Document:

Exhibit 10.1

 

EXCHANGE AGREEMENT

 

EXCHANGE AGREEMENT
(this "Agreement"), dated as of August 10, 2015, by and between Apptigo International, Inc. a Nevada corporation,
with offices located at 1801 SW 3rd Avenue, Suite 402, Miami, Florida 33129 (the "Company"), and The Vantage
Group Ltd. with an address at 9429 Harding Avenue, Suite 5, Surfside, FL 33154 (the "Holder").

 

WHEREAS:

 

A.The Holder is
the owner, beneficially and of record, of 145,000 shares of the Company's Series A Convertible Preferred Stock par value $.001
per share (the "Preferred Shares").

 

B.The Company and
the Holder desire to enter into this Agreement, pursuant to which, among other things, the Holder shall exchange the Preferred
Shares for a 10% Convertible Debenture in the original principal amount of $809,205 in the form of Exhibit "A" attached
hereto (the "Exchange Note") in reliance upon the exemption from registration provided by Section 3(a) (9) of the Securities
Act, as amended (the "Securities Act"); and

 

C.In addition to
the terms defined elsewhere in this Agreement, the following terms have the meanings set forth below:

 

"Affiliate"
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

"Board of Directors" means the board of directors
of the Company.

 

"Business Day" means any
day except Saturday, Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close.

 

"Exempt Issuance" means
the issuance of (a) securities upon the exercise, exchange or conversion the Exchange Note issued hereunder and/or other securities,
options, warrants, convertible securities or other rights to acquire, exercisable or exchangeable for or convertible into, shares
of Common Stock, in each case that are issued and outstanding on the date of this Agreement, provided that such securities have
not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise, exchange
or conversion price of such securities and (b) securities issued pursuant to acquisitions of companies, assets or intellectual
property (or licensing of assets or intellectual property) or strategic transactions approved by a majority of the disinterested
directors of the Company, provided that any such issuance shall only be to a Person which is, itself or through its subsidiaries,
an operating company or a university of other non-financial institution and in which the Company receives benefits in addition
to the investment of funds.

 

"Liens" means a lien,
charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

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"Proceeding" means an
action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding,
such as a deposition), whether commenced or threatened.

 

"Trading Day"
means a day on which the principal Trading Market is open for trading.

 

"Trading Market"
means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the
NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, the
OTCQX or the OTCQB.

 

"Transfer
Agent" means Interwest Transfer Co., Inc. having an address of 1981 Murray Holladay Road, Suite 100, Salt Lake City, UT
84117 and a facsimile number of ______and any successor transfer agent of the Company.

 

"VWAP"
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. New York City time to 4:02 p.m. New York City time); (b) if prices for the Common Stock are then reported in
the OTCPink reported by OTC Markets Group Inc., (or a similar organization or agency succeeding to its functions of reporting prices),
the most recent bid price per share of the Common Stock so reported; or (c) in all other cases, the fair market value of a share
of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company.

 

NOW, THEREFORE,
in consideration of the foregoing recitals and the mutual promises hereinafter set forth, the Company and the Holder hereby agree
as follows:

 

1.Exchange
of Preferred Shares. On the date hereof, the Holder shall, and the Company shall, pursuant to Section 3(a)(9) of the Securities
Act, exchange the Preferred Shares for the Exchange Note, without the payment of any additional consideration (the "Exchange"),
as follows:

 

(a)Delivery.
In exchange for the Preferred Shares, on the date hereof the Company shall issue to the Holder the Exchange Note. The Holder
shall deliver or cause to be delivered to the Company the Preferred Shares on the date hereof. Promptly following the
issuance of the Exchange Note to the Holder, the Preferred Shares shall be cancelled.

 

(b)Other Documents.
The Company and the Holder shall execute and/or deliver such other documents and agreements as are customary and reasonably necessary
to effectuate the Exchange.

 

2.Representations and Warranties

 

(a)Holder Representations
and Warranties. The Holder hereby represents and warrants to the Company that, as of the date hereof, the Holder is the sole
record and beneficial owner of the Preferred Shares and will transfer and deliver to the Company at the Closing valid title to
the Preferred Shares, free from preemptive or similar rights, taxes, liens, charges and other encumbrances. The holder agrees that
it will not convert any portion of the Debenture until ninety days from the date it could otherwise do so pursuant to Rule 144
(as defined below).

 

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(b)Company Representations and Warranties. (i) The
Company has the requisite power and authority to enter into and perform its obligations under this Agreement and the Exchange Note.
The Company hereby represents and warrants to the Holder that, as of the date hereof, the Exchange Note and the issuance of the
Exchange Note have been duly authorized and upon issuance in accordance with the terms of this Agreement and the Exchange Note,
the shares issuable upon conversion of the Exchange Note will be validly issued, fully paid and non-assessable and free from all
preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof. The Exchange Note
shall be issued with the restrictive legend prescribed by the Securities Act. The execution, delivery and performance of this Agreement
by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation,
the issuance of the shares upon conversion of the Exchange Note will not (i) result in a violation of the articles of incorporation
or other organizational documents of the Company or any of its subsidiaries, any capital stock of the Company or any of its subsidiaries
or bylaws of the Company or any of its subsidiaries, (ii) conflict with, or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture or instrument to which the Company or any of its subsidiaries is a party, or (iii) result
in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and
applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries
is bound or affected except, in the case of clause (ii) or (iii) above, to the extent such violations that could not reasonably
be expected to have a Material Adverse Effect (as hereinafter defined) on the Company or its subsidiaries.

 

(ii)Each of the
Company and the subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity
in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to
result in: (i) a material adverse effect on the legality, validity or enforceability of any this Agreement, the Exchange Note or
any document issued in connection with this Agreement or the Exchange Note (collectively the "Transaction Documents"),
(ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise)
of the Company and the subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company's ability to perform in
any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a "Material
Adverse Effect") and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking
to revoke, limit or curtail such power and authority or qualification.

 

(iii)The Company
has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities
Act and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including pursuant to Section 13(a) or
15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation
to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the "SEC Reports") on a timely basis or has received a valid extension of such
time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates,
the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable,
and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects
with applicable accounting requirements and the rules and regulations of the Securities and Exchange Commission (the "Commission")
with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with generally
accepted accounting principles ("GAAP"), except as may be otherwise specified in such financial statements or the notes
thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all
material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the
results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial,
year-end audit adjustments.

 

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(iv)The Common
Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or
which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act
nor has the Company received any notification that the Commission is contemplating terminating such registration. The Company's
Common Stock is quoted on a Trading Market. The Company has not, in the 12 months preceding the date hereof, received notice from
any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will
not in the foreseeable future continue to be, in compliance with all such listing and maintenance requirements.

 

3.Covenants.

 

(a)Disclosure
of Transactions and Other Material Information. On or before 9:30 a.m., New York time, on the fourth (4th) Business Day following
the date of this Agreement, the Company shall file a Current Report on Form 8-K describing all the material terms of the transactions
contemplated by this Agreement in the form required by the Exchange Act, as amended and attaching the form of this Agreement (including
all attachments, the "8-K Filing"). From and after the issuance of the 8-K Filing, the Company shall have disclosed
all material, non-public information (if any) delivered to the Holder by the Company in connection with the transactions contemplated
by this Agreement.

 

(b)Section
3(a)(9). The Company represents that the exchange of the Preferred Shares for the Exchange Note is being made in reliance
upon the exemption from registration provided by Section 3(a)(9) of the Securities Act and agrees not to take any position contrary
to this Section 3(b). For the purposes of Rule 144 of the Securities Act ("Rule 144"), the Company acknowledges that
the holding period of the Exchange Note and the shares issuable upon the conversion of the Exchange Note may be tacked onto the
holding period of the Preferred Shares and the Company agrees not to take a position contrary to this Section 3(b).

 

(c)Letter
to the transfer Agent. On or before the date hereof, the Company shall execute and deliver to the Company's transfer agent
the irrevocable transfer agent letter attached hereto as exhibit B.

 

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(d)
Acknowledgment of Dilution. The Company acknowledges that the issuance of the Common Stock issuable upon conversion of
the Exchange Note may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain
market conditions. The Company further acknowledges that its obligations under this Agreement and, the Exchange Note and the documents
executed in connection with such documents, including, without limitation, the Company's obligation to issue the Common Stock
issuable upon conversion of the Exchange Note, are unconditional and absolute and not subject to any right of set off, counterclaim,
delay or reduction, regardless of the effect of any such dilution or any claim the Company may have against the Holder and regardless
of the dilutive effect that such issuance may have on the ownership of the other stockholders of the Company.

 

(e)Furnishing
of Information. Until the earliest of the time that the Holder no longer owns the Exchange Note or any Common Stock, the Company
covenants maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to use all commercially
reasonable efforts to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the Exchange Act. As long as the Holder owns the Note and/or
any Common Stock, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to
the Holder and make publicly available in accordance with Rule 144(c) such information as is required for the Holder to sell the
Securities under Rule 144. The Company further covenants that it will use all commercially reasonable efforts to take such further
action as any holder of Securities may reasonably request, to the extent required from time to time to enable such Person to sell
such Common Stock without registration under the Securities Act within the requirements of the exemption provided by Rule 144.

 

(f)Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Exchange Note to the Holder in a manner
that would require the registration under the Securities Act of the sale of the Exchange Note to the Holder.

 

(g)Conversion
and Exercise Procedures. The Exchange Note sets forth the totality of the procedures required of the Holder in order to convert
the Exchange Note. No additional legal opinion, other information or instructions shall be required of the Holder to convert their
Exchange Note. The Company shall honor conversions of the Exchange Note shall deliver the Common Stock issuable upon conversion
of the Exchange Note in accordance with the terms, conditions and time periods set forth in the Exchange Note.

 

(h)Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the this Agreement,
the Company covenants and agrees that after the date hereof, neither it, nor any other Person acting on its behalf, will provide
the Holder or its agents or counsel with any information that the Company believes constitutes material non-public information,
unless prior thereto the Holder shall have executed a written agreement regarding the confidentiality and use of such information.
The Company understands and confirms that the Holder shall be relying on the foregoing covenant in effecting transactions in securities
of the Company.

 

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(i)The Company
will indemnify and hold the Holder and its directors, officers, shareholders, members, partners, employees and agents (and any
other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any
other title), each Person who controls the Holder (within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a
functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such
controlling person (each, a "Holder Party") harmless from any and all losses, liabilities, obligations, claims, contingencies,
damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys' fees
and costs of investigation that any such Holder Party may suffer or incur as a result of or relating to any action, suit, claim
or proceeding brought by a third party against such Holder Party arising out of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in the Exchange Note or any agreement or document
executed in connection with the Transaction Documents or (b) any action instituted against a Holder in any capacity, or any of
them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of the Holder, with respect to
any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such Holder's
representations, warranties or covenants under the Transaction Documents or any agreements or understandings the Holder may have
with any such stockholder or any violations by the Holder of state or federal securities laws or any conduct by the Holder which
constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against the Holder Party
in respect of which indemnity may be sought pursuant to this Agreement, such Holder Party shall promptly notify the Company in
writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable
to the Holder Party. Any Holder Party shall have the right to employ separate counsel in any such action and participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of such Holder Party except to the extent that
(i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable
period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of such
separate counsel, a material conflict on any material issue between the position of the Company and the position of such Holder
Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.
The Company will not be liable to any Holder Party under this Agreement (y) for any settlement by a Holder Party effected without
the Company's prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the
extent that a loss, claim, damage or liability is attributable to any Holder Party's material breach of any of the representations,
warranties, covenants or agreements made by such Holder Party in this Agreement or in the other Transaction Documents.

 

(j)Reservation and Listing of Securities.

 

(i) If, on any
date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock issuable on conversion of the
Exchange Note is less than the Reserved Amount (as defined in the Exchange Note) on such date, then the Board of Directors
shall use commercially reasonable efforts to amend the Company's certificate or articles of incorporation to increase the
number of authorized but unissued shares of Common Stock to at least the Reserved Amount at such time, as soon as possible
and in any event not later than the 60th calendar day after such date.

 

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(ii)The Company
shall, if applicable: (i) in the time and manner required by the principal Trading Market, prepare and file with such Trading Market
an additional shares listing application covering a number of shares of Common Stock issuable on conversion of the Exchange Note
at least equal to the Reserved Amount on the date of such application, (ii) take all steps necessary to cause such shares of Common
Stock issuable on conversion of the Exchange Note to be approved for listing on such Trading Market as soon as possible thereafter,
(iii) provide to the Holder evidence of such listing and (iv) maintain the listing of such Common Stock on conversion of the Exchange
Note on any date at least equal to the Reserved Amount on such date on such Trading Market or another Trading Market.

 

(k) Corporate Existence.
So long as any of the Exchange Note or any Common Stock issued on conversion of the Exchange Note remains outstanding, the Company
shall not directly or indirectly consummate any merger, reorganization, restructuring, consolidation, sale of all or substantially
all of the Company's assets or any similar transaction or related transactions (each such transaction, an "Organizational
Change") unless, prior to the consummation an Organizational Change, the Company obtains the written consent of the Holder,
which consent shall not be unreasonably withheld. In any such case, the Company will make appropriate provision with respect to
such holders' rights and interests to insure that the provisions of this Section will thereafter be applicable to the Exchange
Note.

 

(l) Transfer Agent.
The Company covenants and agrees that it will at all times while the Exchange Note remains outstanding maintain a duly qualified
independent transfer agent.

 

(m)
Right of First Refusal. While the Holder holds any Exchange Note, if the Company proposes to offer and sell any New Securities
(as defined below) subsequent to the date of this Agreement in a transaction primarily for purposes of financing the operations
or business of the Company and its subsidiaries, the Company shall provide to the Holder who holds any Exchange Note written notice
(the "Offering Notice") stating the number of New Securities proposed to be offered and sold, the total purchase price,
the terms of payment, and any other material terms of the offer (to the extent then known). For a period of three (3) business
days after its receipt of the Offering Notice, such Holder may, by written notice delivered to the Company within such time period,
accept such offer and elect to purchase all or any portion of such New Securities on the terms set forth in the Offering Notice
and similar terms as other investors that purchase New Securities in such offering. If the Holder so elects to participate, the
Holder shall execute and deliver the same agreements and instruments as other purchasers of the New Securities. For purposes of
this Section, "New Securities" shall mean any equity or convertible debt securities of the Company issued in a transaction
primarily for purposes of financing the operations or business of the Company and its subsidiaries, provided, however, that "New
Securities" shall not include any securities issued in Exempt Issuances

 

4.Miscellaneous.

 

(a) Waivers.
The waiver of a breach of this Agreement or the failure of any party hereto to exercise any right under this Agreement shall in
no way constitute waiver as to future breach whether similar or dissimilar in nature or as to the exercise of any further right
under this Agreement.

 

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(b)Amendment.This
Agreement may be amended or modified only by an instrument of equal formality signed by the Parties or the duly authorized representatives
of the respective Parties.

 

(c)Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving
effect to conflict of laws. Any action, suit, or proceeding arising out of, based on, or in connection with this Agreement, any
document relating hereto or delivered in connection with the transactions contemplated hereby, any statement, certificate, or
other instrument delivered by or on behalf of, or delivered to, any party hereto or thereto in connection with the transactions
contemplated hereby or thereby, any breach of this Agreement or such other document, or the other transactions contemplated hereby
or thereby may be brought only in the state courts of the State of New York located in New York City, or in the United States
District Court for the Southern District of New York and each party covenants and agrees not to assert, by way of motion, as a
defense, or otherwise, in any such action, suit, or proceeding, any claim that it is not subject personally to the jurisdiction
of such court if it has been duly served with process, that its property is exempt or immune from attachment or execution, that
the action, suit, or proceeding is brought in an inconvenient forum, that the venue of the action, suit, or proceeding is improper,
or that this Agreement or the subject matter hereof may not be enforced in or by such court. 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 sin effect for notice under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by law. The Company and the Holder waive trial by Jury. The prevailing party shall
be entitled to recover from the other party its reasonable attorney's fees and costs.

 

(d)Assignment.
This Agreement is not assignable except by operation of law.

 

(e)Entire
Agreement. This Agreement and the Exchange Note and the documents issued in connection with these documents contains the entire
agreement among the Parties with respect to the transactions contemplated hereby, and supersedes all prior agreements, written
or oral, with respect hereof.

 

(f)Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed, shall constitute an original copy
hereof, but all of which together shall consider but one and the same document.

 

[Signature Page Follows]

 

 

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

 

 

 

COMPANY

 

APPTIGO INTERNATIONAL, INC.

 

By: /s/ David Steinberg

Name: David Steingberg

Title: President

 

 

 

HOLDER

 

THE VANTAGE GROUP LTD.

 

By: /s/ Lyle Hauser

Name: Lyle Hauser

Title: President and Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

    	9

     

    

 

 

Exhibit A

 

Convertible Debenture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	10Exhibit 10.2

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. 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: $809,205	Issue Date: August 10, 2015

 

10% CONVERTIBLE DEBENTURE

 

FOR VALUE RECEIVED, Apptigo International,
Inc., a Nevada corporation (hereinafter called the "Borrower"), hereby promises to pay to the order of The Vantage Group
Ltd. or registered assigns (the "Holder") the sum of $809,205 together with interest as set forth herein, on August
1, 2016 (the "Maturity Date"), and to pay interest on the initial principal balance hereof at the rate of ten percent
(10%) per annum (the "Interest Rate"), until the same becomes due and payable, whether at maturity or upon acceleration
or by prepayment or otherwise. This Debenture may not be prepaid in whole or in part except as otherwise explicitly set forth
herein. Any amount of principal or interest on this Debenture which is not paid when due shall bear interest at the rate of fourteen
percent (14%) per annum from the due date thereof until the same is paid ("Default Interest"). Default Interest shall
commence accruing on the date that the Debenture 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, $.001 par value per share (the
"Common Stock") in accordance with the terms hereof) shall be made in lawful money of the United States of America.
All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance
with the provisions of this Debenture. Whenever any amount expressed to be due by the terms of this Debenture 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 Debenture 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.

 

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This Debenture 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. Each capitalized term used
herein, and not otherwise defined, shall have the meaning ascribed thereto in the Exchange Agreement, dated the date hereof between
the Company and the Holder (the "Exchange Agreement"). This Debenture is being issued pursuant to the Exchange Agreement.

 

I.CONVERSION
RIGHTS

 

I.1. Conversion Right. The Holder
shall have the right from time to time, and at any time commencing on the Issue Date and ending on the later of: (i) the Maturity
Date and (ii) such later date as this Debenture has been paid in full, each in respect of the remaining outstanding principal
amount of this Debenture to convert all or any part of the outstanding and unpaid principal amount of this Debenture 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 (collectively, the
"Conversion Shares") 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 Debenture in excess of
that portion of this Debenture 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 Debentures 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 Debenture 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 (the "Maximum Share Amount"). 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 Debenture shall be determined by dividing the Conversion Amount (as defined below)
by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto
as Exhibit A (the "Notice of Conversion"), delivered to the Borrower by the Holder in accordance with Section 1.4 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 Debenture, the sum of (1) the
principal amount of this Debenture to be converted in such conversion plus (2) at the Holder's option, accrued and unpaid
interest, if any, on such principal amount at the interest rates provided in this Debenture to the Conversion Date, plus
(3) at the Holder's option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or
(2) plus (4) at the Holder's option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

 

    	2

     

    

I.2. (a) Conversion
Price. The conversion price (the "Conversion Price") shall equal the Variable Conversion Price (as defined
herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to
the Borrower's securities or the securities of any subsidiary of the Borrower, combinations, recapitalization,
reclassifications, extraordinary distributions and similar events and issuances of securities at specified lower prices). The
"Variable Conversion Price" shall mean forty-five percent (45%) of the lowest closing price of the Common Stock as
quoted by Bloomberg L.P. for the ten (10) Trading Days immediately preceding the Conversion Date.Upon and after an Event of
Default, the "Variable Conversion Price" shall mean twenty five percent (25%) of the lowest traded price of the
Common Stock as quoted by Bloomberg L.P. for the 15 Trading Days immediately preceding the Conversion Date (the
"Valuation Date"). If the trading price cannot be calculated for such security on such date in the manner provided
above, the trading price shall be the fair market value as mutually determined by the Borrower and the holders of a majority
in interest of the Debentures being converted for which the calculation of the trading price is required in order to
determine the Conversion Price of such Debentures.

 

(b) Adjustments. It is the intention
of the Borrower and Holder that the Holder shall generate net proceeds from the sale of the Conversion Shares equal to the Share
Value, where "Share Value" means the portion of the Debenture being converted divided by the Variable Conversion Price.
The Holder shall have the right to sell the Conversion Shares in the applicable trading market for the Common Stock or otherwise,
at any time in accordance with applicable securities laws. At any time the Holder may elect, the Holder may deliver to the Borrower
a reconciliation statement showing the net proceeds actually received by the Holder from the sale of the Conversion Shares (the
"Sale Reconciliation"). If, as of the date of the delivery by Holder of the Sale Reconciliation, the Holder has not
realized net proceeds from the sale of such Conversion Shares equal to at least the Share Value, as shown on the Sale Reconciliation,
then the amount of such shortfall shall be paid in Conversion Shares to the Holder within three (3) Business Days of the Borrower's
receipt of the Sale Reconciliation. The number of Conversion Shares issuable to the Holder would be determined by the dollar amount
of the shortfall divided by the Variable Conversion Price then in effect.

 

    	3

     

    

I.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 Debenture issued pursuant to the Exchange Agreement. The Borrower is required at all times to
have authorized and reserved five (5) times the number of shares that is actually issuable upon full conversion of this Debenture
(based on the Conversion Price of this Debenture in effect from time to time)(the "Reserved Amount"). The Reserved Amount
shall be recalculated each month and the Company shall notify the Transfer Agent and the Holder in writing by the fifth day of
the following month of the new Reserved Amount. Notwithstanding the foregoing, in no event shall the Reserved Amount be lower
than the initial Reserved Amount, regardless of any prior conversions. 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 Debentures 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 Debentures. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates
for the Common Stock issuable upon conversion of this Debenture, and (ii) agrees that its issuance of this Debenture 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 Debenture.

 

If, at any time the Borrower does not maintain
the Reserved Amount or fails to notify the Holder and the Transfer Agent of the new Reserved Amount, it will be considered an Event
of Default under Section 3.2 of this Debenture.

 

I.4. Method of Conversion.

 

(a) Mechanics
of Conversion. Subject to Section 1.1, this Debenture 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) and (B)
subject to Section 1.4(b), surrendering this Debenture at the principal office of the Borrower.

 

    	4

     

    

 

(b) Surrender of Debenture Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this
Debenture in accordance with the terms hereof, the Holder shall not be required to physically surrender this Debenture to the Borrower
unless the entire unpaid principal amount of this Debenture 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 Debenture 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 Debenture is converted as aforesaid, the Holder
may not transfer this Debenture unless the Holder first physically surrenders this Debenture to the Borrower, whereupon the Borrower
will forthwith issue and deliver upon the order of the Holder a new Debenture 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 Debenture. The Holder and any assignee, by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions
of this paragraph, following conversion of a portion of this Debenture, the unpaid and unconverted principal amount of this Debenture
represented by this Debenture 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 Debenture in a name other
than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other
securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such
shares are to be held for the Holder's account) requesting the issuance thereof shall have paid to the Borrower the amount of any
such tax or shall have established to the satisfaction of the Borrower that such tax has been paid.

 

(d)  Delivery
of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or
other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided
in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the
Holder certificates for the Common Stock (or, if the Borrower issues and maintains shares in uncertificated form, comparable
notice of share ownership) 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
Debenture) in accordance with the terms hereof.

 

    	5

     

    

 

(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 Debenture 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 Debenture 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 Borrower ("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 Prime 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 Debenture
is not delivered by the Deadline, the Borrower shall pay to the Holder, in cash, as partial liquidated damages and not as a penalty,
for each $1,000 of shares of Common Stock issuable upon such conversion (based on the VWAP of the Common Stock on the date such
shares are submitted to the Transfer Agent) delivered, $10 per trading day (increasing to $20 per Trading Day five Trading Days
after such damages have begun to accrue) for each Trading Day after such shares were to be issued, until such certificate is delivered.
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 Debenture, in which event interest shall accrue thereon in accordance with the
terms of this Debenture and such additional principal amount shall be convertible into Common Stock in accordance with the terms
of this Debenture. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from
a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly
the parties acknowledge that the liquidated damages provision contained in this Section 1.4(g) are justified

 

    	6

     

    

 

I.5. Concerning
the Shares. The shares of Common Stock issuable upon conversion of this Debenture 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 required in the Exchange Agreement and subject to the removal provisions set forth below, until such time
as the shares of Common Stock issuable upon conversion of this Debenture 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 and without any requirement that current public information concerning Borrower be available, each certificate for shares
of Common Stock issuable upon conversion of this Debenture 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, IN COMPLIANCE WITH THE PROVISIONS OF
THE AGREEMENTS RELATING TO THE SECURITIES REPRESENTED HEREBY."

 

    	7

     

    

 

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 reasonably satisfactory to Borrower, 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 Borrower so that the sale or transfer is effected or
(ii) in the case of the Common Stock issuable upon conversion of this Debenture, 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 Borrower does
not accept the opinion of counsel provided by the Holder with respect to the transfer of Securities pursuant to an exemption from
registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section
3.2 of the Debenture.

 

I.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 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 Debenture is issued and outstanding and prior to conversion
of all of the Debentures, 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 Debenture shall thereafter have the right to receive upon
conversion of this Debenture, 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 Debenture 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 Debenture 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 Debenture) 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 reasonably 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
Debenture) (provided, that if such disclosure and written notice to Holder is subject to Section 3(h) of the
Exchange Agreement concerning non-public information, Holder shall have first executed a confidentiality agreement as
described in that Section) and (b) in the case of the consolidation, merger or other business combination of the Borrower
with or into any other Person when the Borrower is not the survivor, 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.

 

    	8

     

    

(c) Purchase Rights. If, at any time when any Debentures 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 Debenture 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 Debenture (without regard to any limitations on conversion contained
herein) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no
such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale
of such Purchase Rights.

 

(d) Subsequent
Equity Sales. If, at any time while this Debenture is outstanding, the Company sells or grants any option to purchase or reduces
the conversion or exercise price of any outstanding securities, grants any right to reduce, or otherwise disposes of or issues,
any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock at an effective price per
share that is lower than the then Conversion Price (such lower price, the "Base Conversion Price" and such issuances,
collectively, a "Dilutive Issuance") then the Conversion Price shall be reduced to equal the Base Conversion
Price. Such adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued. For purposes of clarity,
if the holder of Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price
adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights
per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price
per share that is lower than the Conversion Price, such issuance shall be deemed to be a Dilutive Issuance. The Company shall
notify the Holder in writing, no later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalents
subject to this Section indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion
price and other pricing terms (such notice, the "Dilutive Issuance Notice"). For purposes of clarification, whether
or not the Company provides a Dilutive Issuance Notice pursuant to this Section, upon the occurrence of any Dilutive Issuance,
the Holder is entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such
Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion Price in the Notice of Conversion.
As used herein, "Common Stock Equivalents" shall mean any securities of the Company or its subsidiaries which would
enable the holder thereof to acquire at any time Common Stock, including without limitations, any debt, preferred stock, rights,
options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles
the holder thereof to receive Common Stock. This Section shall not apply to an Exempt Issuance.

 

    	9

     

    

 

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

 

I.7.
Reserved. 

 

I.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
Debenture 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 Debenture. 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 Debenture 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 Debenture with respect to such unconverted portions
of this Debenture and the Borrower shall, as soon as practicable, return such unconverted Debenture to the Holder or, if the Debenture
has not been surrendered, adjust its records to reflect that such portion of this Debenture has not been converted.

 

I.9. Optional Prepayment.
At any time during the period beginning on the Issue Date and expiring upon the Maturity Date, the Borrower shall have the right,
exercisable on not less than thirty (30) days prior written notice to the Holder of the Debenture to prepay the outstanding Debenture
(principal and accrued interest), in full, in accordance with this Section 1.9, provided that no Event of Default shall then exist.
Any notice of prepayment hereunder (an "Optional Prepayment Notice") shall be delivered to the Holder of the Debenture
at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Debenture, and (2) the
date of prepayment which shall be thirty (30 days from the date of the Optional Prepayment Notice. On the date fixed for prepayment
(the "Optional Prepayment Date"), the Borrower shall make payment of the Optional Prepayment Amount (as defined below)
to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) Business Day prior to
the Optional Prepayment Date. If the Borrower exercises its right to prepay the Debenture, the Borrower shall make payment to
the Holder of an amount in cash (the "Optional Prepayment Amount") equal to 150% (the "Multiple"), multiplied
by the sum of: (w) the then outstanding principal amount of this Debenture plus (x) accrued and unpaid interest on the
unpaid principal amount of this Debenture to the Optional Prepayment Date plus (y) if applicable, Default Interest, if
any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3
and 1.4(g) hereof.

 

    	10

     

    

 

II.CERTAIN
COVENANTS

 

II.1. Negative Covenants As long
as any portion of this Debenture remains outstanding, unless the holders of all of the outstanding Debentures shall have otherwise
given prior written consent, the Borrower shall not, and shall not permit any of its subsidiaries (whether or not a subsidiary
on the Issue Date) to, directly or indirectly:

 

(a) other than indebtedness (i) existing as of the Initial Date, (ii) incurred in the ordinary course of business for trade expenses
(not borrowed money), (iii) indebtedness expressly subordinate to the indebtedness created by the Debentures, or (iv) incurred
in connection with the acquisition, development or in-licensing of assets, technologies or intellectual property ("Permitted
Indebtedness"), enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any
kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired
or any interest therein or any income or, profits therefrom.

 

(b) other than Permitted Liens (as defined below), enter into, create, incur, assume or suffer to exist any liens, charges or encumbrances
of any kind or nature ("Liens"), on or with respect to any of its property or assets now owned or hereafter acquired
or any interest therein or any income or profits therefrom. "Permitted Lien" means the individual and collective reference
to the following: (a) Liens for taxes, assessments and other governmental charges or levies not yet due or Liens for taxes, assessments
and other governmental charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves
(in the good faith judgment of the management of the Borrower) have been established in accordance with GAAP; or (b) Liens imposed
by law which were incurred in the ordinary course of the Borrower's business, such as carriers', warehousemen's and mechanics'
Liens, statutory landlords' Liens, and other similar Liens arising in the ordinary course of the Borrower's business, and which
(x) do not individually or in the aggregate materially detract from the value of such property or assets or materially impair the
use thereof in the operation of the business of the Borrower and its consolidated subsidiaries or (y) are being contested in good
faith by appropriate proceedings, which proceedings have the effect of preventing for the foreseeable future the forfeiture or
sale of the property or asset subject to such Lien.

 

(c) other than to
effect stock splits, reverse stock splits or changes in the authorized number of shares, amend its charter
documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially and
adversely affects any rights of the Holder;

 

(d) repay, repurchase
or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common Stock or Common
Stock equivalents except pursuant to written agreements with employees, directors, officers or consultants providing for a right
or repurchase at the original purchase price of such securities upon cessation of service, cessation of vesting, employment termination
or similar events;

 

    	11

     

    

 

(e) other than Permitted Indebtedness, repay, repurchase or offer to repay, repurchase or otherwise acquire any indebtedness, other
than the Debentures if on a pro-rata basis, other than (x) regularly scheduled principal and interest payments as such terms are
in effect as of the Issue Date, provided that such payments shall not be permitted if, at such time, or after giving effect to
such payment, any Event of Default exist or occur, (y) Permitted Indebtedness, and (z) ordinary trade debt incurred in the ordinary
course of business.

 

(f) pay cash
dividends or cash distributions on any equity securities of the Borrower;

 

(g) sell, lease or otherwise dispose of any portion of its assets outside the ordinary course of business, other than de minimis
sales, unless Borrower offers to prepay the full amount owed under the Debentures in connection with the closing of any such sale,
lease or disposition transaction;

 

(h) 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 $10,000;

 

(i) enter into any
transaction with any Affiliate of the Borrower which would be required to be disclosed in any public filing with the
Securities and Exchange Commission, unless such transaction is made on an arm's-length basis and, if required under
Borrower's governance policies to be approved by the Board of Directors or a committee thereof, is expressly approved by a
majority of the disinterested directors of the Borrower (even if less than a quorum otherwise required for board approval);
or

 

(j) enter into any agreement with
respect to any of the foregoing.

 

III. EVENTS OF
DEFAULT

 

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

 

III.1. Failure to
Pay Principal or Interest. Any default in the payment of the principal of, interest on or other charges in respect of this
Debenture, free of any claim of subordination, as and when the same shall become due and payable whether upon the Maturity Date
or by acceleration or otherwise, if Borrower does not pay in full the amount that is due and payable within three (3) Business
Days after delivery of a notice of demand therefor from Holder.

 

III.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 Debenture, 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 Debenture
as and when required by this Debenture, 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 Debenture as and when required by this Debenture,
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 Debenture as and when required by this Debenture
(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
Debenture, if a conversion of this Debenture is delayed, hindered or frustrated beyond the periods of time provided for in this
Debenture, 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.

 

III.3. Breach of
Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Debenture, the
Exchange Agreement Borrower's instruction letter to its transfer agent contemplated by the Exchange Agreement (together, the "Collateral
Documents") and such breach continues for a period of five (5) days after written notice thereof to the Borrower from the
Holder.

 

III.4. Breach of Representations
and Warranties. Any representation or warranty of the Borrower made herein or in the Collateral Documents 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 Debenture.

 

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III.5. Bankruptcy,
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall commence, or there shall be commenced against the
Borrower or any subsidiary of the Borrower under any applicable bankruptcy or insolvency laws as now or hereafter in effect or
any successor thereto, or the Borrower or any subsidiary of the Borrower commences any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction
whether now or hereafter in effect relating to the Borrower or any subsidiary of the Borrower or there is commenced against the
Borrower or any subsidiary of the Borrower any such bankruptcy, insolvency or other proceeding which remains undismissed for a
period of 90 days; or the Borrower or any subsidiary of the Borrower is adjudicated insolvent or bankrupt; or any order of relief
or other order approving any such case or proceeding is entered; or the Borrower or any subsidiary of the Borrower suffers any
appointment of any custodian, private or court appointed receiver or the like for it or any substantial part of its property which
continues undischarged or unstayed for a period of 90 days; or the Borrower or any subsidiary of the Borrower makes a general
assignment for the benefit of creditors; or the Borrower or any subsidiary of the Borrower shall call a meeting of its creditors
with a view to arranging a composition, adjustment or restructuring of its debts; or the Borrower or any subsidiary of the Borrower
shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or
any corporate or other action is taken by the Borrower or any subsidiary of the Borrower for the purpose of effecting any of the
foregoing (other than actions to dismiss, terminate or resolve any bankruptcy or similar proceeding).

 

111.6. Indebtedness
Default. The Borrower or any subsidiary of the Borrower shall default in any of its obligations under any other Debenture
or any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which
there may be issued, or by which there may be secured or evidenced any indebtedness for borrowed money or money due under any
long term leasing or factoring arrangement of the Borrower or any subsidiary of the Borrower in an amount exceeding $25,000, whether
such indebtedness now exists or shall hereafter be created and such default shall result in such indebtedness becoming or being
declared due and payable prior to the date on which it would otherwise become due and payable, in each of the above instances
where such default would have a Material Adverse Effect on the Company's ability to pay the Debentures on the Maturity Date.

 

III.7. Delistinq of Common Stock.
The Borrower shall fail to maintain the listing of the Common Stock on the Trading Market.

 

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III.8. Failure to
Comply with the Exchange Act. The Borrower shall fail in any material respect to comply with the reporting requirements of
the Exchange Act including but not limited to the filing of Form 8-Ks, 10-Q's and 10-K's; and/or the Borrower shall cease to be
subject to the reporting requirements of the Exchange Act.

 

III.9. Liquidation.Any
dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

III.10. Cessation
of Operations. Any cessation by Borrower of substantially all of its operations, 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 or of a cessation of operations.

 

III.11. Maintenance
of Assets.The failure by Borrower to maintain any material assets which would have a material adverse effect on Borrower's
ability conduct its overall business (whether now or in the future).

 

3.12Replacement 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 Exchange 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.

 

3.13Cross-Default. Notwithstanding anything to the
contrary contained in this Debenture or the other related or companion documents, a breach or default by the Borrower (subject
to any grace or cure period provided in the applicable agreement, document or instrument) under (i) any of the Collateral Documents,
including but not limited to a breach or default of any covenant or other term or condition contained in any of the Collateral
Documents or (ii) any other material agreement, lease, document, promissory note, debenture or instrument to which the Borrower
or any subsidiary of the Borrow is obligated, shall at the option of the Holder be considered a default under this Debenture and
the Collateral Documents, 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 Debenture and the Collateral Documents by reason of a default under said Collateral Document
or hereunder.

 

    	14

     

    

 

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, giving effect to any applicable cure period), the Debenture 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 the Debenture 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 sum of (w) the then outstanding principal amount of this Debenture plus (x) accrued and unpaid interest on the
unpaid principal amount of this Debenture to the date of payment (the "Mandatory Prepayment Date") plus (y) Default
Interest, plus (z) five percent (5%) of the total amount of Principal then outstanding (the then outstanding principal
amount of this Debenture to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively
be known as the "Default Sum") 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
Sum 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 Sum, the number of shares of Common
Stock of the Borrower equal to the Default Sum divided by the Conversion Price then in effect.

 

IV.MISCELLANEOUS

 

IV.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.

 

IV.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) when delivered if delivered by hand delivery during a normal
Business Day (or if not on a Business Day then the next Business Day), (b) one Business day after delivery by facsimile, with
accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below or (c) 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:

 

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If to the Borrower, to:

 

Apptigo International, Inc. 

1801 SW 3rd Avenue, Suite 402

Miami, Florida 33129

 

If to the Holder:

 

The Vantage Goup Ltd.

9429 Harding Avenue, Suite 5, Surfside,
Florida 33154

 

IV.3. Amendments.
This Debenture and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the
Holder. The term "Debenture" and all reference thereto, as used throughout this instrument, shall mean this
instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

IV.4. Assignability. This Debenture
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 Debenture must be an "accredited investor" (as defined in Rule 501(a) of the 1933
Act). Holder may transfer this Debenture provided that the transferee agrees in writing with Borrower to be bound by the provisions
of this Debenture and the Exchange Agreement, as applicable, and that such transfer complies with any applicable federal and state
securities laws. Notwithstanding anything in this Debenture to the contrary, this Debenture may be pledged as collateral in connection
with a bona fide margin account or other lending arrangement, provided that the pledgee agrees in writing with Borrower
to be bound by the provisions of this Debenture and the Exchange Agreement (as applicable to the pledgee), and that such pledge
complies with any applicable federal and state securities laws.

 

IV.5. Cost of Collection. If default
is made in the payment of this Debenture, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys'
fees.

 

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IV.6. Governing
Law. This Debenture 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, suit, or proceeding arising out of, based on, or in connection with
this Debenture, any document relating hereto or delivered in connection with the transactions contemplated hereby, any
statement, certificate, or other instrument delivered by or on behalf of, or delivered to, any party hereto or thereto in
connection with the transactions contemplated hereby or thereby, any breach of this Debenture or such other document, or the
other transactions contemplated hereby or thereby may be brought only in the state courts of the State of New York located in
New York City, or in the United States District Court for the Southern District of New York and each party covenants and
agrees not to assert, by way of motion, as a defense, or otherwise, in any such action, suit, or proceeding, any claim that
it is not subject personally to the jurisdiction of such court if it has been duly served with process, that its property is
exempt or immune from attachment or execution, that the action, suit, or proceeding is brought in an inconvenient forum, that
the venue of the action, suit, or proceeding is improper, or that this Debenture or the subject matter hereof may not be
enforced in or by such court. In the event that any provision of this Debenture 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 Debenture or any other
Collateral Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address sin effect for notice under the Exchange Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any other manner permitted by law. The Company and the Holder waive trial by Jury.
The prevailing party in any dispute under this Debenture shall be entitled to recover from the other party its reasonable
attorney's fees and costs.

 

IV.7. Certain
Amounts. Whenever pursuant to this Debenture 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, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this
Debenture 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 Debenture and to earn a
return from the sale of shares of Common Stock acquired upon conversion of this Debenture at a price in excess of the price
paid for such shares pursuant to this Debenture. 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 Debenture into shares of Common Stock.

 

IV.8. Exchange
Agreement. By its acceptance of this Debenture, each party agrees to be bound by the applicable terms of the Exchange
Agreement.

 

    	17

     

    

 

IV.9. Notice of
Corporate Events. Except as otherwise provided below, the Holder of this Debenture shall have no rights as a Holder of
Common Stock unless and only to the extent that it converts this Debenture 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 ten (10) days prior to the record date specified therein (or ten (10) 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.

 

IV.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 Debenture will be inadequate and agrees, in the event of a breach or
threatened breach by the Borrower of the provisions of this Debenture, 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 Debenture 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.

 

IV.11. Severability.If
any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect,
and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other
persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder shall violate
applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the
maximum permitted rate of interest. The Borrower covenants (to the extent that it may lawfully do so) that it shall not at
any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or
usury law or other law which would prohibit or forgive the Borrower from paying all or any portion of the principal of or
interest on this Debenture as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may
affect the covenants or the performance of this indenture, and the Borrower (to the extent it may lawfully do so) hereby
expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law,
hinder, delay or impeded the execution of any power herein granted to the Holder, but will suffer and permit the execution of
every such as though no such law has been enacted.

 

(Signature Pages Follow)

 

 

    	18

     

    

 

IN
WITNESS WHEREOF, Borrower has caused this Debenture to be signed in its name by its duly authorized officer this Monday, August
10, 2015.

  

 

APPTIGO INTERNATIONAL, INC.

 

By: /s/ David Steinberg

David Steingberg

President

 

 

 

 

 

    	19

     

    

 

EXHIBIT A

 

CONVERSION NOTICE

 

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

 

TO:

 

The undersigned hereby irrevocably elects to
convert $__________ of the principal amount of Debenture No. _________________into Shares of Common Stock of APPTIGO INTERNATIONAL,
INC., according to the conditions stated therein, as of the Conversion Date written below.

 

Conversion Date:

 

	Amount to be converted:	$______________ 
	Conversion Price:	$______________ 
	Number of shares of Common 	 
	Stock to be issued:	___________________
	Amount of Note Unconverted:	$______________ 

 

Please issue the shares of Common Stock in
the following name and to the following address: Issue to:

 

	Authorized Signature:	______________________
	Name:	______________________
	Title:	______________________
	Broker DTC Participant Code:	 

 

 

 

    	20

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