Document:

EX-10.5

 Exhibit 10.5 

Form – Japan Employees 

NOVOCURE LIMITED 

Incentive Stock Option Agreement 

Pursuant to the 
 NovoCure
Limited 
 2015 Omnibus Incentive Plan 

AGREEMENT (this “Agreement”), dated as of
            between NovoCure Limited, a Jersey Isle company (the “Company” and, collectively with its controlled Affiliates, the “Employer”),
and             (the “Participant”). 

Preliminary Statement 

The Committee hereby grants this incentive stock option (the “Stock Option”) on
            (the “Grant Date”) pursuant to the NovoCure Limited 2015 Omnibus Incentive Plan, as it may be amended from time to time (the
“Plan”), to purchase the number of Ordinary Shares set forth below to the Participant, as an Eligible Employee, Consultant or Non-Employee Director. Except as otherwise indicated, any capitalized term used but not defined
herein shall have the meaning ascribed to such term in the Plan. By signing and returning this Agreement, the Participant acknowledges having received and read a copy of the Plan and agrees to comply with it, this Agreement and all applicable laws
and regulations.  
 Accordingly, the parties hereto agree as follows: 

1. Tax Matters.  

(a) Notwithstanding any of the provisions of the Plan, any tax consequences arising from the grant or exercise of any Stock Options, from the
payment for Ordinary Share covered thereby or from any other event or act (of the Employer and/or of the Participant) hereunder, shall be borne solely by the Participant. The Participant shall consult his/her own tax advisor regarding such tax
consequences. The Employer does not guarantee to the Participant any particular tax treatment of the Stock Option and in no event whatsoever shall the Employer be liable for any additional tax, interest or penalties that may be imposed on the
Participant by any applicable laws or regulations or any damages for failing to comply with them. 
 (b) If applicable, the Company, any
trustee or other fiduciary holding securities under any employee benefit plan of the Company (where applicable) shall withhold taxes according to the requirements under the applicable laws, rules, and regulations, including the withholding of taxes
at source. Further, if required, the Participant must pay or provide for all applicable withholding taxes in respect of the grant or exercise of the Stock Option in a manner directed by the Committee and permitted by applicable laws and regulations.

 2. Grant of Stock Option. Subject to the Plan and the terms and conditions set forth herein and therein, the Participant is
hereby granted the Stock Option to purchase from the Company             Ordinary Shares at a price per share of
$            (the “Exercise Price”). 

 3. Vesting. 

(a) Vesting Schedule. The Stock Option shall vest and become exercisable on the dates and in the cumulative percentages provided in the
table below; provided, with respect to each vesting date, that the Participant has not experienced a Termination prior to such date. There shall be no proportionate or partial vesting in the periods prior to each vesting date. The vesting
date for this Stock Option shall be [DATE] (the “Vesting Date”). 
  

					
	 Vesting Date
	  	Cumulative Percent
Vested	 
	 First Anniversary of the Vesting Date
	  	 	[25	%] 
	 Second Anniversary of the Vesting Date
	  	 	[50	%] 
	 Third Anniversary of the Vesting Date
	  	 	[75	%] 
	 Fourth Anniversary of the Vesting Date
	  	 	[100	%] 

 (b) Unvested Stock Options. Any portion of the Stock Option that is not vested as of the date of a
Participant’s Termination for any reason shall terminate and expire on the date of such Termination. 
 4. Exercise.

 (a) To the extent that the Stock Option has become vested and exercisable with respect to a number of Ordinary Shares, the Stock
Option may thereafter be exercised by the Participant, in whole or in part, at any time or from time to time prior to the expiration of the Stock Option in accordance with the Plan. The Participant may exercise the Stock Option by delivering to the
Company written notice of the number of Ordinary Shares covered by the exercise, together with the aggregate Exercise Price. Payment may be made by: (i) cash, check, bank draft or money order payable to the order of the Company;
(ii) solely to the extent permitted by applicable laws and regulations, through a procedure whereby the Participant delivers irrevocable instructions to a broker reasonably acceptable to the Company to deliver promptly to the Company an amount
equal to the aggregate Exercise Price; or (iii) on such other terms and conditions as may be acceptable to the Committee to the extent permitted by applicable laws and regulations. Upon expiration of the Stock Option, the Stock Option
shall be canceled and no longer exercisable. 
 (b) Upon the exercise of the Stock Option, the Participant: 

(i) will be deemed to acknowledge and make such representations and warranties as may be requested by the Company for compliance with
applicable laws, and any issuances of Ordinary Shares by the Company shall be made in reliance upon the express representations and warranties of the Participant; and 

(ii) will not sell, transfer or otherwise dispose of the Ordinary Shares in violation of the Plan or this Agreement or dispose of the Ordinary
Shares unless and until the Participant has complied with all requirements of this Agreement applicable to the disposition of the Ordinary Shares. 

  
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 (c) Pursuant to the Plan, in the event the Participant engages in Detrimental Activity prior to
any exercise of the Stock Option, the Stock Option shall thereupon terminate and expire. As a condition of the exercise of the Stock Option, the Participant shall be required to certify in a manner acceptable to the Company (or shall be deemed to
have certified) that the Participant is in compliance with the terms and conditions of the Plan and that the Participant has not engaged in, and does not intend to engage in, any Detrimental Activity. In the event the Participant engages in
Detrimental Activity during the one-year period commencing on the date the Stock Option is exercised, the Company shall be entitled to recover from the Participant, at any time within one year after such Detrimental Activity, and the Participant
shall pay over to the Company, the Ordinary Shares received from such exercise, or, if such Ordinary Shares have been transferred, an amount equal to Fair Market Value of such Ordinary Shares on the date of such exercise. 

(d) The restrictions regarding Detrimental Activity are necessary for the protection of the business and goodwill of the Company and are
considered by the Participant to be reasonable for such purposes. Without intending to limit the legal or equitable remedies available in the Plan and in this Agreement, the Participant acknowledges that engaging in Detrimental Activity will cause
the Company material irreparable injury for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of such activity or threat thereof, the Company shall be
entitled, in addition to the remedies provided under the Plan, to obtain from any court of competent jurisdiction a temporary restraining order or a preliminary or permanent injunction restraining the Participant from engaging in Detrimental
Activity or such other relief as may be required to specifically enforce any of the covenants in the Plan and this Agreement without the necessity of posting a bond, and in the case of a temporary restraining order or a preliminary injunction,
without having to prove special damages. 
 5. Stock Option Term. The term of the Stock Option shall be until the tenth
anniversary of the Grant Date, after which time it shall expire (the “Expiration Date”), subject to earlier termination in the event of the Participant’s Termination as specified in the Plan and this Agreement.
Notwithstanding anything herein to the contrary, upon the Expiration Date, the Stock Option (whether vested or not) shall be immediately forfeited, canceled and terminated for no consideration and no longer shall be exercisable. The Stock Option is
subject to termination prior to the Expiration Date to the extent provided in the Plan or this Agreement. 
 6. Termination and Change
in Control. The provisions in the Plan regarding Termination and Change in Control shall apply to the Stock Option. 
 7.
Restriction on Transfer of Stock Option. The provisions in the Plan regarding restrictions on Transfer shall apply to the Stock Option. 

8. No Rights as a Stockholder. The Participant shall not have any rights as a stockholder of the Company with respect to any
Award until the Participant becomes the holder of record of the Ordinary Shares underlying the Award. 

  
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 9. Provisions of Plan Control. This Agreement is subject to all the terms,
conditions and provisions of the Plan, including the amendment provisions thereof, and to such rules, regulations and interpretations relating to the Plan as may be adopted by the Committee and as may be in effect from time to time. The Plan is
incorporated herein by reference. If and to the extent that this Agreement conflicts or is inconsistent with the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly. 

10. Notices. All notices, demands or requests made pursuant to, under or by virtue of this Agreement must be in writing and sent
to the party to which the notice, demand or request is being made: 
 (a) unless otherwise specified by the Company in a notice delivered by
the Company in accordance with this Section 10, any notice required to be delivered to the Company shall be properly delivered if delivered to: 

NovoCure Limited 
 20 Valley
Stream Pkwy 
 Suite 300 

Malvern, PA 19355 
 Attention:
General Counsel 
 Telephone: (212) 767-7530 

(b) if to the Participant, to the address on file with the Employer. 

Any notice, demand or request, if made in accordance with this Section 10 shall be deemed to have been duly given: (i) when delivered in
person; (ii) three days after being sent by United States mail; or (iii) on the first business day following the date of deposit if delivered by a nationally recognized overnight delivery service. 

11. No Right to Employment/Consultancy/Directorship. This Agreement shall not give the Participant or other Person any
right to employment, consultancy or directorship by the Employer, or limit in any way the right of the Employer to terminate the Participant’s employment, consultancy or directorship at any time. 

12. Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT, FOR ITSELF AND ITS AFFILIATES, HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THE ACTIONS OF THE PARTIES HERETO OR THEIR
RESPECTIVE AFFILIATES PURSUANT TO THE PLAN OR THIS AGREEMENT OR IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT OF THE PLAN OR THIS AGREEMENT. 

13. Severability of Provisions. If at any time any of the provisions of this Agreement shall be held invalid or
unenforceable, or are prohibited by the laws of the jurisdiction where they are to be performed or enforced, by reason of being vague or unreasonable as to duration or geographic scope or scope of the activities restricted, or for any 

  
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other reason, such provisions shall be considered divisible and shall become and be immediately amended to include only such restrictions and to such extent as shall be deemed to be reasonable
and enforceable by the court or other body having jurisdiction over this Agreement and the Company and the Participant agree that the provisions of this Agreement, as so amended, shall be valid and binding as though any invalid or unenforceable
provisions had not been included. 
 14. Governing Law. All matters arising out of or relating to this Agreement and the
transactions contemplated hereby, including its validity, interpretation, construction, performance and enforcement, shall be governed by and construed in accordance with the internal laws of the Jersey Isles, without giving effect to its principles
of conflict of laws. 
 15. Interpretation. Unless a clear contrary intention appears: (a) the defined terms herein shall
apply equally to both the singular and plural forms of such terms; (b) reference to any Person includes such Person’s successors and assigns but, if applicable, only if such successors and assigns are not prohibited by the Plan or this
Agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity or individually; (c) any pronoun shall include the corresponding masculine, feminine and neuter forms; (d) reference to any agreement,
document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof; (e) reference to any law, rule or regulation means such law, rule or regulation as
amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder, and reference to any section or other provision of any law, rule or regulation means
that provision of such law, rule or regulation from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of such section or other provision; (f) “hereunder,”
“hereof,” “hereto,” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular article, section or other provision hereof; (g) numbered or lettered articles, sections and
subsections herein contained refer to articles, sections and subsections of this Agreement; (h) “including” (and with correlative meaning “include”) means including without limiting the generality of any description
preceding such term; (i) “or” is used in the inclusive sense of “and/or”; (j) references to documents, instruments or agreements shall be deemed to refer as well to all addenda, exhibits, schedules or amendments
thereto; and (k) reference to dollars or $ shall be deemed to refer to U.S. dollars. 
 16. No Strict Construction. This
Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. 

[Remainder of Page Left Intentionally Blank] 

  
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 IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above
written. 
  

			
	NOVOCURE LIMITED
		
	By:	 	  

	Name:
	Title:

  

			
	PARTICIPANT
		
	By:	 	  

	Name:
	Employee Address:

  
 6Exhibit 10.1

 

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:      $350,000	Issue Date: November 15th, 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 Anthony Ivankovich or registered assigns (the “Holder”) the sum of $200,000 together with interest as set
forth herein, on December 7, 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 November
18, 2015 between the Company and the Holder (the “Securities Purchase Agreement”). This Debenture is being issued pursuant
to the Securities 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”). 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 1.5 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 1.4 and 1.5(g) hereof.

 

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I.2.
Holder’s Conversion Limitations. The Company shall not effect any conversion of this Debenture, and a Holder shall
not have the right to convert any portion of this Debenture, to the extent that after giving effect to the conversion set forth
on the applicable Notice of Conversion, the Holder (together with the Holder’s Affiliates, and any Persons acting as a group
together with the Holder or any of the Holder’s Affiliates) would beneficially own in excess of the Beneficial Ownership
Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned
by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of this Debenture
with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable
upon (i) conversion of the remaining, unconverted principal amount of this Debenture beneficially owned by the Holder or any of
its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company,
in both cases which are subject to a limitation on conversion or exercise analogous to the limitation contained herein (including,
without limitation, any other Debentures or the Warrants) beneficially owned by the Holder or any of its Affiliates. Except as
set forth in the preceding sentence, for purposes of this Section 1.2, beneficial ownership shall be calculated in accordance with
Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained
in this Section 1.2 applies, the determination of whether this Debenture is convertible (in relation to other securities owned
by the Holder together with any Affiliates) and of which principal amount of this Debenture is convertible shall be in the sole
discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder’s determination of
whether this Debenture may be converted (in relation to other securities owned by the Holder together with any Affiliates) and
which principal amount of this Debenture is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure
compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion
that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall have no obligation
to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 1.2, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number
of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company’s most recent periodic
or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Company, or (iii)
a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common
Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in
writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common
Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Debenture,
by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The
“Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Debenture held by the Holder. The
Holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation
provisions of this Section 1.2, provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares
of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of this
Debenture held by the Holder and the Beneficial Ownership Limitation provisions of this Section 1.2 shall continue to apply. Any
such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company. The Beneficial
Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity
with the terms of this Section 1.2 to correct this paragraph (or any portion hereof) which may be defective or inconsistent with
the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly
give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Debenture.

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I.3.(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 fifty percent (50%) 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 forty percent (40%) 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.

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I.4.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.5.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
1.5(b), surrendering this Debenture at the principal office of the Borrower.

 

(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.

 

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(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
1.5, 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.

 

(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.

 

    	6

     

    

 

(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 1.5, 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 1.5(g) are justified

 

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I.6.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 1.6 and who is an accredited investor.
Except as otherwise required in the Securities Purchase Agreement and subject to the removal provisions set forth below, until
such time as the shares of Common Stock issuable upon conversion of this 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.”

 

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.

 

    	8

     

    

 

I.7.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 1.7(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 1.7(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 Securities Purchase 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 1.7(b). The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers
or share exchanges.

 

    	9

     

    

 

(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.

    	10

     

    

 

(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 1.7, 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.8.Reserved.

 

I.9.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 Beneficial Ownership Limitation) 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.10.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 1.10, 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 1.4
and 1.5(g) hereof.

 

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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;

    	12

     

    

 

(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;

(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.

 

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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 Securities Purchase Agreement Borrower’s instruction letter to its transfer agent contemplated by the Securities Purchase
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).

 

III.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.Failure
to List Common Stock on OTCQB. The Borrower’s Common Stock shall not be eligible for quotation on the OTCQB within thirty
(30) days hereof.

 

III.8.Delisting
of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on the Trading Market.

 

III.9.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.

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III.10.Liquidation.Any
dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

III.11.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.12.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).

 

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

3.13Cross-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.

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. 

 

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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:

 

If to the Borrower,
to:

 

Apptigo International, Inc.

1801 SW 3rd Avenue, Suite
402

Miami, Florida 33129

 

If to the Holder:

 

Anthony Ivankovich

 

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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 Securities Purchase 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 Securities Purchase 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.

 

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 Securities Purchase 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.

    	18

     

    

 

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

 

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.

 

    	19

     

    

 

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)

 

    	20

     

    

 

IN WITNESS WHEREOF, Borrower
has caused this Debenture to be signed in its name by its duly authorized officer this November 15, 2015.

 

APPTIGO INTERNATIONAL, INC.  

 

 

By: /s/ David Steinberg

David Steinberg

President

 

 

 

 

 

 

    	21

     

    

 

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:	 	
	Account Number:	 	

 

 

 

 

    	22

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