Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”), dated as of February 4, 2022, by and among DALRADA FINANCIAL CORPORATION,
a Wyoming corporation (the “Company”), and YA II PN, Ltd., a Cayman Islands exempt limited partnership
(the “Investor”).

 

WHEREAS:

 

A.       In
connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the “Securities
Purchase Agreement”), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to the Investor up to $3,000,000 of convertible debentures (the “Convertible
Debentures”), which shall be convertible into shares of the Company’s common stock, par value $0.005 (the
“Common Stock”) (as converted, the “Conversion Shares”) and warrants (the
“Warrants”) to purchase up to 983,499 shares of Common Stock (as exercised, the “Warrant
Shares”). Capitalized terms not defined herein shall have the meaning ascribed to them in the Securities Purchase
Agreement.

 

B.       To
induce the Investors to execute and deliver the Securities Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the “Securities Act”), and applicable state securities laws and other rights as provided for herein.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Investors hereby agree as follows:

 

1.                 
DEFINITIONS.

 

As used in this Agreement,
the following terms shall have the following meanings:

 

(a)              
“Effectiveness Deadline” means, with respect to a Registration Statement filed hereunder, the 75th calendar
day following the filing date thereof or upon completion and acceptance of any SEC review, provided, however, in the event the Company
is notified by the U.S. Securities and Exchange Commission (“SEC”) that one of the Registration Statements, as defined
below, will not be reviewed or is no longer subject to further review and comments, the Effectiveness Deadline as to such Registration
Statement shall be the fifth calendar day following the date on which the Company is so notified if such date precedes the date required
above.

 

(b)              
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

 

(c)              
“Filing Deadline” means, with respect to a Registration Statement required hereunder, the 30th calendar day
following the date hereof.

 

(d)              
“Person” means a corporation, a limited liability company, an association, a partnership, an organization, a
business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

(e)              
“Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus
that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon
Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of
the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements
to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference
in such Prospectus.

 

 

 

 

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(f)               
“Registrable Securities” means all of (i) the shares of Common Stock issuable upon conversion of the Convertible
Debentures, (ii) the shares of Common Stock issuable upon exercise of the Warrants, (iii) the additional shares issuable in connection
with any anti-dilution provisions of the Convertible Debentures or the Warrants (without giving effect to any limitations on exercise
set forth in the Convertible Debentures or the Warrants, as applicable) and (iv) any shares of Common Stock issued or issuable with respect
to any shares described in subsections (i) and (ii) above by way of any stock split, stock dividend or other distribution, recapitalization
or similar event or otherwise (in each case without giving effect to any limitations on exercise set forth in the Convertible Debentures
or the Warrants, as applicable).

 

(g)              
“Registration Statement” means any registration statement of the Company, including the Prospectus, amendments
and supplements to such registration statement or Prospectus, including post-effective amendments, all exhibits thereto, and all material
incorporated by reference or deemed to be incorporated by reference in such registration statement.

 

(h)              
“Required Registration Amount” means (i) with respect to the initial Registration Statement at least 14,000,000
shares of Common Stock issued or to be issued upon conversion of the Convertible Debentures and [_________] shares of Common Stock issued
or to be issued upon exercise of the Warrants, and (ii) with respect to subsequent Registration Statements such number of shares of Common
Stock as requested by the Investor not to exceed 300% of the maximum number of shares of Common Stock issuable upon conversion of all
Convertible Debentures then outstanding (assuming for purposes hereof that (x) such Convertible Debentures are convertible at the Conversion
Price (as defined therein) in effect as of the date of determination, and (y) any such conversion shall not take into account any limitations
on the conversion of the Convertible Debentures set forth therein), in each case subject to any cutback set forth in Section 2(d).

 

(i)                
 “Rule 144” means Rule 144 under the Securities Act or any successor rule thereto.

 

(j)                
“Rule 415” means Rule 415 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended
from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same purpose and effect as
such Rule.

 

(k)              
“SEC” means the Securities and Exchange Commission or any other federal agency administering the Securities
Act and the Exchange Act at the time.

 

(l)                
“Securities Act” shall have the meaning set forth in the Recitals above.

 

2.                 
REGISTRATION.

 

(a)              
The Company’s registration obligations set forth in this Section 2 including its obligations to file Registration Statements,
obtain effectiveness of Registration Statements, and maintain the continuous effectiveness of any Registration Statement that has been
declared effective shall begin on the date hereof and continue until all the Registrable Securities have been sold (the “Registration
Period”).

 

(b)              
Subject to the terms and conditions of this Agreement, the Company shall

 

(i)               
on or prior to the Filing Deadline, prepare and file with the SEC an initial Registration Statement on Form S-1 or Form S-3 covering
the resale by the Investor of Registrable Securities; and

 

(ii)             
on or prior to the 30th calendar day following receipt of each written notice by the Investor (a “Demand Notice”)
delivered pursuant to the terms hereof, prepare and file an additional Registration Statement covering the resale by the Investor of Registrable
Securities.

 

Each Registration Statement
prepared and filed pursuant hereto shall, subject to Section 2(d) below, register for resale at least the number of Registrable Securities
equal to the Required Registration Amount as of date such Registration Statement is initially filed with the SEC. Each Registration Statement
shall contain a “Selling Shareholders” and “Plan of Distribution” section.

 

 

 

 

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The Company shall use its
best efforts to have each Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the
applicable Effectiveness Deadline. By 9:30 am on the business day following the date of effectiveness, the Company shall file with the
SEC in accordance with Rule 424 under the 1933 Act the final Prospectus to be used in connection with sales pursuant to such Registration
Statement. Prior to the filing of the Registration Statement with the SEC, the Company shall furnish a draft of the Registration Statement
to the Investor for their review and comment. The Investor shall furnish comments (if any) on the Registration Statement to the Company
within twenty-four (24) hours of the receipt thereof from the Company.

 

For the purposes hereof, the
Investor shall be entitled to deliver a Demand Notice to the Company at any time during the Registration Period if at such time (i) no
Registration Statement is then in effect which the Investor may use to resell Registrable Securities, or (ii) a Registration Statement
is effective, but the Holder has resold substantially all of the shares of Common Stock registered on such Registration Statement. In
addition, the Investor may deliver a Demand Notice to the Company at any time during the Registration Period during which (i) the Company
does not have a class of securities listed, or approved for listing, on a national securities exchange registered pursuant to Section
6 of the Exchange Act, or (ii) Rule 144, as amended, would not allow the “tacking” of the holding period of the Convertible
Debenture onto the holding period of the Conversion Shares issuable upon conversion thereof.

 

(c)              
During the Registration Period, the Company shall (i) promptly prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to a Registration Statement and the Prospectus used in connection with a Registration Statement, which Prospectus
is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be necessary to keep such Registration Statement effective
at all times during the Registration Period, (ii) prepare and file with the SEC additional Registration Statements in order to register
for resale under the Securities Act all of the Registrable Securities; (iii) cause the related Prospectus to be amended or supplemented
by any required Prospectus supplement (subject to the terms of this Agreement), and as so supplemented or amended to be filed pursuant
to Rule 424; (iv) respond as promptly as reasonably possible to any comments received from the SEC with respect to a Registration Statement
or any amendment thereto and as promptly as reasonably possible provide the Investors true and complete copies of all correspondence from
and to the SEC relating to a Registration Statement (provided that the Company may excise any information contained therein which would
constitute material non-public information as to any Investor which has not executed a confidentiality agreement with the Company); and
(v) comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company covered
by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the
intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement. In the case of amendments
and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section
2(c)) by reason of the Company’s filing a report on Form 10-K, Form 10-Q, or Form 8-K or any analogous report under the Securities
Exchange Act, the Company shall incorporate such report by reference into the Registration Statement, if applicable, or shall file such
amendments or supplements with the SEC on the same day on which the Exchange Act report is filed which created the requirement for the
Company to amend or supplement the Registration Statement.

 

(d)              
Reduction of Registrable Securities Included in a Registration Statement. Notwithstanding anything contained herein, in
the event that the SEC requires the Company to reduce the number of Registrable Securities to be included in a Registration Statement
in order to allow the Company to rely on Rule 415 with respect to a Registration Statement, then the Company shall be obligated to include
in such Registration Statement (which may be a subsequent Registration Statement if the Company needs to withdraw a Registration Statement
and refile a new Registration Statement in order to rely on Rule 415) only such limited portion of the Registrable Securities as the SEC
shall permit. Any Registrable Securities that are excluded in accordance with the foregoing terms are hereinafter referred to as “Cut
Back Securities.” To the extent Cut Back Securities exist, as soon as may be permitted by the SEC, the Company shall be required
to file a Registration Statement covering the resale of the Cut Back Securities (subject also to the terms of this Section) and shall
use best efforts to cause such Registration Statement to be declared effective as promptly as practicable thereafter.

 

(e)              
Failure to File or Obtain Effectiveness of the Registration Statement or Remain Current. If: (i) a Registration Statement
is not filed on or prior to its Filing Date, or (ii) a Registration Statement is not declared effective on or prior to Effectiveness Deadline
or the Company fails to file with the SEC a request for acceleration in accordance with Rule 461 promulgated under the Securities Act,
within five (5) Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the SEC that a Registration
Statement will not be “reviewed,” or not subject to further review, or (iii) after the effectiveness, a Registration Statement
ceases for any reason to remain continuously effective as to all Registrable Securities, except for Cut Back Securities, for which it
is required to be effective, or the Investors are otherwise not permitted to utilize the Prospectus therein to resell such Registrable
Securities for more than 30 consecutive calendar days or more than an aggregate of 40 calendar days during any 12-month period (which
need not be consecutive calendar days), or (iv) if after the six month anniversary of the date hereof, the Company does not have available
adequate current public information as set forth in Rule 144(c) (any such failure or breach being referred to as an “Event”),
then in addition to any other rights the holders of the Convertible Debentures may have hereunder or under applicable law, the Company
shall be in breach of the term and conditions of this Agreement and such Event shall be deemed an event of default under the Convertible
Debentures.

 

 

 

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(f)               
Piggy-Back Registrations. If at any time there is not an effective Registration Statement covering all of the Registrable
Securities and the Company proposes to register the offer and sale of any shares of its Common Stock under the Securities Act (other than
a registration (i) pursuant to a Registration Statement on Form S-8 ((or other registration solely relating to an offering or sale to
employees or directors of the Company pursuant to any employee stock plan or other employee benefit arrangement), (ii) pursuant to a Registration
Statement on Form S-4 (or similar form that relates to a transaction subject to Rule 145 under the Securities Act or any successor rule
thereto), or (iii) in connection with any dividend or distribution reinvestment or similar plan), whether for its own account or for the
account of one or more stockholders of the Company and the form of Registration Statement to be used may be used for any registration
of Registrable Securities, the Company shall give prompt written notice (in any event no later than five days prior to the filing of such
Registration Statement) to the holders of Registrable Securities of its intention to effect such a registration and, shall include in
such registration all Registrable Securities with respect to which the Company has received written requests for inclusion from the holders
of Registrable Securities; provided, however, that, the Company shall not be required to register any Registrable Securities
pursuant to this Section 10(c) that have been sold or may permanently be sold without any restrictions pursuant to Rule 144, as determined
by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer
agent and the affected Holders.

 

3.                 
RELATED OBLIGATIONS.

 

(a)              
The Company shall, not less than three (3) Trading Days prior to the filing of each Registration Statement and not less than one
(1) Trading Day prior to the filing of any related amendments and supplements to all Registration Statements (except for annual reports
on Form 10-K), furnish to each Investor copies of all such documents proposed to be filed, which documents (other than those incorporated
or deemed to be incorporated by reference) will be subject to the reasonable and prompt review of such Investors, The Company shall not
file a Registration Statement or any such Prospectus or any amendments or supplements thereto to which the Investors shall reasonably
object in good faith; provided that, the Company is notified of such objection in writing no later than two (2) Trading Days after
the Investors have been so furnished copies of a Registration Statement.

 

(b)              
The Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without charge,
(i) at least one (1) copy of such Registration Statement as declared effective by the SEC and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference, all exhibits and each preliminary prospectus, (ii) ten (10)
copies of the final prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number
of copies as such Investor may reasonably request) and (iii) such other documents, which are not publicly available through EDGAR, as
such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by such
Investor.

 

(c)              
The Company shall use its best efforts to (i) register and qualify the Registrable Securities covered by a Registration Statement
under such other securities or “blue sky” laws of such jurisdictions in the United States as any Investor reasonably requests,
(ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations
and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions
as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv)
take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided,
however, that the Company shall not be required in connection therewith or as a condition thereto to (w) make any change to its articles
of incorporation or by-laws, (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for
this Section 3(c), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process
in any such jurisdiction. The Company shall promptly notify each Investor who holds Registrable Securities of the receipt by the Company
of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale
under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose.

 

(d)              
As promptly as practicable after becoming aware of such event or development, the Company shall notify each Investor in writing
of the happening of any event as a result of which the Prospectus included in a Registration Statement, as then in effect, includes an
untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain
any material, nonpublic information), and promptly prepare a supplement or amendment to such Registration Statement to correct such untrue
statement or omission, and deliver ten (10) copies of such supplement or amendment to each Investor. The Company shall also promptly notify
each Investor in writing (i) when a Prospectus or any Prospectus supplement or post-effective amendment has been filed, and when a Registration
Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to each Investor
by facsimile on the same day of such effectiveness), (ii) of any request by the SEC for amendments or supplements to a Registration Statement
or related prospectus or related information, and (iii) of the Company’s reasonable determination that a post-effective amendment
to a Registration Statement would be appropriate.

 

 

 

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(e)              
The Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration
Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction within the United
States of America and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest
possible moment and to notify each Investor who holds Registrable Securities being sold of the issuance of such order and the resolution
thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

(f)               
If, after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could reasonably
be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall furnish to such Investor,
on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as an Investor may reasonably
request (i) a letter, dated such date, from the Company’s independent certified public accountants in form and substance as is customarily
given by independent certified public accountants to underwriters in an underwritten public offering, and (ii) an opinion, dated as of
such date, of counsel representing the Company for purposes of such Registration Statement, in form, scope and substance as is customarily
given in an underwritten public offering, addressed to the Investors. Upon the request of the documents discussed above pursuant to this
Section 3(f), the Investor shall provide documents to the Company typically provided by an underwriter of its securities in form, scope
and substance as is customarily given in an underwritten public offering, including an opinion of counsel representing the Investor for
purposes of such Registration Statement, addressed to the Company.

 

(g)              
If, after the execution of this Agreement, an Investor believes, after consultation with its legal counsel, that it could reasonably
be deemed to be an underwriter of Registrable Securities, at the request of any Investor, the Company shall make available for inspection
by (i) any Investor and (ii) one (1) firm of accountants or other agents retained by the Investors (collectively, the “Inspectors”)
all pertinent financial and other records, and pertinent corporate documents and properties of the Company (collectively, the “Records”),
as shall be reasonably deemed necessary by each Inspector, and cause the Company’s officers, directors and employees to supply all
information which any Inspector may reasonably request; provided, however, that each Inspector shall agree, and each Investor hereby agrees,
to hold in strict confidence and shall not make any disclosure (except to an Investor) or use any Record or other information which the
Company determines in good faith to be confidential, and of which determination the Inspectors are so notified, unless (a) the disclosure
of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under
the Securities Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government
body of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than by disclosure
in violation of this or any other agreement of which the Inspector and the Investor has knowledge. Each Investor agrees that it shall,
upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other
means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order for, the Records deemed confidential.

 

(h)              
The Company shall hold in confidence and not make any disclosure of information concerning the Investor provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is ordered
pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such
information has been made generally available to the public other than by disclosure in violation of this Agreement or any other agreement.
The Company agrees that it shall, upon learning that disclosure of such information concerning an Investor is sought in or by a court
or governmental body of competent jurisdiction or through other means, give prompt written notice to such Investor and allow such Investor,
at the Investor’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information.

 

(i)                
The Company shall use its best efforts to cause all the Registrable Securities to be listed on each securities exchange on which
the Common Stock is then listed. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section
3(i).

 

(j)                
The Company shall cooperate with the holders of the Registrable Securities to facilitate the timely preparation and delivery of
certificates representing the Registrable Securities to be sold pursuant to such Registration Statement or Rule 144 free of any restrictive
legends and representing such number of shares of Common Stock and registered in such names as the holders of the Registrable Securities
may reasonably request a reasonable period of time prior to sales of Registrable Securities pursuant to such Registration Statement or
Rule; provided, that the Company may satisfy its obligations hereunder without issuing physical stock certificates through the
use of The Depository Trust Company's Direct Registration System.

 

(k)              
The Company shall use its best efforts to cause the Registrable Securities to be registered with or approved by such other governmental
agencies or authorities as may be necessary to consummate the disposition of such Registrable Securities.

 

(l)                
The Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection with
any registration hereunder.

 

(m)            
Within two (2) business days after a Registration Statement which covers Registrable Securities is declared effective by the SEC,
the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investor whose Registrable Securities are included in such Registration Statement) confirmation that such Registration
Statement has been declared effective by the SEC in the form attached hereto as Exhibit C.

 

(n)              
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by each Investor of Registrable
Securities pursuant to a Registration Statement.

 

 

 

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4.                 
OBLIGATIONS OF THE INVESTORS.

 

(a)              
The Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(d) such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement covering
such Registrable Securities until the Investor’s receipt of the copies of the supplemented or amended prospectus contemplated by
Section 3(d) or receipt of notice that no supplement or amendment is required. Notwithstanding anything to the contrary, the Company shall
cause its transfer agent to deliver unlegended certificates for shares of Common Stock to a transferee of an Investor in accordance with
the terms of the Securities Purchase Agreement in connection with any sale of Registrable Securities with respect to which an Investor
has entered into a contract for sale prior to the Investor’s receipt of a notice from the Company of the happening of any event
of the kind described in Section 3(d) and for which the Investor has not yet settled.

 

(b)              
The Investor covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

5.                 
EXPENSES OF REGISTRATION.

 

All expenses incurred by the
Company in complying with its obligations pursuant to this Agreement and in connection with the registration and disposition of Registrable
Securities shall be paid by the Company, including, without limitation, all registration, listing and qualifications fees, printers, fees
and expenses of the Company's counsel and accountants (except legal fees of Investor’s counsel associated with the review of the
Registration Statement).

 

6.                 
INDEMNIFICATION.

 

With respect to Registrable
Securities which are included in a Registration Statement under this Agreement:

 

(a)              
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, the
directors, officers, partners, employees, agents, representatives of, and each Person, if any, who controls any Investor within the meaning
of the Securities Act or the Exchange Act (each, an “Indemnified Person”), against any losses, claims, damages, liabilities,
judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement or expenses, joint or several
(collectively, “Claims”) incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding,
investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body
or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”),
to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect
thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement
or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities
or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”),
or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein
not misleading; (ii) any untrue statement or alleged untrue statement of a material fact contained in any final prospectus (as amended
or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to
state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements
therein were made, not misleading; or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act,
any other law, including, without limitation, any state securities law, or any rule or regulation there under relating to the offer or
sale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through (iii) being,
collectively, “Violations”). The Company shall reimburse the Investors and each such controlling person promptly as
such expenses are incurred and are due and payable, for any legal fees or disbursements or other reasonable expenses incurred by them
in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(a): (x) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation
which occurs in reliance upon and in conformity with information furnished in writing to the Company by such Indemnified Person expressly
for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto; (y) shall
not be available to the extent such Claim is based on a failure of the Investor to deliver or to cause to be delivered the prospectus
made available by the Company, if such prospectus was timely made available by the Company pursuant to Section 3(c); and (z) shall
not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company,
which consent shall not be unreasonably withheld. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person.

 

 

 

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(b)              
In connection with a Registration Statement, the Investor agrees to severally and not jointly indemnify, hold harmless and defend,
to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers, employees,
representatives, or agents and each Person, if any, who controls the Company within the meaning of the Securities Act or the Exchange
Act (each an “Indemnified Party”), against any Claim or Indemnified Damages to which any of them may become subject,
under the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or is based upon any
Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written
information furnished to the Company by such Investor expressly for use in connection with such Registration Statement; and, subject to
Section 6(d), such Investor will reimburse any legal or other expenses reasonably incurred by them in connection with investigating or
defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect
to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of such Investor, which consent shall not be unreasonably withheld; provided, further, however, that the Investor
shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to
such Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of such Indemnified Party. Notwithstanding anything to the
contrary contained herein, the indemnification agreement contained in this Section 6(b) with respect to any prospectus shall not inure
to the benefit of any Indemnified Party if the untrue statement or omission of material fact contained in the prospectus was corrected
and such new prospectus was delivered to each Investor prior to such Investor’s use of the prospectus to which the Claim relates.

 

(c)              
Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party
shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the
indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with
counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided,
however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses of
not more than one (1) counsel for such Indemnified Person or Indemnified Party to be paid by the indemnifying party, if, in the reasonable
opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party
and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified
Party and any other party represented by such counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate
fully with the indemnifying party in connection with any negotiation or defense of any such action or claim by the indemnifying party
and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which
relates to such action or claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times
as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement
of any action, claim or proceeding effected without its prior written consent; provided, however, that the indemnifying party shall not
unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified
Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include
as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release
from all liability in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying party
shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations
relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within
a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified
Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend
such action.

 

(d)              
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)              
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to
pursuant to the law.

 

 

 

 

    	 	7	 

     

    

 

7.                 
CONTRIBUTION.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation; and
(ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller
from the sale of such Registrable Securities.

 

8.                 
REPORTS UNDER THE EXCHANGE ACT.

 

With a view to making available
to the Investors the benefits of Rule 144 promulgated under the Securities Act or any similar rule or regulation of the SEC that may at
any time permit the Investors to sell securities of the Company to the public without registration, and as a material inducement to the
Investor’s purchase of the Convertible Debentures, the Company represents, warrants, and covenants to the following:

 

(a)              
The Company is subject to the reporting requirements of section 13 or 15(d) of the Exchange Act and has filed all required reports
under section 13 or 15(d) of the Exchange Act during the 12 months prior to the date hereof (or for such shorter period that the issuer
was required to file such reports), other than Form 8-K reports.

 

(b)              
During the Registration Period, the Company shall file with the SEC in a timely manner all required reports under section 13 or
15(d) of the Exchange Act (it being understood that nothing herein shall limit the Company’s obligations under the Securities Purchase
Agreement) and such reports shall conform to the requirement of the Exchange Act and the SEC for filing thereunder.

 

(c)              
The Company shall furnish to the Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written
statement by the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent annual or quarterly
report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably
requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

9.                 
AMENDMENT OF REGISTRATION RIGHTS.

 

Provisions of this Agreement
may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively),
only with the written consent of the Company and Investors who then hold at least two-thirds (2/3) of the Registrable Securities. Any
amendment or waiver effected in accordance with this Section 9 shall be binding upon each Investor and the Company. No such amendment
shall be effective to the extent that it applies to fewer than all of the holders of the Registrable Securities. No consideration shall
be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of this Agreement unless the
same consideration also is offered to all of the parties to this Agreement.

 

10.             
MISCELLANEOUS.

 

(a)              
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities or owns the right to receive the Registrable Securities. If the Company receives conflicting instructions, notices or elections
from two (2) or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice
or election received from the registered owner of such Registrable Securities.

 

 

 

 

    	 	8	 

     

    

 

(b)              
No Piggyback on Registrations. The Company shall not file any other registration statements on Form S-3, Form S-1, or otherwise
until the initial Registration Statement required hereunder is declared effective by the SEC, provided that this Section 10(b) shall not
prohibit the Company from filing amendments to registration statements already filed. The Company shall not include any other securities
on a Registration Statement unless otherwise agreed by the Investor.

 

(c)              
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered pursuant to the notice provisions of the Securities Purchase Agreement or to such
other address and/or electronic mail address and/or to the attention of such other person as the recipient party has specified by written
notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by
the recipient of such notice, consent, waiver or other communication, (B) electronically generated by the sender’s email service
provider containing the time, date, and recipient email or (C) provided by a courier or overnight courier service shall be rebuttable
evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with
this section.

 

(d)              
Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such
right or remedy, shall not operate as a waiver thereof.

 

(e)              
The laws of the State of New York shall govern all issues concerning the relative rights of the Company and the Investors as its
stockholders. All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State
of New York. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the Supreme Court of the State of New York, sitting
in New York County, New York and federal courts for the Southern District of New York sitting New York, New York, for the adjudication
of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding
is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any manner permitted by law. If any provision of this Agreement shall be invalid or unenforceable
in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement
in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(f)               
This Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

 

(g)              
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(h)              
This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto as an attachment to an
email of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

 

 

 

    	 	9	 

     

    

 

(i)                
Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(j)                
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and
no rules of strict construction will be applied against any party.

 

(k)              
This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

 

 

 

 

 

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF,
the Investor and the Company have caused their signature page to this Registration Rights Agreement to be duly executed as of the date
first above written.

 

	 	
    COMPANY:

	 	DALRADA FINANCIAL COPORATION
	 	 
	 	By: /s/ Brian
    Bonar                                                   
	 	Name:     Brian Bonar
	 	Title:       CEO
	 	 

  

	 	INVESTOR:

	 	YA II PN, LTD. 
	 	 	 	 
	 	By:	Yorkville Advisors Global, LP
	 	Its:	Investment Manager
	 	 	 	 
	 	 	By:	Yorkville Advisors Global II, LLC
	 	 	Its:	General Partner
	 	 	 	 
	 	 	By:	/s/ Matt Beckman                                
	 	 	Name:	Matt Beckman
	 	 	Title:	Member

 

 

 

 

 

 

 

    	 	11	 

     

    

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

 

Attention:

 

		Re:	DALRADA FINANCIAL CORPORATION

 

Ladies and Gentlemen:

 

We are counsel to DALRADA
FINANCIAL CORPORATION, INC., a Wyaoming corporation (the “Company”), and have represented the Company in connection
with that certain Securities Purchase Agreement (the “Securities Purchase Agreement”) entered into by and among the
Company and the Investors named therein (collectively, the “Investors”) pursuant to which the Company issued to the
Investors up to $3,000,000 of convertible debentures (the “Convertible Debentures”), which are convertible into its
Common Stock, par value $0.005 per share (the “Common Stock”). Pursuant to the Purchase Agreement, the Company also
has entered into a Registration Rights Agreement with the Investors (the “Registration Rights Agreement”) pursuant
to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights Agreement)
under the Securities Act of 1933, as amended (the “Securities Act”). In connection with the Company’s obligations
under the Registration Rights Agreement, on ____________ ____, the Company filed a Registration Statement on Form ________ (File No. 333-_____________)
(the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”) relating
to the Registrable Securities which names each of the Investors as a selling stockholder there under.

 

In connection with the foregoing,
we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has entered an order declaring the Registration
Statement effective under the Securities Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have
no knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order suspending its effectiveness has been
issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable Securities are available
for resale under the Securities Act pursuant to the Registration Statement.

 

Very truly yours,

 

[Law Firm]

 

 

By:                                                        

 

 

 

cc:      [LIST NAMES OF Investors]

 

 

 

 

 

 

 

 

    	 	12Exhibit 10.3

 

NEITHER THIS DEBENTURE NOR THE SECURITIES
INTO WHICH THIS DEBENTURE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD 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.

 

DALRADA
FINANCIAL CORPORATION

 

Convertible
Debenture

 

Principal Amount:    $2,000,000

Debenture Issuance Date:     February
4, 2022

Debenture Number:     DFCO-1

 

FOR VALUE RECEIVED, DALRADA
FINANCIAL CORPORATION, a Wyoming corporation (the "Company"), hereby promises to pay to the order of YA II PN, Ltd.,
or its registered assigns (the "Holder") the amount set out above as the Principal Amount (as reduced pursuant to the
terms hereof pursuant to redemption, conversion or otherwise, the "Principal") when due, whether upon the Maturity Date
(as defined below), acceleration, redemption or otherwise (in each case in accordance with the terms hereof) and to pay interest ("Interest")
on any outstanding Principal at the applicable Interest Rate from the date set out above as the Debenture Issuance Date (the "Issuance
Date") until the same becomes due and payable, whether upon the Maturity Date or acceleration, conversion, redemption or otherwise
(in each case in accordance with the terms hereof). This Convertible Debenture (including all debentures issued in exchange, transfer
or replacement hereof, this "Debenture") was originally issued pursuant to the Securities Purchase Agreement dated February
4, 2022, as amended (the “Securities Purchase Agreement”) between the Company and the Buyers listed on the Schedule
of Buyers attached thereto. Certain capitalized terms used herein are defined in Section (14).

 

(1)              
GENERAL TERMS

 

(a)              
Maturity Date. On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding
Principal, accrued and unpaid Interest, and any other amounts outstanding pursuant to the terms of this Debenture. The "Maturity
Date" shall be May 4, 2023, as may be extended at the option of the Holder. Other than as specifically permitted by this Debenture,
the Company may not prepay or redeem any portion of the outstanding Principal and accrued and unpaid Interest.

 

(b)              
Interest Rate and Payment of Interest. Interest shall accrue on the outstanding Principal balance hereof at an annual rate
equal to 5% (“Interest Rate”), which Interest Rate shall increase to an annual rate of 15% for so long as any Event
of Default remains uncured. Interest shall be calculated on the basis of a 365-day year and the actual number of days elapsed, to the
extent permitted by applicable law.

 

(2)              
EVENTS OF DEFAULT.

 

(a)              
An “Event of Default”, wherever used herein, means any one of the following events (whatever the reason and
whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court,
or any order, rule or regulation of any administrative or governmental body):

 

 

 

 

    	 	1	 

     

    

 

(i)               
the Company's failure to pay to the Holder any amount of Principal, Interest, or other amounts when and as due under this Debenture
or any other Transaction Document within five (5) Business Days after such payment is due;

 

(ii)             
The Company or any subsidiary of the Company shall commence, or there shall be commenced against the Company or any subsidiary
of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company
or any subsidiary of the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors,
dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Company or
any subsidiary of the Company or there is commenced against the Company or any subsidiary of the Company any such bankruptcy, insolvency
or other proceeding which remains undismissed for a period of 61 days; or the Company or any subsidiary of the Company is adjudicated
insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Company or any subsidiary
of the Company suffers any appointment of any custodian, private or court appointed receiver or the like for it or any substantial part
of its property which continues undischarged or unstayed for a period of sixty one (61) days; or the Company or any subsidiary of the
Company makes a general assignment for the benefit of creditors; or the Company or any subsidiary of the Company shall fail to pay, or
shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company or any subsidiary
of the Company shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts;
or the Company or any subsidiary of the Company shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence
in any of the foregoing; or any corporate or other action is taken by the Company or any subsidiary of the Company for the purpose of
effecting any of the foregoing;

 

(iii)           
The Company or any subsidiary of the Company shall default in any of its obligations under any other debenture or any mortgage,
credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by
which there may be secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement
of the Company or any subsidiary of the Company in an amount exceeding $100,000, whether such indebtedness now exists or shall hereafter
be created and such default is not cured within five (5) Business Days;

 

(iv)            
The Common Stock shall cease to be quoted or listed for trading, as applicable, on any Primary Market, or the VWAP shall be less
than $0.01 on the Primary Market, for a period of 10 consecutive Trading Days;

 

(v)             
The Company or any subsidiary of the Company shall be a party to any Change of Control Transaction (as defined in Section (14))
unless in connection with such Change of Control Transaction this Debenture is retired;

 

(vi)            
the Company's (A) failure to deliver the required number of shares of Common Stock to the Holder within three (3) Trading Days
after the applicable Delivery Date or (B) notice, written or oral, to any holder of the Debentures, including by way of public announcement,
at any time, of its intention not to comply with a request for conversion of any Debentures into shares of Common Stock that is tendered
in accordance with the provisions of the Debentures, other than pursuant to Section (5)(d);

 

(vii)         
The Company shall fail for any reason to deliver the payment in cash pursuant to a Buy-In (as defined herein) within five (5) Business
Days after such payment is due;

 

(viii)        
The Company shall fail to observe or perform any other material covenant, agreement or warranty contained in, or otherwise commit
any material breach or default of any provision of this Debenture (except as may be covered by Section (2)(a)(i) through (2)(a)(ix) hereof)
or any Transaction Document (as defined in Section (14)) which is not cured within the time prescribed.

 

(ix)            
any Event of Default (as defined in the Other Debentures) occurs with respect to any Other Debentures.

 

 

 

 

    	 	2	 

     

    

 

(b)              
During the time that any portion of this Debenture is outstanding, if any Event of Default has occurred and is continuing, the
full unpaid Principal amount of this Debenture, together with interest and other amounts owing in respect thereof, to the date of acceleration
shall become at the Holder's election, immediately due and payable in cash. Furthermore, in addition to any other remedies, the Holder
shall have the right (but not the obligation) to convert this Debenture (subject to the beneficial ownership limitations set out in Section
(4)(e)) at any time after (x) an Event of Default (provided that such Event of Default is continuing) or (y) the Maturity Date at the
Conversion Price. The Holder need not provide and the Company hereby waives any presentment, demand, protest or other notice of any kind,
(other than required notice of conversion) and the Holder may immediately enforce any and all of its rights and remedies hereunder and
all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by Holder at any time prior to
payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

(3)              
REDEMPTIONS

 

(a)              
Monthly Cash Redemptions. The Company shall, at its own option, (i) redeem in cash each Redemption Amount (as defined in
Section (14)) set forth on the Redemption Schedule (as defined in Section (14)) (a “Company Redemption”) on each applicable
Redemption Date (as defined in Section (14)), subject to the provisions of this Section (3)(a) and Section (3)(b) below, (ii) allow such
Redemption Amount to be Converted by the Holder in accordance with Section (4)(c), or (iii) redeem in a combination of a cash redemption
and conversion. On or prior to the date which is the third (3rd) Trading Day prior to each Redemption Date (each, a “Redemption
Notice Due Date”), the Company shall deliver written notice in the form attached hereto as Exhibit II (each, an “Company
Redemption Notice”) to the Holder which Company Redemption Notice shall either: (i) confirm that the applicable Redemption Amount
may be converted by the Holder in whole, or in part, pursuant Section (4)(c) anytime after the applicable Redemption Date; or (ii) state
that the Company elects to redeem, in whole or in part, the applicable Redemption Amount in cash pursuant to a Company Redemption. If
the Company does not timely deliver a Company Redemption Notice in accordance with this Section (3)(a), then the Company shall be deemed
to have delivered a Company Redemption Notice confirming that the applicable Redemption Amount may be converted by the Holder in accordance
with Section (4)(c). Notwithstanding the foregoing, (i) in the event that there is an Equity Conditions Failure with respect to the conversion
of any part of the Redemption Amount then the Company shall be required to redeem in cash the portion of the applicable Redemption Amount
that would be subject to an Equity Conditions Failure, and (ii) in the event that the daily VWAP on each of the five consecutive Trading
Days immediately prior to the Redemption Date exceeds a price equal to 120% of the Fixed Conversion Price and no Equity Conditions Failure
has occurred during such period then no cash redemption shall be due on such Redemption Date. The amounts of any conversions made by the
Holder at the Fixed Conversion Price or any Optional Redemptions made by the Company pursuant to this Debenture contemporaneous with or
prior to any Redemption Date shall have the effect of adjusting the Redemption Schedule by reducing the Redemption Amount of each payment
coming due by a pro rata amount.

 

(b)              
Company Redemption. If the Company elects a Company Redemption in cash in accordance with Section (3)(a), then the Redemption
Amount which is to be paid to the Holder on the applicable Redemption Date shall be paid by the Company on or before such Redemption Date,
by wire transfer of immediately available funds, in an amount in cash equal to the Redemption Amount. If the Company fails to redeem the
full Redemption Amount on the applicable Redemption Date, then the Company shall be deemed to have delivered a Company Redemption Notice
confirming that the unpaid portion of the applicable Redemption Amount may be converted by the Holder.

 

(c)              
Company Additional Early Redemption. The Company shall have the right, but not the obligation, to redeem (“Optional
Redemption”) early in cash a portion or all amounts outstanding under this Debenture as described in this Section; provided
that (i) the Company provides the Holder with at least 10 Business Days’ prior written notice (each, a “Optional Redemption
Notice”) of its desire to exercise an Optional Redemption, and (ii) the trading price of the Common Stock is less than the Fixed
Conversion Price at the time of the delivery of the Optional Redemption Notice. Each Optional Redemption Notice shall be irrevocable and
shall specify the outstanding balance of the Convertible Debentures to be redeemed and the applicable Redemption Amount. The “Optional
Redemption Amount” shall be equal to the outstanding Principal balance being redeemed by the Company times the Premium Amount,
plus all accrued and unpaid interest. On the 11th Business Day after the Optional Redemption Notice, the Company shall deliver to the
Holder the Optional Redemption Amount with respect to the Principal amount redeemed after giving effect to conversions effected pursuant
to the terms of this Debenture during the 10 Business Day period.

 

 

 

 

    	 	3	 

     

    

 

(4)              
CONVERSION OF DEBENTURE.This Debenture shall be convertible into the Common Stock on the terms and conditions set forth
in this Section (4).

 

(a)              
Conversion Right. Subject to the limitations of Section (4)(e), at any time or times on or after the Issuance Date, the
Holder shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully paid and
nonassessable shares of Common Stock in accordance with Section (4)(b) and (4)(c), at the Conversion Rate (as defined below). The number
of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to this Section (4)(a) shall be determined by dividing
(x) such Conversion Amount by (y) the Conversion Price (the "Conversion Rate"). The Company shall not issue any fraction
of a share of Common Stock upon any conversion. All calculations under this Section (4) shall be rounded to the nearest $0.0001. If the
issuance would result in the issuance of a fraction of share, the Company shall round such fraction of a share up to the nearest whole
share. The Company shall pay any and all transfer, stamp and similar taxes that may be payable with respect to the issuance and delivery
of Common Stock upon conversion of any Conversion Amount.

 

(i)                
"Conversion Amount" means the portion of the Principal, accrued Interest, and Premium Amount (if applicable) to
be converted, redeemed or otherwise with respect to which this determination is being made.

 

(ii)               
"Conversion Price" means, as of any Conversion Date (as defined below) or other date of determination (A) with
respect to a Conversion pursuant to Section (4)(b), $0.9151 per share (the “Fixed Conversion Price”), and (B) with
respect to a Conversion pursuant to Section (2)(b) or Section (4)(c), the lower of (i) the Fixed Conversion Price, or (ii) 100% of the
lowest daily VWAP during the 10 consecutive Trading Days immediately preceding the Conversion Date (the “Variable Conversion
Price”). The Conversion Price shall be adjusted from time to time pursuant to the other terms and conditions of this Debenture.
At no point will the conversion price be less than $0.01.

 

(b)             
The Holder may at any time and from time to time, elect to convert any Principal amount which is outstanding, and any accrued and
unpaid interest, at a Conversion Price equal to the Fixed Conversion Price by serving a Conversion Notice on the Company in accordance
with Section (4)(d).

 

(c)              
 In respect of any Redemption Amount subject to a Company Redemption Notice confirming (or deemed to pursuant to Section (3)(a)
or (3)(b)) that the applicable Redemption Amount may be converted by the Holder, the Holder may, at any time and from time to time after
such applicable Redemption Date, convert a Conversion Amount up to the applicable Redemption Amount (or any portion thereof) (including,
for the avoidance of doubt, the Premium Amount) at a Conversion Price based on the Variable Conversion Price by serving a Conversion
Notice on the Company, and subject to, and in accordance with, Section (4)(b).

 

(d)              
Mechanics of Conversion.

 

(i)                
Optional Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a "Conversion Date"),
the Holder shall (A) transmit by email (or otherwise deliver), for receipt on or prior to 11:59 p.m., New York Time, on such date, a copy
of an executed notice of conversion in the form attached hereto as Exhibit I (the "Conversion Notice") to the
Company and (B) if required by Section (4)(d)(iii), surrender this Debenture to a nationally recognized overnight delivery service for
delivery to the Company (or an indemnification undertaking reasonably satisfactory to the Company with respect to this Debenture in the
case of its loss, theft or destruction). On or before the third (3rd) Trading Day following the date of receipt of a Conversion
Notice (the "Share Delivery Date"), the Company shall (X) if legends are not required to be placed on certificates of
Common Stock and provided that the Transfer Agent is participating in the Depository Trust Company's ("DTC") Fast Automated
Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder's
or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system or (Y) if the Transfer Agent is not
participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified in the Conversion Notice,
a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall
be entitled which certificates shall not bear any restrictive legends unless required pursuant to rules and regulations of the Commission.
If this Debenture is physically surrendered for conversion and the outstanding Principal of this Debenture is greater than the Principal
portion of the Conversion Amount being converted, then the Company shall as soon as practicable and in no event later than three (3) Business
Days after receipt of this Debenture and at its own expense, issue and deliver to the holder a new Debenture representing the outstanding
Principal not converted. The Person or Persons 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 or holders of such shares of Common Stock upon the transmission of a Conversion
Notice.

 

 

 

    	 	4	 

     

    

 

(ii)             
Company's Failure to Timely Convert. If within three (3) Trading Days after the Company's receipt of an email copy of a
Conversion Notice the Company shall fail to issue and deliver a certificate to the Holder or credit the Holder's balance account with
DTC for the number of shares of Common Stock to which the Holder is entitled upon such holder's conversion of any Conversion Amount (a
"Conversion Failure"), and if on or after such Trading Day the Holder purchases (in an open market transaction or otherwise)
Common Stock to deliver in satisfaction of a sale by the Holder of Common Stock issuable upon such conversion that the Holder anticipated
receiving from the Company (a "Buy-In"), then the Company shall, within three (3) Business Days after the Holder's request
and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including brokerage
commissions and other out of pocket expenses, if any) for the shares of Common Stock so purchased (the "Buy-In Price"),
at which point the Company's obligation to deliver such certificate (and to issue such Common Stock) shall terminate, or (ii) promptly
honor its obligation to deliver to the Holder a certificate or certificates representing such Common Stock and pay cash to the Holder
in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B)
the Closing Bid Price on the Conversion Date.

 

(iii)           
Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Debenture
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Debenture to the Company unless (A)
the full Conversion Amount represented by this Debenture is being converted or (B) the Holder has provided the Company with prior written
notice (which notice may be included in a Conversion Notice) requesting reissuance of this Debenture upon physical surrender of this Debenture.
The Holder and the Company shall maintain records showing the Principal and Interest converted and the dates of such conversions or shall
use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Debenture
upon conversion.

 

(e)              
 Limitations on Conversions.

 

(i)                
Beneficial Ownership. The Holder shall not have the right to convert any portion of this Debenture or receive shares of
Common Stock hereunder to the extent that after giving effect to such conversion or receipt of such Shares, the Holder, together with
any affiliate thereof, would beneficially own (as determined in accordance with Section 13(d) of the Exchange Act and the rules promulgated
thereunder) in excess of 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to such conversion
or receipt of shares as payment of interest. Since the Holder will not be obligated to report to the Company the number of shares of Common
Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common
Stock in excess of 4.99% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned
by the Holder or an affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction contained
in this Section will limit any particular conversion hereunder and to the extent that the Holder determines that the limitation contained
in this Section applies, the determination of which portion of the Principal amount of this Debenture is convertible shall be the responsibility
and obligation of the Holder. If the Holder has delivered a Conversion Notice for a Principal amount of this Debenture that, without regard
to any other shares that the Holder or its affiliates may beneficially own, would result in the issuance in excess of the permitted amount
hereunder, the Company shall notify the Holder of this fact and shall honor the conversion for the maximum Principal amount permitted
to be converted on such Conversion Date in accordance with Section (4)(a) and, any Principal amount tendered for conversion in excess
of the permitted amount hereunder shall remain outstanding under this Debenture. The provisions of this Section may be waived by a Holder
(but only as to itself and not to any other Holder) upon not less than 65 days prior notice to the Company. Other Holders shall be unaffected
by any such waiver.

 

(f)              
 Other Provisions.

 

(i)              
The Company shall at all times reserve and keep available out of its authorized Common Stock the full number of shares of Common
Stock issuable upon conversion of all outstanding amounts under this Debenture; and within three (3) Business Days following the receipt
by the Company of a Holder's notice that such minimum number of Underlying Shares is not so reserved, the Company shall promptly reserve
a sufficient number of shares of Common Stock to comply with such requirement.

 

(ii)             
All calculations under this Section (3) shall be rounded to the nearest $0.0001 or whole share.

 

 

 

 

    	 	5	 

     

    

 

(iii)            
The Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common
Stock solely for the purpose of issuance upon conversion of this Debenture and payment of interest on this Debenture, each as herein provided,
free from preemptive rights or any other actual contingent purchase rights of persons other than the Holder, not less than such number
of shares of the Common Stock as shall be issuable (taking into account the adjustments and restrictions set forth herein) upon the conversion
of the outstanding Principal amount of this Debenture and payment of interest hereunder. The Company covenants that all shares of Common
Stock that shall be so issuable shall, upon issue, be duly and validly authorized, issued and fully paid, nonassessable and, if the Underlying
Shares Registration Statement has been declared effective under the Securities Act, registered for public sale in accordance with such
Underlying Shares Registration Statement.

 

(iv)             
Nothing herein shall limit a Holder's right to pursue actual damages or declare an Event of Default pursuant to Section (2) herein
for the Company’s failure to deliver certificates representing shares of Common Stock upon conversion within the period specified
herein and such Holder shall have the right to pursue all remedies available to it at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief, in each case without the need to post a bond or provide other security. The
exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under
applicable law.

 

(5)              

Adjustments to Conversion Price

 

(a)              
Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. If the Company, at any time while this Debenture
is outstanding, shall (a) pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or
any other equity or equity equivalent securities payable in shares of Common Stock, (b) subdivide outstanding shares of Common Stock into
a larger number of shares, (c) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number
of shares, or (d) issue by reclassification of shares of the Common Stock any shares of capital stock of the Company, then each of the
Fixed Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding before such event and of which the denominator shall be the number of shares of Common Stock outstanding
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)              

Adjustment of Conversion Price upon Issuance of Common Stock. If the Company, at any time while this Debenture is outstanding,
issues or sells any shares of Common Stock or Convertible Securities, for a consideration per share (the “New Issuance Price”)
less than a price equal to the Fixed Conversion Price in effect immediately prior to such issue or sale (such price the "Applicable
Price") (the foregoing a "Dilutive Issuance"), then immediately after such Dilutive Issuance the Fixed Conversion
Price then in effect shall be reduced to an amount equal to the New Issuance Price. For the purposes hereof, if the Company in any manner
issues or sells any Convertible Securities and the lowest price per share for which one share of Common Stock is issuable upon such conversion
or exchange or exercise thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding
and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per
share. No further adjustment of the Conversion Price shall be made upon the actual issuance of such share of Common Stock upon conversion
or exchange or exercise of such Convertible Securities. Shares issued to directors, officers, advisors, employees and consultants through
stock options, stock compensation plans, or otherwise shall not to be taken into consideration provided that such issuances are approved
by the Board of Directors and such shares are issuable or exercisable at a price equal to the market price of the Common Stock at the
time of grant.

 

(c)              
Other
Events. If any event occurs of the type contemplated by the provisions of this Section (5) but not expressly provided for by such
provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity
features, or issuing Convertible Securities with a variable conversion formula that is more favorable than this Debenture), then the
Company's Board of Directors will make an appropriate adjustment in the Conversion Price so as to protect the rights of the Holder under
this Debenture; provided that no such adjustment will increase the Conversion Price as otherwise determined pursuant to this Section
(5). If the Company issues any Convertible Securities with a variable conversion formula that is more favorable than this Debenture,
then at the option of the Holder, the Variable Conversion Price formula shall be changed to match that of the new Convertible Securities.

 

 

 

 

    	 	6	 

     

    

 

(d)              
 Other Corporate Events.
In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental Transaction pursuant
to which holders of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares
of Common Stock (a "Corporate Event"), the Company shall make appropriate provision to ensure that the Holder will thereafter
have the right to receive upon a conversion of this Debenture, at the Holder's option, (i) in addition to the shares of Common Stock
receivable upon such conversion, such securities or other assets to which the Holder would have been entitled with respect to such shares
of Common Stock had such shares of Common Stock been held by the Holder upon the consummation of such Corporate Event (without taking
into account any limitations or restrictions on the convertibility of this Debenture) or (ii) in lieu of the shares of Common Stock otherwise
receivable upon such conversion, such securities or other assets received by the holders of shares of Common Stock in connection with
the consummation of such Corporate Event in such amounts as the Holder would have been entitled to receive had this Debenture initially
been issued with conversion rights for the form of such consideration (as opposed to shares of Common Stock) at a conversion rate for
such consideration commensurate with the Conversion Rate. Provision made pursuant to the preceding sentence shall be in a form and substance
satisfactory to the Required Holders. The provisions of this Section shall apply similarly and equally to successive Corporate Events
and shall be applied without regard to any limitations on the conversion or redemption of this Debenture.

 

(e)              
Whenever the Conversion Price is adjusted pursuant to Section (5) hereof, the Company shall promptly mail to the Holder a notice
setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

 

(f)              
In case of any (1) merger or consolidation of the Company or any subsidiary of the Company with or into another Person, or (2)
sale by the Company or any subsidiary of the Company of more than one-half of the assets of the Company in one or a series of related
transactions, a Holder shall have the right to (A) exercise any rights under Section (2)(b), (B) convert the aggregate amount of this
Debenture then outstanding into the shares of stock and other securities, cash and property receivable upon or deemed to be held by holders
of Common Stock following such merger, consolidation or sale, and such Holder shall be entitled upon such event or series of related events
to receive such amount of securities, cash and property as the shares of Common Stock into which such aggregate Principal amount of this
Debenture could have been converted immediately prior to such merger, consolidation or sales would have been entitled, or (C) in the case
of a merger or consolidation, require the surviving entity to issue to the Holder a convertible Debenture with a Principal amount equal
to the aggregate Principal amount of this Debenture then held by such Holder, plus all accrued and unpaid interest and other amounts owing
thereon, which such newly issued convertible Debenture shall have terms identical (including with respect to conversion) to the terms
of this Debenture, and shall be entitled to all of the rights and privileges of the Holder of this Debenture set forth herein and the
agreements pursuant to which this Debentures were issued. In the case of clause (C), the conversion price applicable for the newly issued
shares of convertible preferred stock or convertible Debentures shall be based upon the amount of securities, cash and property that each
share of Common Stock would receive in such transaction and the Conversion Price in effect immediately prior to the effectiveness or closing
date for such transaction. The terms of any such merger, sale or consolidation shall include such terms so as to continue to give the
Holder the right to receive the securities, cash and property set forth in this Section upon any conversion or redemption following such
event. This provision shall similarly apply to successive such events.

 

(6)              
REISSUANCE OF THIS DEBENTURE.

 

(a)              
Transfer. If this Debenture is to be transferred, the Holder shall surrender this Debenture to the Company, whereupon the
Company will forthwith issue and deliver upon the order of the Holder a new Debenture (in accordance with Section (6)(d)), registered
in the name of the registered transferee or assignee, representing the outstanding Principal being transferred by the Holder (along with
any accrued and unpaid interest thereof) and, if less then the entire outstanding Principal is being transferred, a new Debenture (in
accordance with Section (6)(d)) to the Holder representing the outstanding Principal not being transferred. The Holder and any assignee,
by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of Section (4)(d)(iii) following conversion or
redemption of any portion of this Debenture, the outstanding Principal represented by this Debenture may be less than the Principal stated
on the face of this Debenture.

 

(b)              
Lost, Stolen or Mutilated Debenture. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the
loss, theft, destruction or mutilation of this Debenture, and, in the case of loss, theft or destruction, of any indemnification undertaking
by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Debenture, the
Company shall execute and deliver to the Holder a new Debenture (in accordance with Section (6)(d)) representing the outstanding Principal.

 

 

 

 

    	 	7	 

     

    

 

(c)              
Debenture Exchangeable for Different Denominations. This Debenture is exchangeable, upon the surrender hereof by the Holder
at the principal office of the Company, for a new Debenture or Debentures (in accordance with Section (6)(d)) representing in the aggregate
the outstanding Principal of this Debenture, and each such new Debenture will represent such portion of such outstanding Principal as
is designated by the Holder at the time of such surrender.

 

(d)              
Issuance of New Debentures. Whenever the Company is required to issue a new Debenture pursuant to the terms of this Debenture,
such new Debenture (i) shall be of like tenor with this Debenture, (ii) shall represent, as indicated on the face of such new Debenture,
the Principal remaining outstanding (or in the case of a new Debenture being issued pursuant to Section 5(6)(a) or Section 5(6)(c), the
Principal designated by the Holder which, when added to the Principal represented by the other new Debentures issued in connection with
such issuance, does not exceed the Principal remaining outstanding under this Debenture immediately prior to such issuance of new Debentures),
(iii) shall have an issuance date, as indicated on the face of such new Debenture, which is the same as the Issuance Date of this Debenture,
(iv) shall have the same rights and conditions as this Debenture, and (v) shall represent accrued and unpaid Interest from the Issuance
Date.

 

(7)              
NOTICES.Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof
must be in writing by letter and email and will be deemed to have been delivered: upon the later of (A) either (i) receipt, when delivered
personally or (ii) one (1) Business Day after deposit with an overnight courier service with next day delivery specified, in each case,
properly addressed to the party to receive the same and (B) receipt, when sent by electronic mail. The addresses and email addresses for
such communications shall be:

 

	If to the Company, to:	Dalrada Financial Corporation
	 	600 La Terraza Blvd.
	 	Escondido, California 92025
	 	Telephone:  858-705-3713

Attention:    Brian Bonar

E-Mail:        bbonar@dalrada.com
	 	 
	If to the Holder:	YA II PN, Ltd
	 	
    c/o Yorkville Advisors Global, LLC

    1012 Springfield Avenue

	 	Mountainside, NJ 07092
	 	Attention: Mark Angelo
	 	Telephone: 201-985-8300
	 	Email:  Legal@yorkvilleadvisors.com

 

or at such other address and/or
email and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three
(3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (i) given by the recipient of such notice,
consent, waiver or other communication, (ii) electronically generated by the sender's email service provider containing the time, date,
recipient email address or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or
(iii) above, respectively.

 

(8)              
Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligations of the Company, which
are absolute and unconditional, to pay the Principal of, interest and other charges (if any) on, this Debenture at the time, place, and
rate, and in the coin or currency, herein prescribed. This Debenture is a direct obligation of the Company. As long as this Debenture
is outstanding, the Company shall not and shall cause their subsidiaries not to, without the consent of the Holder, (i) amend its certificate
of incorporation, bylaws or other charter documents so as to adversely affect any rights of the Holder; (ii) repay, repurchase or offer
to repay, repurchase or otherwise acquire shares of its Common Stock or other equity securities; or (iii) enter into any agreement with
respect to any of the foregoing.

 

 

 

    	 	8	 

     

    

 

(9)               
This Debenture shall not entitle the Holder to any of the rights of a stockholder of the Company, including without limitation,
the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders or
any other proceedings of the Company, unless and to the extent converted into shares of Common Stock in accordance with the terms hereof.

 

(10)              
This Debenture shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to
conflicts of laws thereof. Each of the parties consents to the jurisdiction of the Supreme Court of the State of New York located in the
City of New York, Borough of Manhattan, and the U.S. District Court for the Southern District of New York in connection with any
dispute arising under this Debenture and hereby waives, to the maximum extent permitted by law, any objection, including any objection
based on forum non conveniens to the bringing of any such proceeding in such jurisdictions. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

 

(11)              
If the Company fails to strictly comply with the terms of this Debenture, then the Company shall reimburse the Holder promptly
for all fees, costs and expenses, including, without limitation, attorneys’ fees and expenses incurred by the Holder in any action
in connection with this Debenture, including, without limitation, those incurred: (i) during any workout, attempted workout, and/or in
connection with the rendering of legal advice as to the Holder’s rights, remedies and obligations, (ii) collecting any sums which
become due to the Holder, (iii) defending or prosecuting any proceeding or any counterclaim to any proceeding or appeal; or (iv) the protection,
preservation or enforcement of any rights or remedies of the Holder.

 

(12)              
Any waiver by the Holder of a breach of any provision of this Debenture shall not operate as or be construed to be a waiver of
any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Holder to insist upon
strict adherence to any term of this Debenture on one or more occasions shall not be considered a waiver or deprive that party of the
right thereafter to insist upon strict adherence to that term or any other term of this Debenture. Any waiver must be in writing.

 

(13)              
If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect,
and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.
If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable laws governing usury, the
applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. The Company
covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying
all or any portion of the Principal of or interest on this Debenture as contemplated herein, wherever enacted, now or at any time hereafter
in force, or which may affect the covenants or the performance of this indenture, and the Company (to the extent it may lawfully do so)
hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder,
delay or impeded the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though
no such law has been enacted.

 

(14)              
CERTAIN DEFINITIONS. For purposes of this Debenture, the following terms shall have the following meanings:

 

(a)              
"Applicable Price" shall have the meaning set forth in Section (5)(b).

 

(b)              
"Bloomberg" means Bloomberg Financial Markets.

 

(c)              
“Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the
United States or a day on which banking institutions are authorized or required by law or other government action to close.

 

 

 

 

    	 	9	 

     

    

 

(d)              
“Change of Control Transaction” means the occurrence of (a) an acquisition after the date hereof by an individual
or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether
through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of fifty percent (50%) of
the voting power of the Company (except that the acquisition of voting securities by the Holder or any other current holder of convertible
securities of the Company shall not constitute a Change of Control Transaction for purposes hereof), (b) a replacement at one time or
over time of more than one-half of the members of the board of directors of the Company (other than as due to the death or disability
of a member of the board of directors) which is not approved by a majority of those individuals who are members of the board of directors
on the date hereof (or by those individuals who are serving as members of the board of directors on any date whose nomination to the board
of directors was approved by a majority of the members of the board of directors who are members on the date hereof), (c) the merger,
consolidation or sale of fifty percent (50%) or more of the assets of the Company or any subsidiary of the Company in one or a series
of related transactions with or into another entity, or (d) the execution by the Company of an agreement to which the Company is a party
or by which it is bound, providing for any of the events set forth above in (a), (b) or (c). No transfer to a wholly-owned subsidiary
shall be deemed a Change of Control Transaction under this provision.

 

(e)              
“Closing Bid Price” means the price per share in the last reported trade of the Common Stock on a Primary Market
or on the exchange which the Common Stock is then listed as quoted by Bloomberg.

 

(f)               
“Commission” means the Securities and Exchange Commission.

 

(g)              
“Company Redemption” shall have the meaning assigned in Section (3)(a).

 

(h)              
“Company Redemption Notice” shall have the meaning assigned in Section (3)(a).

 

(i)                
“Common Stock” means the common stock, par value $0.005 per share, of the Company and stock of any other class
into which such shares may hereafter be changed or reclassified.

 

(j)                
“Conversion Price” shall have the meaning set forth in Section (4)(a)(ii).

 

(k)              
“Convertible Securities” means any stock or securities directly or indirectly convertible into or exercisable
or exchangeable for Common Stock.

 

(l)                
"Dilutive Issuance" shall have the meaning set forth in Section (5)(b).

 

(m)            
“Equity Conditions Failure” means that any of the following conditions are not satisfied: (i) on each day during
the period beginning two (2) weeks prior to the applicable date of determination and ending on and including the applicable date of determination
(the "Equity Conditions Measuring Period"), either (x) the Underlying Shares Registration Statement filed pursuant to
the Registration Rights Agreement shall be effective and available for the resale of all applicable shares of Common Stock to be issued
in connection with the event requiring determination or (y) all applicable shares of Common Stock to be issued in connection with the
event requiring determination shall be eligible for sale without restriction and without the need for registration under any applicable
federal or state securities laws; (ii) on each day during the Equity Conditions Measuring Period, the Common Stock is designated for quotation
on the Principal Market and shall not have been suspended from trading on such exchange or market nor shall delisting or suspension by
such exchange or market been threatened or pending either (A) in writing by such exchange or market or (B) by falling below the then effective
minimum listing maintenance requirements of such exchange or market; (iii) the Company shall have delivered all Conversion Shares issuable
upon conversion of the Debentures to the Holder on a timely basis as set forth in Section (4) hereof; (iv) any applicable shares of Common
Stock to be issued in connection with the event requiring determination may be issued in full without violating Section (4)(e) hereof
and the rules or regulations of the Primary Market; (v) during the Equity Conditions Measuring Period, there shall not have occurred either
(A) an Event of Default or (B) an event that with the passage of time or giving of notice would constitute an Event of Default; and (vii)
the Company shall have no knowledge of any fact that would cause (x) the Registration Statements required pursuant to the Registration
Rights Agreement not to be effective and available for the resale of all applicable shares of Common Stock to be issued in connection
with the event requiring determination or (y) any applicable shares of Common Stock to be issued in connection with the event requiring
determination not to be eligible for sale without restriction and without the need for registration under any applicable federal or state
securities laws.

 

 

 

    	 	10	 

     

    

 

(n)              
 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(o)              
“Fundamental Transaction” means any of the following: (1) the Company effects any merger or consolidation
of the Company with or into another Person and the Company is the non-surviving company (other than a merger or consolidation with a wholly
owned subsidiary of the Company for the purpose of redomiciling the Company), (2) the Company effects any sale of all or substantially
all of its assets in one or a series of related transactions, (3) 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 (4) 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.

 

(p)              
“Fixed Conversion Price” shall have the meaning set forth in Section (4)(a)(ii).

 

(q)              
"New Issuance Price" shall have the meaning set forth in Section (5)(b).

 

(r)               
“Optional Redemption” shall have the meaning assigned in Section (3)(c).

 

(s)               
“Optional Redemption Amount” shall have the meaning assigned in Section (3)(c).

 

(t)                
“Optional Redemption Notice” shall have the meaning assigned in Section (3)(c).

 

(u)              
“Other Debentures” means any other debentures issued pursuant to the Securities Purchase Agreement and any other
debentures, notes, or other instruments issued in exchange, replacement, or modification of the foregoing.

 

(v)              
“Person” means a corporation, an association, a partnership, organization, a business, an individual, a government
or political subdivision thereof or a governmental agency.

 

(w)             
“Primary Market” means any of the New York Stock Exchange, the NYSE MKT, the Nasdaq Global Market, the Nasdaq
Global Select Market, or the OTC QB, and any successor to any of the foregoing markets or exchanges.

 

(x)               
Redemption Amount” means the total of the amount of Principal, Interest, and Premium Amount set out under the column
‘Redemption Amount” in the Redemption Schedule.

 

(y)              
“Redemption Date” means each date under the heading “Redemption Date” as set forth on the Redemption
Schedule.

 

(z)              
“Redemption Notice Due Date” shall have the meaning assigned in Section (3)(a).

 

(aa)           
“Premium Amount” means 20% of the Principal amount being redeemed.

 

(bb)          
“Redemption Schedule” means the schedule of redemptions as set out on Exhibit I, or such other schedule of repayments
as the parties may agree in writing from time to time.

 

(cc)           
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

 

 

 

    	 	11	 

     

    

 

(dd)          
“Trading Day” means a day on which the shares of Common Stock are quoted or traded on a Primary Market on which
the shares of Common Stock are then quoted or listed; provided, that in the event that the shares of Common Stock are not listed or quoted,
then Trading Day shall mean a Business Day.

 

(ee)           
“Transaction Document(s)” shall mean this Debenture, along with the Securities Purchase Agreement, and any other
documents or agreements entered into in connection with the foregoing.

 

(ff)             
“Underlying Shares” means the shares of Common Stock issuable upon conversion of this Debenture or as payment
of interest in accordance with the terms hereof.

 

(gg)          
“Underlying Shares Registration Statement” means a registration statement meeting the requirements set forth
in the Registration Rights Agreement, covering among other things the resale of the Underlying Shares and naming the Holder as a “selling
stockholder” thereunder.

 

(hh)          
“Variable Conversion Price” shall have the meaning set forth in Section (4)(a)(ii).

 

(ii)             
"VWAP" means, for any security as of any date, the daily dollar volume-weighted average price for such security
on the Primary Market as reported by Bloomberg through its “Historical Prices – Px Table with Average Daily Volume”
functions, or, if no dollar volume-weighted average price is reported for such security by Bloomberg.

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	12	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Convertible Debenture to be duly executed by a duly authorized officer as of the date set forth above.

 

 

 

	 	COMPANY:
	 	DALRADA FINANCIAL CORPORATION
	 	
     

     

	 	By:/s/ Brian Bonar
	 	Name:   Brian Bonar
	 	Title:     CEO
	 	 

 

 

 

 

 

    	 	13	 

     

    

 

EXHIBIT I

REDEMPTION SCHEUDLE(1)

 

 

 

		(1)	The amounts shown in the table below shall be subject to adjustment in accordance with Section (3)(a)
to reflect the conversion or redemption otherwise effected pursuant to this Convertible Debenture contemporaneous with or prior to the
scheduled redemption provided in the schedule.

 

		(2)	Note: Interest is estimated and will be calculated based on the actual accrued and unpaid interest as
of each Redemption Date.

 

 

 

 

 

 

    	 	14	 

     

    

 

EXHIBIT II

 

COMPANY REDEMPTION NOTICE

 

Date: [__________]

 

 

VIA E-MAIL: trading@yorkvilleadvisors.com and [_______________]

 

 

This letter shall serve as Company Redemption
Notice by Dalrada Financial Corporation (“Company”) in accordance with Section (3)(a) of the Convertible Debenture
issued to YA II PN, Ltd. (the “Holder”) on March 19, 2021 (the “Debenture”). Unless otherwise
specified, capitalized terms used in this letter shall have the meaning assigned to them in the Debenture.

 

 

 

	Debenture Number:	DFCO-[1][2]
	Applicable Redemption Date:	[_______________]
	                  Principal Amount:	[$______________]
	                 Premium Amount:	[$______________]
	                                   Interest:	[$______________]
	 Total Redemption Amount:	[$______________]

 

 

The Company hereby elects the following in respect
of the above referenced Redemption Amount:

 

		__	The applicable Redemption Amount may be converted by the Holder in whole, or in part, pursuant Section
4(c) anytime after the applicable Redemption Date; or

 

		__	The Company elects to redeem in cash the applicable Redemption Amount pursuant to a Company Repayment.[1]

 

Sincerely,

 

________________________________________

Authorized Signatory,

 

 

 

[1]
If the Company elects a Company Redemption, then the Redemption Amount which is to be paid to the Holder on the applicable Redemption
Date shall be repaid by the Company on or before such Redemption Date, and the Company shall pay to the Holder on or before such Redemption
Date, by wire transfer of immediately available funds, in an amount in cash equal to the Redemption Amount. If the Company fails to redeem
the full Redemption Amount on the applicable Redemption Date, then the Company shall be deemed to have delivered a Company Redemption
Notice confirming that the unpaid portion of the applicable Redemption Amount may be converted by the Holder at the lower of the Fixed
Conversion Price or the Variable Conversion Price.

 

    	 	15	 

     

    

 

EXHIBIT III

 

CONVERSION NOTICE

 

(To be executed by the Holder in order to
Convert the Debenture)

 

 

TO: DALRADA FINANCIAL CORPORATION

 

Via Email: 

 

The undersigned hereby irrevocably
elects to convert a portion of the outstanding and unpaid Conversion Amount of Debenture No. DFCO-[1][2] into Shares of Common
Stock of DALRADA FINANCIAL CORPORATION, according to the conditions stated therein, as of the Conversion Date written below.

 

	 	 
	Conversion Date:	 
	Principal Amount to be Converted:	 
	
    Premium Amount (if applicable)

     

    Accrued Interest to be Converted:

     
	 
	Total Conversion Amount to be converted:	 
	Fixed Conversion Price: 	 
	Variable Conversion Price (if applicable):	 
	Conversion Price:	 
	Number of shares of Common Stock to be issued:	 
	 	 
	Please issue the shares of Common Stock in the following name and deliver them to the following account:
	Issue to:	
	Broker DTC Participant Code:	
	Account Number:	
	 	 
	Authorized Signature:	 
	Name:	 
	Title:	 
	 	 	 

 

 

 

 

 

    	 	16

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