Document:

Exhibit
10.80

 

NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS NOTE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. 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: $25,000

Date:
July 11, 2014

 

CONVERTIBLE
PROMISSORY NOTE

 

BioNeutral
Group, Inc., (hereinafter called the “Borrower” or “BONU”), hereby promises to pay to the order of
WHC Capital, LLC, a Delaware Limited Liability Company, or its registered assigns (the “Holder”) the sum of
$25,000 together with any interest as set forth herein, on July 11, 2015 (the “Maturity Date”), and to pay interest
on the unpaid principal balance hereof at the rate of Twelve percent (12%) (the “Interest Rate”) per annum from the
date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or
by prepayment or otherwise.

 

This
Note may not be prepaid in whole or in part except as otherwise explicitly 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 twenty two percent (22%) per annum from the due date
thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Note is
fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder
(to the extent not converted into common stock) 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 the supporting documents of same date (attached hereto).

 

    	 

    	 

    

 

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 apply to this Note:

ARTICLE
I. CONVERSION RIGHTS

 

1.1          Conversion
Right. The Holder shall have the right and at any time during the period beginning on the date of this Note to convert
all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non- assessable shares of Common
Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into
which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”)
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, provided,
further, however, that the limitations on conversion may be waived by the Holder upon, at the election of the Holder, not
less than 61 days’ prior notice to the Borrower, and the provisions of the conversion limitation shall continue to apply
until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver). 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, (the “Notice
of Conversion”), delivered to the Borrower by the Holder in accordance with the Sections below; provided that the Notice
of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice)
to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”).

 

The
term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of
this Note to be converted in such conversion plus (2) at the Borrower’s option, accrued and unpaid interest, if any,
on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Borrower’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.

 

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1.2          Conversion
Price.

 

               (a)          Calculation
of Conversion Price. Holder, at its discretion, shall have the right to convert this Note in its entirety or in part(s)
into common stock of the Company valued at a Fifty Percent (50%) discount off the lowest intra-day trading price for the Company’s
common stock during the Ten (10) trading days immediately preceding a conversion date, as reported by Quotestream.

 

               (b)          Conversion
Price During Major Announcements. Notwithstanding anything contained in the preceding section 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. 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 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.

 

1.3          Authorized
Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its
authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of
Common Stock upon the full conversion of this Note. The Borrower is required at all times to have authorized and reserved five
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.

 

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.

 

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If,
at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of  Default as defined in
this Note.

 

1.4          Method
of Conversion.

 

               (a)          Mechanics
of Conversion. This Note may be converted by the Holder in whole or in part at any time from time to time after the Issue
Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication
dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time).

 

               (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,
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. 

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               (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 6:00 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 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 Broker with DTC through
its Deposit Withdrawal Agent Commission (“DWAC”) system.

 

               (g)        
Failure to Deliver Common Stock Prior to 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. 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 are justified. Any delay or failure of performance by the Borrower hereunder shall be excused if and to the extent
caused by Force Majeure. For purposes of this agreement, Force Majeure shall mean a cause or event that is not reasonably foreseeable
and/or caused by the Borrower, including acts of God, fires, floods, explosions, riots wars, hurricanes, etc.

 

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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 (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. Except as otherwise provided herein (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 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. 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 accepted by the Company 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 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 Company does not
accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration,
such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to this note.

 

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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 hereof is deemed to have issued or sold, any shares of Common Stock for no consideration
or for a consideration per share (before deduction of reasonable expenses or commissions 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. 

 

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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 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.

 

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               (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 of 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         
Trading Market Limitations. Unless permitted by the applicable rules and regulations of the principal securities market
on which the Common Stock is then listed or traded, in no event shall the Borrower issue upon conversion of or otherwise pursuant
to this Note and the other Notes issued pursuant to the Purchase Agreement more than the maximum number of shares of Common Stock
that the Borrower can issue pursuant to any rule of the principal United States securities market on which the Common Stock is
then traded (the “Maximum Share Amount”), which shall be 4.99% of the total shares outstanding on the Closing Date
(as defined in the Purchase Agreement), subject to equitable adjustment from time to time for stock splits, stock dividends, combinations,
capital reorganizations and similar events relating to the Common Stock occurring after the date hereof. Once the Maximum Share
Amount has been issued, if the Borrower fails to eliminate any prohibitions under applicable law or the rules or regulations of
any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction over the Borrower or
any of its securities on the Borrower’s ability to issue shares of Common Stock in excess of the Maximum Share Amount, in
lieu of any further right to convert this Note, this will be considered an Event of Default under Section 3.3 of the Note.

 

1.8        
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.

 

    	9

    	 

    

 

1.9         
Prepayment. Maker may prepay this Note, in whole or in part, at any time and from time to time, with premium, where
both parties have approved said premium and prepayment in writing.

 

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 or financial institutions 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 may be
conditioned on a specified use of the proceeds of disposition.

 

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

 

    	10

    	 

    

 

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.  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 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, 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, the Borrower 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,
or 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. It is an
obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this
Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent.
If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion,
such advanced funds shall be paid by the Borrower to the Holder within forty eight (48) hours of a demand from the Holder.

 

3.3       
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.

 

3.4   
     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.

 

3.5        
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise be appointed.

 

3.6       
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.

    	11

    	 

    

 

3.7        
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.

 

3.8          Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of
the OTCBB or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange,
or the American Stock Exchange.

 

3.9          Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the
Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

 

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

 

3.11        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.

 

3.12        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).

 

3.13        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 original financial statement, have constituted a material adverse effect
on the rights of the Holder with respect to this Note or supporting documents.

 

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

 

3.15        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.

 

3.16        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, after
the passage of all applicable notice and cure or grace periods, shall, at the option of the Borrower, 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, including, without limitation,
promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents
to this Note. 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.

 

    	12

    	 

    

 

Upon
the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to
pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable
and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum
(as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE
SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER,
AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the
continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or
interest thereon when due on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration), 3.3,
3.4, 3.6, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, and/or 3. 15 exercisable through the delivery of written notice to the Borrower
by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections
of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section
3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction
of its obligations hereunder, an amount equal to the greater of (i) 150% times 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 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 (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) 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 Closing 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.

 

If
the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable,
then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that
there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default
Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then
in effect.

 

    	13

    	 

    

 

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, 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 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:	 
	 	 		 
	 	 		 
	 	 		 
	 	 		 
	 	 	Attn:	 
	 	 	Facsimile:	 
	 	 	 	 
	 	If to the Holder:
     	 
	 	 	 	 
	 	 	WHC Capital, LLC. 200	 
	 	 	Stonehinge Lane, Suite 3	 
	 	 	Carle Place, NY. 11514 	 
	 	 	Facsimile: 212.574.3326	 

 

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.

 

    	14

    	 

    

 

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. Each transferee of this Note must be an “accredited investor”
(as defined in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as
collateral in connection with a bona fide margin account or other lending arrangement.

 

4.5          Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof 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 New York without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Note shall be brought only in the state courts of New York or in the federal courts located in the state and county of
Nassau. 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
and Holder waive trial by jury. 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 Securities
Purchase Agreement.

 

    	15

    	 

    

 

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.

 

4.10        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.

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer: 

 

	 	BioNeutral Group,
    Inc.
	 	 	 
	 	By:	
	 	 	 
	 	Print:	
	 	 	 
	 	Title/Date:	

 

16Exhibit
10.81

 

SECURITIES
TRANSFER AGREEMENT

 

This
SECURITIES TRANSFER AGREEMENT (the “Agreement”), is entered into this 21st day of June, 2014, by
and among JAMES CASSERLY (hereinafter referred to as "Seller"), Darling Capital, LLC (hereinafter referred to as the
"Buyer") and BioNeutral Group, Inc. a Nevada corporation (“BONU" or the "Company").

 

RECITALS

 

WHEREAS,
BONU is a publicly traded corporation trading on the OTCPink:QB under the stock symbol BONU; and

 

WHEREAS,
Seller is the legal and beneficial holder of a 18% Promissory Note in the principal amount of $25,000 issued by BONU dated July
13, 2013, a true and correct copy of which is attached hereto at Exhibit 1 (hereinafter the "Debt"); and

 

WHEREAS,
Seller desires to sell and transfer to Buyer and Buyer desires to purchase in a private transaction in accordance with the terms
and conditions provided for herein, a portion of the Debt representing $25,000 of the principal balance plus accrued interest
owed on the Closing Date (the “Purchased Debt”); and

 

WHEREAS,
the Seller is concurrently entering into a Debt Purchase Agreement dated concurrently with this Agreement transferring the Purchased
Debt to Buyer in exchange for payment to Seller of $25,000; and

 

WHEREAS,
the parties hereto understand that Buyer is relying on this Agreement as material incentive to Buyer’s decision to enter
into that Debt Purchase Agreement and, but for this Agreement, would not do so

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties, intending to be legally bound, agree as follows: 

 

	A.	THE
    COMPANY’S COVENANTS.

 

1.           Conversion
Privilege. The Buyer shall have the right, at its option, to convert the Purchased Debt plus accrued interest or any portion
thereof into shares of Common Stock at any time following the date hereof. The number of shares of Common Stock issuable upon
the conversion of the Purchased Debt is determined pursuant to the provisions below and shall be rounded
to the nearest whole share.

 

    	

    	 

    

 

2.           Full
or Partial Conversion Rights. Notwithstanding the convertibility of the original Promissory Note, all or any portion of the
principal and interest amount owed by the Company to Buyer reflecting the Purchased Debt may be converted into Common Stock. The
provisions of this Agreement that apply to the conversion of all of the Purchased Debt shall also apply to the conversion of a
portion of it. The Purchased Debt may not be converted, whether in whole or in part, except in accordance with this Agreement
or, at the option of the Buyer, under the terms of the original Promissory Note.

 

3.           Conversion
Procedure. Upon the Company’s receipt of a facsimile or email (or by any other means, including mail, messenger, overnight
courier, etc.) of Buyer’s duly completed and signed Notice of Conversion (a copy of which is attached hereto as Exhibit
2), the Company shall, or shall instruct its transfer agent to, issue one or more Certificates representing that number of shares
of Common Stock into which the Purchased Debt are in accordance with the provisions regarding conversion. The Company’s
transfer agent or attorney shall act as Registrar and shall maintain an appropriate ledger containing the necessary information
with respect to each Agreement. For purposes of such Notice, Buyer’s delivery shall be deemed delivered if sent to: BY MAIL
to: BioNeutral Group, Inc.; Att: Tom Cunningham; 211 Warren Street, Newark NJ, 07103: BY EMAIL: tom.c@bioneutral.com

 

4.           Conversion
Date. Such conversion shall be effectuated by surrendering to the Company, or its attorney, the Purchased Debt to be converted
together with a facsimile or email or original of the signed Notice of Conversion. If only a portion of the Purchased Debt is
to be converted, the Company shall promptly reissue a Promissory Note pursuant to identical terms of the Purchased Debt in the
amount of the unconverted portion of the principal and interest then owing on the Purchased Debt. The date on which the Notice
of Conversion is effective (“Conversion Date”) shall be deemed to be the date on which the Buyer has delivered to
the Company a facsimile or email original of the signed Notice of Conversion. Within 5 business days after the Conversion Date
or within 3 business days after receipt of the Purchased Debt to be converted, whichever is later (the “Delivery Date”),
the Company shall deliver to the Buyer, or per the Buyer’s instructions, to any third party, the shares of Common Stock
to be issued pursuant to such Notice of Conversion.

 

    	2

    	 

    

 

5.           Common
Stock to be Issued. Upon the conversion of Purchased Debt or any part thereof and upon receipt by the Company or its attorney
of a facsimile, email or other copy or original of Buyer’s signed Notice of Conversion, Company shall instruct Company’s
transfer agent to issue common stock shares in the name of Buyer (or its nominee) and in such denominations to be specified at
conversion representing the number of shares of Common Stock issuable upon such conversion, as applicable. Company warrants that
no instructions, other than these instructions, have been given or will be given to the transfer agent and that the Common Stock
shall otherwise be freely transferable on the books and records of Company.

 

6.           Conversion
Rate. Subject to the time limitations set forth above, Buyer is entitled to convert the principal and interest owed on the
Note into Common Stock of the Company at a conversion price that is the lesser of (a) the conversion price designated in the Promissory
Note dated July 13, 2013 or (b) 40% (the multiplier) of the lowest closing bid price as reported by Bloomberg for the Company’s
Common Stock for the thirty (30) trading days immediately preceding the Conversion Date of such shares then quoted on any national
securities exchange or other quotation service (such as OTC, Pink Sheets, etc.) (the “Conversion Price”); provided
that if the Closing Bid Price for the common stock on the Clearing date (defined below) is lower than the Closing Bid Price, then
the purchase price shall be adjusted such that the Discount shall be taken from the closing bid price on the Clearing Date, and
the company shall issue additional shares to Purchaser to reflect such adjusted Purchase Price. For purposes of this Agreement,
the Clearing Date shall be the latest date on which (i) the conversion shares are transferred to and deposited into the Buyer's
brokerage account by the Company’s representatives or transfer agent and (ii) Buyer's broker has confirmed with Buyer that
the Buyer may execute trades of the conversion shares. If such events occur after 5:30 PM Eastern Standard Time, the events shall
be deemed to have occurred on the next trading day. No fractional shares or scrip representing fractions of shares will be issued
on conversion, but the number of shares issuable shall be rounded up or down, as the case may be, to the nearest whole share.

 

7.           Chilled
or Frozen Stock. A “chill” is a limitation of certain services available for a security on deposit at the Deposit
Trust Corporation (DTC). A “freeze,” formally referred to as a “global lock,” is a complete restriction
on all DTC services for a particular security on deposit at DTC. If the Company's common stock becomes chilled or frozen by the
DTC at the time that any portion of the principal and interest of the Note is converted by the Buyer,
then the Discount shall be adjusted to thirty percent (30%) for so long as the common stock is chilled or frozen.

 

    	3

    	 

    

 

8.            Company’s
Responsibility to Issue Stock. It shall be the Company’s responsibility to take all necessary actions and bear any and
all miscellaneous expenses that may arise as a result of conversion and delivery of shares of common stock in respect of the Note,
including but are not limited to the cost of the issuance of a Rule 144 legal opinion, transfer agent fees, equity issuance and
deposit fees, etc. At Purchaser’s option, any accrued costs paid by Purchaser may be subtracted from the dollar amount of
any conversion of the Note. The person in whose name the certificate of Common Stock is to be registered shall be treated as a
shareholder of record on and after the Conversion Date.

 

In
the event the Common Stock is not delivered (with legends if required by applicable law and without legends if not required by
applicable law) per the written instructions of the Buyer, within eight (8) business days after the Delivery Date, then in such
event the Company shall pay to Buyer one-half percent (0.10%), in cash, of the dollar value of the Purchased Debt being converted
per each business day following the Delivery Date, up to and including the eighteenth (18th) business day following
the Delivery Date. Delays solely caused by the Buyer’s broker shall not be taken into account in this matter. In the event
the Common Stock is not delivered per the written instructions of the Buyer, within eighteen (18) business days after the Delivery
Date, then, except to the extent the delivery is delayed by operation of law, in such event the Company shall pay to Buyer one
percent (1%), in cash, of the dollar value of the Purchased Debt being converted per each business day following such eighteenth
(18th) business day after the Delivery Date. Buyer shall then be entitled to send written notice to the Company of
the default and the Buyer, and at its sole option may demand full repayment of the Purchased Debt not yet converted, including
accrued interest and liquidated damages through the date that written notice is given to the Company (the “Acceleration
Amount”). If the Company does not wire the Acceleration Amount to the Buyer within five (5) business days of the delivery
by Buyer by fax or email of the default notice, the Acceleration Amount shall accrue interest at twenty-four percent (24%) per
annum. To the extent this provision is inconsistent with the original Debt instrument and any Notes referenced therein, this provision
governs. Such notice shall not affect the Buyer’s rights to the Common Stock due under the Notice of Conversion and all
rights and remedies related to such conversion set forth herein, and shall be in addition to such rights and remedies. The Company
acknowledges that the failure to honor a Notice of Conversion shall cause definable financial hardship to the Buyer as well as
substantial monetary damages, which cannot be determined at this time, and that this damages provision represents the parties’
reasonable estimate of liquidated damages.

    	4

    	 

    

 

If,
by the eighth (8th) business day after the Delivery Date, due to the Company’s direct or indirect actions or
its failure to act, the transfer agent fails for any reason to deliver the Common Stock (with legends if required by applicable
law and without legends if not required by applicable law) upon conversion by the Buyer and after such Delivery Date, the Buyer
purchases, in an open market transaction or otherwise, shares of Common Stock (the "Covering Shares") solely in order
to make delivery in satisfaction of a sale of Common Stock by the Buyer (the "Sold Shares"), which delivery such Buyer
anticipated to make using the Common Stock issuable upon conversion (a "Buy-In"), the Company shall pay to the Buyer,
in addition to any other amounts due to Buyer pursuant to the Purchased Debt, and not in lieu thereof, the Buy-In Adjustment Amount
(as defined below). The "Buy In Adjustment Amount" is the amount equal to the excess, if any, of (x) the Buyer's total
purchase price (including brokerage commissions, if any) for the Covering Shares over (y) the net proceeds (after brokerage commissions,
if any) received by the Buyer from the sale of the Sold Shares. The Company shall pay the Buy-In Adjustment Amount to the Buyer
in immediately available funds within eight (8) business days of written demand by the Buyer.

 

9.            Buyer’s
Right To Liquidated Damages. The Company acknowledges that its failure to deliver the Common Stock within eight (8) business
days after the Delivery Date will cause the Buyer to suffer damages in an amount that will be difficult to ascertain. Accordingly,
the parties agree that it is appropriate to include in this Agreement a provision for liquidated damages. The parties acknowledge
and agree that the liquidated damages provision set forth in this section represents the parties’ good faith effort to quantify
such damages and, as such, agree that the form and amount of such liquidated damages are reasonable and will not constitute a
penalty. The payment of liquidated damages shall not relieve the Company from its obligations to deliver the Common Stock pursuant
to the terms of this Agreement or to repay, with interest, including default interest, as applicable, the unconverted portion
of the Purchased Debt.

 

10.        Liquidated
Damages When There Are Not Sufficient Available Shares. To the extent that the failure of the Company to issue the Common
Stock due upon conversion is due to the unavailability of authorized but unissued shares of Common Stock, the provisions of this
Section shall apply.

 

a.           The
Company shall at all times reserve and have available all Common Stock necessary to meet conversion of the Purchased Debt by Buyer
of the entire amount of Purchased Debt then outstanding. If, at any time Buyer submits a Notice of Conversion and the Company
does not have sufficient authorized but unissued shares of Common Stock available to effect, in full, a conversion of the Purchased
Debt (a “Conversion Default”,  the date of such default being referred to herein as
the “Conversion Default Date”), the Company shall issue to the Buyer all of the shares of Common Stock which are available,
and the Notice of Conversion as to any Purchased Debt requested to be converted but not converted (the “Unconverted Purchased
Debt”), upon Buyer’s sole option, may be deemed null and void. The Company shall provide notice of such Conversion
Default (“Notice of Conversion Default”) to Buyer of outstanding Purchased Debt, by facsimile, within five (5) business
days of such default (with the original delivered by overnight or two day courier), and the Buyer shall give notice to the Company
by facsimile within five business days of receipt of the original Notice of Conversion Default (with the original delivered by
overnight or two day courier) of its election to either nullify or confirm the Notice of Conversion.

    	5

    	 

    

 

b.           The
Company agrees to pay to Buyer of outstanding Purchased Debt for a Conversion Default (“Conversion Default Payments”)
in the amount of (N/365) x (.24) x the balance of the outstanding and/or tendered but not converted Purchased Debt held by each
Buyer where N = the number of days from the Conversion Default Date to the date (the “Authorization Date”) that the
Company authorizes a sufficient number of shares of Common Stock to effect conversion of all remaining Purchased Debt. The Company
shall send notice (“Authorization Notice”) to Buyer of outstanding Purchased Debt that additional shares of Common
Stock have been authorized, the Authorization Date and the amount of Buyer’s accrued Conversion Default Payments. The accrued
Conversion Default Payments shall be paid in cash or shall be into Common Stock at the Conversion Rate, at the Buyer’s option,
payable as follows: (i) in the event Buyer elects within ten (10) days of the Authorization Notice in writing to take such payment
in cash, cash payments shall be made to such Buyer by the fifth day of the following calendar month, or (ii) if the Buyer does
not so elect to receive such Conversion Default Payment in cash, such payment shall be made in Common Stock at the then current
Conversion Price within 30 days following the date of the Authorization Notice. The Company acknowledges that its failure to maintain
a sufficient number of authorized but unissued shares of Common Stock to effect in full a conversion of the Purchased Debt will
cause the Buyer to suffer damages in an amount that will be difficult to ascertain. Accordingly, the parties agree that it is
appropriate to include in this Agreement a provision for liquidated damages. The parties acknowledge and agree that the liquidated
damages provision set forth in this section represents the parties’ good faith effort to quantify such damages and, as such,
agree that the form and amount of such liquidated damages are reasonable and will not constitute a
penalty. The payment of liquidated damages shall not relieve the Company from its obligations to deliver the Common Stock pursuant
to the terms of this Agreement.

 

    	6

    	 

    

 

c.           Maximum
Interest Rate. Nothing contained in this Agreement shall be deemed to establish or require the payment of interest to the
Buyer at a rate in excess of the maximum rate permitted by governing law. In the event that the rate of interest required to be
paid exceeds the maximum rate permitted by governing law, the rate of interest required to be paid thereunder shall be automatically
reduced to the maximum rate permitted under the governing law and such excess shall be returned with reasonable promptness by
the Buyer to the Company.

 

11.           Payment
of Taxes. The Company shall pay all documentary stamp taxes, if any, attributable to the initial issuance of the Common Stock;
provided, however, that the Company shall not be required to pay any tax or taxes which may be payable, (1) with respect to any
secondary transfer of the Purchased Debt or the Common Stock issuable upon exercise hereof or (2) as a result of the issuance
of the Common Stock to any person other than the Buyer, and the Company shall not be required to issue or deliver any certificate
for any Common Stock unless and until the person requesting the issuance thereof shall have paid to the Company the amount of
such tax or shall have produced evidence that such tax has been paid to the appropriate taxing authority.

 

12.           Restrictions
on Transfers. The Purchased Debt has not been registered under the Securities Act of 1933, as amended, (the “Act”)
and is being issued under Section 4(2) of the Act and Rule 506 of Regulation D promulgated under the Act. The Purchased Debt and
the Common Stock issuable upon the conversion thereof may only be offered or sold pursuant to registration under or an exemption
from the Act.

 

13.           Mergers,
Etc. If the Company merges or consolidates with another corporation or sells or transfers all or substantially all of its
assets to another person and the Buyer is entitled to receive stock, securities or property in respect of or in exchange for Common
Stock, then as a condition of such merger, consolidation, sale or transfer, the Company and any such successor, purchaser or transferee
shall amend the Purchased Debt to provide that it may thereafter be converted on the terms and subject to the conditions set forth
above into the kind and amount of stock, securities or property receivable upon such merger, consolidation,
sale or transfer by Buyer of the number of shares of Common Stock into which the Purchased Debt might have been converted immediately
before such merger, consolidation, sale or transfer, subject to adjustments which shall be as nearly equivalent as may be practicable
to adjustments provided for in this Agreement.

 

    	7

    	 

    

 

The
Company shall not consolidate or merge into, or transfer all or substantially all of its assets to, any person, unless such person
assumes in writing the obligations of the Company under the Purchased Debt and immediately after such transaction no Event of
Default exists. Any reference herein to the Company shall refer to such surviving or transferee corporation and the obligations
of the Company shall terminate upon such written assumption. 

 

	B.	BUYER’S
    REPRESENTATIONS AND WARRANTIES. Buyer represents and warrants to Seller and to the Company that:

 

1.           Reliance
on Exemptions. Buyer understands that the Transferred Rights are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of United States federal and state securities laws and that Seller and the Company are relying
upon the truth and accuracy of, and Buyer’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of
the Buyer to acquire the relevant Transferred Rights.

 

2.           Non-affiliate
Status. Buyer is not, and has not for in excess of ninety (90) days been, and subsequent to the Transfer Closing Date will
not be, an “Affiliate” of the Company, as that term is defined by Rule 144 under the 1933 Act. Buyer is not acting
in concert with any other person in a manner that would require their sales of securities to be aggregated for purposes of Rule
144 or would cause Buyer to be considered an “Underwriter” as that term is defined by Section 2 of the 1933 Act.

 

3.           Company
Information. Buyer and its advisors, if any, have had access to all financial statements and disclosures made public through
the SEC’s EDGAR system. Buyer and its advisors have been afforded the opportunity to ask questions of Seller. Neither such
inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives shall modify,
amend or affect Buyer’s right to rely on Seller’s representations and warranties contained in Section 3 below. Buyer
understands that its investment in Transferred Rights, including but not limited to the relevant Transferred Note (and/or in the
Common Stock issuable thereunder), involves a significant degree of risk.

 

    	8

    	 

    

 

4.           Governmental
Review. Buyer understands that no United States federal or state agency or any other government or governmental agency has
passed upon or made any recommendation or endorsement of the Transferred Rights or of the Common Stock
issuable thereunder.

 

5.           Transfer
or Resale. Buyer understands that (i) the sale or resale of the Note and the Common Stock issuable thereunder has not been
registered under the 1933 Act or any applicable state securities laws, and the Note and the Common Stock issuable thereunder may
not be transferred unless (a) such security is sold pursuant to an effective registration statement under the 1933 Act, (b) the
security is sold or transferred pursuant to an exemption from such registration, (c) the security is sold or transferred to an
“affiliate” (as defined in Rule 144 promulgated under the 1933 Act or a successor rule; “Rule 144”) of
Buyer who agrees to sell or otherwise transfer the security only in accordance with this Section and who is an Accredited Investor,
or (d) (i) the Common Stock is sold pursuant to Rule 144, if such Rule is available; (ii) any sale of such Common Stock made in
reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any
resale of such Common Stock under circumstances in which the seller (or the person through whom the sale is made) may be deemed
to be an underwriter (as that term is defined in the 1933 Act) and may require compliance with some other exemption under the
1933 Act or the rules and regulations of the SEC thereunder.

 

6.           Authorization;
Enforcement. This Agreement has been duly and validly authorized by Buyer. This Agreement has been duly executed and delivered
on behalf of Buyer, and this Agreement constitutes a valid and binding agreement of Buyer enforceable in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies or by other equitable
principles of general application.

 

7.           No
Brokers. Buyer has taken no action which would give rise to any claim by any person for brokerage commissions, finder’s
fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

	C.	SELLER’S
    REPRESENTATIONS AND WARRANTIES. Seller represents and warrants to Buyer that:

 

1.           Authorization;
Enforcement. (i) Seller has all requisite power and authority to enter into and perform this Agreement and to consummate the
transactions contemplated hereby and to sell the relevant Purchased Note in accordance with the terms hereof, (ii) the execution
and delivery of this Agreement by Seller and the consummation by it of the transactions contemplated hereby (including without
limitation, the sale of the relevant Transferred Rights to Buyer) have been duly authorized by Seller and no further consent or
authorization of Seller or its members is required, (iii) this Agreement has been duly executed and delivered by Seller, and (iv)
this Agreement constitutes a legal, valid and binding obligation of Seller enforceable against Seller in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies
or by other equitable principles of general application.

 

    	9

    	 

    

 

2.           Title.
Seller has good and marketable title to the relevant Purchased Note and Transferred Rights, free and clear of all liens, pledges
and encumbrances of any kind.

 

3.           No
Conflicts. The execution, delivery and performance of this Agreement by Seller and the consummation by Seller of the transactions
contemplated hereby (including, without limitation, the sale of the relevant Transferred Rights to Buyer) will not (i) violate
or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of
time or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
of, any agreement, note, bond, indenture or other instrument to which Seller is a party, or (ii) result in a violation of any
law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations
of any self-regulatory organizations to which Seller is subject) applicable to Seller or by which any property of the Seller are
bound or affected. Except as specifically contemplated by this Agreement and as required under the 1933 Act and any applicable
federal and state securities laws, neither Seller nor the Company is required to obtain any consent, authorization or order of,
or make any filing or registration with, any court, governmental agency, regulatory agency, self-regulatory organization or stock
market or any third party in order for it to execute, deliver or perform any of its obligations under this Agreement in accordance
with the terms hereof. Except for filings that may be required under applicable federal and state securities laws in connection
with the issuance and sale of the Seller’s Note, all consents, authorizations, orders, filings and registrations which Seller
is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof.

 

4.           No
Brokers. Seller has taken no action which would give rise to any claim by any person for brokerage commissions, finder’s
fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

5.           Title;
Rule 144 Matters. Seller has owned the Original Note since the Issue Date. Seller is not, and for a period of at least ninety
(90) days prior to the date hereof has not been, an “Affiliate” of the Company, as that term is defined in Rule 144
of the 1933 Act listed immediately below. Subsequent to the Transfer Closing Date, Seller will take no action which would adversely
affect the tacking for the benefit of the Buyer of Seller’s holding period under Rule 144.

 

    	10

    	 

    

 

An
Affiliate of an issuer is a person that directly, or indirectly through one or more intermediaries, controls, or
is controlled by, or is under common control with, such issuer.

 

The
term person when used with reference to a person for whose account securities are to be sold in reliance upon this section
includes, in addition to such person, all of the following persons:

 

(i)           Any
relative or spouse of such person, or any relative of such spouse, any one of whom has the same home as such person;

 

(ii)         Any
trust or estate in which such person or any of the persons specified in paragraph (i) of this section collectively own 10 percent
or more of the total beneficial interest or of which any of such persons serve as trustee, executor or in any similar capacity;
and

 

(iii)        Any
corporation or other organization (other than the issuer) in which such person or any of the persons specified in paragraph C.5.(i)
of this section are the beneficial owners collectively of 10 percent or more of any class of equity securities or 10 percent or
more of the equity interest.

 

6.         No
Other Representations. Seller makes no representations or warranties with respect to the Company, its financial status, earnings,
assets, liabilities, corporate status or any other matter. The Seller acknowledges that Buyer is relying on Seller’s representations
as a material condition to entering into this Agreement.

 

	D.	REPRESENTATIONS
    AND WARRANTIES OF COMPANY

 

Company
represents and warrants that at the time of the execution of this Agreement and at the Closing thereof:

 

1.           MARKETABLE
TITLE: To the best knowledge and information of the Company, the Seller is conveying to Buyer good and marketable title in
and to the Purchased Debt, free and clear of any and all liens, claims, encumbrances.

 

2.           Rule
144. The Company covenants and agrees to take all reasonable steps necessary or appropriate, including providing an opinion
of counsel confirming the rights of Buyer to sell shares of Common Stock issued to Buyer on conversion of the Note pursuant to
Rule 144 as promulgated by the SEC ("Rule 144"), as such Rule may be in effect from time to time. If the Company does
not promptly provide an opinion from Company counsel, and so long as the requested sale may be made pursuant to Rule 144, the
Company agrees to accept an opinion of counsel to the Buyer which opinion will be issued at the Company's expense. 

 

    	11

    	 

    

 

3.          VALIDITY
OF THE PURCHASED DEBT: All of the Purchased Debt being sold by Seller to Buyer under the concurrently executed Debt Purchase
Agreement is validly issued, outstanding, unpaid and assignable. The date for purposes of Rule 144 tacks back to the original
date of the Debt, July 13, 2013 or such earlier date as the law prescribes. The Purchased Debt is convertible at the rate and
in the manner of conversion prescribed by the Promissory Note dated July 13, 2013, except as prescribed by this Agreement. After
the Closing Date, all interest accruing and to be paid on account of the $50,000 principal balance of the Purchased Debt and all
other rights with respect to the Purchased Debt under the original Promissory Note inure to the benefit of Buyer, rather than
Seller. In the event of a conflict, the terms of this Agreement shall govern the terms of conversion by the Seller of the Purchased
Debt or any part of such Purchased Debt. If there is no conflict, then the terms of both agreements govern the conversion of the
Purchased Debt by Buyer. The Company has obtained an opinion of counsel that the Purchased Debt is convertible into free trading
common stock of the Company. The opinion is attached to the Debt Purchase Agreement as Exhibit 4. In order to obtain such opinion,
certain representations were made by the Company and the Seller. The Company represents that the Company is in agreement with
such representations and has no information contrary to such representations.

 

4.          TRANSFERRABILLITY
OF THE DEBT: The Company acknowledges that the Buyer intends to transfer a portion of the Purchased Debt to certain other
individuals and the Company represents that such transferees shall have the right to convert any of the Purchased Debt being transferred
to them into free trading shares pursuant to the opinion discussed immediately above. The transferees shall have the right to
rely on the Seller's representations herein.

 

5.          AUTHORITY.
(i) The Company, and the person signing on its behalf below, has all requisite power and authority to enter into and perform this
Agreement and to consummate the transactions contemplated hereby in accordance with the terms hereof, (ii) the execution and delivery
of this Agreement by the Company and the consummation by it of the transactions contemplated hereby (including without limitation,
the sale of the relevant Purchased Debt to Buyer) have been duly authorized by the Company and no further consent or authorization
of the Company or its members is required, (iii) this Agreement has been duly executed and delivered by the Company, and (iv)
this Agreement constitutes a legal, valid and binding obligation of the Company enforceable against the Company in accordance
with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of creditors' rights and remedies or by other
equitable principles of general application. 

 

    	12

    	 

    

 

6.          Capitalization.
All of the outstanding shares of capital stock are, or upon issuance will be, duly authorized, validly issued, fully paid and
non-assessable. No shares of capital stock of the Company are subject to preemptive rights or any other similar rights of the
shareholders of the Company or any liens or encumbrances imposed through the actions or failure to act of the Company. As of the
effective date of this Agreement, and except as disclosed in the SEC Documents, (i) there are no outstanding options, warrants,
scrip, rights to subscribe for, puts, calls, rights of first refusal, agreements, understandings, claims or other commitments
or rights of any character whatsoever relating to, or securities or rights convertible into or exchangeable for any shares of
capital stock of the Company or any of its Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is or
may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries, (ii) there are no agreements
or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of its or their securities
under the 1933 Act and (iii) there are no anti-dilution or price adjustment provisions contained in any security issued by the
Company (or in any agreement providing rights to security holders) that will be triggered by the issuance of the Note or the Conversion
Shares. At its option, Buyer has had the opportunity to review true and correct copies of the Company’s Certificate of Incorporation
as in effect on the date hereof (“Certificate of Incorporation”), the Company’s By-laws, as in effect on the
date hereof (the “Bylaws”), and the terms of all securities convertible into or exercisable for Common Stock of the
Company and the material rights of the holders thereof in respect thereto.

 

7.          NO
CONFLICTS. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company and
the Seller of the transactions contemplated hereby (including, without limitation, the sale of the relevant Purchased Debt to
Buyer) will not (i) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event
which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, note, bond, indenture or other instrument to which Company is a party, or (ii)
result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and
regulations and regulations of any self-regulatory organizations to which the Company is subject) applicable to the Company or
by which any property of the Company are bound or affected. Except as specifically contemplated by this Agreement and as required
under the 1933 Act and any applicable federal and state securities laws, neither Seller nor the Company is required to obtain
any consent, authorization or order of, or make any filing or registration with, any court, governmental agency, regulatory agency,
self regulatory organization or stock market or any third party in order for it to execute, deliver or perform any of its obligations
under this Agreement in accordance with the terms hereof. Except for filings that may be required under applicable federal and
state securities laws in connection with the issuance and sale of the Purchased Debt, all consents, authorizations, orders, filings
and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on
or prior to the date hereof.

 

    	13

    	 

    

 

8.           NO
MATERIAL ADVERSE CHANGE: Since the date of the initiation of negotiations regarding this Transaction, there has not been any
material adverse change in the business, operations, properties, prospects, assets, or condition of the Company (financial or
otherwise), and no event has occurred or circumstance exists that may result in such a material adverse change.

 

9.          DISCLOSURE:
No representation or warranty of the Company in this Agreement omits to state a known material fact necessary to make the
statements herein or therein, in light of the circumstances in which they were made, not misleading. There is no fact known to
Seller that has specific application to either Seller or the Company (other than general economic or industry conditions) and
that materially adversely affects the assets, business, prospects, financial condition, or results of operations of the Company
that has not been set forth in this Agreement.

 

10.        DEBTS:
The Company has no outstanding debts (other than the Debt), judgments, liens, encumbrances, UCC filings, notes, loans, convertible
debt instruments, or other financial obligations whatsoever, other than as disclosed in its public filings with the Securities
and Exchange Commission and in this Agreement.

 

11.        COMPANY’S
REPORTING OBLIGATIONS. The Company will mail to the Buyer hereof at its address as shown on the Register a copy of any annual,
quarterly or other report or proxy statement that it gives to its shareholders generally at the time such report or statement
is sent to shareholders, unless such report is timely filed with the United States Securities and Exchange Commission.

 

12.       CONDUCT
OF BUSINESS: The Company has and shall continue to conduct its business in the normal and ordinary course, consistent with
the present conduct of its business and previous practices, shall not make and/or declare any dividend (cash and/or stock), redemption,
stock split (reverse or forward), and/or stock and/or cash distributions.

 

13.        NO
AMENDMENT OF DEBT OR NOTES WITHOUT CONSENT OF BUYER. Company, hereafter, shall not take any action to amend the Debt instrument
or cooperate in the amendment of any of the Notes referenced in the Promissory Note dated July 13, 2013, absent express written
consent of Buyer.

 

    	14

    	 

    

 

14.        BUYBACK
GUARANTY IN EVENT OF DTC CHILL OR FREEZE. In the event that the DTC issues a chill or freeze of the Company’s common
stock after Buyer has converted some or all of its Purchased Debt, and Buyer holds such shares at that time, then Buyer shall
have the option to sell, and the Company shall have be required to purchase, for a period of six months, such shares of Common
Stock at the Conversion Price at which the stock was issued to Buyer. The purchase price shall be paid in cash concurrently upon
Buyer surrendering such shares of Common Stock to the Company. 

 

	E.	DEFAULTS
    AND REMEDIES.

 

1.           EVENTS
OF DEFAULT. An “Event of Default” occurs if (i) the Company does not make the payment of the principal
or interest due under the Purchased Debt when the same becomes due and payable at maturity, upon demand or otherwise, (ii) the
Company does not make a payment, other than a payment of principal or interest, for a period of five (5) business days after its
due date, (iii) any of the Company’s representations or warranties contained in the Promissory Note dated July 13, 2013
were false when made or the Company fails to comply with any of its other obligations in that agreement, including the delivery
of Common Stock upon conversion before the Delivery Date; (iv) a DTC “chill” or “freeze” is placed on
the stock of the Company; (v) the Common Stock becomes ineligible for listing or quotation for trading on its current trading
market and shall not be eligible to resume listing or quotation on its current trading market within ten trading days; (vi) the
Company pursuant to or within the meaning of any Bankruptcy Law (as hereinafter defined): (1) commences a voluntary petition under
Bankruptcy Law; (2) consents to the entry of an order for relief against it in an involuntary bankruptcy petition; (3) consents
to the appointment of a Custodian (as hereinafter defined) of it or for all or substantially all of its property or (4) makes
a general assignment for the benefit of its creditors or (5) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that: (A) is for relief against the Company in an involuntary bankruptcy petition; (B) appoints a Custodian
of the Company or for all or substantially all of its property or (C) orders the liquidation of the Company, and the order or
decree remains unstayed and in effect for 60 days, or (vi) the Company is in default of any debt, note or Agreement with an outstanding
balance equal to or exceeding $25,000 individually or $50,000 in the aggregate, or (vii) the Company is in default of any provisions
of this Agreement; or (viii) the Company’s representations and warranties contained in this Agreement were not true on the
date that this Agreement is signed. As used in this Section 1, the term “Bankruptcy Law” means Title 11 of the United
States Code or any similar federal or state law for the relief of debtors. The term “Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

    	15

    	 

    

 

2.           REMEDIES
UPON DEFAULT. If any Event of Default occurs, the outstanding principal amount of the Purchased Debt, plus liquidated damages
and other amounts owing in respect thereof through the date of acceleration, shall become, at the Buyer’s election, immediately
due and payable in cash. Commencing 5 days after the occurrence of any Event of Default that results in the eventual acceleration
of the Purchased Debt, the interest rate on the Purchased Debt shall accrue at an interest rate equal
to the lesser of 18% per annum or the maximum rate permitted under applicable law. Upon the payment in full, the Buyer shall promptly
surrender the Note to or as directed by the Company. In connection with such acceleration described herein, the Buyer need not
provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind, and the Buyer may immediately
and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available
to it under applicable law. Such acceleration may be rescinded and annulled by Buyer at any time prior to payment hereunder and
the Buyer shall have all rights as a Buyer of the Agreement until such time, if any, as the Buyer receives full payment pursuant
to this Section 2. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent
thereon.

 

		F.	DILUTION.
                                                                                                                                 The
                                                                                                                                 number
                                                                                                                                 of
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 Common
                                                                                                                                 Stock
                                                                                                                                 issuable
                                                                                                                                 upon
                                                                                                                                 conversion
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Purchased
                                                                                                                                 Debt
                                                                                                                                 may
                                                                                                                                 increase
                                                                                                                                 substantially
                                                                                                                                 in
                                                                                                                                 certain
                                                                                                                                 circumstances.
                                                                                                                                 The
                                                                                                                                 Company’s
                                                                                                                                 executive
                                                                                                                                 officers
                                                                                                                                 and
                                                                                                                                 directors
                                                                                                                                 have
                                                                                                                                 studied
                                                                                                                                 and
                                                                                                                                 fully
                                                                                                                                 understand
                                                                                                                                 the
                                                                                                                                 nature
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 transactions
                                                                                                                                 contemplated
                                                                                                                                 by
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 and
                                                                                                                                 recognize
                                                                                                                                 that
                                                                                                                                 they
                                                                                                                                 have
                                                                                                                                 a
                                                                                                                                 potential
                                                                                                                                 dilutive
                                                                                                                                 effect.
                                                                                                                                 The
                                                                                                                                 board
                                                                                                                                 of
                                                                                                                                 directors
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Company
                                                                                                                                 has
                                                                                                                                 concluded,
                                                                                                                                 in
                                                                                                                                 its
                                                                                                                                 good
                                                                                                                                 faith
                                                                                                                                 business
                                                                                                                                 judgment,
                                                                                                                                 that
                                                                                                                                 such
                                                                                                                                 issuance
                                                                                                                                 is
                                                                                                                                 in
                                                                                                                                 the
                                                                                                                                 best
                                                                                                                                 interests
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Company.
                                                                                                                                 The
                                                                                                                                 Company
                                                                                                                                 specifically
                                                                                                                                 acknowledges
                                                                                                                                 that
                                                                                                                                 its
                                                                                                                                 obligation
                                                                                                                                 to
                                                                                                                                 issue
                                                                                                                                 additional
                                                                                                                                 shares
                                                                                                                                 of
                                                                                                                                 Common
                                                                                                                                 Stock
                                                                                                                                 is
                                                                                                                                 binding
                                                                                                                                 upon
                                                                                                                                 the
                                                                                                                                 Company
                                                                                                                                 and
                                                                                                                                 enforceable
                                                                                                                                 regardless
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 dilution
                                                                                                                                 such
                                                                                                                                 issuance
                                                                                                                                 may
                                                                                                                                 have
                                                                                                                                 on
                                                                                                                                 the
                                                                                                                                 ownership
                                                                                                                                 interests
                                                                                                                                 of
                                                                                                                                 other
                                                                                                                                 shareholders
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Company.

 

		G.	TIME
                                                                                                                                 IS
                                                                                                                                 OF
                                                                                                                                 THE
                                                                                                                                 ESSENCE.
                                                                                                                                 Where
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 or
                                                                                                                                 the
                                                                                                                                 Promissory
                                                                                                                                 Note
                                                                                                                                 dated
                                                                                                                                 July
                                                                                                                                 13,
                                                                                                                                 2013
                                                                                                                                 authorizes
                                                                                                                                 or
                                                                                                                                 requires
                                                                                                                                 the
                                                                                                                                 payment
                                                                                                                                 of
                                                                                                                                 money
                                                                                                                                 or
                                                                                                                                 the
                                                                                                                                 performance
                                                                                                                                 of
                                                                                                                                 a
                                                                                                                                 condition
                                                                                                                                 or
                                                                                                                                 obligation
                                                                                                                                 on
                                                                                                                                 a
                                                                                                                                 Saturday
                                                                                                                                 or
                                                                                                                                 Sunday
                                                                                                                                 or
                                                                                                                                 a
                                                                                                                                 public
                                                                                                                                 holiday,
                                                                                                                                 or
                                                                                                                                 authorizes
                                                                                                                                 or
                                                                                                                                 requires
                                                                                                                                 the
                                                                                                                                 payment
                                                                                                                                 of
                                                                                                                                 money
                                                                                                                                 or
                                                                                                                                 the
                                                                                                                                 performance
                                                                                                                                 of
                                                                                                                                 a
                                                                                                                                 condition
                                                                                                                                 or
                                                                                                                                 obligation
                                                                                                                                 within,
                                                                                                                                 before
                                                                                                                                 or
                                                                                                                                 after
                                                                                                                                 a
                                                                                                                                 period
                                                                                                                                 of
                                                                                                                                 time
                                                                                                                                 computed
                                                                                                                                 from
                                                                                                                                 a
                                                                                                                                 certain
                                                                                                                                 date,
                                                                                                                                 and
                                                                                                                                 such
                                                                                                                                 period
                                                                                                                                 of
                                                                                                                                 time
                                                                                                                                 ends
                                                                                                                                 on
                                                                                                                                 a
                                                                                                                                 Saturday
                                                                                                                                 or
                                                                                                                                 a
                                                                                                                                 Sunday
                                                                                                                                 or
                                                                                                                                 a
                                                                                                                                 public
                                                                                                                                 holiday,
                                                                                                                                 such
                                                                                                                                 payment
                                                                                                                                 may
                                                                                                                                 be
                                                                                                                                 made
                                                                                                                                 or
                                                                                                                                 condition
                                                                                                                                 or
                                                                                                                                 obligation
                                                                                                                                 performed
                                                                                                                                 on
                                                                                                                                 the
                                                                                                                                 next
                                                                                                                                 succeeding
                                                                                                                                 business
                                                                                                                                 day,
                                                                                                                                 and
                                                                                                                                 if
                                                                                                                                 the
                                                                                                                                 period
                                                                                                                                 ends
                                                                                                                                 at
                                                                                                                                 a
                                                                                                                                 specified
                                                                                                                                 hour,
                                                                                                                                 such
                                                                                                                                 payment
                                                                                                                                 may
                                                                                                                                 be
                                                                                                                                 made
                                                                                                                                 or
                                                                                                                                 condition
                                                                                                                                 performed,
                                                                                                                                 at
                                                                                                                                 or
                                                                                                                                 before
                                                                                                                                 the
                                                                                                                                 same
                                                                                                                                 hour
                                                                                                                                 of
                                                                                                                                 such
                                                                                                                                 next
                                                                                                                                 succeeding
                                                                                                                                 business
                                                                                                                                 day,
                                                                                                                                 with
                                                                                                                                 the
                                                                                                                                 same
                                                                                                                                 force
                                                                                                                                 and
                                                                                                                                 effect
                                                                                                                                 as
                                                                                                                                 if
                                                                                                                                 made
                                                                                                                                 or
                                                                                                                                 performed
                                                                                                                                 in
                                                                                                                                 accordance
                                                                                                                                 with
                                                                                                                                 the
                                                                                                                                 terms
                                                                                                                                 of
                                                                                                                                 this
                                                                                                                                 Agreement.
                                                                                                                                 A
                                                                                                                                 “business
                                                                                                                                 day”
                                                                                                                                 shall
                                                                                                                                 mean
                                                                                                                                 a
                                                                                                                                 day
                                                                                                                                 on
                                                                                                                                 which
                                                                                                                                 the
                                                                                                                                 banks
                                                                                                                                 in
                                                                                                                                 New
                                                                                                                                 York
                                                                                                                                 are
                                                                                                                                 not
                                                                                                                                 required
                                                                                                                                 or
                                                                                                                                 allowed
                                                                                                                                 to
                                                                                                                                 be
                                                                                                                                 closed.
                                                                                                                                 Time
                                                                                                                                 is
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 essence
                                                                                                                                 in
                                                                                                                                 the
                                                                                                                                 performance
                                                                                                                                 of
                                                                                                                                 all
                                                                                                                                 obligations
                                                                                                                                 under
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 and
                                                                                                                                 under
                                                                                                                                 the
                                                                                                                                 Promissory
                                                                                                                                 Note
                                                                                                                                 dated
                                                                                                                                 July
                                                                                                                                 13,
                                                                                                                                 2013.

 

		H.	WAIVERS.
                                                                                                                                 Any
                                                                                                                                 waiver
                                                                                                                                 by
                                                                                                                                 the
                                                                                                                                 Company
                                                                                                                                 or
                                                                                                                                 the
                                                                                                                                 Buyer
                                                                                                                                 of
                                                                                                                                 a
                                                                                                                                 breach
                                                                                                                                 of
                                                                                                                                 any
                                                                                                                                 provision
                                                                                                                                 of
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 shall
                                                                                                                                 not
                                                                                                                                 operate
                                                                                                                                 as
                                                                                                                                 or
                                                                                                                                 be
                                                                                                                                 construed
                                                                                                                                 to
                                                                                                                                 be
                                                                                                                                 a
                                                                                                                                 waiver
                                                                                                                                 of
                                                                                                                                 any
                                                                                                                                 other
                                                                                                                                 breach
                                                                                                                                 of
                                                                                                                                 such
                                                                                                                                 provision
                                                                                                                                 or
                                                                                                                                 of
                                                                                                                                 any
                                                                                                                                 breach
                                                                                                                                 of
                                                                                                                                 any
                                                                                                                                 other
                                                                                                                                 provision
                                                                                                                                 of
                                                                                                                                 this
                                                                                                                                 Agreement.
                                                                                                                                 The
                                                                                                                                 failure
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Company
                                                                                                                                 or
                                                                                                                                 the
                                                                                                                                 Buyer
                                                                                                                                 to
                                                                                                                                 insist
                                                                                                                                 upon
                                                                                                                                 strict
                                                                                                                                 adherence
                                                                                                                                 to
                                                                                                                                 any
                                                                                                                                 term
                                                                                                                                 of
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 on
                                                                                                                                 one
                                                                                                                                 or
                                                                                                                                 more
                                                                                                                                 occasions
                                                                                                                                 shall
                                                                                                                                 not
                                                                                                                                 be
                                                                                                                                 considered
                                                                                                                                 a
                                                                                                                                 waiver
                                                                                                                                 or
                                                                                                                                 deprive
                                                                                                                                 that
                                                                                                                                 party
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 right
                                                                                                                                 thereafter
                                                                                                                                 to
                                                                                                                                 insist
                                                                                                                                 upon
                                                                                                                                 strict
                                                                                                                                 adherence
                                                                                                                                 to
                                                                                                                                 that
                                                                                                                                 term
                                                                                                                                 or
                                                                                                                                 any
                                                                                                                                 other
                                                                                                                                 term
                                                                                                                                 of
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 on
                                                                                                                                 any
                                                                                                                                 other
                                                                                                                                 occasion.
                                                                                                                                 Any
                                                                                                                                 waiver
                                                                                                                                 by
                                                                                                                                 the
                                                                                                                                 Company
                                                                                                                                 or
                                                                                                                                 the
                                                                                                                                 Buyer
                                                                                                                                 must
                                                                                                                                 be
                                                                                                                                 in
                                                                                                                                 writing.

 

    	16

    	 

    

 

		I.	RULES
                                                                                                                                 OF
                                                                                                                                 CONSTRUCTION.
                                                                                                                                 In
                                                                                                                                 this
                                                                                                                                 Agreement,
                                                                                                                                 unless
                                                                                                                                 the
                                                                                                                                 context
                                                                                                                                 otherwise
                                                                                                                                 requires,
                                                                                                                                 words
                                                                                                                                 in
                                                                                                                                 the
                                                                                                                                 singular
                                                                                                                                 number
                                                                                                                                 include
                                                                                                                                 the
                                                                                                                                 plural,
                                                                                                                                 and
                                                                                                                                 in
                                                                                                                                 the
                                                                                                                                 plural
                                                                                                                                 include
                                                                                                                                 the
                                                                                                                                 singular,
                                                                                                                                 and
                                                                                                                                 words
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 masculine
                                                                                                                                 gender
                                                                                                                                 include
                                                                                                                                 the
                                                                                                                                 feminine
                                                                                                                                 and
                                                                                                                                 the
                                                                                                                                 neuter,
                                                                                                                                 and
                                                                                                                                 when
                                                                                                                                 the
                                                                                                                                 sense
                                                                                                                                 so
                                                                                                                                 indicates,
                                                                                                                                 words
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 neuter
                                                                                                                                 gender
                                                                                                                                 may
                                                                                                                                 refer
                                                                                                                                 to
                                                                                                                                 any
                                                                                                                                 gender.
                                                                                                                                 The
                                                                                                                                 numbers
                                                                                                                                 and
                                                                                                                                 titles
                                                                                                                                 of
                                                                                                                                 sections
                                                                                                                                 contained
                                                                                                                                 in
                                                                                                                                 the
                                                                                                                                 Agreement
                                                                                                                                 are
                                                                                                                                 inserted
                                                                                                                                 for
                                                                                                                                 convenience
                                                                                                                                 of
                                                                                                                                 reference
                                                                                                                                 only,
                                                                                                                                 and
                                                                                                                                 they
                                                                                                                                 neither
                                                                                                                                 form
                                                                                                                                 a
                                                                                                                                 part
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Agreement
                                                                                                                                 nor
                                                                                                                                 are
                                                                                                                                 they
                                                                                                                                 to
                                                                                                                                 be
                                                                                                                                 used
                                                                                                                                 in
                                                                                                                                 the
                                                                                                                                 construction
                                                                                                                                 or
                                                                                                                                 interpretation
                                                                                                                                 hereof.
                                                                                                                                 Wherever,
                                                                                                                                 in
                                                                                                                                 this
                                                                                                                                 Agreement,
                                                                                                                                 a
                                                                                                                                 determination
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Company
                                                                                                                                 is
                                                                                                                                 required
                                                                                                                                 or
                                                                                                                                 allowed,
                                                                                                                                 such
                                                                                                                                 determination
                                                                                                                                 shall
                                                                                                                                 be
                                                                                                                                 made
                                                                                                                                 by
                                                                                                                                 a
                                                                                                                                 majority
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Board
                                                                                                                                 of
                                                                                                                                 Directors
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Company
                                                                                                                                 and
                                                                                                                                 if
                                                                                                                                 it
                                                                                                                                 is
                                                                                                                                 made
                                                                                                                                 in
                                                                                                                                 good
                                                                                                                                 faith,
                                                                                                                                 it
                                                                                                                                 shall
                                                                                                                                 be
                                                                                                                                 conclusive
                                                                                                                                 and
                                                                                                                                 binding
                                                                                                                                 upon
                                                                                                                                 the
                                                                                                                                 Company
                                                                                                                                 and
                                                                                                                                 the
                                                                                                                                 Buyer
                                                                                                                                 of
                                                                                                                                 this
                                                                                                                                 Agreement.

 

		J.	ABSOLUTE
                                                                                                                                 OBLIGATION.
                                                                                                                                 Except
                                                                                                                                 as
                                                                                                                                 expressly
                                                                                                                                 provided
                                                                                                                                 herein,
                                                                                                                                 no
                                                                                                                                 provision
                                                                                                                                 of
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 shall
                                                                                                                                 alter
                                                                                                                                 or
                                                                                                                                 impair
                                                                                                                                 the
                                                                                                                                 obligation
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Company,
                                                                                                                                 which
                                                                                                                                 is
                                                                                                                                 absolute
                                                                                                                                 and
                                                                                                                                 unconditional,
                                                                                                                                 to
                                                                                                                                 pay
                                                                                                                                 the
                                                                                                                                 principal
                                                                                                                                 of
                                                                                                                                 and
                                                                                                                                 liquidated
                                                                                                                                 damages,
                                                                                                                                 as
                                                                                                                                 applicable
                                                                                                                                 on
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 at
                                                                                                                                 the
                                                                                                                                 time,
                                                                                                                                 place,
                                                                                                                                 and
                                                                                                                                 rate,
                                                                                                                                 and
                                                                                                                                 in
                                                                                                                                 the
                                                                                                                                 coin
                                                                                                                                 or
                                                                                                                                 currency,
                                                                                                                                 herein
                                                                                                                                 prescribed.
                                                                                                                                 This
                                                                                                                                 Agreement
                                                                                                                                 is
                                                                                                                                 a
                                                                                                                                 direct
                                                                                                                                 debt
                                                                                                                                 obligation
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 Company.
                                                                                                                                 This
                                                                                                                                 Agreement
                                                                                                                                 ranks
                                                                                                                                 pari
                                                                                                                                 passu
                                                                                                                                 with
                                                                                                                                 all
                                                                                                                                 other
                                                                                                                                 Debt
                                                                                                                                 holders
                                                                                                                                 now
                                                                                                                                 or
                                                                                                                                 hereafter
                                                                                                                                 issued
                                                                                                                                 under
                                                                                                                                 the
                                                                                                                                 terms
                                                                                                                                 set
                                                                                                                                 forth
                                                                                                                                 herein.

 

		K.	GOVERNING
                                                                                                                                 LAW
                                                                                                                                 AND
                                                                                                                                 VENUE:
                                                                                                                                 This
                                                                                                                                 Agreement
                                                                                                                                 shall
                                                                                                                                 be
                                                                                                                                 governed
                                                                                                                                 and
                                                                                                                                 interpreted
                                                                                                                                 solely
                                                                                                                                 in
                                                                                                                                 accordance
                                                                                                                                 with
                                                                                                                                 the
                                                                                                                                 laws
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 State
                                                                                                                                 of
                                                                                                                                 New
                                                                                                                                 York,
                                                                                                                                 and
                                                                                                                                 applicable
                                                                                                                                 U.S.
                                                                                                                                 federal
                                                                                                                                 law,
                                                                                                                                 if
                                                                                                                                 any,
                                                                                                                                 and
                                                                                                                                 in
                                                                                                                                 each
                                                                                                                                 case
                                                                                                                                 without
                                                                                                                                 regard
                                                                                                                                 to
                                                                                                                                 their
                                                                                                                                 choice
                                                                                                                                 of
                                                                                                                                 laws
                                                                                                                                 principles.
                                                                                                                                 In
                                                                                                                                 the
                                                                                                                                 event
                                                                                                                                 of
                                                                                                                                 a
                                                                                                                                 dispute
                                                                                                                                 between
                                                                                                                                 the
                                                                                                                                 parties,
                                                                                                                                 the
                                                                                                                                 parties
                                                                                                                                 agree
                                                                                                                                 to
                                                                                                                                 the
                                                                                                                                 exclusive
                                                                                                                                 jurisdiction
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 federal
                                                                                                                                 and
                                                                                                                                 state
                                                                                                                                 courts
                                                                                                                                 of
                                                                                                                                 New
                                                                                                                                 York
                                                                                                                                 located
                                                                                                                                 in
                                                                                                                                 the
                                                                                                                                 City
                                                                                                                                 of
                                                                                                                                 New
                                                                                                                                 York
                                                                                                                                 and
                                                                                                                                 agree
                                                                                                                                 not
                                                                                                                                 to
                                                                                                                                 challenge
                                                                                                                                 the
                                                                                                                                 venue
                                                                                                                                 of
                                                                                                                                 such
                                                                                                                                 action
                                                                                                                                 based
                                                                                                                                 on
                                                                                                                                 forum
                                                                                                                                 non
                                                                                                                                 conveniens
                                                                                                                                 or
                                                                                                                                 on
                                                                                                                                 any
                                                                                                                                 similar
                                                                                                                                 theory.

 

		L.	LEGAL
                                                                                                                                 FORM:
                                                                                                                                 The
                                                                                                                                 parties
                                                                                                                                 hereto
                                                                                                                                 agree
                                                                                                                                 that
                                                                                                                                 they
                                                                                                                                 have
                                                                                                                                 been
                                                                                                                                 represented
                                                                                                                                 by
                                                                                                                                 counsel
                                                                                                                                 during
                                                                                                                                 the
                                                                                                                                 negotiation
                                                                                                                                 and
                                                                                                                                 execution
                                                                                                                                 of
                                                                                                                                 this
                                                                                                                                 Agreement;
                                                                                                                                 that
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 and
                                                                                                                                 all
                                                                                                                                 exhibits
                                                                                                                                 hereto
                                                                                                                                 have
                                                                                                                                 been
                                                                                                                                 jointly
                                                                                                                                 drafted
                                                                                                                                 and
                                                                                                                                 that
                                                                                                                                 any
                                                                                                                                 ambiguity
                                                                                                                                 in
                                                                                                                                 the
                                                                                                                                 terms
                                                                                                                                 of
                                                                                                                                 such
                                                                                                                                 agreements
                                                                                                                                 shall
                                                                                                                                 not
                                                                                                                                 be
                                                                                                                                 construed
                                                                                                                                 against
                                                                                                                                 either
                                                                                                                                 party
                                                                                                                                 based
                                                                                                                                 on
                                                                                                                                 the
                                                                                                                                 author
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 language
                                                                                                                                 that
                                                                                                                                 is
                                                                                                                                 deemed
                                                                                                                                 to
                                                                                                                                 be
                                                                                                                                 ambiguous.

 

		M.	SEVERABLE.
                                                                                                                                 In
                                                                                                                                 the
                                                                                                                                 event
                                                                                                                                 that
                                                                                                                                 any
                                                                                                                                 provision
                                                                                                                                 of
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 is
                                                                                                                                 invalid
                                                                                                                                 or
                                                                                                                                 enforceable
                                                                                                                                 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.

 

		N.	ATTORNEYS’
                                                                                                                                 FEES
                                                                                                                                 AND
                                                                                                                                 COSTS
                                                                                                                                 TO
                                                                                                                                 PREVAILING
                                                                                                                                 PARTY.
                                                                                                                                 In
                                                                                                                                 the
                                                                                                                                 event
                                                                                                                                 that
                                                                                                                                 litigation
                                                                                                                                 or
                                                                                                                                 arbitration
                                                                                                                                 arises
                                                                                                                                 between
                                                                                                                                 the
                                                                                                                                 parties
                                                                                                                                 to
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 pertaining
                                                                                                                                 to
                                                                                                                                 this
                                                                                                                                 Agreement,
                                                                                                                                 including,
                                                                                                                                 but
                                                                                                                                 not
                                                                                                                                 limited
                                                                                                                                 to,
                                                                                                                                 the
                                                                                                                                 interpretation
                                                                                                                                 or
                                                                                                                                 enforcement
                                                                                                                                 of
                                                                                                                                 its
                                                                                                                                 terms,
                                                                                                                                 the
                                                                                                                                 prevailing
                                                                                                                                 party
                                                                                                                                 in
                                                                                                                                 such
                                                                                                                                 litigation
                                                                                                                                 shall
                                                                                                                                 be
                                                                                                                                 entitled
                                                                                                                                 to
                                                                                                                                 an
                                                                                                                                 award
                                                                                                                                 of
                                                                                                                                 its
                                                                                                                                 reasonable
                                                                                                                                 attorneys’
                                                                                                                                 fees
                                                                                                                                 and
                                                                                                                                 costs
                                                                                                                                 incurred
                                                                                                                                 in
                                                                                                                                 connection
                                                                                                                                 with
                                                                                                                                 such
                                                                                                                                 action
                                                                                                                                 or
                                                                                                                                 proceeding.

 

    	17

    	 

    

 

		O.	ENTIRE
                                                                                                                                 AGREEMENT:
                                                                                                                                 This
                                                                                                                                 Agreement,
                                                                                                                                 the
                                                                                                                                 Debt
                                                                                                                                 Purchase
                                                                                                                                 Agreement,
                                                                                                                                 the
                                                                                                                                 Exhibits
                                                                                                                                 to
                                                                                                                                 such
                                                                                                                                 documents,
                                                                                                                                 and
                                                                                                                                 the
                                                                                                                                 public
                                                                                                                                 filings
                                                                                                                                 referenced
                                                                                                                                 herein
                                                                                                                                 embody
                                                                                                                                 the
                                                                                                                                 entire
                                                                                                                                 agreement
                                                                                                                                 between
                                                                                                                                 the
                                                                                                                                 parties
                                                                                                                                 hereto
                                                                                                                                 with
                                                                                                                                 respect
                                                                                                                                 to
                                                                                                                                 the
                                                                                                                                 subject
                                                                                                                                 matter
                                                                                                                                 hereof,
                                                                                                                                 and
                                                                                                                                 supersedes
                                                                                                                                 all
                                                                                                                                 prior,
                                                                                                                                 and
                                                                                                                                 contemporaneous,
                                                                                                                                 negotiations,
                                                                                                                                 agreements,
                                                                                                                                 and
                                                                                                                                 understandings,
                                                                                                                                 whether
                                                                                                                                 written
                                                                                                                                 or
                                                                                                                                 oral.
                                                                                                                                 This
                                                                                                                                 Agreement,
                                                                                                                                 or
                                                                                                                                 any
                                                                                                                                 provision
                                                                                                                                 herein,
                                                                                                                                 may
                                                                                                                                 not
                                                                                                                                 be
                                                                                                                                 changed,
                                                                                                                                 waived,
                                                                                                                                 discharged,
                                                                                                                                 or
                                                                                                                                 terminated,
                                                                                                                                 except
                                                                                                                                 by
                                                                                                                                 an
                                                                                                                                 express
                                                                                                                                 written
                                                                                                                                 instrument
                                                                                                                                 signed
                                                                                                                                 by
                                                                                                                                 the
                                                                                                                                 party
                                                                                                                                 against
                                                                                                                                 whom
                                                                                                                                 enforcement
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 change,
                                                                                                                                 waiver,
                                                                                                                                 discharge
                                                                                                                                 or
                                                                                                                                 termination
                                                                                                                                 is
                                                                                                                                 sought.

 

		P.	COUNTERPARTS;
                                                                                                                                 FACSIMILE
                                                                                                                                 SIGNATURES.
                                                                                                                                 This
                                                                                                                                 Agreement
                                                                                                                                 may
                                                                                                                                 be
                                                                                                                                 executed
                                                                                                                                 in
                                                                                                                                 one
                                                                                                                                 or
                                                                                                                                 more
                                                                                                                                 counterparts,
                                                                                                                                 each
                                                                                                                                 of
                                                                                                                                 which
                                                                                                                                 shall
                                                                                                                                 be
                                                                                                                                 deemed
                                                                                                                                 an
                                                                                                                                 original
                                                                                                                                 but
                                                                                                                                 all
                                                                                                                                 of
                                                                                                                                 which
                                                                                                                                 shall
                                                                                                                                 constitute
                                                                                                                                 one
                                                                                                                                 and
                                                                                                                                 the
                                                                                                                                 same
                                                                                                                                 agreement
                                                                                                                                 and
                                                                                                                                 shall
                                                                                                                                 become
                                                                                                                                 effective
                                                                                                                                 when
                                                                                                                                 counterparts
                                                                                                                                 have
                                                                                                                                 been
                                                                                                                                 signed
                                                                                                                                 by
                                                                                                                                 each
                                                                                                                                 party
                                                                                                                                 and
                                                                                                                                 delivered
                                                                                                                                 to
                                                                                                                                 the
                                                                                                                                 other
                                                                                                                                 party.
                                                                                                                                 This
                                                                                                                                 Agreement,
                                                                                                                                 once
                                                                                                                                 executed
                                                                                                                                 by
                                                                                                                                 a
                                                                                                                                 party,
                                                                                                                                 may
                                                                                                                                 be
                                                                                                                                 delivered
                                                                                                                                 to
                                                                                                                                 the
                                                                                                                                 other
                                                                                                                                 party
                                                                                                                                 hereto
                                                                                                                                 by
                                                                                                                                 facsimile
                                                                                                                                 transmission
                                                                                                                                 of
                                                                                                                                 a
                                                                                                                                 copy
                                                                                                                                 of
                                                                                                                                 this
                                                                                                                                 Agreement
                                                                                                                                 bearing
                                                                                                                                 the
                                                                                                                                 signature
                                                                                                                                 of
                                                                                                                                 the
                                                                                                                                 party
                                                                                                                                 so
                                                                                                                                 delivering
                                                                                                                                 this
                                                                                                                                 Agreement.

 

Rest
of page intentionally left Blank

 

    	18

    	 

    

 

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

 

	 	BIONEUTRAL
    GROUP, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Facsimile
    No. for delivery of Notices:
	 	 
	 	 
	 	BUYER:
	 	 
	 	By:	/s/
    Yehuda Marrus
	 	 	Yehuda Marrus,
    Managing Member Darling Capital,
	 	 	 
	 	SELLER:
	 	 	 
	 	By:	/s/
    JAMES CASSERLY
	 	 	JAMES
CASSERLY

 

 

19

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