Document:

EXHIBIT
10.2

 

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

 

 

	Principal
    Amount: US$235,000.00	Issue
    Date: September 23, 2021
	Purchase
    Price: US$217,375.00	 

 

PROMISSORY
NOTE

 

FOR
VALUE RECEIVED, VIRTUAL INTERACTIVE TECHNOLOGIES CORP., a Colorado corporation (hereinafter called the “Borrower”)
(Trading Symbol: VRVR), hereby promises to pay to the order of AJB Capital Investments LLC, a Delaware limited liability company,
or registered assigns (the “Holder”) the sum of US$235,000.00 (the “Principal”) together with interest (the “Interest”)
on the Principal balance hereof in the amount of twelve and one half percent (12.5%) (the “Interest Rate”) per calendar year
from the date hereof (the “Issue Date”). All Principal and any outstanding Interest owing hereunder, along with any and all
other amounts, shall be due and owing on March 23, 2022 (the “Maturity Date”). Interest shall be payable on the first business
day of each month. Notwithstanding the forgoing, the final payment of Principal and Interest shall be due on the Maturity Date. This
Note may be prepaid in whole or in part as set forth herein. Any amount of Principal or Interest on this Note which is not paid when
due shall bear interest at the rate of the lesser of (i) fifteen percent (15%) per annum and (ii) the maximum amount permitted under
law from the due date thereof until the same is paid (the “Default Interest”). Default Interest shall commence accruing upon
an Event of Default and shall be computed on the basis of a 360-day year and the actual number of days elapsed. All payments due hereunder
(to the extent not converted into common stock, $0.001 par value per share (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
hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Whenever any amount expressed to
be due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding
day which is a business day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the
extension of the due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date.
As used in this Note, the term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial
banks in the city of New York, New York are authorized or required by law or executive order to remain closed. Each capitalized term
used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the
date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”). The Maturity Date may be extended
by mutual consent of the Holder and the Borrower to up to six (6) months following the date of the Original Maturity Date hereunder

 

    	 

     

    

 

This
Note carries an original issue discount of $17,625 (the “OID”), to cover the Holder’s monitoring costs associated with
the purchase and sale of the Note, which is included in the principal balance of this Note. Thus, the purchase price of this Note shall
be $217,375.00 computed as follows: the Principal Amount minus the OID.

 

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 shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The
following terms shall also apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS ONLY UPON EVENT OF DEFAULT

 

1.1 Conversion
Right. The Holder shall have the right from time to time only following an Event of Default, and ending on the date of payment
of the Default Amount (as defined in Article III) pursuant to Section 1.6(a) or Article III, each in respect of the remaining
outstanding principal amount of this Note to convert all or any part of the outstanding and unpaid principal, interest, penalties,
and all other amounts under 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”); provided, however,
that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon
conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other
than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or
the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise
analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the
portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by
the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the
immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause
(1) of such proviso. The number of shares of Common Stock to be issued upon each conversion of this Note 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
or Borrower’s transfer agent by the Holder in accordance with Section 1.4 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 or
Borrower’s transfer agent before 11:59 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 sum of (1) the
principal amount of this Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid
interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, provided however,
that the Borrower shall have the right to pay any or all interest in cash plus (3) at the Holder’s option, Default
Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the
Holder’s option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

 

    	 

     

    

 

1.2 Conversion
Price.

 

Calculation
of Conversion Price. Subject to the adjustments described herein, the conversion price (the “Conversion Price”) shall
equal the lesser of 90% (representing a 10% discount) multiplied by the lowest trading price (i) during the previous twenty (20) Trading
Day period ending on the Issuance Date, or (ii) during the previous twenty (20) Trading Day period ending on date of conversion of this
Note. To the extent the Conversion Price of the Borrower’s Common Stock closes below the par value per share, the Borrower will
take all steps necessary to solicit the consent of the stockholders to reduce the par value to the lowest value possible under law. The
Borrower agrees to honor all conversions submitted pending this adjustment. Furthermore, the Conversion Price may be adjusted downward
if, within three (3) business days of the transmittal of the Notice of Conversion to the Borrower or Borrower’s transfer agent,
the Common Stock has a closing bid which is 5% or lower than that set forth in the Notice of Conversion. If the shares of the Borrower’s
Common Stock have not been delivered within three (3) business days to the Borrower or Borrower’s transfer agent, the Notice of
Conversion may be rescinded. At any time after the Closing Date, if in the case that the Borrower’s Common Stock is not deliverable
by DWAC (including if the Borrower’s transfer agent has a policy prohibiting or limiting delivery of shares of the Borrower’s
Common Stock specified in a Notice of Conversion), an additional 10% discount will apply for all future conversions under all Notes.
If in the case that the Borrower’s Common Stock is “chilled” for deposit into the DTC system and only eligible for
clearing deposit, an additional 15% discount shall apply for all future conversions under all Note. If in the case of both of the above,
an additional cumulative 25% discount shall apply. Additionally, if the Borrower ceases to be a
reporting company pursuant to the 1934 Act or if the Note cannot be converted into free trading shares after one hundred eighty-one (181)
days from the Issue Date, an additional 15% discount will be attributed to the Conversion Price. 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 tradable for any
period on the OTC Pink, OTCQB or on the principal securities exchange or other securities market on which the Common Stock is then being
traded. The Borrower shall be responsible for the fees of its transfer agent and all DTC fees associated with any such issuance. Holder
shall be entitled to deduct $750.00 from the conversion amount in each Notice of Conversion to cover Holder’s deposit fees associated
with each Notice of Conversion.

 

    	 

     

    

 

While
this Note is outstanding, each time any 3rd party has the right to convert monies owed to that 3rd party (or receive
shares pursuant to a settlement or otherwise), including but not limited to under Section 3(a)(9) and Section 3(a)(10), at a discount
to market greater than the Conversion Price in effect at that time (prior to all other applicable adjustments in the Note), then the
Holder, in Holder’s sole discretion, may utilize such greater discount percentage (prior to all applicable adjustments in this
Note) until this Note is no longer outstanding. While this Note is outstanding, each time any 3rd party has a look back period
greater than the look back period in effect under the Note at that time, including but not limited to under Section 3(a)(9) and Section
3(a)(10), then the Holder, in Holder’s sole discretion, may utilize such greater number of look back days until this Note is no
longer outstanding. The Borrower shall give written notice to the Holder within one (1) business day of becoming aware of any event that
could permit the Holder to make any adjustment described in the two immediately preceding sentences.

(a)
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 (x) the Conversion Price which would have
been applicable for a Conversion occurring on the Announcement Date and (y) 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(a).
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.

 

(b)
Pro Rata
Conversion; Disputes. In the event of a dispute as to the number of shares of Common Stock issuable to the Holder in connection with
a conversion of this Note, the Borrower shall issue to the Holder the
number of shares of Common Stock not in dispute and resolve such dispute in accordance with Section
4.13.

 

    	 

     

    

 

(c)
If at any
time the Conversion Price as determined hereunder for any conversion would be less than the par value of the Common Stock, then the Conversion
Price hereunder shall equal such par value for such conversion and the Conversion Amount for such conversion shall be increased to include
Additional Principal, where “Additional Principal” means such additional amount to be added to the Conversion Amount to the
extent necessary to cause the number of conversion shares issuable upon such conversion to equal the same number of conversion shares
as would have been issued had the Conversion Price not been subject to the minimum price set forth in this Section 1.2(c).

 

 1.3 Authorized Shares. The Borrower covenants
that during the period while any outstanding balance is owing hereunder or any conversion of the Note is available, 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 issued pursuant to the Purchase Agreement. The Borrower is required at
all times to have authorized and reserved five (5) times the number of shares that is actually issuable upon full conversion of the Note
(based on the Conversion Price of the Notes in effect from time to time) (the “Reserved Amount”). The Reserved Amount shall
be increased from time to time in accordance with the Borrower’s obligations pursuant to Section 3(d) of the Purchase Agreement.
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 the Notes 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 the outstanding Notes. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent
to issue certificates for 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 executing stock certificates to execute and issue
the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note. Notwithstanding the foregoing,
in no event shall the Reserved Amount be lower than the initial Reserved Amount, regardless of any prior conversions.

 

If,
at any time the Borrower does not maintain or replenish the Reserved Amount within three (3) business days of the request of the Holder,
the principal amount of the Note shall increase by Five Thousand and No/100 United States Dollars ($5,000) (under Holder’s and
Borrower’s expectation that any principal amount increase will tack back to the Issue Date) per occurrence.

    	 

     

    

 

 1.4 Method of Conversion.

 

(a)
Mechanics of Conversion. Subject
to Section 1.1, this Note may be converted by the Holder in whole or in part at any time from time to time after an Event of Default,
by (A) submitting to the Borrower or Borrower’s transfer agent a Notice of Conversion (by facsimile, e-mail or other reasonable
means of communication dispatched on the Conversion Date prior to 11:59 p.m., New York, New York time) and (B) subject to Section 1.4(b),
surrendering this Note at the principal office of the Borrower. 

 

 (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 unpaid principal
amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount 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 Borrower 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 (upon payment by the Holder of any applicable transfer taxes) may request, representing in the aggregate the remaining
unpaid principal amount 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 principal amount of this
Note represented by this Note may be less than the amount stated on the face hereof.

 

(c) Payment
of Taxes. The 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 shares of Common Stock 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. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication)
of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver
or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion
within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid
principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement.

 

    	 

     

    

 

(e) Obligation
of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the
holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid
interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations under this Article
I, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common
Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion
as provided herein, the Borrower’s obligation to issue and deliver the certificates for 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 received by the Borrower before 11:59 p.m., New York, New York time,
on such date.

 

(f)
Delivery of Common Stock by Electronic
Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower
is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program,
upon request of the Holder and its compliance with the provisions contained in Section 1.1 and in this Section 1.4, the Borrower shall
use its commercially reasonable best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion
to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal At Custodian (“DWAC”)
system.

 

(g) DTC
Eligibility & Market Loss. If the Borrower fails to maintain its status as “DTC Eligible” for any reason, or, if
the Conversion Price is less than $0.05 at any time after the Issue Date, the principal amount of the Note shall increase by Fifteen
Thousand and No/100 United States Dollars ($15,000) (under Holder’s and Borrower’s expectation that any principal amount
increase will tack back to the Issue Date) and the Variable Conversion Price shall be redefined to mean thirty percent (30%) multiplied
by the Market Price, subject to adjustment as provided in this Note.

 

(h)
Failure to Deliver Common Stock
Prior to Delivery Deadline. 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
by the Deadline (other than a failure due to the circumstances described in Section 1.3 above, which failure shall be governed by such
Section) the Borrower shall pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver
such Common Stock until the Borrower issues and delivers a certificate to the Holder or credit the Holder’s balance account with
OTC for the number of shares of Common Stock to which the Holder is entitled upon such Holder’s conversion of any Conversion Amount
(under Holder’s and Borrower’s expectation that any damages will tack back to the Issue Date).. Such cash amount shall be
paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written
notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount
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, interference with such conversion right are
difficult if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages provision contained in this Section
1.4(h) are justified.

 

    	 

     

    

 

(i) Rescindment
of a Notice of Conversion. If (i) the Borrower fails to respond to Holder within one (1) business day from the Conversion Date confirming
the details of Notice of Conversion, (ii) the Borrower fails to provide any of the shares of the Borrower’s Common Stock requested
in the Notice of Conversion within three (3) business days from the date of receipt of the Note of Conversion, (iii) the Holder is unable
to procure a legal opinion required to have the shares of the Borrower’s Common Stock issued unrestricted and/or deposited to sell
for any reason related to the Borrower’s standing, (iv) the Holder is unable to deposit the shares of the Borrower’s Common
Stock requested in the Notice of Conversion for any reason related to the Borrower’s standing, (v) at any time after a missed Deadline,
at the Holder’s sole discretion, or (vi) if OTC Markets changes the Borrower’s designation to ‘Limited Information’
(Yield), ‘No Information’ (Stop Sign), ‘Caveat Emptor’ (Skull & Crossbones), ‘OTC’, ‘Other
OTC’ or ‘Grey Market’ (Exclamation Mark Sign) or other trading restriction on the day of or any day after the Conversion
Date, the Holder maintains the option and sole discretion to rescind the Notice of Conversion (“Rescindment”) with a “Notice
of Rescindment.”

 

1.5 Concerning the Shares. The shares of Common
Stock issuable upon conversion of this Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration
statement under the Act or (ii) the Borrower or its transfer agent shall have been furnished with an opinion of counsel (which opinion
shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to
be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred
pursuant to Rule 144 under the Act (or a successor rule) (“Rule 144”) or other applicable exemption or (iv) such shares are
transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares
only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). Except as otherwise
provided in the Purchase Agreement (and subject to the removal provisions set forth below), until such time as the shares of Common Stock
issuable upon conversion of this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 or other applicable
exemption without any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate
for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration statement
or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear
a legend substantially in the following form, as appropriate:

 

    	 

     

    

 

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
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 OR OTHER APPLICABLE
EXEMPTION. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The
legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend
if (i) the Borrower or its transfer agent shall have received 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 Common Stock may be made without registration
under the Act, which opinion shall be reasonably accepted by the Borrower so that the sale or transfer is effected or (ii) in the case
of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration
statement filed under the Act or otherwise may be sold pursuant to Rule 144 or other applicable exemption without any restriction as
to the number of securities as of a particular date that can then be immediately sold. In the event that the Borrower 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 Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.

 

 1.6 Effect of Certain Events.

 

(a)
Effect of Merger, Consolidation,
Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower,
the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the
Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as
defined below) or Persons when the Borrower is not the survivor shall either: (i) be deemed to be an Event of Default (as defined in
Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such
transaction an amount equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person”
shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.

 

    	 

     

    

 

(b)
Adjustment Due to Merger, Consolidation,
Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Notes, there shall be any merger,
consolidation, exchange of shares, recapitalization, reorganization, or other similar event, 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 the 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 Borrower shall not affect any transaction
described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in
any event at least fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if
there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or
other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor
or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions
shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

(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 shareholders 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 shareholders 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 shareholders entitled to such Distribution.

 

 (d) Adjustment
Due to Dilutive Issuance. If, at any time when any Notes are 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, except for shares of Common Stock issued directly to vendors or suppliers
of the Borrower in satisfaction of amounts owed to such vendors or suppliers (provided, however, that such vendors or suppliers shall
not have an arrangement to transfer, sell or assign such shares of Common Stock prior to the issuance of such shares), any shares of
Common Stock for no consideration or for a consideration per share (before deduction of reasonable expenses or commissions or 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.

 

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 (other than where the same are issuable upon the exercise of Options), 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 (i) 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 (ii) 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 any Notes are 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)
Notice of Adjustments. Upon
the occurrence of each adjustment or readjustment of the Conversion Price 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 the Note.

 

1.7
Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares
covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated
portion of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s
rights as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates
for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because
of a failure by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received certificates
for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect to a conversion
of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock
by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of
this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered,
adjust its records to reflect that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its
rights and remedies (including, without limitation, (i) the right to receive Conversion Default Payments pursuant to Section 1.3 to the
extent required thereby for such Conversion Default and any subsequent Conversion Default and (ii) the right to have the Conversion Price
with respect to subsequent conversions determined in accordance with Section 1.3) for the Borrower’s failure to convert this Note.

 

    	 

     

    

 

1.8 Prepayment.
Provided that an Event of Default has not occurred under this Note and the Holder provides written consent to the Borrower with respect
to the Borrower’s prepayment of this Note at the time of such prepayment, the Borrower may prepay the amounts outstanding hereunder
by making a payment to the Holder of an amount in cash equal to the sum of: (w) the then outstanding principal amount of this Note plus
(x) accrued and unpaid interest on the unpaid principal amount of this Note plus (y) Default Interest, if any.

 

1.9 Prepayment
Notice. Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the
Note at its registered addresses by physical mail and shall state: (1) that the Borrower is requesting to prepay the Note, and (2) the
date of the requested prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice.
If the Holder provides written consent of such prepayment, then on the date fixed for prepayment (the “Optional Prepayment Date”),
the Borrower shall make payment of the applicable prepayment amount to or upon the order of the Holder as specified by the Holder in
writing to the Borrower. If the Borrower delivers an Optional Prepayment Notice which has been consented to in writing by the Holder,
and Borrower fails to pay the applicable prepayment amount due to the Holder of the Note within two (2) business days following the Optional
Prepayment Date, the Borrower shall forever forfeit its right to request a prepayment pursuant to Section 1.9.

 

 Article
II. 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 shareholders’ 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 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 Holder in writing prior
to the date hereof, (b) indebtedness to trade creditors financial institutions or other lenders incurred in the ordinary course of business
or (c) borrowings, the proceeds of which shall be used to repay this Note.

 

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 written consent, sell, lease or otherwise dispose
of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets shall
be conditioned on a specified use of the proceeds towards the repayment of this Note.

 

 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.

 

2.6 Section 3(a)(9) or 3(a)(10) Transaction.
So long as this Note is outstanding, the Borrower shall not enter 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 Securities Act (a “3(a)(9) Transaction”)
or Section 3(a)(l0) of the Securities Act (a “3(a)(l0) Transaction”). In the event that the Borrower does enter into, or
makes any issuance of Common Stock related to a 3(a)(9) Transaction or a 3(a)(l0) Transaction while this note is outstanding, a liquidated
damages charge of 25% of the outstanding principal balance of this Note, but not less than Fifteen Thousand Dollars $15,000, will be
assessed and will become immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance
of this Note.

 

    	 

     

    

 

 2.7 Preservation of Existence, etc. The Borrower
shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its existence, rights and privileges, and become
or remain, and cause each of its Subsidiaries (other than dormant Subsidiaries that have no or minimum assets) to become or remain, duly
qualified and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction
of its business makes such qualification necessary.

 

2.8 Non-circumvention. The Borrower hereby covenants
and agrees that the Borrower will not, by amendment of its Certificate or Articles of Incorporation or Bylaws, or through any reorganization,
transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this Note, and will at all times in good faith carry out
all the provisions of this Note and take all action as may be required to protect the rights of the Holder.

 

2.9
Repayment from Proceeds. While any portion of this Note is outstanding, if the Company receives cash proceeds from any source
or series of related or unrelated sources, including but not limited to, from payments from customers, the issuance of equity or debt,
the conversion of outstanding warrants of the Borrower, the issuance of securities pursuant to an equity line of credit of the Borrower
or the sale of assets, the Borrower shall, within one (1) business day of Borrower’s receipt of such proceeds, inform the Holder
of such receipt, following which the Holder shall have the right in its sole discretion to require the Borrower to immediately apply
all or any portion of such proceeds to repay all or any portion of the outstanding amounts owed under this Note. Failure of the Borrower
to comply with this provision shall constitute an Event of Default. In the event that such proceeds are received by the Holder prior
to the Maturity Date, the required prepayment shall be subject to the terms of Section 1.8 herein.

 

Article
III. EVENTS OF DEFAULT

 

If
any of the following events of default (each, an “Event of Default”) shall occur:

 

 3.1 Failure to Pay Principal or Interest. The
Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity, upon acceleration or otherwise.

 

    	 

     

    

 

3.2 Conversion and the Shares. The Borrower (i)
fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do
so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, (ii) fails to transfer
or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued
to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, (iii) directs its transfer agent
not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated
form) any certificate for 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, (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 certificate
for 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 makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph)
and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not
be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion, (v) fails to remain
current in its obligations to its transfer agent, (vi) causes a conversion of this Note is delayed, hindered or frustrated due to a balance
owed by the Borrower to its transfer agent, (vii) fails to repay Holder, within forty eight (48) hours of a demand from the Holder, any
amount of funds advanced by Holder to Borrower’s transfer agent in order to process a conversion, (viii) fails to reserve sufficient
amount of shares of common stock to satisfy the Reserved Amount at all times, (ix) fails to provide a Rule 144 opinion letter from the
Borrower’s legal counsel to the Holder, covering the Holder’s resale into the public market of the respective conversion
shares under this Note, within two (2) business days of the Holder’s submission of a Notice of Conversion to the Borrower (provided
that the Holder must request the opinion from the Borrower at the time that Holder submits the respective Notice of Conversion and the
date of the respective Notice of Conversion must be on or after the date which is six (6) months after the date that the Holder funded
the Purchase Price under this Note), and/or (x) an exemption under Rule 144 is unavailable for the Holder’s deposit into Holder’s
brokerage account and resale into the public market of any of the conversion shares under this Note at any time after the date which
is six (6) months after the date that the Holder funded the Purchase Price under this Note. 

 

3.3 Failure to Deliver Transaction Expense Amount.
The Borrower fails to deliver the Transaction Expense Amount (as defined in the Purchase Agreement) to the Holder within three (3) business
days of the date such amount is due.

 

    	 

     

    

 

3.4 Breach of Covenants. The Borrower breaches
any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited
to the Purchase Agreement and such breach continues for a period of ten (10) days after written notice thereof to the Borrower from the
Holder.

 

 3.5 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), shall be false or misleading in any material respect
when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with
respect to this Note or the Purchase Agreement.

 

3.6 Receiver or Trustee. The Borrower or any
subsidiary of the Borrower shall make an assignment for the benefit of creditors or commence proceedings for its dissolution, 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 for the Borrower or for a substantial part of its property or business without its consent and
shall not be discharged within sixty (60) days after such appointment.

 

 3.7 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 $50,000, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the
Holder, which consent will not be unreasonably withheld.

 

 3.8 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, or the Borrower admits in writing its inability
to pay its debts generally as they mature, or have filed against it an involuntary petition for bankruptcy relief, all under federal
or state laws as applicable or the Borrower admits in writing its inability to pay its debts generally as they mature, or have filed
against it an involuntary petition for bankruptcy relief, all under international, federal or state laws as applicable.

 

3.9 Delisting of Common Stock. The Borrower shall
fail to maintain the listing of the Common Stock on at least one of the OTC Pink, OTCQB, Nasdaq National Market, Nasdaq Small Cap Market,
New York Stock Exchange, NYSE MKT, or an equivalent replacement exchange

 

    	 

     

    

 

 3.10 Failure to Comply with the Exchange Act.
The Borrower shall fail to comply with the reporting requirements of the Exchange Act (including but not limited to becoming delinquent
in its filings); and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

 

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

 

3.12
Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay
its debts as such debts become due, 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.

 

 3.13 Maintenance of Assets. The failure by 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), or any disposition or conveyance of any material asset of the Borrower.

 

3.14 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 the Purchase Agreement.

 

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

 

3.16
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 Borrower and the Borrower.

 

    	 

     

    

 

3.17
Cessation of Trading. Any cessation of trading of the Common Stock on at least one of the OTC Pink, OTCQB, Nasdaq National Market,
Nasdaq Small Cap Market, New York Stock Exchange, NYSE MKT, or an equivalent replacement exchange, and such cessation of trading shall
continue for a period of five consecutive (5) Trading Days.

 

3.18
Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a
breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements (as defined herein),
after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under
this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies
of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other
Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit
of, (2) the Holder (and any affiliate of the Holder) or any other third party, including, without limitation, promissory notes; provided,
however, the term “Other Agreements” shall not include the agreements and instruments defined as the Documents. Each of the
loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to
the Holder.

 

3.19
Bid Price. The Borrower shall lose the “bid” price for its Common Stock ($0.0001
on the “Ask” with zero market makers on the “Bid” per Level 2) and/or a market (including the OTC Pink,
OTCQB or an equivalent replacement exchange).

 

3.20
OTC Markets Designation. OTC Markets changes the Borrower’s designation to ‘No Information’ (Stop Sign), ‘Caveat
Emptor’ (Skull and Crossbones), or ‘OTC’, ‘Other OTC’ or ‘Grey Market’ (Exclamation Mark Sign).

 

3.21
Inside Information. Any attempt by the Borrower or its officers, directors, and/or affiliates to transmit, convey, disclose, or
any actual transmittal, conveyance, or disclosure by the Borrower or its officers, directors, and/or affiliates of, material non-public
information concerning the Borrower, to the Holder or its successors and assigns, which is not immediately cured by Borrower’s
filing of a Form 8-K pursuant to Regulation FD on that same date.

 

3.22
Unavailability of Rule 144. If, at any time on or after the date which is six (6) months after the Issue Date, the Holder is unable
to (i) obtain a standard “144 legal opinion letter” from an attorney reasonably acceptable to the Holder, the Holder’s
brokerage firm (and respective clearing firm), and the Borrower’s transfer agent in order to facilitate the Holder’s conversion
of any portion of the Note into free trading shares of the Borrower’s Common Stock pursuant to Rule 144, and (ii) thereupon deposit
such shares into the Holder’s brokerage account.

 

3.23
Delisting or Suspension of Trading of Common Stock. If, at any time on or after the Issue Date, the Borrower’s Common Stock
(i) is suspended from trading, (ii) halted from trading, and/or (iii) fails to be quoted or listed (as applicable) on any level of the
OTC Markets, any tier of the NASDAQ Stock Market, the New York Stock Exchange, or the NYSE American.

 

    	 

     

    

 

UPON
THE OCCURRENCE OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3 OF THIS NOTE, THE NOTE SHALL BECOME IMMEDIATELY AND AUTOMATICALLY DUE AND
PAYABLE WITHOUT DEMAND, PRESENTMENT, OR NOTICE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER,
AN AMOUNT EQUAL TO: (A) IN THE EVENT OF AN OCCURRENCE OF ANY EVENT OF DEFAULT SPECIFIED IN OF SECTION 3.2, 3.9, 3.10, 3.16, 3.17, 3.19,
3.20, 3.22 OR 3.23, the then outstanding principal amount of this Note plus (x) accrued
and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”)
plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the
Holder pursuant to Sections 1.3 and 1.4(g) hereof, MULTIPLED BY TWO (2); OR (B) IN THE EVENT OF THE OCCURRENCE OF ANY EVENT OF
DEFAULT SPECIFIED IN ANY OTHER SECTION, the then outstanding principal amount of this Note plus
(x) accrued and unpaid interest on the unpaid principal amount of this Note to the Mandatory Prepayment Date, plus (y) Default
Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections
1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to
in clauses (x), (y) and (z) shall collectively be known as the “Default Sum”) or (ii) at the option of the Holder,
the “parity value” of the Default Sum to be prepaid, where parity value means (a) the highest number of shares of Common
Stock issuable upon conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately
preceding the Mandatory Prepayment Date as the “Conversion Date” for purposes of determining the lowest applicable Conversion
Price, unless the Default Event arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion
Date shall be the Conversion Date), multiplied by (b) the highest trading price for the Common Stock during the period beginning
on the date of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the “Default
Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice,
all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection,
and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity. Further, if a breach of Sections
3.9, 3.10 and/or 3.19 occurs or is continuing after the six (6) month anniversary of this Note, then the principal amount of the Note
shall increase by Fifteen Thousand and No/100 United States Dollars ($15,000) (under Holder’s and Borrower’s expectation
that any principal amount increase will tack back to the Issue Date) and the Holder shall be entitled to use the lowest trading price
during the delinquency period as a base price for the conversion with the Variable Conversion Price shall be redefined to mean forty
percent (40%) multiplied by the Market Price, subject to adjustment as provided in this Note. For example, if the lowest trading price
during the delinquency period is $0.50 per share and the conversion discount is 50%, then the Holder may elect to convert future conversions
at $0.25 per share. If this Note is not paid at Maturity Date, then the outstanding principal due under this Note shall increase by Fifteen
Thousand and No/100 United States Dollars ($15,000).

 

The
Holder shall have the right at any time after an Event of Default occurs under this Note to require the Borrower, to immediately issue,
in lieu of the Default Amount and/or Default Sum, the number of shares of Common Stock of the Borrower equal to the Default Amount and/or
Default Sum divided by the Conversion Price then in effect, pursuant to the terms of this Note (including but not limited to any beneficial
ownership limitations contained herein). This requirement by the Borrower 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.

 

    	 

     

    

 

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

 

If
the Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging an
attorney, the Holder shall be entitled to use the lowest trading price during the delinquency period as a base price for the conversion
and the Variable Conversion Price shall be redefined to mean forty percent (40%) multiplied by the Market Price, subject to adjustment
as provided in this Note.

 

 Article IV. 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. All notices, demands, requests,
consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein,
shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, electronic mail, or
facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice.
Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery
by electronic mail or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number
designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business
day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received)
or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address,
or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If
to the Borrower, to:

 

Virtual
Interactive Technologies Corp.

7976
East Phillips Circle

Centennial,
CO 80112-3231

Attn:
CEO

E-mail:
______________

 

If
to the Holder:

 

AJB
Capital Investments LLC

4700
Sheridan Street, Suite J

Hollywood,
FL 33021

Attn:
___________

Email:
__________

 

    	 

     

    

 

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. Neither
the Borrower nor the Holder shall assign this Note or any rights or obligations hereunder without the prior written consent of the other.
Notwithstanding the foregoing, the Holder may assign its rights hereunder to any “accredited investor” (as defined in Rule
501(a) of the 1933 Act) in a private transaction from the Holder or to any of its “affiliates”, as that term is defined under
the 1934 Act, without the consent of the Borrower. 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. The Holder and any assignee, by acceptance
of this Note, acknowledge and agree that following conversion of a portion of this Note, the unpaid and unconverted principal amount
of this Note represented by this Note may be less than the amount stated on the face hereof.

 

 4.5 Cost of Collection. If default is made in
the payment of this Note, the Borrower shall pay the Holder hereof reasonable costs of collection, including reasonable attorneys’
fees.

 

    	 

     

    

 

4.6 Governing Law. This Note shall be governed
by and construed in accordance with the laws of the State of Wyoming 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 located
in the State of New York or federal courts located in the State of New York. 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. 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. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. 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 Transaction
Document 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.

 

 4.7 Certain Amounts. Whenever pursuant to this
Note the Borrower is required to pay an amount in excess of the outstanding principal amount (or the portion thereof required to be paid
at that time) plus accrued and unpaid interest plus Default Interest on such interest, the Borrower and the Holder agree that the actual
damages to the Holder from the receipt of cash payment on this Note may be difficult to determine and the amount to be so paid by the
Borrower represents stipulated damages and not a penalty and is intended to compensate the Holder in part for loss of the opportunity
to convert this Note and to earn a return from the sale of shares of Common Stock acquired upon conversion of this Note at a price in
excess of the price paid for such shares pursuant to this Note. The Borrower and the Holder hereby agree that such amount of stipulated
damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity
to convert this Note into shares of Common Stock.

 

    	 

     

    

 

 4.8 Purchase Agreement. By its acceptance of
this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.

 

4.9 Notice of Corporate Events. Except as otherwise
provided below, 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 shareholders
(and copies of proxy materials and other information sent to shareholders). In the event of any taking by the Borrower of a record of
its shareholders for the purpose of determining shareholders 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 shareholders
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) days prior to the record date specified therein (or thirty (30) 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 4.9 including, but not limited to, name changes, recapitalizations,
etc. as soon as possible under law.

 

 4.10 Usury. If it shall be found that any interest
or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable provision shall automatically
be revised to equal the maximum rate of interest or other amount deemed interest permitted under applicable law. The Borrower covenants
(to the extent that it may lawfully do so) that it will not seek to claim or take advantage of any law that would prohibit or forgive
the Borrower from paying all or a portion of the principal or interest on this Note.

 

    	 

     

    

 

4.11
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 penalties 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. No provision of this Note
shall alter or impair the obligation of the Borrower, which is absolute and unconditional, to pay the principal of, and interest on,
this Note at the time, place, and rate, and in the form, herein prescribed.

 

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

 

 4.13 Dispute Resolution. In the case of a dispute
as to the determination of the Conversion Price, Conversion Amount, any prepayment amount or Default Amount, Default Sum, Closing or
Maturity Date, the closing bid price, or fair market value (as the case may be) or the arithmetic calculation of the Conversion Price
or the applicable prepayment amount(s) (as the case may be), the Borrower or the Holder shall submit the disputed determinations or arithmetic
calculations via facsimile (i) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute to the
Borrower or the Holder or (ii) if no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving
rise to such dispute. If the Holder and the Borrower are unable to agree upon such determination or calculation within two (2) Business
Days of such disputed determination or arithmetic calculation (as the case may be) being submitted to the Borrower or the Holder, then
the Borrower shall, within two (2) Business Days, submit via facsimile (a) the disputed determination of the Conversion Price, the closing
bid price, the or fair market value (as the case may be) to an independent, reputable investment bank selected by the Borrower and approved
by the Holder or (b) the disputed arithmetic calculation of the Conversion Price, Conversion Amount, any prepayment amount or Default
Amount, Default Sum to an independent, outside accountant selected by the Holder that is reasonably acceptable to the Borrower. The Borrower
shall cause at its expense the investment bank or the accountant to perform the determinations or calculations and notify the Borrower
and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations.
Such investment bank’s or accountant’s determination or calculation shall be binding upon all parties absent demonstrable
error.

 

    	 

     

    

 

 4.14 Terms of Future Financings. So long as this
Note is outstanding, upon any issuance by the Borrower or any of its subsidiaries of any security with any term more favorable to the
holder of such security or with a term in favor of the holder of such security that was not similarly provided to the Holder in this
Note, then the Borrower shall notify the Holder of such additional or more favorable term and such term, at Holder’s option, shall
become a part of the transaction documents with the Holder. The types of terms contained in another security that may be more favorable
to the holder of such security include, but are not limited to, terms addressing conversion discounts, prepayment rate, conversion lookback
periods, interest rates, original issue discounts, stock sale price, private placement price per share, and warrant coverage.

 

4.15 Registration Rights. The Borrower shall
file a registration statement with the SEC registering, at the option of the holder, all shares issuable upon conversion of this Note,
the Commitment Fee Shares (as defined in the Purchase Agreement), and the shares issuable pursuant to Sections 4(p)(i) and 4(p)(ii) of
the Purchase Agreement, within forty five (45) days of the Borrower’s filing of its Form 10-1 for the fiscal quarter ending September
30, 2021, and the Holder may demand registration one or more times. The Holder shall determine the number of shares to be registered
in its sole and absolute discretion. The Borrower’s failure to comply with this Section 4.15 shall result in liquidated damages
of 25% of the outstanding principal balance of this Note, but not less than Fifteen Thousand and No/100 United States Dollars ($15,000),
being immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance of this Note.

 

4.16
Future Raises; Repayment from Proceeds. The Borrower shall not consummate any capital raising transactions (including but not
limited to from the issuance of debt and/or equity securities) during the initial sixty (60) days after the Issue Date. Until the Note
is satisfied in full, if the Borrower receives cash proceeds from any source or series of related or unrelated sources, including but
not limited to, from the issuance of equity and/or debt securities, the conversion of outstanding warrants of the Borrower, the issuance
of securities pursuant to an equity line of credit of the Borrower or the sale of assets, the Borrower shall, within one (1) business
day of Borrower’s receipt of such proceeds, inform the Holder of such receipt, following which the Holder shall have the right
in its sole discretion to require the Borrower to immediately apply all or any portion of such proceeds to repay all or any portion of
this Note. Failure of the Borrower to comply with this provision shall constitute an Event of Default under Section 3.4 of the Note.
In the event that such proceeds are received by the Holder prior to the Maturity Date, the required prepayment shall be subject to the
terms of Section 1.8 herein.

 

[signature
page follows]

 

    	 

     

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer as of the date first above written.

 

	 	VIRTUAL
    INTERACTIVE TECHNOLOGIES CORP. 
	 	 
	 	By:
    	/s/
    Jason Garber
	 	Name: 	Jason Garber
	 	Title:
    	Chief
    Executive Officer

 

    	 

     

    

 

EXHIBIT
A

NOTICE
OF CONVERSION 

 

The
undersigned hereby elects to convert $_________________principal amount of the Note (defined below) together with $________________ of
accrued and unpaid interest thereto, totaling $_____________ into that number of shares of Common
Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of Virtual Interactive
Technologies Corp., a Colorado corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower
dated as of August ___, 2021 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion,
except for transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

	 	[  ] 	The
    Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned
    or its nominee with DTC through its Deposit Withdrawal At Custodian system (“DWAC Transfer”).
	 	 	 
	 	 	Name
    of DTC Prime Broker: 
	 	 	Account
    Number: 
	 	 	 
	 	[  ] 	The
    undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth
    below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or,
    if additional space is necessary, on an attachment hereto:

 

Name:
[NAME]

Address:
[ADDRESS]

 

	 	Date
    of Conversion: 	 _____________
	 	Applicable
    Conversion Price: 	$____________
	 	Number
    of Shares of Common Stock to be Issued 	 
	 	Pursuant
    to Conversion of the Notes: 	_____________
	 	Amount
    of Principal Balance Due remaining	 
	 	Under
    the Note after this conversion: 	_____________
	 	Accrued
    and unpaid interest remaining:	_____________

 

[HOLDER]

 

	 	By:	 	 
	 	Name:	[NAME]	 
	 	Title:
    	[TITLE]	 
	 	Date:	
    [DATE]EXHIBIT
10.3

 

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT (this “Agreement”) made and effective as of September 23, 2021, is executed by and between VIRTUAL
INTERACTIVE TECHNOLOGIES CORP., a Colorado corporation (the “Company”), and AJB CAPITAL INVESTMENTS, LLC,
a Delaware limited liability company (the “Secured Party”).

 

WHEREAS,
pursuant to a Securities Purchase Agreement dated as of the date hereof, between the Company and the Secured Party (the “Purchase
Agreement”), the Company has agreed to issue to the Secured Party and the Secured Party has agreed to purchase from Company
a 12.5% Promissory Note (the “Note”), as more specifically set forth in the Purchase Agreement; and

 

WHEREAS,
in order to induce the Secured Party to purchase the Note, the Company has agreed to execute and deliver to the Secured Party this Agreement
for the benefit of the Secured Party and to grant to Secured Party an unconditional and continuing, a security interest in all of the
assets and property of the Company to secure the prompt payment, performance and discharge in full of all of Company’s obligations
under the Note, and the Purchase Agreement and the other document executed in connection with the Purchase Agreement (the “Transaction
Documents”).

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements of the parties hereinafter set forth and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties each intending to be legally bound, hereby do agree as follows:

 

1.
Recitals. The recitations set forth in the preamble of this Agreement are true and correct and incorporated herein by this reference.

 

2.
Construction and Definition of Terms. In this Agreement, unless the express context otherwise requires: (i) the words “herein,”
“hereof’ and “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular
provision of this Agreement; (ii) references to the words “Section” or “Subsection” refer to the respective Sections
and Subsections of this Agreement, and references to “Exhibit” or “Schedule” refer to the respective Exhibits
and Schedules attached hereto; (iii) wherever the word “include,” “includes” or “including” is used
in this Agreement, it will be deemed to be followed by the words “without limitation.” All capitalized terms used in this
Agreement that are defined in the Purchase Agreement or otherwise defined in Articles 8 or 9 of the Code shall have the meanings assigned
to them in the Purchase Agreement or the Code, respectively and as applicable, unless the context of this Agreement requires otherwise.
In addition to the capitalized terms defined in the Code and the Purchase Agreement, unless the context otherwise requires, when used
herein, the following capitalized terms shall have the following meanings (provided that if a capitalized term used herein is defined
in the Purchase Agreement and separately defined in this Agreement, the meaning of such term as defined in this Agreement shall control
for purposes of this Agreement):

 

(a)
“Agreement” means this Security Agreement and all amendments, modifications and supplements hereto.

 

(b)
“Bankruptcy Code” means the United States Bankruptcy Code, as amended from time to time, or any other similar laws,
codes, rules or regulations relating to bankruptcy, insolvency or the protection of creditors.

 

    	 

    	 

    

 

(c)
“Business Premises” shall mean the Company’s offices located at 7976 East Phillips Circle Centennial, CO 80112.

 

(d)
“Closing” shall mean the date on which this Agreement is fully executed by both parties.

 

(e)
“Code” shall mean the Uniform Commercial Code as in effect from time to time in the State of Wyoming, provided that
terms used herein which are defined in the Code as in effect in the State of Wyoming on the date hereof shall continue to have the same
meaning notwithstanding any replacement or amendment of such statute, except as the Secured Party may otherwise agree.

 

(f)
“Collateral” shall mean any and all property of the Company, of any kind or description, tangible or intangible, real,
personal or mixed, wheresoever located and whether now existing or hereafter arising or acquired, including the following: (i) all property
of, or for the account of, the Company now or hereafter coming into the possession, control or custody of, or in transit to, Secured
Party or any agent or bailee for Secured Party or any parent, affiliate or subsidiary of Secured Party or any participant with Secured
Party in the Obligations (whether for safekeeping, deposit, collection, custody, pledge, transmission or otherwise), including all cash,
earnings, dividends, interest, or other rights in connection therewith and the products and proceeds therefrom, including the proceeds
of insurance thereon; (ii) the following additional property of the Company, whether now existing or hereafter arising or acquired, and
wherever now or hereafter located, together with all additions and accessions thereto, substitutions, betterments and replacements therefor,
products and Proceeds therefrom, and all of the Company’s books and records and recorded data relating thereto (regardless of the
medium of recording or storage), together with all of the Company’s right, title and interest in and to all computer software required
to utilize, create, maintain and process any such records or data on electronic media, including all: (A) Accounts, and all goods whose
sale, lease or other disposition by the Company have given rise to Accounts and have been returned to, or repossessed or stopped in transit
by, the Company, or rejected or refused by an Account debtor; (B) As-extracted Collateral; (C) Chattel Paper (whether tangible or electronic);
(D) Commodity Accounts; (E) Commodity Contracts; (F) Deposit Accounts, including all cash and other property from time to time deposited
therein and the monies and property in the possession or under the control of the Secured Party or any affiliate, representative, agent,
designee or correspondent of the Secured Party; (G) Documents; (H) Equipment; (I) Farm Products; (J) Fixtures; (K) General Intangibles
(including all Payment Intangibles); (L) Goods, and all accessions thereto and goods with which the Goods are commingled; (M) Health-Care
Insurance Receivables; (N) Instruments; (O) Inventory, including raw materials, work-in-process and finished goods; (P) Investment Property;
(Q) Letter-of-Credit Rights; (R) Promissory Notes; (S) Software; (T) all Supporting Obligations; (U) all commercial tort claims hereafter
arising; (V) all other tangible and intangible personal property of the Company (whether or not subject to the Code), including, all
bank and other accounts and all cash and all investments therein, all proceeds, products, offspring, accessions, rents, profits, income,
benefits, substitutions and replacements of and to any of the property of the Company described within the definition of Collateral (including,
any proceeds of insurance thereon and all causes of action, claims and warranties now or hereafter held by the Company in respect of
any of the items listed within the definition of Collateral), and all books, correspondence, files and other Records, including, all
tapes, desks, cards, Software, data and computer programs in the possession or under the control of the Company or any other Person from
time to time acting for the Company, in each case, to the extent of the Company’s rights therein, that at any time evidence or
contain information relating to any of the property described or listed within the definition of Collateral or which are otherwise necessary
or helpful in the collection or realization thereof; (W) all real property interests of the Company and the interest of the Company in
fixtures related to such real property interests; and (X) Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of
any or all of the foregoing, in each case howsoever the Company’s interest therein may arise or appear (whether by ownership, security
interest, claim or otherwise).

    	 

    	 

    

 

(g)
“Event of Default” shall mean any of the events described in Section 4 hereof.

 

(h)
“Obligations” means all obligations and liabilities (monetary (including post-petition interest, allowed or not) or
otherwise) of the Company under this Agreement, the Purchase Agreement, the Note and any other Transaction Document which are owed to
Secured Party, all in each case howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter
existing, or due or to become due.

 

(i)
“Uncured Continuing Event of Default” means the occurrence of an Event of Default (as provided for herein) that has
not been cured by the Company on or before the expiration of the applicable cure period or has not otherwise been waived or consented
to by the Secured Party.

 

3.
Security.

 

(a)
Grant of Security Interest. As security for the full payment and performance of all of the Obligations, whether or not any instrument
or agreement relating to any Obligation specifically refers to this Agreement or the security interest created hereunder, the Company
hereby assigns, pledges and grants to Secured Party an unconditional, continuing security interest in all of the Collateral. Secured
Party’s security interest shall continually exist until all Obligations have been indefeasibly satisfied and/or paid in full.

 

(b)
Representations, Warranties, Covenants and Agreement of the Company. The Company covenants, warrants and represents, for the benefit
of the Secured Party, as follows:

 

(i)
The Company has the requisite power and authority to enter into this Agreement and otherwise to carry out its obligations hereunder.
The execution, delivery and performance by the Company of this Agreement and the filings contemplated herein have been duly authorized
by all necessary action on the part of the Company and no further action is required by the Company. This Agreement constitutes a legal,
valid and binding obligation of the Company enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditor’s rights generally.

 

(ii)
The Company represents and warrants that it has no place of business or offices where their respective books of account and records are
kept or places where Collateral is stored or located, except for the Business Premises.

 

(iii)
The Company is the sole owner of the Collateral (except for non-exclusive licenses granted by the Company in the Company’s Ordinary
Course of Business), free and clear of any and all Encumbrances. The Company is fully authorized to grant the security interests in and
to pledge the Collateral to Secured Party. There is not on file in any agency, land records or other office of any Governmental Authority,
an effective financing statement, security agreement, license or transfer or any
notice of any of the foregoing (other than those that have been filed in favor of the Secured Party pursuant to this Agreement) covering
or affecting any of the Collateral.

 

    	 

    	 

    

  

(iv)
No part of the Collateral has been judged invalid or unenforceable. No Claim, Proceeding or other notice or other similar item has been
received by the Company that any Collateral or, to the Company’s knowledge, the Company’s use of any Collateral violates
the rights of any Person. To the Company’s knowledge, there has been no adverse decision or claim to the Company’s ownership
rights in or exclusive rights to use the Collateral in any jurisdiction or to the Company’s right to keep and maintain such Collateral
in full force and effect, and there is no Claim or Proceeding of any nature involving said rights pending or, to the best knowledge of
the Company, threatened, before any Governmental Authority.

 

(v)
The Company shall at all times maintain their books of account and records relating to their Collateral and maintain their Collateral
at the Business Premises, and the Company shall not relocate such books of account and records or its Collateral, except and unless:
(A) Secured Party first approves of such relocation, which approval shall not be unreasonably withheld, conditioned or delayed; or (B)
evidence that appropriate financing statements and other necessary documents have been filed and recorded and other steps have been taken
to create in favor of the Secured Party valid, perfected and continuing liens in the Collateral.

 

(vi)
To the Company’s knowledge, upon making proper filings (by Secured Party) described in the immediately following sentence or by
possession or control of such Collateral by Secured Party or delivery of such Collateral to Secured Party, this Agreement creates, in
favor of the Secured Party, a valid, perfected security interest in the Collateral. To the Company’s knowledge, except for the
filing of financing statements on Form UCC-1 under the uniform commercial code with the State of California no authorization or approval
of, or filing with, or notice to any Governmental Authority is required either: (A) for the grant by the Company of, or the effectiveness
of, the security interest granted hereby or for the execution, delivery and performance of this Agreement by the Company; or (B) for
the perfection of or exercise by the Secured Party of its rights and remedies hereunder.

 

(vii)
Simultaneous with the execution of this Agreement, the Company hereby authorizes the Secured Party to file one or more UCC financing
statements, and any continuations, amendments, or assignments thereof with respect to the security interests on the Collateral granted
hereby, with the State of California and in such other jurisdictions as may be requested or desired by the Secured Party.

 

(viii)
The execution, delivery and performance of this Agreement, and the granting of the security interests contemplated hereby, will not:
(A) constitute a violation of, or conflict with the organizational or governing documents of the Company; (B) constitute a violation
of, or a default or breach under (either immediately, upon notice, upon lapse of time, or both), or conflicts with, or gives to any other
Person any rights of termination, amendment, acceleration or cancellation of, any provision of any Contract or agreement to which Company
is a party or by which any of the Collateral may be bound; (C) constitute a violation of, or a default or breach under (either immediately,
upon notice, upon lapse of time, or both), or conflicts with, any Judgment of any Governmental Authority; (D) to the Company’s
knowledge, constitute a violation of, or conflict with, any Law; or (E) result in the loss or adverse modification of, or the imposition
of any fine, penalty or other Encumbrance with respect to, any Company Permits granted or issued to, or otherwise held by or for the
use of, the Company or any of the Collateral. No Consent (including from stockholders or creditors of the Company) is required for the
Company to enter into and perform its obligations hereunder.

 

(ix)
The Company shall at all times maintain the liens and security interests provided for hereunder as valid and perfected liens and security
interests in the Collateral in favor of the Secured Party until this Agreement and the security interests hereunder shall terminate pursuant
to Section 7(o) below. The Company shall at all times safeguard and protect all Collateral, at its own expense, for the account of the
Secured Party. At the request of the Secured Party, the Company will sign and deliver to the Secured Party at any time, or from time
to time, one or more financing statements pursuant to the Code (or any other applicable statute) in form reasonably satisfactory to the
Secured Party and will pay the cost of filing the same in all public offices wherever filing is, or is deemed by the Secured Party to
be, necessary or desirable to effect the rights and obligations provided for herein. Without limiting the generality of the foregoing,
the Company shall pay all fees, taxes and other amounts necessary to maintain the Collateral and the security interests granted hereunder,
and the Company shall obtain and furnish to the Secured Party from time to time, upon demand, such releases and/or subordinations of
claims and liens which may be required to maintain the priority of the security interests hereunder.

 

    	 

    	 

    

  

(x)
The Company will not transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral without the
prior written consent of the Secured Party, which consent may be withheld in the Secured Party’s sole and absolute discretion,
except for transfers, sales or licenses made in the Company Ordinary Course of Business.

 

(xi)
The Company shall keep, maintain and preserve all of the Collateral in good condition, repair and order, normal wear and tear excepted,
and the Company will use, operate and maintain the Collateral in compliance with all Laws, and in compliance with all applicable insurance
requirements and regulations.

 

(xii)
The Company shall, within five (5) days of obtaining knowledge thereof, advise the Secured Party promptly, in sufficient detail, of any
substantial or material change in the Collateral, and of the occurrence of any event which would have a Material Adverse Effect.

 

(xiii)
The Company shall promptly execute and deliver to the Secured Party such further deeds, mortgages, assignments, security agreements,
financing statements or other instruments, documents, certificates and assurances and take such further action as the Secured Party may
from time to time request and may in its sole discretion deem necessary to perfect, protect or enforce its security interest in the Collateral.

 

(xiv)
The Company will take all commercially reasonable steps necessary to diligently pursue and seek to preserve, enforce and collect any
rights, claims, causes of action and accounts receivable in respect of the Collateral.

 

(xv)
The Company shall promptly notify the Secured Party in sufficient detail upon becoming aware of any Claim, Proceeding, or any other litigation,
attachment, garnishment, execution or other legal process levied against any Collateral, and of any other information received by the
Company that may materially affect the value of the Collateral, the security interests granted hereunder or the rights and remedies of
the Secured Party hereunder.

 

(xvi)
All information heretofore, herein or hereafter supplied to the Secured Party by or on behalf of the Company with respect to the Collateral,
to the Company’s knowledge, is accurate and complete in all material respects as of the date furnished.

 

(xvii)
Company will promptly pay when due all Taxes and all transportation, storage, warehousing and all other charges and fees affecting or
arising out of or relating to the Collateral and shall defend the Collateral, at Company’s expense, against all claims of any Persons
claiming any interest in the Collateral adverse to Company or Secured Party.

 

    	 

    	 

    

  

(xviii)
During normal business hours and subject to prior reasonable notice from Secured Party to the Company (which notice may be e-mail or
telephonic notice), Secured Party and its agents and designees may enter the Business Premises and any other premises of the Company
and inspect the Collateral and all books and records of the Company (in whatever form), and the Company shall pay the reasonable costs
of such inspections.

 

(xix)
The Company shall maintain comprehensive insurance issued 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.

 

(xx)
The Company shall cooperate with Secured Party to obtain and keep in effect one or more control agreements in Deposit Accounts, Electronic
Chattel Paper, Investment Property and Letter-of-Credit Rights Collateral. In addition, the Company, at the Company expense, shall promptly:
(A) execute all notices of security interest for each relevant type of Software and other General Intangibles in forms suitable for filing
with any United States or foreign office handling the registration or filing of patents, trademarks, copyrights and other intellectual
property and any successor office or agency thereto; and (B) take all commercially reasonable steps in any Proceeding before any such
office or any similar office or agency in any other country or any political subdivision thereof, to diligently prosecute or maintain,
as applicable, each application and registration of any Software, General Intangibles or any other intellectual property rights and assets
that are part of the Collateral, including filing of renewals, affidavits of use, affidavits of incontestability and opposition, interference
and cancellation proceedings.

 

(xxi)
Company shall not file any amendments, correction statements or termination statements concerning the Collateral without the prior written
consent of Secured Party, except as otherwise permitted by applicable Law.

 

(c)
Collateral Collections. After an Event of Default shall have occurred, Secured Party shall have the right at any and all times
to enforce the Company’s rights against all Persons obligated on any of the Collateral, including the right to: (i) notify and/or
require the Company to notify any or all Persons obligated on any of the Collateral to make payments directly to Secured Party or in
care of a post office lock box under the sole control of Secured Party established at Company’s expense, and to take any or all
action with respect to Collateral as Secured Party shall determine in its sole discretion, including, the right to demand, collect, sue
for and receive any money or property at any time due, payable or receivable on account thereof, compromise and settle with any Person
liable thereon, and extend the time of payment or otherwise change the terms thereof, without incurring any liability or responsibility
to the Company whatsoever; and/or (ii) require the Company to segregate and hold in trust for Secured Party and, on the day of Company
receipt thereof, transmit to Secured Party in the exact form received by the Company (except for such assignments and endorsements as
may be required by Secured Party), all cash, checks, drafts, money orders and other items of payment constituting any portion of the
Collateral or proceeds of the Collateral. Secured Party’s collection and enforcement of Collateral against Persons obligated thereon
shall be deemed to be commercially reasonable if Secured Party exercises the care and follows the procedures that Secured Party generally
applies to the collection of obligations owed to Secured Party.

 

(d)
Care of Collateral. Company shall have all risk of loss of the Collateral. Secured Party shall have no liability or duty, either
before or after the occurrence of an Uncured Continuing Event of Default, on account of loss of or damage to, to collect or enforce any
of its rights against, the Collateral, to collect any income accruing on the Collateral, or to preserve rights against Persons with prior
interests in the Collateral. If Secured Party actually receives any notices requiring action with respect to Collateral in Secured Party’s
possession, Secured Party shall take reasonable steps to forward such notices to the Company. The Company is responsible for responding
to notices concerning the Collateral, voting the Collateral, and exercising rights and options, calls and conversions of the Collateral.
Secured Party’s sole responsibility is to take such action as is reasonably requested by Company in writing, however, Secured Party
is not responsible to take any action that, in Secured Party’s sole judgment, would affect the value of the Collateral as security
for the Obligations adversely. While Secured Party is not required to take certain actions, if action is needed, in Secured Party’s
sole discretion, to preserve and maintain the Collateral, Company authorizes Secured Party to take such actions, but Secured Party is
not obligated to do so.

 

    	 

    	 

    

  

4.
Events of Default. The occurrence of any one or more of the following events shall constitute an “Event of Default”
hereunder:

 

(a)
Failure to Pay. The failure of Company to pay any sum due under or as part of the Obligations (whether by acceleration, declaration,
extension or otherwise) within five (5) business days of the date such amount is due.

 

(b)
Covenants and Agreements. The failure of Company to perform, observe or comply with any and all of the covenants, promises and
agreements of the Company in this Agreement, which such failure is not cured by the Company within ten (10) days after receipt of written
notice thereof from Secured Party, except that there shall be no notice or cure period with respect to any failure to pay any sums due
under or as part of the Obligations.

 

(c)
Information, Representations and Warranties. If any material representation or warranty made herein, or if any information contained
in any financial statement, application, schedule, report or any other document given by the Company in connection with the Obligations,
with the Collateral, or with any Transaction Document, is not in all respects true, accurate and complete in all material respect, or
if the Company omitted to state any material fact necessary to make such information not misleading.

 

(d)
Reserved.

 

(e)
Insolvency. Company shall be or become insolvent or unable to pay its debts as they become due or admits in writing to such insolvency
or to such inability to pay its debts as they become due.

 

(f)
Involuntary Bankruptcy. There shall be filed against Company an involuntary petition or other pleading seeking the entry of a
decree or order for relief under the Bankruptcy Code or any similar foreign, federal or state insolvency or similar laws ordering: (i)
the liquidation of the Company; or (ii) a reorganization of Company or the business and affairs of Company; or (iii) the appointment
of a receiver, liquidator, assignee, custodian, trustee, or similar official for Company of the property of Company, and the failure
to have such petition or other pleading denied or dismissed within ninety (90) calendar days from the date of filing.

 

(g)
Voluntary Bankruptcy. The commencement by the Company of a voluntary case under the Bankruptcy Code or any foreign, federal or
state insolvency or similar laws or the consent by the Company to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, or similar official for Company of any of the property of the Company or the making by the Company of an
assignment for the benefit of creditors, or the failure by the Company generally to pay its debts as the debts become due.

 

    	 

    	 

    

 

(h)
Judgments, Awards. The entry of any final and non-appealable Judgment or other determination or adjudication against the Company
and a determination by Secured Party, in good faith but in its sole discretion, that any such Judgment or other determination or adjudication
could have a Material Adverse Effect, or could otherwise adversely affect the prospect for Secured Party to fully and punctually realize
the full benefits conferred on Secured Party by this Agreement and the other Transaction Documents, or the prospect of repayment of all
the Obligations.

 

(i)
Injunction. The injunction or restraint of the Company in any manner from conducting its business in whole or in part and a determination
by Secured Party, in good faith but in its sole discretion, that the same could have a Material Adverse Effect, or could otherwise adversely
affect the prospect for Secured Party to fully and punctually realize the full benefits conferred on Secured Party by this Agreement
and the other Transaction Documents, or the prospect of repayment of all the Obligations.

 

(j)
Attachment by Other Parties. Any Collateral shall be attached, levied upon, seized or repossessed, or come into the possession
of a trustee, receiver or other custodian and a determination by Secured Party, in good faith and reasonable discretion, that the same
could have a Material Adverse Effect, or could otherwise adversely affect the prospect for Secured Party to fully and punctually realize
the full benefits conferred on Secured Party by this Agreement and the other Transaction Documents, or the prospect of repayment of all
the Obligations.

 

5.
Rights and Remedies.

 

(a)
Rights and Remedies of Secured Party. Upon and after the occurrence of an Uncured Continuing Event of Default, Secured Party may,
without notice or demand, exercise in any jurisdiction in which enforcement hereof is sought, the following rights and remedies, in addition
to the rights and remedies available to Secured Party under the Purchase Agreement and any other Transaction Documents, the rights and
remedies of a secured party under the Code, and all other rights and remedies available to Secured Party under applicable law or in equity,
all such rights and remedies being cumulative and enforceable alternatively, successively or concurrently:

 

(i)
Take absolute control of the Collateral including transferring into the Secured Party’s name or into the name of its nominee or
nominees (to the extent the Secured Party has not theretofore done so) and thereafter receive, for the benefit of the Secured Party,
all payments made thereon, give all consents, waivers and ratifications in respect thereof and otherwise act with respect thereto as
though it were the outright owner thereof;

 

(ii)
Require the Company to, and the Company hereby agrees that it will at its expense and upon request of the Secured Party forthwith, assemble
all or part of the Collateral as directed by the Secured Party and make it available to the Secured Party at a reasonable place or places
to be designated by the Secured Party that is convenient to Secured Party;

 

    	 

    	 

    

  

(iii)
Without notice, except as specified below, and without any obligation to prepare or process the Collateral for sale as provided for by
the Code: (A) sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Secured Party’s
offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as the Secured
Party may deem commercially reasonable; and/or (B) lease, license or dispose of the Collateral or any part thereof upon such terms as
the Secured Party may deem commercially reasonable. The Company agrees that, to the extent notice of sale or any other disposition of
the Collateral shall be required by law, at least ten (10) days’ notice to the Company of the time and place of any public sale
or the time after which any private sale or other disposition of the Collateral is to be made shall constitute reasonable notification.
The Secured Party shall not be obligated to make any sale or other disposition of any Collateral regardless of notice of sale having
been given. The Secured Party may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor
and such sale may, without further notice, be made at the time and place to which it was so adjourned; provided Secured Party shall provide
written notice to Company setting forth the time and place of such postponed or adjourned sale or disposition. The Company hereby waives
any claims and actions against the Secured Party arising by reason of the fact that the price at which any of the Collateral may have
been sold at a private sale was less than the price which might have been obtained at a public sale or was less than the aggregate amount
of the Obligations, even if the Secured Party accepts the first offer received and does not offer such Collateral to more than one offeree,
and waives all rights that the Company may have to require that all or any part of such Collateral be marshaled upon any sale (public
or private) thereof. The Company hereby acknowledges that: (X) any such sale of the Collateral by the Secured Party shall be made without
warranty; (Y) the Secured Party may specifically disclaim any warranties of title, possession, quiet enjoyment or the like; and (Z) such
actions set forth in clauses (X) and (Y) above shall not adversely affect the commercial reasonableness of any such sale of Collateral.
In addition to the foregoing: (1) upon written notice to the Company from the Secured Party after and during the continuance of an Uncured
Continuing Event of Default, the Company shall cease any use of any intellectual property or any trademark, patent or copyright similar
thereto for any purpose described in such notice; (2) the Secured Party may, at any time and from time to time after and during the continuance
of an Uncured Continuing Event of Default, license, whether general, special or otherwise, and whether on an exclusive or non-exclusive
basis, any of the Company’s intellectual property, throughout the universe for such term or terms, on such conditions, and in such
manner, as the Secured Party shall in its sole discretion determine; and (3) the Secured Party may, at any time, pursuant to the authority
granted under this Agreement (such authority being effective upon the occurrence and during the continuance of an Uncured Continuing
Event of Default), execute and deliver on behalf of the Company, one or more instruments of assignment of any intellectual property (or
any application or registration thereof), in form suitable for filing, recording or registration in any country.

 

(iv)
Operate, manage and control the Collateral (including use of the Collateral and any other property or assets of Company in order to continue
or complete performance of Company’s obligations under any contracts of Company), or permit the Collateral or any portion thereof
to remain idle or store the same, and collect all rents and revenues therefrom.

 

(v)
Enforce the Company’s rights against any Persons obligated upon any of the Collateral.

 

(vi)
The Company hereby acknowledges that if the Secured Party complies with any applicable foreign, state, provincial or federal law requirements
in connection with a disposition of the Collateral, such compliance will not adversely affect the commercial reasonableness of any sale
or other disposition of the Collateral.

 

    	 

    	 

    

 

(vii)
The Secured Party shall not be required to marshal any present or future collateral security (including, this Agreement and the Collateral)
for, or other assurances of payment of, the Obligations or any of them or to resort to such collateral security or other assurances of
payment in any particular order, and all of the Secured Party’s rights hereunder and in respect of such collateral security and
other assurances of payment shall be cumulative and in addition to all other rights, however existing or arising. To the extent that
the Company lawfully may, the Company hereby agrees that it will not invoke any law relating to the marshaling of collateral which might
cause delay in or impede the enforcement of the Secured Party’s rights under this Agreement or under any other instrument creating
or evidencing any of the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured
or payment thereof is otherwise assured, and, to the extent that it lawfully may, the Company hereby irrevocably waives the benefits
of all such laws.

 

(b)
Power of Attorney. Effective upon the occurrence of an Uncured Continuing Event of Default, Company hereby designates and appoints
Secured Party and its designees as attorney-in-fact of and for the Company, irrevocably and with full power of substitution, with authority
to endorse the Company’s name on any notes, acceptances, checks, drafts, money orders, instruments or other evidences of payment
or proceeds of the Collateral that may come into Secured Party’s possession; to execute proofs of claim and loss; to adjust and
compromise any claims under insurance policies; and to perform all other acts necessary and advisable, in Secured Party’s sole
discretion, to carry out and enforce this Agreement and the rights and remedies conferred upon the Secured Party by this Agreement, the
Purchase Agreement or any other Transaction Documents. All acts of said attorney or designee are hereby ratified and approved by the
Company and said attorney or designee shall not be liable for any acts of commission or omission, nor for any error of judgment or mistake
of fact or law. This power of attorney is coupled with an interest and is irrevocable so long as any of the Obligations remain unpaid
or unperformed or there exists any commitment by Secured Party which could give rise to any Obligations. For the avoidance of doubt,
this power of attorney shall automatically terminate upon cure of any Event of Default.

 

(c)
Costs and Expenses. The Company agrees to pay to the Secured Party, upon demand, the amount of any and all reasonable costs and
expenses, including the reasonable fees, costs, expenses and disbursements of counsel for the Secured Party and of any experts and agents,
which the Secured Party may incur in connection with: (i) the preparation, negotiation, execution, delivery, recordation, administration,
amendment, waiver or other modification or termination of this Agreement; (ii) the custody, preservation, use or operation of, or the
sale of, collection from, or other realization upon, any Collateral; (iii) the exercise or enforcement of any of the rights of the Secured
Party hereunder; or (iv) the failure by the Company to perform or observe any of the provisions hereof. Included in the foregoing shall
be the amount of all expenses paid or incurred by Secured Party in consulting with counsel concerning any of its rights hereunder, under
the Purchase Agreement or under applicable law, as well as such portion of Secured Party’s overhead as Secured Party shall allocate
to collection and enforcement of the Obligations in Secured Party’s sole but reasonable discretion. All such costs and expenses
shall bear interest from the date of outlay until paid, at the highest rate set forth in the Note, or if none is so stated, the highest
rate allowed by law. The provisions of this Subsection shall survive the termination of this Agreement and Secured Party’s security
interest hereunder and the payment of all Obligations.

 

    	 

    	 

    

 

6.
Security Interest Absolute. All rights of the Secured Party and all Obligations of the Company hereunder, shall be absolute and
unconditional, irrespective of: (i) any lack of validity or enforceability of this Agreement, the Purchase Agreement, and any other Transaction
Documents or any agreement entered into in connection with the foregoing, or any portion hereof or thereof; (ii) any change in the time,
manner or place of payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver
of or any consent to any departure from the terms and provisions of the Purchase Agreement, any other Transaction Documents, or any other
agreement entered into in connection with the foregoing; (iii) any exchange, release or non-perfection of any of the Collateral, or any
release or amendment or waiver of or consent to departure from any other collateral for, or any guaranty, or any other security, for
all or any of the Obligations; (iv) any action by the Secured Party to obtain, adjust, settle and cancel in its sole discretion any insurance
claims or matters made or arising in connection with the Collateral; or (v) any other circumstance which might otherwise constitute any
legal or equitable defense available to the Company, or a discharge of all or any part of the security interests granted hereby. Until
the Obligations shall have been paid and performed in full, the rights of the Secured Party shall continue even if the Obligations are
barred for any reason, including, the running of the statute of limitations or bankruptcy. In the event that at any time any transfer
of any Collateral or any payment received by the Secured Party hereunder shall be deemed by final order of a court of competent jurisdiction
to have been a voidable preference or fraudulent conveyance under the Bankruptcy Code or any other similar insolvency or bankruptcy laws
of any jurisdiction , or shall be deemed to be otherwise due to any party other than the Secured Party, then, in any such event, the
Company’s obligations hereunder shall survive cancellation of this Agreement, and shall not be discharged or satisfied by any prior
payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding obligation enforceable in accordance with
the terms and provisions hereof. The Company waives all right to require the Secured Party to proceed against any other Person or to
apply any Collateral which the Secured Party may hold at any time, or to pursue any other remedy. The Company waives any defense arising
by reason of the application of the statute of limitations to any obligation secured hereby.

 

7.
Miscellaneous.

 

(a)
Performance for Company. The Company agrees and hereby authorizes that Secured Party may, upon the occurrence of an Uncured Continuing
Event of Default, advance funds on behalf of the Company , without prior notice to the Company, in order to insure the Company’s
compliance with any covenant, warranty , representation or agreement of the Company made in or pursuant to this Agreement, the Purchase
Agreement, or any other Transaction Documents, to continue or complete, or cause to be continued or completed, performance of the Company’s
obligations under any Contracts of the Company, or to preserve or protect any right or interest of Secured Party in the Collateral or
under or pursuant to this Agreement, the Purchase Agreement or any other Transaction Documents, including, the payment of any insurance
premiums or taxes and the satisfaction or discharge of any Claim, Obligation, Judgment or any other Encumbrance upon the Collateral or
other property or assets of Company; provided, however, that the making of any such advance by Secured Party shall not constitute a waiver
by Secured Party of any Uncured Continuing Event of Default with respect to which such advance is made, nor relieve the Company of any
such Uncured Continuing Event of Default. The Company shall pay to Secured Party upon demand all such advances made by Secured Party
with interest thereon at the highest rate set forth in the Note. All such advances shall be deemed to be included in the Obligations
and secured by the security interest granted Secured Party hereunder.

 

(b)
Applications of Payments and Collateral. Except as may be otherwise specifically provided in this Agreement or the Purchase Agreement,
all Collateral and proceeds of Collateral coming into Secured Party’s possession and all payments made by any Person to Secured
Party with respect to any Collateral may be applied by Secured Party (after payment of any amounts payable to the Secured Party pursuant
to Section 5(c) hereof) to any of the Obligations, whether matured or unmatured, as Secured Party shall determine in its sole, but reasonable
discretion. Any surplus held by the Secured Party and remaining after the indefeasible payment in full in cash of all of the Obligations
shall be paid over to whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct.
Secured Party may defer the application of Noncash Proceeds of Collateral, to the Obligations until Cash Proceeds are actually received
by Secured Party. In the event that the proceeds of any such sale, collection or realization are insufficient to pay all amounts to which
the Secured Party is legally entitled, except as otherwise provided for in this Agreement, the Company shall be liable for the deficiency,
together with interest thereon at the highest rate specified in the Note for interest on overdue principal thereof or such other rate
as shall be fixed by applicable law, together with the costs of collection and the reasonable fees, costs, expenses and other client
charges of any attorneys employed by the Secured Party to collect such deficiency.

 

    	 

    	 

    

  

(c)
Waivers by Company. The Company hereby waives, to the extent the same may be waived under applicable law: (i) notice of acceptance
of this Agreement; (ii) all rights of redemption of the Company with respect to the Collateral; (iii) presentment, demand for payment,
protest and notice of non-payment and all exemptions applicable to any of the Collateral or the Company; (iv) settlement, compromise
or release of the obligations of any Person primarily or secondarily liable upon any of the Obligations; (v) all rights of the Company
to demand that Secured Party release account debtors or other Persons liable on any of the Collateral from further obligation to Secured
Party; and (vi) substitution, impairment, exchange or release of any Collateral for any of the Obligations. The Company agrees that Secured
Party may exercise any or all of its rights and/or remedies hereunder, under the Purchase Agreement, the other Transaction Documents
and under applicable law without resorting to and without regard to any Collateral or sources of liability with respect to any of the
Obligations. Upon termination of this Agreement and Secured Party’s security interest hereunder and payment of all Obligations,
within five (5) Business Days following the Company’s request to Secured Party, Secured Party shall release control of any security
interest in the Collateral perfected by control and Secured Party shall send Company a statement terminating any financing statement
filed against the Collateral.

 

(d)
Waivers by Secured Party. No failure or any delay on the part of Secured Party in exercising any right, power or remedy hereunder,
under this Agreement, the Purchase Agreement, and other Transaction Documents or under applicable law, shall operate as a waiver thereof.

 

(e)
Secured Party’s Setoff. Secured Party shall have the right, in addition to all other rights and remedies available to it,
following an Uncured Continuing Event of Default, to set off against any Obligations due Secured Party, any debt owing to the Company
by Secured Party.

 

(f)
Modifications, Waivers and Consents. No modifications or waiver of any provision of this Agreement, the Purchase Agreement, or
any other Transaction Documents, and no consent by Secured Party to any departure by the Company therefrom, shall in any event be effective
unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the purpose
for which given, and any single or partial written waiver by Secured Party of any term, provision or right of Secured Party hereunder
shall only be applicable to the specific instance to which it relates and shall not be deemed to be a continuing or future waiver of
any other right, power or remedy. No notice to or demand upon the Company in any case shall entitle Company to any other or further notice
or demand in the same, similar or other circumstances.

 

(g)
Notices. Except as otherwise provided herein, the Company waives all notices and demands in connection with the enforcement of
Secured Party’s rights hereunder. All notices, requests, demands and other communications provided for hereunder shall be made
in accordance with the terms of the Purchase Agreement, and the Company agrees and acknowledges that notice to each of them may be sent
and delivered to the Company, as required under the Purchase Agreement, and such notice to the Company shall be deemed valid and effective
notice to Company hereunder.

 

    	 

    	 

    

  

(h)
Applicable Law and Consent to Jurisdiction. The Company and the Secured Party each irrevocably agrees that any dispute arising
under, relating to, or in connection with, directly or indirectly, this Agreement or related to any matter which is the subject of or
incidental to this Agreement (whether or not such claim is based upon breach of contract or tort) shall be subject to the exclusive jurisdiction
and venue of the state and/or federal courts located in the State of New York; provided, however, Secured Party may, at its sole option,
elect to bring any action in any other jurisdiction. This provision is intended to be a “mandatory” forum selection clause
and governed by and interpreted consistent with New York law. The Company and Secured Party each hereby consents to the exclusive jurisdiction
and venue of any state or federal court having its situs in the State of New York, and each waives any objection based on forum non conveniens.
The Company hereby waives personal service of any and all process and consent that all such service of process may be made in the manner
provided by applicable statute, law, or rule of court. Except for the foregoing mandatory forum selection clause, this Agreement shall
be construed in accordance with the laws of the State of Wyoming, without regard to the principles of conflicts of laws, except to the
extent that the validity and perfection or the perfection and the effect of perfection or non-perfection of the security interest created
hereby, or remedies hereunder, in respect of any particular Collateral are governed under the Code by the law of a jurisdiction other
than the State of Wyoming, in which case such issues shall be governed by the laws of the jurisdiction governing such issues under the
Code.

 

(i)
Survival: Successors and Assigns. All covenants, agreements, representations and warranties made herein shall survive the execution
and delivery hereof, shall survive Closing and shall continue in full force and effect until all Obligations have been paid in full,
there exists no commitment by Secured Party which could give rise to any Obligations and all appropriate termination statements have
been filed terminating the security interest granted Secured Party hereunder. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the successors and assigns of such party. In the event that Secured Party assigns
this Agreement and/or its security interest in the Collateral, Secured Party shall give written notice to the Company of any such assignment
and such assignment shall be binding upon and recognized by the Company (provided that failure to deliver any such written notice shall
not impair, negate or otherwise adversely affect any of the Secured Party’s rights or remedies under this Agreement or any other
Transaction Documents). All covenants, agreements, representations and warranties by or on behalf of the Company which are contained
in this Agreement shall inure to the benefit of Secured Party, its successors and assigns. The Company may not assign this Agreement
or delegate any of its rights or obligations hereunder, without the prior written consent of Secured Party, which consent may be withheld
in Secured Party’s sole and absolute discretion.

 

(j)
Severability. If any term, provision or condition, or any part thereof, of this Agreement shall for any reason be found or held
invalid or unenforceable by any court or governmental authority of competent jurisdiction, such invalidity or unenforceability shall
not affect the remainder of such term, provision or condition nor any other term, provision or condition, and this Agreement shall survive
and be construed as if such invalid or unenforceable term, provision or condition had not been contained therein.

 

(k)
Merger and Integration. This Agreement and the attached Schedules (if any), together with the Purchase Agreement and the other
Transaction Documents, contain the entire agreement of the parties hereto with respect to the matters covered and the transactions contemplated
hereby and thereby, and no other agreement, statement or promise made by any party hereto or thereto, or by any employee, officer, agent
or attorney of any party hereto, which is not contained herein or therein shall be valid or binding.

 

    	 

    	 

    

  

(1)
WAIVER OF JURY TRIAL. THE COMPANY HEREBY: (a) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT
BY A JURY; AND (b) WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THE COMPANY AND SECURED PARTY MAY BE PARTIES, ARISING OUT
OF, IN CONNECTION WITH OR IN ANY WAY PERTAINING TO THIS AGREEMENT, THE PURCHASE AGREEMENT AND/OR ANY TRANSACTIONS, OCCURRENCES, COMMUNICATIONS,
OR UNDERSTANDINGS (OR THE LACK OF ANY OF THE FOREGOING) RELATING IN ANY WAY TO DEBTOR-CREDITOR RELATIONSHIP BETWEEN THE PARTIES. IT IS
UNDERSTOOD AND AGREED THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS,
INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS SECURITY AGREEMENT. THIS WAIVER OF JURY TRIAL IS SEPARATELY GIVEN, KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY THE COMPANY AND THE COMPANY HEREBY AGREES THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE
BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. SECURED PARTY IS HEREBY AUTHORIZED
TO SUBMIT THIS AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER AND THE COMPANY AND SECURED PARTY, SO AS TO SERVE AS
CONCLUSIVE EVIDENCE OF SUCH WAIVER OF RIGHT TO TRIAL BY JURY. THE COMPANY REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE
SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND/OR THAT IT
HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

 

(m)
Execution. This Agreement may be executed in one or more counterparts, all of which taken together shall be deemed and considered
one and the same Agreement, and same shall become effective when counterparts have been signed by each party and each party has delivered
its signed counterpart to the other party. In the event that any signature is delivered by facsimile transmission or by e-mail delivery
of a “.pdf” format file or other similar format file, such signature shall be deemed an original for all purposes and shall
create a valid and binding obligation of the party executing same with the same force and effect as if such facsimile or “.pdf”
signature page was an original thereof.

 

(n)
Headings. The headings and sub-headings contained in the titling of this Agreement are intended to be used for convenience only
and shall not be used or deemed to limit or diminish any of the provisions hereof.

 

(o)
Termination. This Agreement and the security interests hereunder shall terminate on the date on which all Obligations have been
indefeasibly paid or discharged in full and there are no commitments outstanding for Secured Party to advance any funds to the Company
and/or Company, either under the Purchase Agreement, the Transaction Documents or any other Contract. Upon such termination, the Secured
Party, at the request and at the expense of the Company, will join in executing any termination statement with respect to any financing
statement executed and filed pursuant to this Agreement.

 

(p)
Gender and Use of Singular and Plural. All pronouns shall be deemed to refer to the masculine, feminine, neuter, singular or plural,
as the identity of the party or parties or their personal representatives, successors and assigns may require.

 

    	 

    	 

    

 

(q)
Further Assurances. The parties hereto will execute and deliver such further instruments and do such further acts and things as
may be reasonably required to carry out the intent and purposes of this Agreement.

 

(r)
Time is of the Essence. The parties hereby agree that time is of the essence with respect to performance of each of the parties’
obligations under this Agreement. The parties agree that in the event that any date on which performance is to occur falls on a Saturday,
Sunday or state or national holiday, then the time for such performance shall be extended until the next business day thereafter occurring.

 

(s)
Joint Preparation. The preparation of this Agreement has been a joint effort of the parties and the resulting documents shall
not, solely as a matter of judicial construction, be construed more severely against one of the parties than the other.

 

(t)
Increase in Obligations. It is the intent of the parties to secure payment of the Obligations, as the amount of such Obligations
may increase from time to time in accordance with the terms and provisions of the Purchase Agreement, and all of the Obligations, as
so increased from time to time, shall be and are secured hereby. Upon the execution hereof, the Company shall pay any and all documentary
stamp taxes and/or other charges required to be paid in connection with the execution and enforcement of the Purchase Agreement and this
Agreement, and if, as and to the extent the Obligations are increased from time to time in accordance with the terms and provisions of
the Note, then the Company shall immediately pay any additional documentary stamp taxes or other charges in connection therewith.

 

[signature
page follows]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have duly executed this Security Agreement as of the day and year first above written.

 

	 	COMPANY:
	 	 	 
	 	VIRTUAL
    INTERACTIVE TECHNOLOGIES CORP.
	 	 	 
	 	By:	/s/
    Janelle Gladstone
	 	Name:	Janelle
    Gladstone 
	 	Title:	Chief
    Financial Officer
	 	 	 
	 	SECURED
    PARTY:
	 	 	 
	 	AJB
    Capital Investments, LLC
	 	 	 
	 	By:	/s/
    Ari Blaine
	 	Name:
    	Ari
    Blaine
	 	Title:
    	Partner

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