS OBLIGATION, THE HOLDER REPRESENTS AND WARRANT THAT IT IS NOT A UNITED
STATES PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED IN SEC 6049(8)(4)
OF THE INTERNAL REVENUE CODE AND REGULATIONS THEREUNDER) AND THAT IT IS NOT ACTING FOR OR ON BEHALF
OF A UNITED STATE PERSON (OTHER THAN AN EXEMPT RECIPIENT DESCRIBED
IN SEC. 6049(B)(4) OF THE INTERNAL REVENUE CODE AND THE REGULATIONS THEREUNDER).

 

ARTICLE
VII

 

Section
7.01 Conversion of Debenture. At any
time and from time to time while this Debenture
is outstanding on or after the Closing Date, at the sole option of the Holder upon the
occurrence of an Event of
Default, this Debenture
may be, convertible into
shares of the
Company’s common stock, $0.00001 par
value per
share (the “Common
Stock”) in accordance
with the terms and conditions set forth in
this Article VII.

 

(1)                  
Voluntary Conversion.
At any time while this Debenture
is outstanding on or after the Closing Date, at the sole option of the Holder upon
the occurrence of an
Event of Default, the
Holder may convert all
or any portion of the outstanding principal
accrued and unpaid interest and
any other sums due and payable hereunder
or under any of the
other Transaction Documents (such
total amount, the “Conversion Amount”)
into shares of Common Stock of the Company
(the “Conversion Shares”) at a price
equal to: (i) the
Conversion Amount (the numerator);
divided by
(ii) eighty-five percent (85%) of the lowest of the average daily
volume weighted average price of the
Company’s Common Stock
during the five
(5) trading days immediately prior to the
Conversion Date (as
defined
below), as indicated
in the conversion notice
(in the form attached hereto as
Exhibit “B” the “Conversion
Notice”) (the denominator)
(the “Conversion Price”).
The Holder shall
submit a Conversion
Notice indicating
the amount of the Debenture
being converted and the number of
Conversion Shares issuable upon such conversion, and where
the Conversion Shares should be
delivered.

 

(2)                 
The Holder’s Conversion
Limitations.
The Company shall not
affect any conversion of this Debenture, and
the Holder shall
not have the right to convert any portion
of this Debenture, to the extent that after giving
effect to the conversion set forth
on the Conversion Notice submitted by the Holder, the Holder (together
with the Holder’s affiliates (as
defined herein) and any Persons
acting as a group together with the Holder or any of the Holder’s affiliates)
would beneficially own
in excess of the Beneficial Ownership Limitation
(as defined herein). To ensure compliance with this restriction, prior to delivery
of any Conversion Notice, the Holder shall have the right to request that the
Company provide to the Holder a
written statement of the percentage ownership of the
Company’s Common Stock that would
by beneficially owned by the Holder
and its affiliates in the Company if the Holder
converted such portion of this Debenture then intended to be converted by Holder.
The Company shall, within two (2) business days of such request, provide Holder
with the requested information in
a written statement, and the Holder shall be entitled
to rely on such written statement from the Company in issuing its Conversion Notice
and ensuring that its ownership of the Company’s
Common Stock is not in excess of the Beneficial
Ownership Limitation. The restriction described in this Section may be waived
by Holder, in whole or in part, upon notice
from the Holder to the Company. For purposes of
this Debenture, the “Beneficial Ownership Limitation” shall be
4.99% of the number of shares of Common Stock outstanding immediately after giving effect
to the issuance of shares of
Common Stock issuable upon conversion of this Debenture. The limitations contained
in this Section shall apply to any successor holder of this Debenture. For purposes
of this Debenture, “Person” means an individual, a
limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization
or a government or any department or agency thereof.

 

(3)                  
Mechanics of Conversion.The conversion
of this Debenture shall be conducted in the following manner:

 

(a)              
Holder’s Delivery Requirements.
To convert this Debenture into shares of Common Stock on any date set forth in the
Conversion Notice by the Holder (the “Conversion Date”), the
Holder shall transmit by facsimile or electronic mail (or otherwise deliver) a copy
of the fully executed Conversion Notice to the
Company (or, under certain circumstances as set forth below, by delivery of
the Conversion Notice to the Company’s transfer agent).

 

(b)             
Company’s Response. Upon receipt
by the Company of a copy of a Conversion
Notice, the Company shall as soon as practicable, but in no event later than two (2) Business Days after receipt
of such Conversion Notice, send, via facsimile or electronic mail (or otherwise
deliver) a confirmation of receipt of such Conversion Notice
(the “Conversion Confirmation”)
to the Holder indicating
that the Company will process such Conversion
Notice in accordance with the terms herein. In the
event the Company fails to issue its Conversion Confirmation within said two (2)
Business Day time period, the Holder
shall have the absolute and irrevocable right and authority to deliver the fully
executed Conversion Notice to the Company’s transfer agent, and pursuant
to the terms of the Purchase Agreement,
the Company’s transfer agent shall issue the applicable
Conversion Shares to Holder as hereby provided.
Within five (5) Business Days after the date of the Conversion Confirmation (or
the date of the Conversion Notice, if the Company fails to issue the Conversion Confirmation), provided that the Company’s
transfer agent is participating in the Depository
Trust Company (“DTC”) Fast Automated Securities Transfer
(“FAST”) program, the
Company shall cause the transfer agent to (or, if
for any reason the Company fails to instruct or cause its transfer agent to
so act, then pursuant to the Purchase Agreement,
the Holder may request and require the Company’s transfer agent to) electronically
transmit the applicable Conversion Shares
to which the Holder shall be entitled
by crediting the account of
the Holder’s prime broker with DTC through its Deposit Withdrawal Agent Commission
(“DWAC”) system, and provide
proof satisfactory to the Holder
of such delivery. In the event that
the Company’s transfer agent is not participating
in the DTC FAST program and is not otherwise
DWAC eligible (or in the event the Holder otherwise requests),
within five (5) Business Days
after the date of the Conversion Confirmation (or the date
of the Conversion Notice, if
the Company fails to issue the Conversion
Confirmation), the Company shall instruct and cause its transfer agent to (or, if
for any reason the Company fails to instruct or cause its transfer agent
to so act, then pursuant to the Purchase
Agreement, the Holder may request and require the Company’s transfer agent to)
issue and surrender to a nationally recognized overnight
courier for delivery to the address specified in the Conversion Notice, a certificate,
registered in the name of the Holder or
its nominee, for the number of Conversion
Shares to which the Holder shall be entitled.
To effect conversions hereunder, the Holder shall not be required to physically surrender
this Debenture to the Company unless the entire
principal amount of this Debenture, plus all accrued and
unpaid interest thereon and other sums due hereunder, has been so converted.
Conversions hereunder shall have the effect of lowering the outstanding principal
amount of this Debenture in an amount equal to
the applicable Conversion Amount. The
Holder and the Company shall maintain records showing the principal amount(s) converted
and the date of such conversion(s). The Holder, and any
assignee by acceptance of this
Debenture, acknowledge and agree that, by reason of the provisions of this
paragraph, following conversion of a portion of
this Debenture, the unpaid and unconverted principal amount of this Debenture may be
less than the amount stated on the
face hereof.

 

(c)               
Record Holder.
The Person(s) entitled to receive
the shares of Common Stock issuable upon
a conversion of this Debenture shall be treated for all purposes
as the record holder(s) of such shares of Common Stock as
of the Conversion Date.

 

(d)                 
Failure to Deliver Certificates. If in the case of any Conversion Notice, the certificate
or certificates are not delivered to or as directed by the Holder by the date required hereby, the Holder shall be entitled to
elect by written notice to the Company at any time on or before its receipt of such certificate or certificates, to rescind such
Conversion Notice, in which event the Company shall promptly return to the Holder any original Debenture delivered to the Company
and the Holder shall promptly return to the Company the Common Stock certificates representing the principal amount of this Debenture
unsuccessfully tendered for conversion to the Company.

 

(e)               
Obligation Absolute; Partial
Liquidated Damages. The Company’s
obligations to issue and deliver the Conversion
Shares upon conversion of this Debenture in accordance
with the terms hereof are absolute
and unconditional, irrespective
of any action
or inaction by the Holder to enforce the
same, any waiver or consent with respect to any provision hereof, the recovery
of any judgment against any person or entity
or any action to
enforce the same, or any setoff, counterclaim, recoupment, limitation or termination,
or any breach or alleged breach by the Holder
or any other person or entity of any obligation to the
Company or any violation or alleged violation
of law by the Holder or any other
person or entity, and irrespective of any other circumstance which might otherwise limit such obligation of the Company
to the Holder in connection with the issuance of such Conversion Shares; provided,
however, that such delivery shall not
operate as a waiver by the Company
of any such action the Company may have against
the Holder . In
the event
the Holder of this Debenture shall elect to
convert any or all of the outstanding principal amount hereof and accrued but unpaid interest thereon in accordance with
the terms of this Debenture, the Company may not refuse conversion based on any claim that the Holder or anyone associated or affiliated
with the Holder has been engaged in any violation of law, agreement or for any other reason, unless an injunction from a court,
on notice to Holder, restraining and or enjoining conversion of all or part of this Debenture shall have been sought and obtained,
and the Company posts a surety bond for the benefit of the Holder in the amount of 150% of the outstanding principal amount of
this Debenture being converted, which is subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation
of the underlying dispute and the proceeds of which shall be payable to such Holder to the extent it obtains judgment. In the absence
of such injunction, the Company shall issue Conversion Shares upon a properly noticed conversion. If the Company fails for any
reason to deliver to the Holder such certificate or certificates representing Conversion Shares pursuant to timing and delivery
requirements of this Debenture, the Company shall pay to such Holder, in cash, as liquidated damages and not as a penalty, for
each $1,000 of principal amount being converted, $1.00 per day for each day after the date by which such certificates should have
been delivered until such certificates are delivered. Nothing herein shall limit a Holder’s right to pursue actual damages
or declare an Event of Default pursuant to this Debenture or any agreement securing the indebtedness under this Debenture for the
Company’s failure to deliver Conversion Shares within the period specified herein and such Holder shall have the right to
pursue all remedies available to it hereunder, at law or in equity, including, without limitation, a decree of specific performance
and/or injunctive relief. 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. Nothing herein shall prevent the Holder from having the Conversion Shares
issued directly by the Company’s transfer agent in accordance with the Purchase Agreement, in the event for any reason the
Company fails to issue or deliver, or cause its transfer agent to issue and deliver, the Conversion Shares to the Holder upon exercise
of Holder’s conversion rights hereunder.

 

(f)          
Transfer Taxes. The issuance
of certificates for shares of the
Common Stock on conversion of this Debenture shall be
made without charge to the Holder hereof for any documentary stamp
or similar taxes, or any other
issuance or transfer fees of any nature
or kind that may be payable in respect
of the issue or delivery of such certificates, any such taxes or fees, if payable,
to be paid by the Company.

 

(4)                
Reservation of Common Stock. Beginning
on the ninetieth (90th) day following the First Closing Date, the he Company shall take all action necessary to at all
times have authorized, and reserved for the purpose of issuance, three (3) times such number of shares of Common Stock as shall
be necessary to effect the full conversion of the Debenture in accordance with its terms (the “Share Reserve”). 
If upon receipt of a conversion notice from the Holder, the Share Reserve is insufficient to effect the full conversion of the
Debenture then outstanding, the Company shall increase the Share Reserve accordingly.  If the Company does not have sufficient
authorized and unissued shares of Common Stock available to increase the Share Reserve, the Company shall cause its authorized
and unissued shares to be increased within forty-five (45) days to an amount of shares equal to three (3) times the Conversion
Shares. The Company’s management shall recommend to the shareholders to vote in favor of increasing the number of shares
of Common Stock authorized.

 

(5)                
Make-Whole Rights.
Upon liquidation by the Holder
of Conversion Shares issued pursuant
to a Conversion Notice, provided that the Holder realizes a net amount from
such liquidation equal to less than
the Conversion Amount specified in the relevant Conversion
Notice (such net realized amount, the “Realized
Amount”), the Company shall issue to the
Holder additional shares of the
Company’s Common Stock equal to:
(i) the Conversion
Amount specified in the relevant Conversion
Notice; minus (ii) the Realized Amount, as evidenced
by a reconciliation statement from the
Holder (a “Sale Reconciliation”) showing
the Realized Amount from the sale of
the Conversion Shares; divided by (iii) the
average volume weighted average price
of the Company’s
Common Stock during the five (5)
Business Days immediately prior to
the date upon which the Holder delivers
notice (the “Make-Whole Notice”) to the Company that such additional
shares are requested by the Holder (the “Make-Whole Stock Price”)
(such number of additional shares to be
issued, the “Make-Whole Shares”). Upon receiving
the Make-Whole Notice and Sale Reconciliation evidencing
the number of Make-Whole Shares requested,
the Company shall instruct its transfer agent to issue certificates representing the Make-Whole Shares, which
Make-Whole Shares shall be
issued and delivered in the same
manner and within the
same time frames as set forth herein. The Make-Whole
Shares, when issued, shall be deemed to be validly issued,
fully paid, and non-assessable shares of the Company’s Common Stock. Following
the sale of the Make-Whole Shares by
the Holder: (i) in the event that the Holder receives
net proceeds from such sale which, when added to
the Realized Amount from the prior relevant
Conversion Notice, is less than the Conversion Amount specified in the relevant Conversion
Notice, the Holder shall deliver an additional Make-Whole
Notice to the Company following the procedures
provided previously in this paragraph, and such procedures and
the delivery of Make-Whole Notices and issuance of Make-Whole Shares shall continue
until the Conversion Amount has been fully satisfied;
and (ii) in the event that
the Holder received net proceeds
from the sale of Make-Whole Shares
in excess of the Conversion Amount specified in the relevant Conversion Notice,
such excess amount shall be applied to satisfy
any and all amounts owed hereunder in excess
of the Conversion Amount specified in
the relevant Conversion Notice. Holder agrees to sell a maximum of twenty-five
percent (25%) of the average daily trading volume of the Company’s Common Stock and reports sales to the company on a weekly
basis upon request of the Company.

 

(6)                
Adjustments to Conversion Price.

 

(a)               
Stock Dividends and Stock
Splits. If the Company, at any time while this
Debenture is outstanding: (i) pays a
stock dividend or otherwise makes a distribution or distributions payable in shares
of Common Stock on outstanding shares of
Common Stock, (ii) subdivides outstanding
shares of Common Stock into a larger number of shares, (iii)
combines (including by way of a reverse stock split) outstanding
shares of Common Stock into
a smaller number of shares, or (iv)
issues, in the event of a reclassification of shares of Common Stock, any shares of
capital stock of the Company, then the
Conversion Price shall be multiplied by a fraction, the numerator of which shall
be the number of shares of Common Stock (excluding
any treasury shares of the Company) outstanding immediately before such event, and
the denominator of which shall be the number of shares of Common Stock
outstanding immediately after such event. Any
adjustment made pursuant to this Section shall become effective immediately after
the record date for the determination of stockholders entitled to
receive such dividend or distribution and shall
become effective immediately after the
effective date in the case of a subdivision, combination, or re-classification.

 

(b)              
Fundamental Transaction.
If, at any time while this Debenture is
outstanding: (i) the Company effects any merger or consolidation of the Company with
or into another Person that is not a subsidiary of the Company, (ii) the
Company effects any sale of all or substantially all of
its assets in one transaction or
a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company
or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange
their shares for other securities, cash
or property, or (iv) the Company effects
any reclassification of the Common Stock or any compulsory share exchange pursuant to which
the Common Stock is effectively converted into
or exchanged for other securities, cash or property
(in any such case, a “Fundamental Transaction”), then
upon any subsequent conversion of this Debenture,
the Holder shall have the right to receive, for each Conversion Share that would
have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction, the
same kind and amount of securities, cash or property as it
would have been entitled to receive upon the
occurrence of such Fundamental Transaction if
it had been, immediately prior to such Fundamental Transaction, the holder
of one (1) share of Common Stock (the “Alternate Consideration”).
For purposes of any such conversion,
the determination of the Conversion Price shall be appropriately adjusted to apply
to such Alternate Consideration based
on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock
in such Fundamental Transaction, and the Company shall apportion the Conversion
Price among the Alternate Consideration
in a reasonable manner reflecting the relative value
of any different components of the Alternate Consideration.
If holders of Common Stock are given
any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be
given the same choice as to the Alternate
Consideration it receives upon any conversion of this Debenture following such Fundamental Transaction. To the extent necessary
to effectuate the foregoing provisions, any successor to
the Company or surviving entity
in such Fundamental Transaction
shall issue to the Holder a new note
consistent with the foregoing provisions and evidencing the
Holder’s right to convert such note into Alternate Consideration.
The terms of any agreement pursuant to
which a Fundamental Transaction is effected shall include terms requiring
any such successor or surviving entity to comply with the provisions of this
Section and insuring that this Debenture (or any such
replacement security) will be similarly adjusted upon any
subsequent transaction analogous to a Fundamental Transaction.

 

(c)               
Adjustment to Conversion Price.
Whenever the Conversion Price is adjusted pursuant
to any provision of this Debenture, the Company shall promptly deliver to Holder a notice
setting forth the Conversion Price after
such adjustment and setting forth a brief statement
of the facts requiring such adjustment.

 

(d)              
Notice to Allow Conversion by Holder.
If (A) the Company shall declare a
dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Company shall declare
a special nonrecurring cash dividend on
or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock of rights or
warrants to subscribe for
or purchase any shares of capital stock of
any class or of any rights, (D) the approval
of any stockholders of the Company shall be required
in connection with any reclassification of the Common Stock, any consolidation
or merger to which the Company is a party, any sale or transfer of
all or substantially all of the assets of the Company,
of any compulsory share exchange
whereby the Common Stock is converted into
other securities, cash or property, or (E) the Company shall
authorize the voluntary or involuntary dissolution, liquidation or winding up
of the affairs of the Company, then, in each case, the
Company shall cause to be filed at each office or agency maintained
for the purpose of conversion of this Debenture, and shall cause to be delivered
to the Holder at its last address as it
shall appear upon the Company’s records, at least twenty (20) calendar
days prior to the applicable record or effective
date hereinafter specified, a notice stating: (x) the date on which a record
is to be taken for the purpose of such dividend, distribution, redemption,
rights or warrants, or if a record
is not to be taken, the date as of
which the holders of the Common Stock of
record to be entitled to such dividend,
distributions, redemption, rights or warrants are to
be determined, or
(y) the date on which such reclassification,
consolidation, merger, sale, transfer or share
exchange is expected to become
effective or close, and the date
as of which it is expected that holders
of the Common Stock of record shall be entitled to exchange their
shares of the Common Stock for securities, cash
or other property deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected
that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash
or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided that
the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate
action required to be specified in such notice. The Holder is entitled to convert this Debenture during the 10-day period commencing
on the date of such notice through the effective date of the event triggering such notice.

[signature
page follows]

     

     

    

 

 

IN
WITNESS WHEREOF with the
intent to be legally bound hereby, the
Company as executed this Senior Secured,
Convertible, Redeemable Debenture as of the date
first written above.

 

PERVASIP CORP.

 

 

 

By: ______/s/ Paul H. Riss

Name: Paul H. Riss

Title: Chief Executive Officer

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