Document:

Exhibit 10.11

 

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

 

	Original Principal Amount: $56,900.00	Issue Date: September 5, 2013
	Purchase Price: $50,000.00	 

 

CONVERTIBLE PROMISSORY NOTE

FOR VALUE RECEIVED,
Epazz, Inc., an Illinois corporation (the “Borrower”), hereby
promises to pay to the order of St George Investments LLC, an Illinois limited liability
company, or registered assigns (the “Holder”), the sum of $56,900.00 (the “Original Principal
Amount”) together with any additional charges provided for herein, on the date that is 9 months after the Issue Date
(the “Maturity Date”), and to pay interest on the Outstanding Balance (as defined below) at the rate of eight
percent (8%) per annum from the date hereof (the “Issue Date”) until the same is paid in full; provided that
upon the occurrence of an Event of Default (as defined below), interest shall thereafter accrue on the Outstanding Balance both
before and after judgment at the rate of twenty-two percent (22%) per annum (“Default Interest”). All interest
calculations hereunder shall be computed on the basis of a 360-day year comprised of twelve (12) thirty (30) day months,
shall compound daily and shall be payable in accordance with the terms of this Note. The Borrower acknowledges that the Original
Principal Amount exceeds the purchase price of this Note and that such excess consists of the OID (as defined in the Purchase Agreement
(defined below)) in the amount of $4,400.00 and the Carried Transaction Expense Amount (as defined in the Purchase Agreement) in
the amount of $2,500.00 to cover the Holder’s legal and other expenses incurred in the preparation of this Note, the Purchase
Agreement, Irrevocable Transfer Agent Instructions, and all other certificates, documents, agreements, resolutions and instruments
delivered to any party under or in connection with this Note, as the same may be amended from time to time (collectively, the “Transaction
Documents”), which sum shall be fully earned and charged to the Borrower upon the execution
of this Note and paid to the Holder as part of the outstanding principal balance as set forth in this Note. This Note may
not be prepaid in whole or in part except as otherwise provided in Section 1.8. All payments due hereunder (to the extent
not converted into common stock, $0.0001 par value per share, of the Borrower (the “Common
Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments
shall be made at such address as the Holder shall designate from time to time by written notice made in accordance with the provisions
of this Note. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain
Note Purchase Agreement dated the date hereof between the Borrower and the Holder, pursuant to which this Note was originally issued
(the “Purchase Agreement”). For purposes hereof, the term “Outstanding Balance” means the
Original Principal Amount, as reduced or increased, as the case may be, pursuant to the terms hereof for conversion, breach hereof
or otherwise, plus any accrued but unpaid interest (including with limitation Default Interest), collection and enforcements costs,
and any other fees or charges incurred under this Note or under the Purchase Agreement.

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This Note is free
from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights
or other similar rights of stockholders of the Borrower and will not impose personal liability upon the holder thereof.

The following additional
terms shall apply to this Note:

1.            CONVERSION RIGHTS.

1.1.         Conversion Right. Subject to Section 1.7, during the period beginning on the Issue Date and ending when the Outstanding
Balance is paid or converted in full, the Holder shall, at its option, have the right from time to time, to convert all or any
part of the Outstanding Balance of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists
on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter
be changed or reclassified at the Conversion Price (as defined below) determined as provided herein (a “Conversion”).
The number of shares of Common Stock to be issued upon each conversion of this Note (the “Conversion Shares”)
shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the
date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”),
delivered to the Borrower by the Holder in accordance with Section 1.4(a) below; provided that the Notice of Conversion is submitted
by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00
p.m., New York, New York time on such conversion date (the “Conversion Date”). The term “Conversion
Amount” means, with respect to any conversion of this Note, the portion of the Outstanding Balance to be converted.

1.2.         Conversion Price.

(a)               
Calculation of Conversion Price. The conversion price (as the same may be adjusted from time to time pursuant to
the terms hereof, the “Conversion Price”) shall mean 60% (the “Conversion Factor”) multiplied
by the Market Price (as defined herein). “Market Price” means the higher of (i) the average of the two (2) lowest
Trading Prices (as defined below) for the Common Stock during the ten (10) Trading Day (as defined below) period ending on the
latest complete Trading Day prior to the Conversion Date, and $0.00005 (regardless of any stock split or other adjustment). “Trading
Price” means, for the Common Stock as of any date, the closing bid price on the Principal Market as reported by a reliable
reporting service designated by the Holder (e.g. Bloomberg) or, if the Principal Market is not the principal trading market for
such security, the closing bid price of such security on the principal securities exchange or trading market where such security
is listed or traded or, if no closing bid price of such security is available in any of the foregoing manners, the average of the
closing bid prices of any market makers for such security that are quoted in “OTC Pink” by Pink OTC Markets Inc. (formerly
Pink Sheets LLC), or any successor entity or other publisher thereof. If the Trading Price cannot
be calculated for such security on such date in the manner provided above, the Trading Price shall be the fair market value as
mutually determined by the Borrower and the Holder. “Trading Day” shall mean any day on which the Common Stock
is traded or tradable for any period on the Principal Market, or on the principal securities exchange or other securities market
on which the Common Stock is then being traded.

(b)              
Conversion Price During Major Announcements. Notwithstanding anything contained in Section 1.2(a) to the contrary,
in the event the Borrower (i) makes a public announcement that it intends to consolidate or merge with any other corporation (other
than a merger in which the Borrower is the surviving or continuing corporation and its capital stock is unchanged) or sell or transfer
all or substantially all of the assets of the Borrower or (ii) any person, group or entity (including the Borrower) publicly announces
a tender offer to purchase 50% or more of the Borrower’s Common Stock (or any other takeover scheme) (the date of the announcement
referred to in clause (i) or (ii) is hereinafter referred to as the “Announcement Date”), then the Conversion
Price shall, effective upon the Announcement Date and continuing through the Adjusted Conversion Price Termination Date (as defined
below), be equal to the lower of (1) the Conversion Price which would have been applicable for a Conversion occurring on the Announcement
Date, and (2) the Conversion Price that would otherwise be in effect. From and after the Adjusted Conversion Price Termination
Date, the Conversion Price shall be determined as set forth in this Section 1.2(b). For purposes hereof, “Adjusted Conversion
Price Termination Date” shall mean, with respect to any proposed transaction or tender offer (or takeover scheme) for
which a public announcement as contemplated by this Section 1.2(b) has been made, the date upon which the Borrower (in the case
of clause (i) above) or the person, group or entity (in the case of clause (ii) above) consummates or publicly announces the termination
or abandonment of the proposed transaction or tender offer (or takeover scheme) which caused this Section 1.2(b) to become operative.

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1.3.         Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve
from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion of this Note. The Borrower is required at all times to have authorized and reserved three
times the number of shares that is actually issuable upon full conversion of this Note (based on the Conversion Price in effect
from time to time) (the “Reserved Amount”). The Reserved Amount shall be increased from time to time as required
to insure compliance with this Section 1.3. The Borrower represents that upon issuance, such shares will be duly and validly issued,
fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure
which would change the number of shares of Common Stock into which this Note shall be convertible at the then current Conversion
Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares
of Common Stock authorized and reserved, free from preemptive rights, for conversion of this Note. The Borrower (i) acknowledges
that it has irrevocably instructed its transfer agent to issue shares of the Common Stock issuable upon conversion of this Note,
and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with
the duty of issuing the necessary shares of Common Stock in accordance with the terms and conditions of this Note. If, at any time
the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.1(c).

1.4.         Method of Conversion.

(a)               
Mechanics of Conversion. Subject to Section 1.7 hereof, beginning on the date specified in Section 1.1, this Note
may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by submitting to the Borrower
a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior
to 6:00 p.m., New York, New York time), otherwise the Conversion Date will be the next Trading Day.

(b)              
Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of
this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower
unless the entire Outstanding Balance of this Note is so converted. The Holder and the Borrower shall maintain records showing
the amount of the Outstanding Balance so converted and the dates of such conversions or shall use such other method, reasonably
satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion. In
the event of any dispute or discrepancy, such records of the Holder shall, prima facie, be controlling and determinative
in the absence of manifest error. Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder
may not transfer this Note unless the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower will
forthwith issue and deliver upon the order of the Holder a new Note of like tenor, registered as the Holder may request, representing
in the aggregate the remaining Outstanding Balance of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge
and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted
Outstanding Balance of this Note represented by this Note may be less than the amount stated on the face hereof.

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(c)               
Payment of Taxes. Borrower is responsible for the payment of all charges, fees, and taxes required to deliver Conversion
Shares to Holder; provider, however, that Borrower shall not be required to pay any tax which may be payable in respect
of any transfer involved in the issue and delivery of Conversion Shares or other securities or property on conversion of this Note
in a name other than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such
shares or other securities or property unless and until the person or persons (other than the Holder or the custodian in whose
street name such shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Borrower
the amount of any such tax or shall have established to the satisfaction of the Borrower that such tax has been paid.

(d)              
Delivery of Common Stock Upon Conversion. On or before
the close of business on the third (3rd) Trading Day following the date of receipt of a Notice of Conversion from
the Holder via facsimile transmission or e-mail (or other reasonable means of communication) (the “Delivery
Date”), the Borrower shall, provided that the Common Stock is DTC Eligible (defined below) at such time, deliver
or cause to be delivered to the Holder or its broker (as designated in the Conversion Notice), via reputable overnight courier,
a certificate or certificates representing the aggregate number of shares of DTC Eligible Common Stock equal to the number of Conversion
Shares to which the Holder shall be entitled, registered in the name of the Holder or its designee. If the Common Stock is not
DTC Eligible at such time, the Borrower shall instead issue and deliver or cause to be issued and delivered (via reputable overnight
courier) to the address as specified in the Notice of Conversion, a certificate, registered in the name of the Holder or its designee,
for the number of non-DTC Eligible Conversion Shares to which the Holder shall be entitled; provided, however, that, in
addition to any other rights or remedies that the Holder may have under this Note, then the Non-DTC
Eligible Adjustment Amount (as defined below) shall be added to the Outstanding Balance of this Note as set forth in Section 1.6(f)
below. For the avoidance of doubt, the Company has not met its obligation to deliver Conversion Shares by the Delivery Date
unless the Holder or its broker, as applicable, has actually received the certificate representing the applicable Conversion Shares
no later than the close of business on the relevant Delivery Date pursuant to the terms set forth above. For purposes of this Note,
“DTC Eligible” means, with respect to the Common Stock, that such Common Stock is eligible to be deposited in
certificate form at the Depository Trust Company (“DTC”), cleared and converted into electronic shares by the
DTC and held in the name of the clearing firm servicing Holder’s brokerage firm for the benefit of Holder.

(e)               
Obligation of Borrower to Deliver Common Stock. If the Holder shall have given a Notice of Conversion as provided
herein, the Borrower’s obligation to issue and deliver the shares of Common Stock shall be absolute and unconditional, irrespective
of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the
recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other
obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any
breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might
otherwise limit such obligation of the Borrower to the Holder in connection with such conversion. The Conversion Date specified
in the Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is delivered to the Borrower before
6:00 p.m., New York, New York time, on such date; otherwise, the Conversion Date shall be the next Trading Day. Once the Holder
may freely trade the Common Stock issuable upon a conversion of this Note pursuant to and in accordance with the terms hereof (and
in the case of any certificate representing non-DTC Eligible shares, once such certificate has been deposited into Holder’s
brokerage account, all legends have been removed therefrom, and the Common Stock represented by such certificates is freely tradeable),
all rights with respect to the portion of the Outstanding Balance being so converted shall forthwith terminate; provided, however,
that the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion as of the date Borrower
receives the corresponding Notice of Conversion.

(f)               
Delivery of Common Stock. Notwithstanding any other provision contained herein, all deliveries of Conversion Shares
shall be in the form of certificates representing DTC Eligible Common Stock. Failure to deliver DTC Eligible Conversion Shares
shall constitute a breach of this Agreement and an Event of Default under Section 3 hereof, including without limitation under
Sections 3.1(c) and 3.1(p).

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(g)               
Failure to Deliver Common Stock Prior to Delivery Date. Without in any way limiting the Holder’s right to pursue
other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable
upon conversion of this Note is not delivered as required by Section 1.4(d) by the Delivery Date (a “Conversion Default”),
the Borrower shall pay in cash to the Holder for each calendar day beyond the Delivery Date that the Borrower fails to deliver
such Common Stock in an amount (not to exceed the highest of (i) $10,000, (ii) 50% of the Conversion Amount, and (iii) 10% of the
Original Principal Amount) equal to the greater of (i) $2,000.00 and (ii) 2% of the product of (A) the sum of the number of
shares of Common Stock not issued to the Holder on a timely basis and to which the Holder is entitled multiplied by (B) the
Trading Price of the Common Stock on the Trading Day immediately preceding the last possible date on which the Borrower could have
issued such shares of Common Stock to the Holder without violating Section 1.4(d) (the “Conversion Default Payment”).
Such cash amount shall be paid to the Holder by the fifth day of the month following the month in which it has accrued (the “Conversion
Default Payment Due Date”). In the event such cash amount is not received by the Holder by the Conversion Default Payment
Due Date, at the option of the Holder (without notice to the Borrower), the Conversion Default Payment shall be added to the Outstanding
Balance of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional
principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the
right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, or interference
with such conversion right are difficult if not impossible to quantify. Accordingly the parties acknowledge that the liquidated
damages provisions contained in this Section 1.4(g) are justified.

1.5.         Concerning the Shares. Transfer of the shares of Common Stock issuable upon conversion of this Note is restricted
and certificates representing such shares may bear a legend as set forth in Sections 4.15 of the Purchase Agreement.

1.6.         Effect of Certain Events.

(a)               
Fundamental Transaction Consent Right. The Borrower shall not enter into or be party to a Fundamental Transaction
(as defined below), unless the Borrower obtains the prior written consent of the Holder to enter into such Fundamental Transaction.
For purposes of this Note, “Fundamental Transaction” means that (i) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations
promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act),
directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding voting stock of the
Borrower, or (ii) (1) the Borrower or any of its subsidiaries shall, directly or indirectly, in one or more related transactions,
consolidate or merge with or into (whether or not the Borrower or any of its subsidiaries is the surviving corporation) any other
individual, corporation, limited liability company, partnership, association, trust or other entity or organization (collectively,
“Person”), or (2) the Borrower or any of its subsidiaries shall, directly or indirectly, in one or more
related transactions, sell, lease, license, assign, transfer, convey or otherwise dispose of
all or substantially all of its respective properties or assets to any other Person, or (3) the Borrower or any of its subsidiaries
shall, directly or indirectly, in one or more related transactions, allow any other Person to make a purchase, tender or exchange
offer that is accepted by the holders of more than 50% of the outstanding shares of voting stock of the Borrower (not including
any shares of voting stock of the Borrower held by the Person or Persons making or party to, or associated or affiliated with the
Persons making or party to, such purchase, tender or exchange offer), or (4) the Borrower or any of its subsidiaries shall,
directly or indirectly, in one or more related transactions, consummate a stock or share purchase agreement or other business combination
(including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person whereby
such other Person acquires more than 50% of the outstanding shares of voting stock of the Borrower (not including any shares of
voting stock of the Borrower held by the other Person or other Persons making or party to, or associated or affiliated with the
other Persons making or party to, such stock or share purchase agreement or other business combination), or (5) the Borrower
or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, reorganize, recapitalize or reclassify
the Common Stock, other than an increase in the number of authorized shares of the Borrower’s Common Stock. The provisions
of this Section 1.6(a) shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard
to any limitations on the conversion of this Note. As a condition to pre-approving any Fundamental Transaction in writing,
which approval may be withheld in the Holder’s sole discretion, Holder may require the resulting successor or acquiring entity
(if not the Borrower) to assume by written instrument all of the obligations of the Borrower under this Note and all the other
Transaction Documents with the same effect as if such successor or acquirer had been named as the Borrower hereto and thereto.

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(b)              
Adjustment Due to Fundamental Transactions. If, at any time when this Note is issued and outstanding and prior to
conversion of all of this Note, there shall be any Fundamental Transaction that is pre-approved in writing by the Holder pursuant
to Section 1.6(a) above, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different
number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or
conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation
of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the
basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable
upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had
this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth
herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this
Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and
of the number of shares issuable upon conversion of this Note) shall thereafter be applicable, as nearly as may be practicable
in relation to any securities or assets thereafter deliverable upon the conversion hereof. The above provisions shall similarly
apply to successive Fundamental Transactions.

(c)               
Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to
acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including
any dividend or distribution to the Borrower’s stockholders in cash or shares (or rights to acquire shares) of capital stock
of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon
any conversion of this Note after the date of record for determining stockholders entitled to such Distribution, to receive the
amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such
conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of stockholders
entitled to such Distribution.

(d)              
Adjustment Due to Dilutive Issuance. If, at any time when this Note is issued and outstanding, the Borrower issues
or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock for no
consideration or for a consideration per share (before deduction of reasonable expenses or commissions underwriting discounts or
allowances in connection therewith) less than the Conversion Price in effect on the date of such issuance (or deemed issuance)
of such shares of Common Stock (a “Dilutive Issuance”), then immediately upon the Dilutive Issuance, the Conversion
Price will be reduced to the amount of the consideration per share received by the Borrower in such Dilutive Issuance.

The Borrower shall
be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or grants any warrants, rights or
options (not including employee stock option plans), whether or not immediately exercisable, to subscribe for or to purchase Common
Stock or other securities convertible into or exchangeable for Common Stock (“Convertible Securities”) (such
warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as “Options”)
and the price per share for which Common Stock is issuable upon the exercise of such Options is less than the Conversion Price
then in effect, then the Conversion Price shall be equal to such price per share. For purposes of the preceding sentence, the “price
per share for which Common Stock is issuable upon the exercise of such Options” is determined by dividing (i) the total amount,
if any, received or receivable by the Borrower as consideration for the issuance or granting of all such Options, plus the minimum
aggregate amount of additional consideration, if any, payable to the Borrower upon the exercise of all such Options, plus, in the
case of Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of additional consideration
payable upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable,
by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Options (assuming full conversion
of Convertible Securities, if applicable). No further adjustment to the Conversion Price will be made upon the actual issuance
of such Common Stock upon the exercise of such Options or upon the conversion or exchange of Convertible Securities issuable upon
exercise of such Options.

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Additionally, the
Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or sells any Convertible
Securities, whether or not immediately convertible, and the price per share for which Common Stock is issuable upon such conversion
or exchange is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share.
For the purposes of the preceding sentence, the “price per share for which Common Stock is issuable upon such conversion
or exchange” is determined by dividing (1) the total amount, if any, received or receivable by the Borrower as consideration
for the issuance or sale of all such Convertible Securities, plus the minimum aggregate amount of additional consideration, if
any, payable to the Borrower upon the conversion or exchange thereof at the time such Convertible Securities first become convertible
or exchangeable, by (2) the maximum total number of shares of Common Stock issuable upon the conversion or exchange of all such
Convertible Securities. No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock
upon conversion or exchange of such Convertible Securities.

(e)               
Purchase Rights. If, at any time when this Note is issued and outstanding, the Borrower issues any convertible securities
or rights to purchase stock, warrants, securities or other property (the “Purchase Rights”) pro rata to the
record holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire, upon the terms applicable
to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number
of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on conversion contained
herein) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no
such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale
of such Purchase Rights.

(f)               
Adjustment Due to Non-DTC Eligibility. If, at any time when this Note is issued and outstanding, the Holder delivers
a Notice of Conversion and at such time the Common Stock is not then DTC Eligible, the Borrower shall deliver certificated Conversion
Shares to the Holder pursuant to Section 1.4(d) and the Non-DTC Eligible
Adjustment Amount shall be added to the Outstanding Balance of this Note, without limiting any other rights of the Holder under
this Note or the other Transaction Documents. The “Non-DTC Eligible Adjustment
Amount” is the amount equal to the number of applicable Conversion Shares multiplied
by the excess, if any, of (i) the Trading Price of the Common Stock on the Conversion Date, over (ii) the Trading Price of the
Common Stock on the date the certificated Conversion Shares are freely tradable, clear of any restrictive legend and deposited
in the Holder’s brokerage account. In any such case, Holder will use reasonable efforts to timely
deposit such certificates in its brokerage account after it receives them and cause such restrictive legends to be removed, and,
without limiting any other provision hereof, Borrower agrees to fully cooperate with Holder in
accomplishing the same.

(g)               
Adjustment Due to Late Clearing of DTC Eligible Shares. If, at any time when this Note is issued and outstanding,
the Holder delivers a Notice of Conversion and at such time the Common Stock is DTC Eligible and the applicable DTC Eligible Conversion
Shares are delivered to Holder or its broker, but it takes longer than five (5) business days after such delivery for such Conversion
Shares to be electronically cleared for trading in Holder’s brokerage account, then the Late Clearing
Adjustment Amount (as defined below) shall be added to the Outstanding Balance of this Note, without limiting any other rights
of the Holder under this Note or the other Transaction Documents. The “Late Clearing Adjustment Amount” is the
amount equal to the number of applicable Conversion Shares multiplied by the excess, if any, of (1) the Trading Price of the Common
Stock on the Conversion Date, over (2) the Trading Price of the Common Stock on the date the certificated DTC
Eligible Conversion Shares are electronically cleared for trading in the Holder’s brokerage
account. In any such case, and without limiting any other provision hereof, each of Holder and the Borrower agrees to take all
action reasonably necessary on its part to help ensure that the applicable Conversion Shares are electronically cleared for trading
in the Holder’s brokerage account within the five-day period described above.

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(h)              
Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price or the addition
of the Non-DWAC Eligible Adjustment Amount or Late Clearing Adjustment Amount to the Outstanding Balance as a result of the events
described in this Section 1.6, the Borrower, at its expense, shall promptly compute such adjustment or readjustment and prepare
and furnish to the Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based. The Borrower shall, upon the written request at any time of the Holder, furnish to such
Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and
(iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received
upon conversion of this Note.

(i)                
Adjustments for Stock Split. Notwithstanding anything herein to the contrary, any references to share numbers or
share prices shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction.

1.7.         Ownership Limitation. Notwithstanding anything to the contrary contained in this Note or the other Transaction
Documents, if at any time the Holder shall or would be issued shares of Common Stock under any of the Transaction Documents, but
such issuance would cause the Holder (together with its Affiliates) to beneficially own a number of shares exceeding 4.99% of the
number of shares of Common Stock outstanding on such date (including for such purpose the shares of Common Stock issuable upon
such issuance) (the “Maximum Percentage”), then the Company must not issue to the Holder shares of the Common
Stock which would exceed the Maximum Percentage. For purposes of this Section, beneficial ownership of Common Stock will be determined
under the 1934 Act. The shares of Common Stock issuable to the Holder that would cause the Maximum Percentage to be exceeded are
referred to herein as the "Ownership Limitation Shares". The Company will reserve the Ownership
Limitation Shares for the exclusive benefit of the Holder. From time to time, the Holder may notify the Company in writing of the
number of the Ownership Limitation Shares that may be issued to the Holder without causing the Holder to exceed the Maximum Percentage.
Upon receipt of such notice, the Company shall be unconditionally obligated to immediately issue such designated shares to the
Holder, with a corresponding reduction in the number of the Ownership Limitation Shares. Notwithstanding the forgoing, the term
“4.99%” above shall be replaced with “9.99%” at such time as the Market Capitalization of the Common Stock
is less than $3,000,000.00. Notwithstanding any other provision contained herein, if the term “4.99%” is replaced with
“9.99%” pursuant to the preceding sentence, such increase to “9.99%” shall remain at 9.99% until increased,
decreased or waived by the Holder as set forth below.  For purposes of this Note, the term “Market Capitalization
of the Common Stock” shall mean the product equal to (A) the average VWAP of the Common Stock for the immediately preceding
fifteen (15) Trading Days, multiplied by (B) the aggregate number of outstanding shares of Common Stock as reported on the Company’s
most recently filed Form 10-Q or Form 10-K. By written notice to the Company, the Holder may increase, decrease or waive the Maximum
Percentage as to itself but any such waiver will not be effective until the 61st day after delivery thereof. The foregoing 61-day
notice requirement is enforceable, unconditional and non-waivable and shall apply to all Affiliates and assigns of the Holder.

1.8.         Prepayment. So long as the Borrower has not received a Notice of Conversion from the Holder, then the Borrower shall
have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder to prepay the Outstanding
Balance of this Note, in full, in accordance with this Section 1.8. Any notice of prepayment hereunder (an “Optional Prepayment
Notice”) shall be delivered to the Holder at its registered addresses and shall state: (a) that the Borrower is exercising
its right to prepay this Note, and (b) the date of prepayment, which shall be not more than three (3) Trading Days from the date
of the Optional Prepayment Notice. On the date fixed for prepayment (the “Optional Prepayment Date”), the Borrower
shall make payment of the Optional Prepayment Amount (as defined below) to or upon the order of the Holder as specified by the
Holder in writing to the Borrower at least one (1) Trading Day prior to the Optional Prepayment Date. If the Borrower exercises
its right to prepay this Note, the Borrower shall make payment to the Holder of an amount in cash (the “Optional Prepayment
Amount”) equal to 120%, multiplied by the then Outstanding Balance of this Note. If the Borrower delivers an Optional
Prepayment Notice and fails to pay the Optional Prepayment Amount due to the Holder within two (2) Trading Days following the Optional
Prepayment Date, the Borrower shall forever forfeit its right to prepay this Note pursuant to this Section 1.8.

    	8

    	 

    

2.            CERTAIN COVENANTS.

2.1.         Distributions on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall
not without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution
(whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely
in the form of additional shares of Common Stock, or (b) directly or indirectly or through any subsidiary make any other payment
or distribution in respect of its capital stock except for distributions pursuant to any stockholders’ rights plan which
is approved by a majority of the Borrower’s disinterested directors.

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

2.3.         Borrowings. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the
Holder’s prior written consent, create, incur, assume guarantee, endorse, contingently agree to purchase or otherwise become
liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the endorsement of negotiable
instruments for deposit or collection, or suffer to exist any liability for borrowed money, except (a) borrowings in existence
or committed on the date hereof and of which the Borrower has informed the Holder in writing prior to the date hereof, (b) indebtedness
to trade creditors or financial institutions incurred in the ordinary course of business, (c) borrowings, the proceeds of which
shall be used to repay this Note or (d) as permitted by the Purchase Agreement.

2.4.         Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without
the Holder’s prior written consent, sell, lease or otherwise dispose of any significant portion of the Borrower’s assets
outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned on a specified use of
the proceeds of disposition.

2.5.         Advances and Loans. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without
the Holder’s written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation,
including, without limitation, officers, directors, employees, subsidiaries and Affiliates of the Borrower, except loans, credits
or advances (a) in existence or committed on the date hereof and which the Borrower has informed Holder in writing prior to the
date hereof, (b) made in the ordinary course of business, or (c) not in excess of $100,000.

3.            EVENTS
OF DEFAULT.

3.1.         Events of Default. The occurrence of any of the following events of default (each, an “Event of Default”)
shall be an event of default hereunder:

(a)               
Failure to Pay Amounts Due. The Borrower fails to pay any amount when due on this Note, whether at maturity, upon
acceleration or otherwise.

(b)              
Conversion and the Shares. The Borrower (i) fails to issue Conversion Shares to the Holder or the Holder’s
broker (as set forth in the applicable Conversion Notice) by the Delivery Date, (ii) fails to transfer or cause its transfer agent
to transfer (issue) any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and
when required by this Note or any of the other Transaction Documents, (iii) the Borrower directs its transfer agent not to transfer
or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) any shares of Common Stock to be issued to the
Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note or any of the other Transaction
Documents, or (iv) fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer
agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any shares of
Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note or any
of the other Transaction Documents.

    	9

    	 

    

(c)               
Breach of Covenants and Obligations. The Borrower breaches any covenant or obligation or other term or condition
contained in this Note and any collateral documents including but not limited to the other Transaction Documents.

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

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

(f)               
Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary
of the Borrower or any of its property or other assets for more than $100,000, and shall remain unvacated, unbonded or unstayed
for a period of twenty (20) calendar days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

(g)               
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or
involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower
or any subsidiary of the Borrower.

(h)              
Delisting of Common Stock. The Borrower shall fail to maintain the listing and/or quotation, as applicable, of the
Common Stock on the Principal Market.

(i)                
Failure to Comply with the 1934 Act. The Borrower shall fail to comply with the reporting requirements of the 1934
Act; and/or the Borrower shall cease to be subject to the reporting requirements of the 1934 Act.

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

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

(l)                
Maintenance of Assets. The failure by the Borrower to maintain any material intellectual property rights, personal,
real property or other assets which are necessary to conduct its business (whether now or in the future).

(m)            
Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC for
any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the result
of such restatement would, by comparison to the unrestated financial statement, have constituted a material adverse effect on the
rights of the Holder with respect to this Note or any other Transaction Documents.

    	10

    	 

    

(n)              
Reverse Splits. The Borrower effectuates a reverse split of its Common Stock without twenty (20) calendar days prior
written notice to the Holder.

(o)              
Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower
fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in
a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve
shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to the Holder and the Borrower.

(p)              
DTC Eligible Common Stock. At any time during which the Borrower has obligations under this Note, the failure of
the Borrower to maintain DTC Eligible status for its Common Stock or the inability of any holder of unlegended certificated Common
Stock to be able to deposit such certificated Common Stock at the DTC and receive corresponding electronic shares in such holder’s
brokerage account.

3.2.         Default Effects; Automatic Acceleration. Upon the occurrence of any Event of Default, (a) the Outstanding Balance
shall immediately increase to 150% of the Outstanding Balance immediately prior to the occurrence of the Event of Default (the
“Balance Increase”), and (b) this Note shall then accrue interest at the Default Interest rate (collectively,
the “Default Effects”); provided, however, that (x) in no event shall the Balance Increase be applied
more than two times, and a particular Event of Default that triggers a Balance Increase will not cause the Balance Increase to
be triggered again unless such Event of Default is subsequently cured, but then occurs again after such cure, and (y) notwithstanding
any provision to the contrary herein, in no event shall the applicable interest rate at any time exceed the maximum interest rate
allowed under applicable law. The Default Effects shall automatically apply upon the occurrence of an Event of Default without
the need for any party to give any notice or take any other action. Further, upon the occurrence and during the continuation of
any Event of Default, the Holder may by written notice to the Borrower declare the entire Outstanding Balance immediately due and
payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything
contained herein or in the other Transaction Documents to the contrary notwithstanding; provided, however, that upon
the occurrence or existence of any Event of Default described in Sections 3.1(e), 3.1(g), 3.1(j), or 3.1(k), immediately and without
notice, all outstanding obligations payable by the Borrower hereunder shall automatically become immediately due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything contained herein
or in the Transaction Documents to the contrary (“Automatic Acceleration”). For avoidance of doubt, except in
the case of Automatic Acceleration resulting from an Event of Default under Sections 3.1(e), 3.1(g), 3.1(j), or 3.1(k), the Holder
shall retain all rights under this Note and the Transaction Documents, including the ability to convert the then Outstanding Balance
of this Note pursuant to Section 1 hereof, at all times following the occurrence of an Automatic Acceleration until the entire
Outstanding Balance at that time has been paid in full.

4.            MISCELLANEOUS.

4.1.         Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right
or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

4.2.         Notices. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall
be given in accordance with the subsection of the Purchase Agreement titled “Notices.”

    	11

    	 

    

4.3.         Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower
and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this
instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented,
then as so amended or supplemented.

4.4.         Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be
the benefit of the Holder and its successors and assigns; provided, however, that this Note may not be transferred, assigned
or conveyed by the Borrower without the prior written consent of the Holder. Each transferee of this Note must be an “accredited
investor” (as defined in Rule 501(a) of the Securities Act of 1933 (as amended, the “1933 Act”)). Notwithstanding
anything in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account
or other lending arrangement.

4.5.         Cost of Collection; Attorneys’ Fees. Upon the occurrence of any Event of Default, the Borrower shall pay to
the Holder hereof all costs and reasonable attorneys’ fees incurred by the Holder in connection with such Event of Default.
In the event of any action at law or in equity to enforce or interpret the terms of this Note or any
of the other Transaction Documents, the parties agree that the party who is awarded the most money shall be deemed the prevailing
party for all purposes and shall therefore be entitled to an additional award of the full amount of the attorneys’ fees and
expenses paid by such prevailing party in connection with the litigation and/or dispute without reduction or apportionment
based upon the individual claims or defenses giving rise to the fees and expenses. Nothing herein shall restrict or impair
a court’s power to award fees and expenses for frivolous or bad faith pleading.

4.6.         Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Illinois
without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions
contemplated by this Note shall be brought only in the state courts of Illinois or in the federal courts located in Cook County,
Illinois. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder
and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. In the event
that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall
be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably
waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this
Agreement or any other related or companion documents by mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to
limit in any way any right to serve process in any other manner permitted by law. THE BORROWER HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.

4.7.         Fees and Charges. The parties acknowledge and agree that upon the Borrower’s failure to comply with the provisions
of this Note, the Holder’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of
the parties’ inability to predict future interest rates, the Holder’s increased risk, and the uncertainty of the availability
of a suitable substitute investment opportunity for the Holder, among other reasons. Accordingly, any fees, charges, and interest
due under this Note are intended by the parties to be, and shall be deemed, a reasonable estimate of the Holder’s actual
loss of its investment opportunity and not a penalty, and shall not be deemed in any way to limit any other right or remedy Holder
may have hereunder, at law or in equity.

    	12

    	 

    

4.8.         Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm
to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges
that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach
or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other
available remedies at law or in equity, and in addition to the charges assessable herein, to an injunction or injunctions restraining,
preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity
of showing economic loss and without any bond or other security being required.

4.9.         Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the
Purchase Agreement and the other Transaction Documents.

4.10.       Notice of Corporate Events. Except as otherwise provided herein, the Holder of this Note shall have no rights as
a Holder of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Borrower shall provide
the Holder with prior notification of any meeting of the Borrower’s stockholders (and copies of proxy materials and other
information sent to stockholders). In the event of any taking by the Borrower of a record of its stockholders for the purpose of
determining stockholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe for,
purchase or otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share of any
class or any other securities or property, or to receive any other right, or for the purpose of determining stockholders who are
entitled to vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of the Borrower
or any proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder, at least
twenty (20) calendar days prior to the record date specified therein (or thirty (30) calendar days prior to the consummation of
the transaction or event, whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend,
distribution, right or other event, and a brief statement regarding the amount and character of such dividend, distribution, right
or other event to the extent known at such time. The Borrower shall make a public announcement of any event requiring notification
to the Holder hereunder substantially simultaneously with the notification to the Holder in accordance with the terms of this Section
4.10.

4.11.       Pronouns. All pronouns and any variations thereof refer
to the masculine, feminine or neuter, singular or plural, as the context may permit or require.

4.12.       Time of the Essence. Time is expressly made of the essence of each and every provision
of this Note.

[Remainder of
page intentionally left blank; signature page to follow]

    	13

    	 

    

IN WITNESS WHEREOF,
the Borrower has caused this Note to be signed in its name by its duly authorized officer as of the Issue Date set forth above.

EPAZZ, INC.

 

 

By: ______________________________

Printed Name: ______________________

Title: _____________________________

 

 

 

 

 

 

 

 

 

[Signature page to Secured Convertible Promissory
Note]

    	14

    	 

    

EXHIBIT A

St George
Investments LLC

303 EAST WACKER DRIVE, SUITE 1200

CHICAGO, ILLINOIS 60601

Date: _______________________

EPAZZ, INC.

309 W. Washington St., Suite 1225

Chicago, Illinois 60606

Attn: Shaun Passley, Chief Executive
Officer

 

CONVERSION NOTICE

 

The above-captioned
Holder hereby gives notice to EPAZZ, INC., an Illinois corporation (the “Company”), pursuant to that certain
Convertible Promissory Note made by the Company in favor of the Holder on September 5, 2013 (the “Note”), that
the Holder elects to convert the portion of the Outstanding Balance of the Note set forth below into fully paid and non-assessable
shares of Common Stock of the Company as of the date of conversion specified below. Such conversion shall be based on the Conversion
Price set forth below. In the event of a conflict between this Conversion Notice and the Note, the Note shall govern, or, in the
alternative, at the election of the Holder in its sole discretion, the Holder may provide a new form of Conversion Notice to conform
to the Note.

		A.	Date of conversion: ____________

		B.	Conversion #: ____________

		C.	Conversion Amount: ____________

		D.	Market Price_____ (Average of 2 lowest Trade Prices of last 10 Trading Days as per Exhibit A-1)

		E.	Market Price Floor $0.00005

		F.	Conversion Factor: 60%

		G.	Conversion Price: _______________ (D multiplied by E)

		H.	Conversion Shares: _______________ (C divided by F)

		I.	Remaining Outstanding Balance of Note: ____________*

* Subject to adjustments for corrections,
defaults, and other adjustments permitted by the Transaction Documents.

 

So that DTC processing
can begin, please deliver, via reputable overnight courier, a certificate representing DTC Eligible Conversion Shares to:

 

Name:__________________________

Address: _______________________

______________________________

 

To the extent the Conversion Shares are not
DTC Eligible, please deliver a certificate representing the non-DTC Eligible Conversion Shares to the party and address set forth
above.

 

Sincerely,

 

St
George Investments LLC

 

By: Fife Trading, Inc., Manager

 

 

     By:__________________________

           John M. Fife, President

 

    	15

    	 

    

 

EXHIBIT A-1

CONVERSION WORKSHEET

	Trading Day	Lowest Trade Price	Lowest 2 (Yes or No)
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Average	 	 

 

 

    	16Exhibit 10.12

 

NOTE PURCHASE AGREEMENT

 

This NOTE PURCHASE
AGREEMENT (this “Agreement”), dated as of September 5, 2013, is entered into by and between Epazz,
Inc., an Illinois corporation (the “Company”), and St George Investments
LLC, an Illinois limited liability company (the “Buyer”).

A.            The Company
and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”).

B.            The Buyer
desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement a Convertible
Promissory Note of the Company, in the form attached hereto as Exhibit A, in the aggregate principal amount of $56,900.00
(together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance
with the terms thereof, the “Note”), convertible into shares of common stock, $0.0001 par value per share, of
the Company (the “Common Stock”), upon the terms and subject to the limitations and conditions set forth in
such Note.

C.            For purposes
of this Agreement: “Conversion Shares” means all shares of Common Stock issuable upon conversion of or otherwise
pursuant to the Note (including, without limitation, such additional shares of Common Stock, if any, as are issuable (1) on account
of interest on the Note, or (2) as a result of the events described in Sections 1.3 and 1.4(g) of the Note; and “Securities”
means the Note and the Conversion Shares.

NOW THEREFORE,
the Company and the Buyer hereby agree as follows:

1.            Purchase and Sale of Note.

1.1.            Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer
agrees to purchase from the Company the Note.

1.2.            Form of Payment. On the Closing Date, (i) the Buyer shall pay the purchase price for the Note to be issued and sold
to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds
to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note, and (ii) the
Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase Price.

1.3.            Closing Date. Subject to the satisfaction (or written waiver) of the conditions set forth in Section 6 and Section
7 below, the date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”)
shall be 12:00 noon, Eastern Standard Time on or about September 5, 2013, or such other mutually agreed upon time. The closing
of the transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location
as may be agreed to by the parties.

1.4.            Original Issue Discount; Transaction Expenses. The Note carries an original issue discount of $4,400.00 (the
“OID”). In addition, the Company agrees to pay $2,500.00 to the Buyer to cover
the Buyer’s legal fees, accounting costs, due diligence, monitoring and other transaction costs incurred in connection with
the purchase and sale of the Note (the “Transaction Expense Amount”), all of which amount is included in the
initial principal balance of the Note. The Purchase Price, therefore, shall be $50,000.00, computed as follows: $56,900.00 original
principal balance, less the OID, less the Transaction Expense Amount.

    	1

    	 

    

2.            Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company that:

2.1.            Authorization;
Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf
of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

2.2.            Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a)
of Regulation D (an “Accredited Investor”).

3.            Representations
and Warranties of the Company. The Company represents and warrants to the Buyer that:

3.1.            Organization
and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate
and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated
and conducted. The Company and each of its Subsidiaries is duly qualified as a foreign corporation to do business and is in good
standing in every jurisdiction in which its ownership or use of property or the nature of the business conducted by it makes such
qualification necessary except where the failure to be so qualified or in good standing would not have a Material Adverse Effect.
“Material Adverse Effect” means any material adverse effect on the business, operations, assets, financial
condition or prospects of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby
or by the agreements or instruments to be entered into in connection herewith. “Subsidiaries” means any corporation
or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly, any equity or
other ownership interest.

3.2.            Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement and
the other Transaction Documents (defined below) and to consummate the transactions contemplated hereby and thereby and to issue
the Securities in accordance with the terms hereof and thereof, (ii) the execution and delivery of this Agreement and the Note
by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation, the
issuance of the Note along with the issuance and reservation for issuance of all Conversion Shares) have been duly authorized
by the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its
stockholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative,
and such authorized representative is the true and official representative with authority to sign this Agreement and the other
documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution
and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the
Company enforceable against the Company in accordance with its terms.

    	2

    	 

    

3.3.            Capitalization. As of the date hereof, the authorized capital stock of the Company consists of (a) 1,000 shares of
Series A convertible preferred stock, $0.0001 par value per share, of which 1,000 are outstanding (b) 1,000 shares of Series B
convertible preferred stock, $0.0001 par value per share, of which 1,000 are outstanding, (c) 6,000,000,000 shares of Class A Common
Stock, $0.0001 par value per share, of which approximately 3,389,700,915 shares are issued and outstanding, and (d) 60,000,000
shares of Class B convertible common stock, $0.0001 par value per share, of which 10,500,000 are issued and outstanding. Of the
outstanding shares of Common Stock, approximately __________ shares are beneficially
owned by Affiliates (as defined below) of the Company. Of the authorized shares of Common Stock that are not currently outstanding,
approximately __________ of such shares are reserved. Except as disclosed on the
Company’s SEC filings within 12 months prior to the Closing Date, no shares are reserved for issuance pursuant to the Company’s
stock option plans, and except as disclosed on the Company’s SEC filings within 12 months prior to the Closing Date, no shares
are reserved for issuance pursuant to securities exercisable for, or convertible into or exchangeable for shares of Common Stock.
All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized, validly issued, fully paid and
non-assessable. Except as disclosed on the Company’s SEC filings within 12 months prior to the Closing Date, no shares of
capital stock of the Company are subject to preemptive rights or any other similar rights of the stockholders of the Company or
any liens or encumbrances imposed through the actions or failure to act of the Company. As of the effective date of this Agreement,
except as disclosed on the Company’s SEC filings within 12 months prior to the Closing Date, (i) there are no outstanding
options, warrants, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments
or rights of any character whatsoever relating to, or securities or rights convertible into or exchangeable for any shares of capital
stock of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or may become
bound to issue additional shares of capital stock of the Company or any of its Subsidiaries, (ii) there are no agreements or arrangements
under which the Company or any of its Subsidiaries is obligated to register the sale of any of its or their securities under the
1933 Act and (iii) there are no anti-dilution or price adjustment provisions contained in any security issued by the Company (or
in any agreement providing rights to security holders) that will be triggered by the issuance of the Note or the Conversion Shares.
The Company has furnished to the Buyer true and correct copies of the Company’s Certificate of Incorporation or Articles
of Incorporation (as applicable) as in effect on the date hereof (“Certificate of Incorporation”), the Company’s
Bylaws, as in effect on the date hereof (the “Bylaws”), and the terms of all securities convertible into or
exercisable for Common Stock of the Company and the material rights of the holders thereof in respect thereto. The Company shall
provide the Buyer with a written update of this representation signed by the Company’s Chief Executive on behalf of the Company
as of the Closing Date.

3.4.            Issuance of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the
Note in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens,
claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights
of stockholders of the Company and will not impose personal liability upon the holder thereof.

3.5.            Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common
Stock upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation
to issue Conversion Shares in accordance with this Agreement and the Note, as applicable, is absolute and unconditional regardless
of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company.

    	3

    	 

    

3.6.            No Conflicts. The execution, delivery and performance of this Agreement and the other Transaction Documents by the
Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation,
the issuance and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any
provision of the Certificate of Incorporation or Bylaws, or (ii) violate or conflict with, or result in a breach of any provision
of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument
to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations
to which the Company or its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property
or asset of the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect). Neither
the Company nor any of its Subsidiaries is in violation of its Certificate of Incorporation, Bylaws or other organizational documents
and neither the Company nor any of its Subsidiaries is in default (and no event has occurred which with notice or lapse of time
or both could put the Company or any of its Subsidiaries in default) under, and neither the Company nor any of its Subsidiaries
has taken any action or failed to take any action that would give to others any rights of termination, amendment, acceleration
or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party or by which
any property or assets of the Company or any of its Subsidiaries is bound or affected, except for possible defaults as would not,
individually or in the aggregate, have a Material Adverse Effect. The businesses of the Company and its Subsidiaries, if any, are
not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities, in violation of any law, ordinance
or regulation of any governmental entity. Except as specifically contemplated by this Agreement and as required under the 1933
Act and any applicable state securities laws, the Company is not required to obtain any consent, authorization or order of, or
make any filing or registration with, any court, governmental agency, regulatory agency, self-regulatory organization or stock
market or any third party in order for it to execute, deliver or perform any of its obligations under this Agreement or the Note
in accordance with the terms hereof or thereof or to issue and sell the Note in accordance with the terms hereof and to issue the
Conversion Shares upon conversion of the Note. All consents, authorizations, orders, filings and registrations which the Company
is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof. The Company
is not in violation of the listing or quotation requirements of the (1) NYSE Amex, (2) the New York Stock Exchange, (3) the Nasdaq
Global Market, (4) the Nasdaq Capital Market, (5) the OTC Bulletin Board, (6) the OTCQX or OTCQB, or (7) such other market on which
the Common Stock is principally traded at the relevant time, excluding “OTC Pink” published or compiled by Pink OTC
Markets Inc. (formerly Pink Sheets LLC), or any successor entity or other publisher thereof (collectively,
the “Principal Market”), and does not reasonably anticipate that the Common Stock will be delisted or discontinued
for quotation by the Principal Market in the foreseeable future. The Company and its Subsidiaries are unaware of any facts or circumstances
which might give rise to any of the foregoing.

3.7.            SEC Documents; Financial Statements. The Company has timely filed all reports, schedules, forms, statements and other
documents required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934,
as amended (the “1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein
and financial statements and schedules thereto and documents (other than exhibits to such documents) incorporated by reference
therein, being hereinafter referred to herein as the “SEC Documents”). Upon written request, the Company will
deliver to the Buyer true and complete copies of the SEC Documents, except for such exhibits and incorporated documents. As of
their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules
and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they
were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
None of the statements made in any such SEC Documents is, or has been, required to be amended or updated under applicable law (except
for such statements as have been amended or updated in subsequent filings prior the date hereof). As of their respective dates,
the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have
been prepared in accordance with United States generally accepted accounting principles, consistently applied, during the periods
involved and fairly present in all material respects the consolidated financial position of the Company and its consolidated Subsidiaries
as of the dates thereof and the consolidated results of their operations and cash flows for the periods then ended (subject, in
the case of unaudited statements, to normal year-end audit adjustments). Except as set forth in the financial statements of the
Company included in the Company’s most recently filed SEC Documents, the Company has no liabilities, contingent or otherwise,
other than (i) liabilities incurred in the ordinary course of business subsequent to March 31, 2013 (“Last Audit Date”),
and (ii) obligations under contracts and commitments incurred in the ordinary course of business and not required under generally
accepted accounting principles to be reflected in such financial statements, which, individually or in the aggregate, are not material
to the financial condition or operating results of the Company. The Company is subject to the reporting requirements of the 1934
Act.

    	4

    	 

    

3.8.            Absence of Certain Changes. Since the Last Audit Date, there has been no material adverse change and no material
adverse development in the assets, liabilities, business, properties, operations, financial condition, results of operations, prospects
or 1934 Act reporting status of the Company or any of its Subsidiaries.

3.9.            Absence of Litigation. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court,
public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its
Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity
as such, that could have a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances
which might give rise to any of the foregoing.

3.10.          Patents, Copyrights, etc. The Company and each of its Subsidiaries owns or possesses the requisite licenses or rights
to use all patents, patent applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications,
service marks, service names, trade names and copyrights (“Intellectual Property”) necessary to enable it to
conduct its business as now operated (and, as presently contemplated to be operated in the future); there is no claim or action
by any person pertaining to, or proceeding pending, or to the Company’s knowledge threatened, which challenges the right
of the Company or of a Subsidiary with respect to any Intellectual Property necessary to enable it to conduct its business as now
operated (and, as presently contemplated to be operated in the future); to the best of the Company’s knowledge, the Company’s
or its Subsidiaries’ current and intended products, services and processes do not infringe on any Intellectual Property or
other rights held by any person; and the Company is unaware of any facts or circumstances which might give rise to any of the foregoing.
The Company and each of its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value
of their Intellectual Property.

3.11.          No Materially Adverse Contracts, Etc. Neither the Company nor any of its Subsidiaries is subject to any charter,
corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s
officers has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is
a party to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material
Adverse Effect.

3.12.          Tax Status.
The Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all other tax returns, reports
and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each
of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes)
and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due
on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provisions
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations
apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the
officers of the Company know of no basis for any such claim. The Company has not executed a waiver with respect to the statute
of limitations relating to the assessment or collection of any foreign, federal, state or local tax. None of the Company’s
tax returns is presently being audited by any taxing authority.

    	5

    	 

    

3.13.          Certain Transactions. Except for arm’s length transactions pursuant to which the Company or any of its Subsidiaries
makes payments in the ordinary course of business upon terms no less favorable than the Company or any of its Subsidiaries could
obtain from third parties, none of the officers, directors, or employees of the Company is presently a party to any transaction
with the Company or any of its Subsidiaries (other than for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property
to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company,
any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest
or is an officer, director, trustee or partner.

3.14.          Disclosure. All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement
and provided to the Buyer in connection with the transactions contemplated hereby is true and correct in all material respects
and the Company has not omitted to state any material fact necessary in order to make the statements made herein or therein, in
light of the circumstances under which they were made, not misleading. No event or circumstance has occurred or exists with respect
to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions,
which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been
so publicly announced or disclosed (assuming for this purpose that the Company’s reports filed under the 1934 Act are being
incorporated into an effective registration statement filed by the Company under the 1933 Act).

3.15.          Acknowledgment Regarding the Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer
is acting solely in the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated
hereby. The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer
or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is
not advice or a recommendation and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents
to the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation
of the Company and its representatives.

3.16.          No Integrated Offering. Neither the Company, nor any of its Affiliates, nor any person acting on its or their behalf,
has directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities
to the Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes
of any stockholder approval provisions applicable to the Company or its securities.

    	6

    	 

    

3.17.        No Brokers.
The Company has taken no action which would give rise to any claim by any person for brokerage commissions, transaction fees or
similar payments relating to this Agreement or the transactions contemplated hereby.

3.18.        Permits; Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and operate
its properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”),
and there is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of the
Company Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of the
Company Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect. Since the Last Audit Date, neither the Company nor any of its Subsidiaries has received
any notification with respect to possible conflicts, defaults or violations of applicable laws, except for notices relating to
possible conflicts, defaults or violations, which conflicts, defaults or violations would not have a Material Adverse Effect.

3.19.        Environmental Matters.

(a)            There are, to the Company’s knowledge, with respect to the Company or any of its Subsidiaries or any predecessor of
the Company, no past or present violations of Environmental Laws (as defined below), releases of any material into the environment,
actions, activities, circumstances, conditions, events, incidents, or contractual obligations which may give rise to any common
law environmental liability or any liability under the Comprehensive Environmental Response, Compensation and Liability Act of
1980 or similar federal, state, local or foreign laws and neither the Company nor any of its Subsidiaries has received any notice
with respect to any of the foregoing, nor is any action pending or, to the Company’s knowledge, threatened in connection
with any of the foregoing. The term “Environmental Laws” means all federal, state, local or foreign laws relating
to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened
releases of chemicals, pollutants contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

(b)            Other than those that are or were stored, used or disposed of in compliance with applicable law, no Hazardous Materials
are contained on or about any real property currently owned, leased or used by the Company or any of its Subsidiaries, and no Hazardous
Materials were released on or about any real property previously owned, leased or used by the Company or any of its Subsidiaries
during the period the property was owned, leased or used by the Company or any of its Subsidiaries, except in the normal course
of the Company’s or any of its Subsidiaries’ business.

(c)            There are no underground storage tanks on or under any real property owned, leased or used by the Company or any of its
Subsidiaries that are not in compliance with applicable law.

    	7

    	 

    

3.20.            Title to
Property. The Company and its Subsidiaries have good and marketable title in fee simple to all real property and good and
marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries,
in each case free and clear of all liens, encumbrances and defects except such as would not have a Material Adverse Effect. Any
real property and facilities held under lease by the Company and its Subsidiaries are held by them under valid, subsisting and
enforceable leases with such exceptions as would not have a Material Adverse Effect.

3.21.            Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has any reason to believe that
it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. Upon written
request, the Company will provide to the Buyer true and correct copies of all policies relating to directors’ and officers’
liability coverage, errors and omissions coverage, and commercial general liability coverage.

3.22.            Internal Accounting Controls. The Company and each of its Subsidiaries maintain a system of internal accounting controls
sufficient, in the judgment of the Company’s board of directors, to provide reasonable assurance that (i) transactions are
executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset
accountability, (iii) access to assets is permitted only in accordance with management’s general or specific authorization,
and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

3.23.            Foreign Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee
or other person acting on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the Company,
used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity;
made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; violated
or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or made any bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

3.24.            Solvency. As disclosed on the Company’s SEC filings, the Company (after giving effect to the transactions contemplated
by this Agreement) has more assets than liabilities and is solvent (i.e., its assets have a fair market value greater than
the amount required to pay its probable liabilities on its existing debts as they become absolute and matured). Currently the Company
has no information that would lead it to reasonably conclude that the Company would not, after giving effect to the transaction
contemplated by this Agreement, have the ability to, nor does it intend to take any action that would impair its ability to, pay
its debts from time to time incurred in connection therewith as such debts mature.

3.25.            No Investment
Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement, will not
be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment
Company”). The Company is not controlled by an Investment Company.

3.26.            Breach of
Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth
in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, such breach will be
considered an Event of Default under Section 3.1(d) of the Note.

    	8

    	 

    

3.27.            No Section
3(a)(9) Transaction or Section 3(a)(10) Transaction. The Company has not entered into any transaction or arrangement structured
in accordance with, based upon, or related or pursuant to, in whole or in part, either Section 3(a)(9) of the 1933 Act or Section
3(a)(10) of the 1933 Act during the three month period immediately preceding the date of this Agreement.

3.28.            No Shell Company. The Company is not, nor has it ever been, the type of “issuer” defined in Rule 144(i)(1)
under the 1933 Act (a “Shell Company”). The Company acknowledges and agrees that (i) it is essential to the
Buyer that the Buyer be able to sell Common Stock it receives under the Note in reliance on Rule 144, (ii) if the Company were
or ever had been a Shell Company, any Common Stock received by the Buyer under the Note could not be sold in reliance on Rule 144
(at least without satisfying additional conditions), and (iii) Buyer is relying on the truth and accuracy of the Company’s
representation in the foregoing sentence and the availability of Rule 144 with respect to Buyer’s selling of Common Stock
in entering into this Agreement and purchasing the Note.

4.            COVENANTS.

4.1.            Best Efforts.
The parties shall use their best efforts to timely satisfy each of the conditions described in Section 6 and 7 of this Agreement.

4.2.            Form D; Blue
Sky Laws. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and to provide
a copy thereof to the Buyer promptly after such filing. The Company shall, on or before the Closing Date, take such action as
the Company shall reasonably determine is necessary to qualify the Securities for sale to the Buyer at the applicable closing
pursuant to this Agreement under applicable securities or “blue sky” laws of the states of the United States (or to
obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyer on or prior
to the Closing Date.

4.3.            Use of Proceeds. The Company shall use the proceeds for general working capital purposes.

4.4.           
[INTENTIONALLY OMITTED].

4.5.           
Expenses. The Company shall reimburse the Buyer for expenses incurred by it in connection with the negotiation, preparation,
execution, delivery and performance of this Agreement and the other agreements, documents and approvals to be executed in connection
herewith (“Transaction Documents”), including, without limitation, reasonable attorneys’ and consultants’
fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of
the Transaction Documents or any consents or waivers of provisions in the Transaction Documents, fees for the preparation of opinions
of counsel, escrow fees, and costs of restructuring the transactions contemplated by the Transaction Documents. The Company’s
obligation with respect to this Section 4.5 is to pay the Buyer the Transaction Expense Amount in the manner set forth in Section
1.4.

4.6.           
Financial Information. Upon written request, the Company agrees to send or make available the following reports to
the Buyer until the Buyer transfers, assigns, or sells all of the Securities: (i) within ten (10) calendar days after the filing
with the SEC, a copy of its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K;
(ii) within one (1) Trading Day (as defined in the Note) after release, copies of all press releases issued by the Company or any
of its Subsidiaries; and (iii) contemporaneously with the making available or giving to the stockholders of the Company, copies
of any notices or other information the Company makes available or gives to such stockholders.

    	9

    	 

    

4.7.        Listing. The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange
or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance)
and, so long as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed,
such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long
as the Buyer owns any of the Securities, maintain the listing and/or quotation, as applicable, and trading of its Common Stock
on the Principal Market and will comply in all respects with the Company’s reporting, filing and other obligations under
the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such exchanges, as applicable.
The Company shall promptly provide to the Buyer copies of any notices it receives from the Principal Market and any other exchanges
or quotation systems on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing
on such exchanges and quotation systems.

4.8.        Corporate Existence. So long as the Buyer beneficially owns the Note, the Company shall maintain its corporate existence
and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or
sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i)
assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith,
and (ii) is a publicly traded corporation whose Common Stock is listed for trading or quotation on the Principal Market.

4.9.        No Integration. The Company shall not make any offers or sales of any security (other than the Securities) under
circumstances that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the
offering of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder
approval provision applicable to the Company or its securities.

4.10.        Breach of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to
any other remedies available to the Buyer pursuant to this Agreement, such breach will be considered an Event of Default under
Section 3.1(c) of the Note.

4.11.        Failure to Comply with the 1934 Act. So long as the Buyer beneficially owns the Note, the Company shall comply with
the reporting requirements of the 1934 Act so as to enable the Buyer to sell Common Stock in reliance on Rule 144 (as defined below);
and the Company shall continue to be subject to the reporting requirements of the 1934 Act.

4.12.        Transfer
Agent Reserve. From and after the date hereof and until all of the Company’s obligations hereunder and the Note are
paid and performed in full:

(a)            the Company shall at all times require its transfer agent (its “Transfer Agent”) to establish a reserve
of shares of authorized but unissued Common Stock in an amount not less than the Reserved Amount (as defined in the Note) (the
“Transfer Agent Reserve”);

(b)            the Company shall require its Transfer Agent to hold the Transfer Agent Reserve for the exclusive benefit of the Buyer and
shall authorize the Transfer Agent to issue the shares of Common Stock held in the Transfer Agent Reserve to the Buyer only (subject
to subsection 4.12(c) immediately below);

    	10

    	 

    

(c)            the Company shall cause the Transfer Agent to agree that when the Transfer Agent issues shares of Common Stock to the Buyer
pursuant to the Transaction Documents, the Transfer Agent will not issue such shares from the Transfer Agent Reserve, unless such
is pre-approved in writing by the Buyer;

(d)            the Company shall cause the Transfer Agent to agree that it will not reduce the Transfer Agent Reserve under any circumstances,
unless such reduction is pre-approved in writing by the Buyer;

(e)            no less frequently than quarterly, the Company shall recalculate the Transfer Agent Reserve as of such time (each a “Transfer
Agent Reserve Calculation”), and if additional shares of Common Stock are required to be added to the Transfer Agent
Reserve pursuant to subsection 4.12(a) above, the Company shall immediately give instructions to the Transfer Agent to cause the
Transfer Agent to set aside and increase the Transfer Agent Reserve by the necessary number of shares in increments of 1,000,000
shares of Common Stock; and

(f)            within three (3) Trading Days of a written request from the Buyer, the Company shall certify in writing to the Buyer (1)
the correctness of the Company’s Transfer Agent Reserve Calculation and (2) that either (A) the Company has instructed the
Transfer Agent to increase the Transfer Agent Reserve in accordance with the terms hereof, or (B) there was no need to increase
the Transfer Agent Reserve, in either case consistent with the Transfer Agent Reserve Calculation. If the Company has not instructed
the Transfer Agent to so increase the Transfer Agent Reserve, then Holder is hereby authorized to send such written request to
the Transfer Agent.

For the avoidance of any doubt, the
requirements of this Section 4.12 are material to this Agreement and any violation or breach thereof by the Company shall constitute
a default under this Agreement.

4.13.        For so long as any portion of the Note remains outstanding, the Common Stock shall be and
remain eligible to be deposited in certificate form at the Depository Trust Company (“DTC”), cleared and converted
into electronic shares by the DTC and held in the name of the clearing firm servicing the Buyer’s brokerage firm for the
benefit of the Buyer (“DTC Eligible”). At any time a portion of the Note remains outstanding and the Common
Stock is not DTC Eligible, such event shall be considered an Event of Default under Section 3.1(d) of the Note.

4.14.        Transfer or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not
being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (1)
the Securities are sold pursuant to an effective registration statement under the 1933 Act, (2) the Buyer shall have delivered
to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions
of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration, which opinion shall be accepted by the Company, (3) the Securities are sold or transferred
to an “affiliate” (an “Affiliate”) (as defined in Rule 144 promulgated under the 1933 Act (or a
successor rule) (“Rule 144”)) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance
with this Section 4.14 and who is an Accredited Investor, (4) the Securities are sold pursuant to Rule 144, or (5) the Securities
are sold pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall
have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary
for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities
made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable,
any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed
to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933
Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation
to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption
thereunder (in each case). Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may
be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

    	11

    	 

    

4.15.            Legends. The Buyer understands that the Conversion Shares have not been registered under the 1933 Act, and until
the Conversion Shares are registered or may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number
of securities as of a particular date that can then be immediately sold, certificates representing the Conversion Shares may bear
a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates
for such Securities):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
STATE AND MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION
OF COUNSEL IN FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS
OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED, OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT.

 

The legend set forth
above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it
is stamped, if, unless otherwise required by applicable state securities laws, (i) such Security is registered for sale under an
effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without
any restriction as to the number of securities as of a particular date that can then be immediately sold, or (ii) such holder provides
the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions,
to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion
shall be accepted by the Company so that the sale or transfer is effected. In the event that the Company does not accept the opinion
of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as
Rule 144 or Regulation S, at the Delivery Date (as defined in the Note), such will be considered an Event of Default under the
Note (including without limitation under Section 3.1(b) of the Note).

5.            Transfer Agent Instructions.

5.1.            Instructions.
The Company shall issue and agree to irrevocable instructions to its transfer agent, in form and substance satisfactory to the
Buyer, to issue Conversion Shares in such amounts as specified from time to time by the Buyer to the Company upon conversion of
the Note in accordance with the applicable terms thereof (the “Irrevocable Transfer Agent Instructions”). In
the event that the Company proposes to replace its transfer agent, the Company shall provide, prior to the effective date of such
replacement, irrevocable transfer agent instructions in a form that is substantially similar to the Irrevocable Transfer Agent
Instructions (including but not limited to the requirement to irrevocably reserve shares of Common Stock in the Reserved Amount)
signed by the Company and successor transfer agent to the Company. The Company warrants that: (i) no instruction other than the
Irrevocable Transfer Agent Instructions referred to in this Section 5, will be given by the Company to its transfer agent and
that the Conversion Shares shall otherwise be freely transferable on the books and records of the Company as and to the extent
provided in this Agreement, the Note and/or the Irrevocable Transfer Agent Instructions; (ii) it will not direct its transfer
agent not to transfer, or delay, impair, and/or hinder its transfer agent in transferring (or issuing) any Conversion Shares to
the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the Note, this Agreement and/or the Irrevocable
Transfer Agent Instructions; and (iii) it will not fail to remove (or direct its transfer agent not to remove or impair, delay,
and/or hinder its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect
thereof) on any certificate for any Conversion Shares issued to the Buyer as and when required by the Note, this Agreement and/or
the Irrevocable Transfer Agent Instructions, as applicable. The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Buyer, by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly,
the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5 may be inadequate and agrees,
in the event of a breach or threatened breach by the Company of the provisions of this Section, that the Buyer shall be entitled,
in addition to all other available remedies, to an injunction restraining any breach and requiring immediate transfer, without
the necessity of showing economic loss and without any bond or other security being required.

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5.2.            DTC Eligible. The Company specifically covenants that, as of the Closing Date, the Common Stock shall be DTC Eligible.
If at any time that the Company receives a Conversion Notice and the Common Stock is not then DTC Eligible, then the Company shall
instruct the Transfer Agent to immediately issue one or more certificates for non-DTC Eligible Common Stock without legend in such
name and in such denominations as specified by the Holder consistent with the terms and conditions of the Transaction Documents.

5.3.            Transfer Fees. The Company shall assume any fees or charges of the Transfer Agent or Company counsel regarding (i)
the removal of a legend or stop transfer instructions with respect to the Securities, and (ii) the issuance of certificates or
DWAC registration to or in the name of the Buyer or the Buyer’s designee or to a transferee as contemplated by an effective
registration statement. Notwithstanding the foregoing, it shall be the Buyer’s responsibility to obtain all needed formal
requirements (e.g., medallion guarantee) in connection with any electronic issuance of shares of Common Stock.

6.            Conditions
to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Note to the Buyer
at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions thereto, provided
that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion:

6.1.            The Buyer shall have executed this Agreement and delivered the same to the Company.

6.2.            The Buyer shall have delivered the Purchase Price in accordance with Section 1.2 above.

6.3.            The representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made
and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date),
and the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date.

6.4.            No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization
having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated
by this Agreement.

    	13

    	 

    

7.            Conditions
to the Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to purchase the Note at the Closing is
subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions
are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

7.1.            The Company shall
have executed this Agreement and delivered the same to the Buyer.

7.2.            The Company shall have delivered to the Buyer the duly executed Note (in such denominations as the Buyer shall request)
in accordance with Section 1.2 above.

7.3.            The Irrevocable Transfer Agent Instructions shall have been delivered to and acknowledged in writing by the Company’s
Transfer Agent substantially in the form attached hereto as Exhibit B.

7.4.            The Company shall have delivered to the Buyer a fully executed secretary’s certificate evidencing the Company’s
approval of the Transaction Documents substantially in the form attached hereto as Exhibit C.

7.5.            The Company shall have delivered to the Buyer a fully executed share issuance resolution to be delivered to the Transfer
Agent substantially in the form attached hereto as Exhibit D.

7.6.            The representations and warranties of the Company shall be true and correct in all material respects as of the date when
made and as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific
date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date.
The Buyer shall have received a secretary’s certificate (or officer’s certificate), dated as of the Closing Date, to
the foregoing effect and as to such other matters as required hereby or as may be reasonably requested by the Buyer, together with
resolutions adopted by the board of directors and a share issuance resolution in form and substance reasonably acceptable to the
Buyer relating to and authorizing the Transaction Documents and the transactions contemplated thereby.

7.7.            No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including
but not limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934
Act reporting obligations.

7.8.            The Conversion Shares shall have been authorized for quotation on the Principal Market and trading in the Common Stock on
the Principal Market shall not have been suspended by the SEC or the Principal Market.

    	14

    	 

    

8.            Governing Law; Miscellaneous.

8.1.            Governing
Law; Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Illinois for contracts
to be wholly performed in such state and without giving effect to the principles thereof regarding the conflict of laws. Each
party hereto hereby (a) consents to and expressly submits to the exclusive personal jurisdiction of any state or federal court
sitting in Cook County, Illinois in connection with any dispute or proceeding arising out of or relating to this Agreement, (b)
agrees that all claims in respect of any such dispute or proceeding may only be heard and determined in any such court, (c) expressly
submits to the venue of any such court for the purposes hereof, and (d) waives any claim of improper venue and any claim or objection
that such courts are an inconvenient forum or any other claim or objection to the bringing of any such proceeding in such jurisdictions
or to any claim that such venue of the suit, action or proceeding is improper. Each party hereto hereby irrevocably consents to
the service of process of any of the aforementioned courts in any such proceeding by the mailing of copies thereof by reputable
overnight courier (e.g., FedEx) or certified mail, postage prepaid, to such party’s address as set forth herein, such service
to become effective ten (10) calendar days after such mailing.

8.2.            Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original
but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party.

8.3.            Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect
the interpretation of, this Agreement.

8.4.            Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall
be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision hereof.

8.5.            Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement may be waived or amended other than by an instrument in writing signed by the Buyer.

8.6.            Notices. Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein)
and shall be deemed effectively given on the earliest of:

(a)            the date delivered, if delivered by personal delivery as against written receipt therefor or by e-mail to an executive officer,
or by confirmed facsimile,

(b)            the fifth Trading Day after deposit, postage prepaid, in the United States Postal Service by certified mail, or

(c)            the third Trading Day after mailing by domestic or international express courier, with delivery costs and fees prepaid,

    	15

    	 

    

in each case, addressed to each of the other parties thereunto entitled
at the following addresses (or at such other addresses as such party may designate by ten (10) calendar days’ advance written
notice similarly given to each of the other parties hereto):

 

If to the Company, to:

Epazz, Inc.

309 W. Washington St., Suite 1225

Chicago, Illinois 60606

Attn: Shaun Passley, Chief Executive Officer

 

If to the Buyer:

St George Investments
LLC

303 East Wacker Drive, Suite 1200

Chicago, Illinois 60601

Attn: John Fife, President

Facsimile: 312.819.9701

 

With a copy by fax only to (which copy shall not constitute
notice):

Hansen Black Anderson
Ashcraft PLLC

2940 West Maple Loop, Suite 103

Lehi, Utah 84043

Attn: Jonathan K. Hansen

Facsimile: 801.922.5019

 

8.7.            Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Notwithstanding anything to the contrary herein, the rights, interests or obligations of the Company hereunder may
not be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of the
Buyer, which consent may be withheld at the sole discretion of the Buyer; provided, however, that in the case of a merger,
sale of substantially all of the Company’s assets or other corporate reorganization, the Buyer shall not unreasonably withhold,
condition or delay such consent. This Agreement or any of the severable rights and obligations inuring to the benefit of or to
be performed by Buyer hereunder may be assigned by Buyer to a third party, including its financing sources, in whole or in part,
without the need to obtain the Company’s consent thereto.

8.8.            Third Party Beneficiaries. 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.

8.9.            Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive the Closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The
Company agrees to indemnify and hold harmless the Buyer and all its officers, directors, employees, attorneys, and agents for loss
or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties
and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of
expenses as they are incurred.

    	16

    	 

    

8.10.          Publicity. The Company and the Buyer shall have the right to review a reasonable period of time before issuance of
any press releases, SEC, Principal Market or FINRA filings, or any other public statements with respect to the transactions contemplated
hereby; provided, however, that the Company shall be entitled, without the prior approval of the Buyer, to make any
press release or SEC, Principal Market or FINRA filings with respect to such transactions as is required by applicable law and
regulations (although the Buyer shall be consulted by the Company in connection with any such press release prior to its release
and shall be provided with a copy thereof and be given an opportunity to comment thereon).

8.11.          Further Assurances. 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.

8.12.          No Strict Construction. 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.

8.13.          Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to
the Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that
the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach
or threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other
available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining,
preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity
of showing economic loss and without any bond or other security being required.

8.14.          Buyer’s Rights and Remedies Cumulative. All rights, remedies, and powers conferred in this Agreement and the
Transaction Documents on the Buyer are cumulative and not exclusive of any other rights or remedies, and shall be in addition to
every other right, power, and remedy that the Buyer may have, whether specifically granted in this Agreement or any other Transaction
Document, or existing at law, in equity, or by statute; and any and all such rights and remedies may be exercised from time to
time and as often and in such order as the Buyer may deem expedient.

8.15.          Ownership Limitation. Notwithstanding anything to the contrary contained in this Agreement or the other Transaction
Documents, if at any time the Buyer shall or would be issued shares of Common Stock under any of the Transaction Documents, but
such issuance would cause the Buyer (together with its Affiliates) to beneficially own a number of shares exceeding the Maximum
Percentage (as defined in the Note), then the Company must not issue to the Buyer the excess Ownership Limitation Shares (as defined
in the Note). For purposes of this Section, beneficial ownership of Common Stock will be determined under the 1934 Act. The Company
will reserve the Ownership Limitation Shares for the exclusive benefit of the Buyer. From time to time, the Buyer may notify the
Company in writing of the number of Ownership Limitation Shares that may be issued to the Buyer without causing the Buyer to exceed
the Maximum Percentage. Upon receipt of such notice, the Company shall be unconditionally obligated to immediately issue such designated
shares to the Buyer, with a corresponding reduction in the number of the Ownership Limitation Shares. By written notice to the
Company, the Buyer may increase, decrease or waive the Maximum Percentage as to itself but any such waiver will not be effective
until the 61st day after delivery thereof. The foregoing 61-day notice requirement is enforceable, unconditional and
non-waivable and shall apply to all Affiliates and assigns of the Buyer. Additionally, if at any time after the Closing the Market
Capitalization of the Common Stock (as defined in the Note) falls below $3,000,000, then from that point on, for so long as the
Buyer or the Buyer’s Affiliate owns Common Stock or rights to acquire Common Stock, the Company shall post (or cause to be
posted), no less frequently than every thirty (30) calendar days, the then-current number of issued and outstanding shares of its
capital stock to the Company’s web page located at OTCmarkets.com (or such other web page approved by the Buyer). Additionally,
within three (3) Trading Days of a written request from Buyer, the Company (or the Company’s Transfer Agent) will provide
the Buyer the then-current number of authorized, but unissued and unreserved shares of its capital stock. The Company understands
that its failure to so post its shares outstanding or to provide the number of unissued and unreserved shares could result in economic
loss to the Buyer. As compensation to the Buyer for such loss, in addition to any other available remedies in the Transaction Documents
or at law or in equity, the Company shall pay the Buyer a late fee of $500.00 per calendar day for each calendar day that the Company
fails to comply with the foregoing obligation to post its shares outstanding or to provide the number of unreserved and unissued
shares as required herein. As elected by the Buyer, the amount of any late fees incurred under this Section shall either be automatically
added to the principal balance of the Note (without the need to provide any notice to the Company) or otherwise paid by the Company
in immediately available funds upon demand.

    	17

    	 

    

8.16.          Attorneys’ Fees and Cost of Collection. In the event of any action at law or in
equity to enforce or interpret the terms of this Agreement or any of the other Transaction Documents,
the parties agree that the party who is awarded the most money shall be deemed the prevailing party for all purposes and shall
therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses paid by such prevailing
party in connection with the litigation and/or dispute without reduction or apportionment based upon the individual claims or defenses giving
rise to the fees and expenses. Nothing herein shall restrict or impair a court’s power to award fees and expenses for
frivolous or bad faith pleading.

8.17.            Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS
SUCH PARTY MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT
OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY
ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH
PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

8.18.            Time
of the Essence. Time is expressly made of the essence of each and every provision of this
Agreement and the other Transaction Documents.

[Remainder of page intentionally left blank;
signature page to follow]

 

 

 

 

 

 

 

 

 

 

    	18

    	 

    

 

SUBSCRIPTION AMOUNT:

	Principal Amount of Note:	$56,900.00
	Purchase Price:	$50,000.00

 

 

IN WITNESS WHEREOF,
the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

THE BUYER:

 

St
George Investments LLC

 

By: Fife Trading, Inc., Manager

 

 

    By:____________________________

          John M. Fife, President

 

 

 

THE COMPANY:

 

Epazz,
Inc.

 

 

By:______________________________

Printed Name: _____________________

Title: ____________________________

 

 

 

 

 

ATTACHED EXHIBITS:

 

 Exhibit A                 Note

 Exhibit B                  Irrevocable Transfer Agent Instructions

 Exhibit C                  Secretary’s Certificate

 Exhibit D                  Share Issuance Resolution

 

 

    	19

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