Document:

Exhibit 4.1

 

NEITHER THIS SECURITY NOR THE SECURITIES
INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH
EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION
OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

	Original Issue Date: _______ __, 2019	Principal Amount: $1,571,133.671

 

SENIOR
SECURED 

CONVERTIBLE
PROMISSORY NOTE

DUE
OCTOber 17, 2020

 

THIS SENIOR SECURED
CONVERTIBLE PROMISSORY NOTE is one of a series of duly authorized and validly issued Senior Secured Convertible Promissory Notes
of Spectrum Global Solutions, Inc., a Nevada corporation (the “Company”), having its principal place of business
at 300 Crown Oak Centre Drive, Longwood, FL 32750, designated as its Senior Secured Convertible Promissory Note due October 17,
2020 (the “Note,” and collectively with the other Notes of such series, the “Notes”).

 

FOR VALUE RECEIVED,
the Company promises to pay to Dominion Capital LLC or its registered assigns (the “Holder”), or shall have
paid pursuant to the terms hereunder, the principal sum of $1,571,133.67 on October 17, 2020 (the “Maturity Date”)
or such earlier date as this Note is required or permitted to be repaid as provided hereunder, and to pay interest to the Holder
on the aggregate unconverted and then outstanding principal amount of this Note in accordance with the provisions hereof. This
Note is subject to the following additional provisions:

 

Section 1.Definitions.
For the purposes hereof, in addition to the terms defined elsewhere in this Note, the following terms shall have the following
meanings:

 

“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.

 

“Alternate
Consideration” shall have the meaning set forth in Section 5(f).

 

“Alternate
Conversion Price” means eighty percent (80%) of the lowest VWAP in the ten (10) consecutive Trading Days prior to the
Conversion Date.

 

 

 

1
The principal amount of this Note issued to the Holder pursuant to the Exchange Agreement was calculated in accordance with Exhibit
A hereto.

 

    1

     

    

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in Rule
1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment
of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or
any Significant Subsidiary thereof, (b) there is commenced against the Company or any Significant Subsidiary thereof any such case
or proceeding that is not dismissed within sixty (60) days after commencement, (c) the Company or any Significant Subsidiary thereof
is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d)
the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial
part of its property that is not discharged or stayed within sixty (60) calendar days after such appointment, (e) the Company or
any Significant Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Company or any Significant
Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its
debts, (g) the Company or any Significant Subsidiary thereof admits in writing that it is generally unable to pay its debts as
they become due or (h) the Company or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its
consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting
any of the foregoing.

 

“Beneficial
Ownership Limitation” shall have the meaning set forth in Section 4(d).

 

“Board
of Directors” means the board of directors of the Company.

 

“Business
Day” means any day except any Saturday, any Sunday, or any day on which the Federal Reserve Bank of New York is
closed.

 

“Buy-In”
shall have the meaning set forth in Section 4(c)(v).

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of
effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of
in excess of fifty percent (50%) of the voting securities of the Company (other than by means of conversion of the Notes and the
Conversion Shares issued together with the Notes); (b) the Company merges into or consolidates with any other Person, or any Person
merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders of the Company immediately
prior to such transaction own less than fifty percent (50%) of the aggregate voting power of the Company or the successor entity
of such transaction; (c) the Company sells or transfers all or substantially all of its assets to another Person and the stockholders
of the Company immediately prior to such transaction own less than fifty percent (50%) of the aggregate voting power of the acquiring
entity immediately after the transaction; (d) a replacement at one time or within a one (1) year period of more than fifty percent
(50%) of the members of the Board of Directors which is not approved by a majority of those individuals who are members of the
Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board of Directors on
any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors who are
members on the date hereof); or (e) the execution by the Company of an agreement to which the Company is a party or by which it
is bound, providing for any of the events set forth in clauses (a) through (d) above; provided, however, that any such transaction
that would otherwise constitute a Change of Control Transaction pursuant to this definition shall not be considered a Change of
Control Transaction for purposes of this Note if the entrance by the Company into any such transaction has been publicly disclosed
prior to the Original Issue Date.

 

    2

     

    

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.00001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Company or any Subsidiary which would entitle the holder thereof to acquire
at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant, unit, 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.

 

“Conversion”
shall have the meaning ascribed to such term in Section 4.

 

“Conversion
Date” shall have the meaning set forth in Section 4(a).

 

“Conversion
Schedule” means the Conversion Schedule in the form of Schedule 1 attached hereto.

 

“Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Note in accordance with the
terms hereof, including without limitation, shares of Common Stock issued upon conversion, redemption, or amortization of this
Note and shares of Common Stock issued and issuable in lieu of the cash payment of interest on this Note in accordance with the
terms of this Note.

 

“Dilutive
Issuance” shall have the meaning set forth in Section 5(b).

 

    3

     

    

 

“Dilutive
Issuance Notice” shall have the meaning set forth in Section 5(b).

 

“DTC”
means the Depository Trust Company.

 

“DTC/FAST
Program” means the DTC’s Fast Automated Securities Transfer Program.

 

“DWAC
Eligible” means that (a) the Common Stock is eligible at DTC for full services pursuant to DTC’s Operational Arrangements,
including without limitation transfer through DTC’s DWAC system, (b) the Company has been approved (without revocation) by
the DTC’s underwriting department, (c) the Transfer Agent is approved as an agent in the DTC/FAST Program, (d) the Conversion
Shares are otherwise eligible for delivery via DWAC, and (e) the Transfer Agent does not have a policy prohibiting or limiting
delivery of the Conversion Shares via DWAC.

 

“Equity
Conditions” means, during the period in question, (a) no Event of Default shall have occurred, (b) the Company has timely
filed (or obtained extensions in respect thereof and filed within the applicable grace period) all reports required to be filed
by the Company after the date hereof pursuant to the Exchange Act and the Company has met the current public information requirements
of Rule 144(c) under the Securities Act as of the end of the period in question, (c) the average daily dollar volume of the Common
Stock for the previous five (5) Trading Days must be greater than $100,000, (d) the Common Stock must be DWAC Eligible and not
subject to a “DTC chill,” (e) on any date that the Company desires to make a payment of interest and/or principal in
shares of Common Stock instead of cash, the Common Stock has closed at fifty percent (50%) above the Floor Price with respect to
the Trading Day immediately prior to any date on which interest or principal is to be paid and (f) this Note and/or the Conversion
Shares are registered under the Securities Act or the Conversion Shares may be resold freely under the Securities Act or an exemption
thereto; provided that satisfaction of such Equity Conditions may be waived in the Holder’s sole discretion.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, directors, advisors
or independent contractors of the Company pursuant to any stock or option plan duly adopted for such purpose; provided,
however, that such issuance is approved by a majority of the Board of Directors; and provided, further that such
issuance shall not exceed in the aggregate five percent (5%) of the outstanding shares of Common Stock without the prior approval
of the Holder, (b) shares of Common Stock, warrants or options to advisors or independent contractors of the Company for compensatory
purposes, (c) securities upon the exercise or exchange of or conversion of any Notes issued hereunder and/or other securities exercisable
or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date hereof, provided that such securities
have not been amended since the date hereof to increase the number of such securities or to decrease the exercise price, exchange
price or conversion price of such securities, (d) securities issuable pursuant to any contractual anti-dilution obligations of
the Company in effect as of the date hereof, provided that such obligations have not been materially amended since the date hereof,
and (e) securities issued pursuant to acquisitions or any other strategic transactions approved by a majority of the disinterested
members of the Board of Directors, provided that any such issuance shall not include a transaction in which the Company is issuing
securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.

 

    4

     

    

 

“Event
of Default” shall have the meaning set forth in Section 6(a).

 

“Exchange
Agreement” means the Exchange Agreement, dated April 17, 2019, between the Holder and the Company, as amended, modified
or supplemented from time to time in accordance with its terms.

 

“Fixed
Conversion Price” shall have the meaning set forth in Section 4(b).

 

“Floor
Price” shall mean (i) initially, $0.10 and (ii) on or after the date of the closing of the Subsequent Offering, one hundred
and five percent (105%) of the price of the Common Stock issuable in the Subsequent Offering.

 

“Fundamental
Transaction” shall have the meaning set forth in Section 5(f).

 

“Indebtedness”
means (x) any liabilities for borrowed money or amounts owed in excess of $250,000 (other
than trade accounts payable incurred in the ordinary course of business); (y) all guaranties, endorsements and other contingent
obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s consolidated
balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $250,000 due under
leases required to be capitalized in accordance with United States generally accepted accounting principles (GAAP).

 

“Late
Fees” shall have the meaning set forth in Section 2(c).

 

“Mandatory
Default Amount” means the payment of one hundred and twenty-five percent (125%) of the outstanding principal amount of
this Note and accrued and unpaid interest hereon, in addition to the payment of all other amounts, costs, expenses and liquidated
damages due in respect of this Note.

 

“New
York Courts” shall have the meaning set forth in Section 7(d).

 

“Note
Register” shall have the meaning set forth in Section 2(b).

 

“Notice
of Conversion” shall have the meaning set forth in Section 4(a).

 

    5

     

    

 

“Original
Issue Date” means the date of the first issuance of this Note, regardless of any transfers of any Note and regardless
of the number of instruments which may be issued to evidence such Note.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

 

“Required
Minimum” means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable
in the future pursuant to this Note, including any Conversion Shares issuable upon conversion in full of this Note (including Conversion
Shares issuable as payment of interest on this Note), ignoring any conversion limits set forth therein, which amount shall initially
be 15,712,000 shares of Common Stock (subject to proportionate adjustment for any reverse stock split or similar reclassification
of the Common Stock).

 

“Reserve
Amount” shall have the meaning set forth in Section 4(c)(vi) hereof.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Security
Agreement” means the Security Agreement, dated as of April 23, 2018, by and among the Company and its Subsidiaries and
the Holder, as amended pursuant to Amendment No. 1 to Security Agreement and Subsidiary Guarantee of the Company, dated as of May
18, 2018, and as further amended pursuant to Amendment No. 2 to Security Agreement, Intellectual Property Security Agreement and
Subsidiary Guarantee of the Company, dated as of the date hereof.

 

“Share
Delivery Date” shall have the meaning set forth in Section 4(c)(ii).

 

“Standard
Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s
principal Trading Market with respect to the Common Stock as in effect on the date of delivery of a Notice of Conversion.

 

“Subsequent
Offering” means, following the Original Issue Date, the next public or private offering of equity or equity-linked securities
of the Company in which the Company receives gross proceeds in an amount greater than $100,000.

 

“Subsidiary”
means any direct or indirect subsidiary of the Company existing on the date hereof and any direct or indirect subsidiary of the
Company formed or acquired after the date hereof.

 

“Successor
Entity” shall have the meaning set forth in Section 5(f).

 

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

 

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“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE American; the Nasdaq Capital Market; the Nasdaq Global Market; the Nasdaq Global Select Market;
the New York Stock Exchange; or any level of the OTC Markets operated by OTC Markets Group, Inc. (or any successors to any of the
foregoing). 

 

“Transaction
Documents” means this Note; the Exchange Agreement; the Security Agreement, as
amended; the Subsidiary Guarantee, dated as of April 23, 2018, executed by those certain subsidiaries of the Company in favor of
the Holder, as amended; the Intellectual Property Security Agreement, dated as of April 23, 2018, between the Company and
the Holder, as amended; the other Transaction Documents (as defined in the Exchange Agreement);
and all exhibits and schedules hereto and thereto and any other documents or agreements executed in connection with the transactions
contemplated hereunder.

 

“Transfer
Agent” means Island Stock Transfer or any successor transfer agent of the Company.

 

“Variable
Rate Transaction” shall have the meaning set forth in Section 5(i) hereof.

 

“VWAP”
means, for or as of any date, the dollar volume-weighted average price for such security on the Trading Market (or, if the Trading
Market is not the principal trading market for such security, then on the principal securities exchange or securities market on
which such security is then traded) during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New
York time, as reported by Bloomberg L.P. through its “HP” function (set to weighted average) or, if the foregoing does
not apply, the dollar volume-weighted average price of such security in the over-the-counter market on the electronic bulletin
board for such security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time,
as reported by Bloomberg L.P., or, if no dollar volume-weighted average price is reported for such security by Bloomberg L.P. for
such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers for such
security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the VWAP cannot
be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the
fair market value as mutually determined by the Company and the Holder. All such determinations shall be appropriately adjusted
for any stock dividend, stock split, stock combination, recapitalization or other similar transaction during such period.

 

Section 2.Interest.

 

a) Payment
of Interest in Cash or Kind. The Company shall pay interest to the Holder on the aggregate unconverted and then outstanding
principal amount of this Note at the rate of twelve percent (12%) per annum, which annual interest shall be guaranteed on the original
principal amount of this Note through the Maturity Date. All interest payments hereunder shall be payable, in the Company’s
discretion, in cash, or subject to satisfaction of the Equity Conditions, in Common Stock at the Alternate Conversion Price. Accrued
and unpaid interest shall be due and payable beginning on May 1, 2019 and continuing on a monthly basis thereafter and on each
Conversion Date, prepayment date, Amortization Payment Date (as defined below), the Maturity Date or as otherwise set forth herein.

 

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b) Interest
Calculations. Interest shall be calculated on the basis of a 360-day year, consisting of twelve (12) thirty (30) calendar day
periods, and shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding principal, together
with all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made. Interest
hereunder will be paid to the Person in whose name this Note is registered on the records of the Company regarding registration
and transfers of this Note (the “Note Register”).

 

c) Late
Fee. All overdue accrued and unpaid interest to be paid hereunder shall entail a late fee at an interest rate equal to the
lesser of eighteen percent (18%) per annum or the maximum rate permitted by applicable law (the “Late Fees”)
which shall accrue daily from the date such interest is due hereunder through and including the date of actual payment in full.

 

d) Voluntary
Prepayment. So long as no Event of Default exists, at any time upon ten (10) days’ written notice to the Holder, but
subject to the Holder’s conversion rights set forth herein, the Company may prepay any portion of the principal amount of
this Note, any accrued and unpaid interest and any other amounts due under this Note. If the Company exercises its right to prepay
the Note, the Company shall make payment to the Holder of an amount in cash equal to the sum of the then outstanding principal
amount of this Note and any interest due multiplied by one hundred and ten percent (110%). The Holder may continue to convert the
Note from the date notice of the prepayment is given until the date of prepayment.

 

e) Amortization.
Commencing on October 1, 2019 and continuing on a monthly basis thereafter (each, an “Amortization Payment Date”),
the Company shall redeem one-twelfth (1/12th) of the face amount of this Note and accrued but unpaid interest thereon according
to Schedule 2(e) attached hereto (each, an “Amortization Payment”). Each Amortization Payment shall,
at the option of the Company, be made in whole or in part, in cash equal to the sum of the Amortization Payment provided for in
Schedule 2(e) hereto, or, subject to satisfaction of the Equity Conditions, in Common Stock at the Alternate Conversion
Price. Any Amortization Payment paid by the Company in cash shall be subject to a five percent (5%) premium on such payment.

 

Section 3.Registration
of Transfers and Exchanges.

 

a) Different
Denominations. This Note is exchangeable for an equal aggregate principal amount of Note of different authorized denominations,
as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.

 

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b) Investment
Representations. This Note has been issued subject to certain investment representations of the original Holder and may be
transferred or exchanged only in compliance with applicable federal and state securities laws and regulations.

 

c) Reliance
on Note Register. Prior to due presentment for transfer to the Company of this Note, the Company and any agent of the Company
may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving
payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor any such
agent shall be affected by notice to the contrary.

 

Section 4.Conversion.

 

a) Voluntary
Conversion. At any time after the Original Issue Date until this Note is no longer outstanding, this Note shall be convertible,
in whole or in part, into shares of Common Stock at the option of the Holder, at any time and from time to time (subject to the
conversion limitations set forth in Section 4(d) hereof). The Holder shall effect conversions by delivering to the Company
a Notice of Conversion, the form of which is attached hereto as Annex A (each, a “Notice of Conversion”),
specifying therein the principal amount of this Note to be converted and the date on which such conversion shall be effected (such
date, the “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date
shall be the date that such Notice of Conversion is deemed delivered hereunder. No ink-original Notice of Conversion shall be required,
nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required. To
effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire
principal amount of this Note, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder shall
have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion. The
Holder and the Company shall maintain a Conversion Schedule showing the principal amount(s) converted and the date of such conversion(s).
The Company may deliver an objection to any Notice of Conversion within one (1) Business Day of delivery of such Notice of Conversion.
In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of
manifest error. The Holder, and any assignee by acceptance of this Note, acknowledge and agree that, by reason of the provisions
of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note may
be less than the amount stated on the face hereof.

 

b) Conversion
Price. The conversion price in effect on any Conversion Date shall be equal to (i) initially, $0.10 and (ii) on or after the
date of the closing of the Subsequent Offering, one hundred and five percent (105%) of the price of the Common Stock issuable in
the Subsequent Offering (the “Fixed Conversion Price”). Notwithstanding anything herein to the contrary, at
any time after the occurrence of any Event of Default, the Holder may require the Company to, at such Holder’s option and
otherwise in accordance with the provisions for conversion herein, convert all or any part of this Note into Common Stock at the
Alternate Conversion Price. All such foregoing determinations will be appropriately adjusted for any stock dividend, stock split,
stock combination, reclassification or similar transaction that proportionately decreases or increases the Common Stock during
such measuring period. Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default
pursuant to Section 6 hereof and the Holder shall have the right to pursue all remedies available to it hereunder, at law or in
equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights
shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

 

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		c)	Mechanics of Conversion.

 

i. Conversion
Shares Issuable Upon Conversion of Principal Amount. The number of Conversion Shares issuable upon a conversion hereunder shall
be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Note to be converted and any accrued
and unpaid interest to be converted by (y) the Fixed Conversion Price.

 

ii. Delivery
of Conversion Shares Upon Conversion. Not later than the earlier of (x) two (2) Trading Days and (y) the number of Trading
Days comprising the Standard Settlement Period after each Conversion Date (the “Share Delivery Date”), the Company
shall deliver, or cause to be delivered, to the Holder the Conversion Shares which, on or after the date on which such Conversion
Shares are eligible to be sold under Rule 144 without the need for current public information and the Company has received an opinion
of counsel to such effect, which such opinion must be acceptable to the Holder in its sole and absolute discretion (which opinion
the Company shall be responsible for obtaining at its sole cost and expense), shall be free of restrictive legends and trading
restrictions and shall represent the number of Conversion Shares being acquired upon the conversion of this Note. All Conversion
Shares required to be delivered by the Company under this Section 4(c) shall be delivered electronically through the DTC or another
established clearing corporation performing similar functions. If the Conversion Date is prior to the date on which such Conversion
Shares are eligible to be sold under Rule 144 without the need for current public information, or there is no registration statement
in effect covering the Conversion Shares, the Conversion Shares shall bear a restrictive legend in the following form, as appropriate:

 

“THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT 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.”

 

Notwithstanding the foregoing,
commencing on such date that the Conversion Shares are eligible for sale under Rule 144 subject to current public information requirements,
the Company, upon request and at the sole cost and expense of the Company, shall obtain a legal opinion that is acceptable to the
Holder in its sole and absolute discretion, to allow for such sales under Rule 144.

 

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iii. Failure
to Deliver Conversion Shares. If, in the case of any Notice of Conversion, such Conversion Shares are not delivered to or as
directed by the Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Company at any
time on or before its receipt of such Conversion Shares, to rescind such Conversion, in which event the Company shall promptly
return to the Holder any original Note delivered to the Company and the Holder shall promptly return to the Company the Conversion
Shares issued to such Holder pursuant to the rescinded Notice of Conversion.

 

iv. Obligation
Absolute; Partial Liquidated Damages. The Company’s obligations to issue
and deliver the Conversion Shares upon conversion of this Note in accordance with the terms hereof are absolute and unconditional,
irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof,
the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation
or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation
or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise
limit such obligation of the Company to the Holder in connection with the issuance of such Conversion Shares; provided,
however, that such delivery shall not operate as a waiver by the Company of any such action the Company may have against
the Holder. In the event the Holder of this Note shall elect to convert any or all of the outstanding principal or interest amount
hereof, the Company may not refuse conversion based on any claim that the Holder or anyone associated or affiliated with the Holder
has been engaged in any violation of law, agreement or for any other reason, unless an injunction from a court, on notice to Holder,
restraining and or enjoining conversion of all or part of this Note shall have been sought. If the injunction is not granted, the
Company shall promptly comply with all conversion obligations herein. If the injunction is obtained, the Company must post a surety
bond for the benefit of the Holder in the amount of one hundred percent (100%) of the outstanding principal amount of this Note,
which is subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying
dispute and the proceeds of which shall be payable to the Holder to the extent it obtains judgment. In the absence of such injunction,
the Company shall issue Conversion Shares or, if applicable, cash, upon a properly noticed conversion. If the Company fails for
any reason to deliver to the Holder such Conversion Shares pursuant to Section 4(c)(ii) by the Share Delivery Date, the Company
shall pay to the Holder, in cash, as liquidated damages and not as a penalty, $1,000 per Trading Day for each Trading Day after
such Share Delivery Date until such Conversion Shares are delivered or the Holder rescinds such conversion. Nothing herein shall
limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section 6 hereof for the Company’s
failure to deliver Conversion Shares within the period specified herein and the Holder shall have the right to pursue all remedies
available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive
relief. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section
hereof or under applicable law.

 

    11

     

    

 

v. Compensation
for Buy-In on Failure to Timely Deliver Conversion Shares Upon Conversion. In addition to any other rights available to the
Holder, if the Company fails for any reason to deliver to the Holder such Conversion Shares by the Share Delivery Date pursuant
to Section 4(c)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase (in an open
market transaction or otherwise), or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the conversion relating
to such Share Delivery Date (a “Buy-In”), then the Company shall (A) pay in cash to the Holder (in addition
to any other remedies available to or elected by the Holder) the amount, if any, by which (x) the Holder’s total purchase
price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number
of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale
price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B)
at the option of the Holder, either reissue (if surrendered) this Note in a principal amount equal to the principal amount of the
attempted conversion (in which case such conversion shall be deemed rescinded) or deliver to the Holder the number of shares of
Common Stock that would have been issued if the Company had timely complied with its delivery requirements under Section 4(c)(ii).
For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an
attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares (including any brokerage
commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence,
the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts
payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein
shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon conversion of this Note as required pursuant to the terms hereof.

 

vi. Reservation
of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available out of its authorized
and unissued shares of Common Stock a number of shares of Common Stock at least equal to two hundred percent (200%) of the Required
Minimum (the “Reserve Amount”) for the sole purpose of issuance upon conversion of this Note and payment of
interest on this Note, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons
other than the Holder (and the other holders of the Notes). The Company covenants that all shares of Common Stock that shall be
so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.

 

vii. Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Note. As to
any fraction of a share which the Holder would otherwise be entitled to purchase upon such conversion, the Company shall at its
election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the
Fixed Conversion Price or round up to the next whole share.

 

viii. Transfer
Taxes and Expenses. The issuance of Conversion Shares on conversion of this Note shall be made without charge to the Holder
hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such Conversion Shares,
provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance
and delivery of any such Conversion Shares upon conversion in a name other than that of the Holder of this Note so converted, and
the Company shall not be required to issue or deliver such Conversion Shares unless or until the Person or Persons requesting the
issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company
that such tax has been paid. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Conversion
and all fees to the DTC (or another established clearing corporation performing similar functions) required for same-day electronic
delivery of Conversion Shares.

 

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d) Holder’s
Conversion Limitations. The Company shall not effect any conversion of principal and/or interest of this Note, and the Holder
shall not have the right to convert any principal and/or interest of this Note, 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 (such Persons, the “Attribution Parties”))
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 Attribution Parties shall include the number
of shares of Common Stock issuable upon conversion of this Note 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 Note beneficially owned by the Holder or any of its Attribution Parties and (ii) exercise or conversion of the unexercised
or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the
limitation contained herein (including, without limitation, any other Notes) beneficially owned by the Holder or any of its Attribution
Parties.  Except as set forth in the preceding sentence, for purposes of this Section 4(d), 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 4(d) applies, the determination of whether this Note is convertible (in relation
to other securities owned by the Holder together with any of its Attribution Parties) and of which principal amount of this Note
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 Note may be converted (in relation to other securities owned by the Holder together
with any of its Attribution Parties) and which principal amount of this Note 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 4(d), 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 Transfer Agent setting forth the number
of shares of Common Stock outstanding.  Upon the written or oral request of the Holder, the Company shall within two (2) 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 Note, by the Holder or its Attribution Parties 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 Note held by the Holder. The Holder, upon not less than sixty-one (61) days’ prior notice to the Company, may increase
or decrease the Beneficial Ownership Limitation provisions of this Section 4(d), provided that the Beneficial Ownership Limitation
in no event exceeds 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of
shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this
Section 4(d) shall continue to apply. Any such increase or decrease will not be effective until the sixty-first (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 4(d) 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 Note.

 

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Section 5.Certain
Adjustments.

 

a) Stock
Dividends and Stock Splits. If the Company, at any time while this Note is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock Equivalents
(which, for the avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion of, or payment
of interest on, this Note), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues, in the event
of a reclassification of shares of the Common Stock, any shares of capital stock of the Company, then the Fixed Conversion Price
shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury
shares of the Company) outstanding immediately before such event, and of which the denominator shall be the number of shares of
Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall become effective immediately
after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

b) Lower
Priced Transaction. So long as this Note remains outstanding or the holder of this Note holds any Conversion Shares, if the
Company enters into any financing transaction following the Subsequent Offering pursuant to which the Company sells its securities
at a price lower than the Fixed Conversion Price (subject to adjustment in accordance with Section 4(b) and Section 5(a) above),
the Company shall make payment to the Holder in cash, from up to one hundred percent (100%) of the proceeds of such financing transaction,
of the outstanding principal amount, accrued but unpaid interest and any other amounts due on the Note no later than two (2) Trading
Days after the closing of such financing transaction.

 

c) Dilutive
Issuance. If the Company or any Subsidiary thereof, as applicable, at any time while this Note is outstanding or the Holder
holds any Conversion Shares, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose
of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or Common Stock
Equivalents, at an effective price per share less than the Fixed Conversion Price then in effect (such lower price, the “Base
Share Price” and such issuances collectively, a “Dilutive Issuance”) (it being understood
and agreed that if the holder of the 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 Common Stock at an effective
price per share that is less than the Fixed Conversion Price, such issuance shall be deemed to have occurred for less than the
Fixed Conversion Price on such date of the Dilutive Issuance at such effective price), then simultaneously with the consummation
of each Dilutive Issuance the Fixed Conversion Price shall be reduced and only reduced to equal the Base Share Price. Such adjustment
shall be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustments
shall be made, paid or issued under this Section 5(c) in respect of an Exempt Issuance. The Company shall notify the Holder, in
writing, no later than the Trading Day following the issuance or deemed issuance of any Common Stock or Common Stock Equivalents
subject to this Section 5(c), 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 5(c), upon the occurrence of any Dilutive
Issuance, the Holder is entitled to receive a number of Conversion Shares based upon the Base Share Price regardless of whether
the Holder accurately refers to the Base Share Price in the Notice of Conversion. If the Company enters into a Variable Rate Transaction,
despite the prohibition in Section 5(i) hereof, the Company shall be deemed to have issued Common Stock or Common Stock Equivalents
at the lowest possible conversion or exercise price at which such securities may be converted or exercised.

 

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d) Pro
Rata Distributions. While this Note is outstanding, the Company shall not declare or make any dividend or other distribution
of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise
(including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend,
spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”). 
In the event of a Distribution and the Note is repaid at the time of such Distribution, the Holder shall not be entitled to participate
in such Distribution.  However, with the prior written consent of the Holder, in the event of a Distribution and the Note
is not repaid at the time of such Distribution, then the Holder shall be entitled to participate in such Distribution to the same
extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon
complete exercise of this Note (without regard to any limitations on exercise hereof, including without limitation, the Beneficial
Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken,
the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution
(provided, however, to the extent that the Holder's right to participate in any such Distribution would result in
the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution
to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and
the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right
thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

e) Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 5(a) above, if at any time the Company grants, issues
or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to
any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) 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 shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder
exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such
extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase
Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in
the Holder exceeding the Beneficial Ownership Limitation).

 

f) Fundamental
Transaction. If, at any time while this Note is outstanding, (i) the Company, directly or indirectly, in one or more related
transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly,
effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets
in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether
by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange
their shares for other securities, cash or property and has been accepted by the holders of fifty percent (50%) or more of the
outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification,
reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more
related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more
than fifty percent (50%) of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other
Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or
share purchase agreement or other business combination) (each, a “Fundamental Transaction”), then, upon any
subsequent conversion of this Note, the Holder shall have the right to receive, for each Conversion Share that would have been
issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation
in Section 4(d) on the conversion of this Note), the number of shares of Common Stock of the successor or acquiring corporation
or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Note
is convertible immediately prior to such Fundamental Transaction (without regard to any limitation in Section 4(d) on the conversion
of this Note). For purposes of any such conversion, the determination of the Fixed Conversion Price shall be appropriately adjusted
to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) share of
Common Stock in such Fundamental Transaction, and the Company shall apportion the Fixed Conversion Price among the Alternate Consideration
in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of
Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the
Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Note following
such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is
not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this
Note and any document ancillary hereto, in accordance with the provisions of this Section 5(f) pursuant to written agreements in
form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such
Fundamental Transaction and shall, at the option of the holder of this Note, deliver to the Holder in exchange for this Note a
security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Note which
is convertible for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
to the shares of Common Stock acquirable and receivable upon conversion of this Note (without regard to any limitations on the
conversion of this Note) prior to such Fundamental Transaction, and with a conversion price which applies the conversion price
hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to
such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such conversion
price being for the purpose of protecting the economic value of this Note immediately prior to the consummation of such Fundamental
Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental
Transaction, the provisions of this Note and the other Transaction Documents referring to the “Company” shall refer
instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations
of the Company under this Note and the other Transaction Documents with the same effect as if such Successor Entity had been named
as the Company herein.

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g) Calculations.
All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall
be the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued and outstanding.

 

h) Notice
to the Holder.

 

i. Adjustment
to Fixed Conversion Price. Whenever the Fixed Conversion Price is adjusted pursuant to any provision of Section 5(a), the Company
shall promptly deliver to each Holder a notice setting forth the Fixed Conversion Price after such adjustment and setting forth
a brief statement of the facts requiring such adjustment.

 

ii. Notice
to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on
the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C)
the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale
or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock
is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each office
or agency maintained for the purpose of conversion of this Note, and shall cause to be delivered to the Holder at its last address
as it shall appear upon the Note Register, at least twenty (20) calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record
to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date
as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of Common Stock
for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange,
provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity
of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes,
or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously
file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to convert this
Note during the 20-day period commencing on the date of such notice through the effective date of the event triggering such notice
except as may otherwise be expressly set forth herein.

 

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i) Variable
Rate Transactions. So long as this Note remains outstanding, the Company shall not, directly or indirectly, (i)(A) consummate
any exchange of any Indebtedness and/or securities of the Company for any other securities and/or Indebtedness of the Company,
(B) cooperate with any Person to effect any exchange of securities and/or Indebtedness of the Company in connection with a proposed
sale of such securities from an existing holder of such securities to a third party), and/or (C) reduce and/or otherwise change
the exercise price, conversion price and/or exchange price of any Common Stock Equivalents and/or amend any non-convertible Indebtedness
of the Company to make it convertible into securities of the Company, (ii) issue or sell any of its securities either (A) at a
conversion, exercise or exchange rate or price that is based upon and/or varies with the trading prices of, or quotations for,
Common Stock, and/or (B) with a conversion, exercise or exchange rate and/or price that is subject to being reset on one or more
occasions either (1) at some future date after the initial issuance of such securities or (2) upon the occurrence of specified
or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock, and/or (iii)
enter into any agreement (including, without limitation, an Equity Line of Credit (as defined below), “at-the-market offering”
or a Variable Priced Equity Linked Instrument (as defined below)) whereby the Company may sell securities at a future determined
price. Any transaction contemplated in this Section 5(i) shall be referred to as a “Variable Rate Transaction”;
provided, however, that any transaction that may be considered a Variable Rate Transaction hereunder but has a floor whereby such
security is not issued, or if an equity-linked instrument, cannot be converted or exercised into common stock at a value per share
of less than $0.10 (subject to equitable adjustments for any stock splits, dividends, or similar transactions), than for purposes
hereof such transaction will not be considered a Variable Rate Transaction. The Holder shall be entitled to obtain injunctive relief
against the Company to preclude any Variable Rate Transaction (without the need for the posting of any bond or similar item, which
the Company hereby expressly and irrevocably waives the requirement for), which remedy shall be in addition to any right of the
Holder to collect damages. For purposes hereof: “Equity Line of Credit” means any transaction involving a written
agreement between the Company and an investor or underwriter whereby the Company has the right to “put” its securities
to the investor or underwriter over an agreed period of time and at a future determined price or price formula (other than customary
“preemptive” or “participation” rights or “weighted average” or “full-ratchet”
anti-dilution provisions or in connection with fixed-price rights offerings and similar transactions that are not Variable Priced
Equity Linked Instruments); and “Variable Priced Equity Linked Instruments” means (A) any debt or equity securities
which are convertible into, exercisable or exchangeable for, or carry the right to receive additional shares of Common Stock either
(1) at any conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or
quotations for Common Stock at any time after the initial issuance of such debt or equity security, or (2) with a conversion, exercise
or exchange price that is subject to being reset on more than one occasion at some future date at any time after the initial issuance
of such debt or equity security due to a change in the market price of the Company’s Common Stock since date of initial issuance
(other than customary “preemptive” or “participation” rights or “weighted average” or “full-ratchet”
anti-dilution provisions or in connection with fixed-price rights offerings and similar transactions), and (B) any amortizing convertible
security which amortizes prior to its maturity date, where the Company is required or has the option to (or any investor in such
transaction has the option to require the Company to) make such amortization payments in shares of Common Stock which are valued
at a price that is based upon and/or varies with the trading prices of or quotations for Common Stock at any time after the initial
issuance of such debt or equity security (whether or not such payments in Common Stock are subject to certain equity conditions).

 

Section 6.Events of Default.

 

a) “Event
of Default” means, wherever used herein, any of the following events (whatever the reason for such event and whether
such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any
court, or any order, rule or regulation of any administrative or governmental body):

 

i. any
default in the payment of (A) the principal amount of this Note or (B) interest, liquidated damages and other amounts owing to
the Holder on this Note, as and when the same shall become due and payable (whether on a Conversion Date, an Amortization Payment
Date, the Maturity Date or by acceleration or otherwise) which default, solely in the case of an interest payment or other default
under clause (B) above, is not cured within three (3) Trading Days;

 

ii. the
Company shall fail to observe or perform any other covenant, provision, or agreement contained in this Note (and other than a breach
by the Company of its obligations to deliver shares of Common Stock to the Holder upon conversion, which breach is addressed in
clause (x) below) which failure is not cured, if possible to cure, within the earlier to occur of (A) five (5) Trading Days after
notice of such failure sent by the Holder or by any other Holder to the Company and (B) ten (10) Trading Days after the Company
has become or should have become aware of such failure;

 

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iii. a
default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument)
shall occur under (A) any of the Transaction Documents or (B) any other agreement, contract, lease, document or instrument to which
the Company or any Subsidiary is obligated (and not covered by clause (vi) below);

 

iv. any
representation or warranty made in this Note, any other Transaction Documents, any written statement pursuant hereto or thereto,
any other agreement, contract, lease, document or instrument to which the Company or any Subsidiary is obligated (including those
covered by clause (vi) below), or any other report, financial statement or certificate made or delivered to the Holder or any other
Holder shall be untrue or incorrect in any material respect as of the date when made or deemed made;

 

v. the
Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy
Event;

 

vi. the
Company or any Subsidiary shall default on any of its obligations under 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 that (A) involves an obligation
greater than One Hundred Fifty Thousand Dollars ($150,000) whether such indebtedness now exists or shall hereafter be created,
and (B) results in such indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become
due and payable;

 

vii. the
Common Stock shall not be eligible for listing or quotation for trading on a Trading Market and shall not be eligible to resume
listing or quotation for trading thereon within five (5) Trading Days or the transfer of shares of Common Stock through the DTC
is no longer available or “chilled”;

 

viii. the
Company shall be a party to any Change of Control Transaction or Fundamental Transaction (A) without first giving the Holder ten
(10) calendar days’ prior written notice of the closing of such Change of Control Transaction or Fundamental Transaction
and (B) prior to or simultaneous with the closing of such Change of Control Transaction or Fundamental Transaction, the Holder
is not repaid in accordance with Section 2(d) herein;

 

ix. the
Company does not meet the current public information requirements under Rule 144, which failure is not cured, if possible to cure,
within two (2) Trading Days after the expiration of the applicable grace period permitted
under Rule 12b-25 of the Exchange Act, and further provided that the Company files a Form 12b-25 for the relevant report required
to meet the current public information requirements under Rule 144;

 

    18

     

    

 

x. the
Company shall fail for any reason to deliver Conversion Shares to the Holder prior to the fifth (5th) Trading Day after a Conversion
Date pursuant to Section 4(c), or the Company shall provide at any time notice to the Holder, including by way of public announcement,
of the Company’s intention to not honor requests for conversions of this Note in accordance with the terms hereof;

 

xi. the
Company shall fail to file with the Commission any required reports under Section 13 or 15(d) of the Exchange Act such that it
is not in compliance with Rule 144(c)(1) (or Rule 144(i)(2), if applicable), which failure is not cured, if possible to cure, within
two (2) Trading Days after the expiration of the applicable grace period permitted under
Rule 12b-25 of the Exchange Act, and further provided that the Company shall file a Form 12b-25 for such report;

 

xii. the
occurrence of any levy upon or seizure or attachment of, or any uninsured loss of or damage to, any property of the Company or
any Subsidiary having an aggregate fair value or repair cost (as the case may be) in excess of Two Hundred and Fifty Thousand Dollars
($250,000) individually or in the aggregate, and any such levy, seizure or attachment shall not be set aside, bonded or discharged
within thirty (30) days after the date thereof;

 

xiii. the
Company shall fail to maintain the Reserve Amount;

 

xiv. any
monetary judgment, writ or similar final process shall be entered or filed against the Company, any Subsidiary or any of their
respective property or other assets for more than Two Hundred and Fifty Thousand Dollars ($250,000), and such judgment, writ or
similar final process shall remain unvacated, unbonded or unstayed for a period of forty-five (45) calendar days; or

 

xv. the
Company shall fail to observe or perform any other covenant, provision or agreement contained in any other agreement, contract,
lease, document or instrument to which the Company or any Subsidiary is obligated.

 

b) Remedies
Upon Event of Default. Subject to the Beneficial Ownership Limitation as set forth in Section 4(d), if any Event of Default
occurs, then the outstanding principal amount of this Note, plus accrued but unpaid interest, liquidated damages and other amounts
owing in respect thereof through the date of acceleration, shall become, at the Holder’s election, immediately due and payable,
at the Holder’s option, in cash at the Mandatory Default Amount or in Common Stock at the Alternate Conversion Price. After
the occurrence of any Event of Default that results in the eventual acceleration of this Note, the interest rate on this Note shall
accrue at an additional interest rate equal to the lesser of one and one-half percent (1.5%) per month (eighteen percent (18%)
per annum) or the maximum rate permitted under applicable law. Upon the payment in full of all amounts due upon an Event of Default
at the Mandatory Default Amount in cash or at the Alternate Conversion Price in Common Stock, the Holder shall promptly surrender
this Note to or as directed by the Company. In connection with such acceleration described herein, the Holder need not provide,
and the Company hereby waives, any presentment, demand, protest or other notice of any kind (other than the Holder’s election
to declare such acceleration), and the Holder may immediately and without expiration of any grace period enforce any and all of
its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded
and annulled by the Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of the Note
until such time, if any, as the Holder receives full payment pursuant to this Section 6(b). No such rescission or annulment shall
affect any subsequent Event of Default or impair any right consequent thereon.

 

    19

     

    

 

Section 7.Miscellaneous.

 

a) Notices.
Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation,
any Notice of Conversion, shall be in writing and delivered personally, by email or sent by a nationally recognized overnight courier
service, addressed to the Company at 300 Crown Oak Centre Drive, Longwood, FL 32750, Attn: President, or such other address or
email address as the Company may specify for such purposes by notice to the Holder delivered in accordance with this Section 7(a).
Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered
personally, by email or sent by a nationally recognized overnight courier service addressed to the Holder at the email address
or address of the Holder appearing on the books of the Company, or if no such email address or address appears on the books of
the Company, at the principal place of business of such Holder. Any notice or other communication or deliveries hereunder shall
be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via
email attachment, at the email address set forth herein for purposes of providing notice, prior to 5:30 p.m. (New York City time)
on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via email attachment,
at the email address set forth herein for purposes of providing notice, on a day that is not a Trading Day or later than 5:30 p.m.
(New York City time) on any Trading Day, (iii) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

b)Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this Note
at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company.

 

c) Lost
or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed
Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence
of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.

 

    20

     

    

 

d) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by
and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflict
of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions
contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York,
Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of such New York Courts, or such New York Courts are an improper or inconvenient venue for such proceeding. Each
party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding
by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Note 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 applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable
law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated
hereby. If any party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing party in
such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred
in the investigation, preparation and prosecution of such action or proceeding.

 

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

 

f) Amendments.
The prior written consent of the Company and the Holder shall be required for any change or amendment to the Note.

 

g) Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note 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 violates the applicable law governing usury,
the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under
applicable law. The Company 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 Company from paying all or any portion of the principal of or interest on this Note as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Note, and
the Company (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 impede the execution of any power herein granted to the Holder, but
will suffer and permit the execution of every such power as though no such law has been enacted.

 

    21

     

    

 

h) Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief.  The remedies provided in this Note shall be cumulative
and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity
(including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note.  The
Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided
herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof)
shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation
of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that,
in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies,
to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and
without any bond or other security being required. The Company shall provide all information and documentation to the Holder that
is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this
Note.

 

i) Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day.

 

j) Payment
of Collection, Enforcement and Other Costs. If (i) this Note is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this
Note or to enforce the provisions of this Note or (ii) there occurs any bankruptcy, reorganization, receivership of the Company
or other proceedings affecting Company creditors' rights and involving a claim under this Note, then the Company shall pay the
reasonable and documented out-of-pocket costs incurred by the Holder for such collection, enforcement or action or in connection
with such bankruptcy, reorganization, receivership or other proceeding, including, but not limited to, attorneys' fees and disbursements.

 

k) Headings.
The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit
or affect any of the provisions hereof.

 

l) Security
Interest. The obligations of the Company under this Note are secured by all assets of the Company and its Subsidiaries pursuant
to the Security Agreement.

 

m) Securities
Laws Disclosure; Publicity. The Company shall file a Current Report on Form 8-K, including the Transaction Documents as exhibits
thereto, with the Commission within the time required by the Exchange Act. From and after the issuance of such Current Report on
Form 8-K, the Company represents to the Holder that it shall have publicly disclosed all material, non-public information delivered
to the Holder by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees, agents or Affiliates
in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the issuance of such
Current Report on Form 8-K, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any
agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors,
agents, employees or Affiliates on the one hand, and the Holder or any of its Affiliates on the other hand, shall terminate. Notwithstanding
the foregoing, the Company shall not publicly disclose the name of the Holder, or include the name of the Holder in any filing
with the Commission or any regulatory agency or Trading Market, without the prior written consent of the Holder, except (i) as
required by federal securities law in connection with the filing of final Transaction Documents with the Commission and (ii) to
the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Holder
with prior notice of such disclosure permitted hereunder.

 

n) Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, which shall be disclosed pursuant to Section 7(m), the Company covenants and agrees that neither it, nor any other
Person acting on its behalf, has provided nor will provide the Holder or its agents or counsel with any information that constitutes,
or the Company reasonably believes constitutes, material non-public information, unless prior thereto the Holder shall have consented
to the receipt of such information and agreed with the Company to keep such information confidential. The Company understands
and confirms that the Holder shall be relying on the foregoing covenant in effecting transactions in securities of the Company.
To the extent that the Company delivers any material, non-public information to the Holder without the Holder’s consent,
the Company hereby covenants and agrees that the Holder shall not have any duty of confidentiality to the Company, any of its
Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any of
its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis of
such material, non-public information, provided that the Holder shall remain subject to applicable law. To the extent that any
notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the
Company or any of its Subsidiaries, the Company shall, within two (2) Trading Days, file such notice with the Commission pursuant
to a Current Report on Form 8-K. The Company understands and confirms that the Holder shall be relying on the foregoing covenant
in effecting transactions in securities of the Company.  

 

(Signature Pages
Follow)

 

    22

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

  

	 	SPECTRUM GLOBAL SOLUTIONS, INC.
	 	 	 
	 	By: 	 
	 	 	
        Name: Roger Ponder

        Title: Chief Executive Officer

  

    23

     

    

 

ANNEX A

 

NOTICE OF CONVERSION

 

The undersigned hereby
elects to convert principal under the Senior Secured Convertible Promissory Note, due October 17, 2020, of Spectrum Global Solutions,
Inc., a Nevada corporation (the “Company”), into shares of common stock of the Company (the “Common
Stock”) according to the conditions hereof, as of the date written below. If shares of Common Stock are to be issued
in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and
is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will
be charged to the holder for any conversion, except for such transfer taxes, if any.

 

By the delivery of
this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common Stock does not
exceed the amounts specified under Section 4 of this Note, as determined in accordance with Section 13(d) of the Exchange Act.

 

The undersigned agrees
to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the
aforesaid shares of Common Stock.

 

Conversion calculations:

	 	Date to Effect Conversion:
	 	 
	 	Principal Amount of Note to be Converted:
	 	 
	 	Payment of Interest in Common Stock __ yes __ no
	 	If yes, $_____ of Interest Accrued on Account of Conversion at Issue.
	 	 
	 	Number of Shares of Common Stock to be Issued:
	 	 
	 	Signature:
	 	 
	 	Name:
	 	 
	 	Delivery Instructions:

 

     

     

    

 

Schedule 1

 

CONVERSION SCHEDULE

 

This Senior Secured Convertible Promissory
Note, due October 17, 2020, in the original principal amount of $1,571,133.67 is issued by Spectrum Global Solutions, Inc., a Nevada
corporation. This Conversion Schedule reflects conversions made under Section 4 of the above referenced Note.

 

Dated:

 

	Date of Conversion 
(or for first entry, Original Issue Date)	 	 	Amount of Conversion	 	 	Aggregate Principal Amount Remaining Subsequent to Conversion 
(or original Principal Amount)	 	 	Company Attest	 
	 	    	 	 	 	   	 	 	 	   	 	 	 	   	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

     

     

    

  

Schedule 2(e)

 

Amortization Payment Schedule

 

 

     

     

    

 

Exhibit A

 

Calculation of Principal AmountExhibit 10.1

 

EXCHANGE
AGREEMENT

 

This
EXCHANGE AGREEMENT (the “Agreement”) is dated this ___ day of _________, 2019, by and between Spectrum Global
Solutions, Inc., a Nevada corporation (the “Company”), and Dominion Capital LLC (the “Holder”).

 

WHEREAS,
the Holder beneficially owns and holds (i) that certain Senior Secured Convertible Promissory Note due October 23, 2019, and (ii)
that certain Senior Secured Convertible Promissory Note due May 18, 2019 (each, an “Original Note” and together,
the “Original Notes”), and the principal amount of each Original Note issued to the Holder is listed on Schedule
A attached hereto;

 

WHEREAS,
the Original Notes were originally issued to the Holder on April 23, 2018 and May 18, 2018 (each such date, an “Original
Issue Date”), pursuant to each of (i) that certain Securities Purchase Agreement, dated as of April 23, 2018, which
such applicable Original Note was secured by that certain Security Agreement, dated as of April 23, 2018 (the “April
Security Agreement”) and (ii) that certain Securities Purchase Agreement, dated as of May 18, 2018, which such applicable
Original Note was secured by the April Security Agreement, as amended by that certain Amendment No. 1 to Security Agreement and
Subsidiary Guarantee of Spectrum Global Solutions, Inc. (the “May Amendment” and together with the April Security
Agreement, the “Original Security Agreement”);

 

WHEREAS,
the Holder desires to exchange (the “Exchange”) the Original Notes for a new Senior Secured Convertible Promissory
Note of the Company (the “Exchange Note”), as set forth and memorialized on Exhibit A attached hereto,
and the Company desires to issue the Exchange Note in exchange for the Original Notes and, all on the terms and conditions set
forth in this Agreement in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”); and

 

WHEREAS,
the obligations of the Company under the Exchange Note will be secured by all assets of the Company and each Subsidiary (as defined
below), pursuant to the Original Security Agreement, as amended by Amendment No. 2 to Security Agreement, Intellectual Property
Security Agreement and Subsidiary Guarantee of the Company, dated as of April 17, 2019, between the Company, the Subsidiaries
of Spectrum Global Solutions, Inc. (the “Security Agreement”), except for the assets of one Subsidiary named
therein.

 

NOW,
THEREFORE, in consideration of the terms and conditions contained herein, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Company and the Holder hereby agree as follows:

 

Section
1. Exchange. Subject to and upon the terms and conditions set forth in this Agreement, the Holder agrees to surrender to
the Company the Original Notes and, in exchange therefore, the Company shall issue to the Holder the Exchange Note.

 

1.1
Closing. On the Closing Date (as defined below), the Company will issue and deliver (or cause to be issued and delivered)
the Exchange Note to the Holder, or in the name of a custodian or nominee of the Holder, or as otherwise requested by the Holder
in writing, and the Holder will surrender to the Company the Original Notes. The closing of the Exchange shall occur on the date
hereof, or as soon thereafter as the parties hereto may mutually agree in writing (the “Closing Date”), subject
to the provisions of Section 4 and Section 5 herein.

 

     

     

    

 

1.2
Section 4(a)(2). Assuming the accuracy of the representations and warranties of each of the Company and the Holder set
forth in Sections 2 and 3 of this Agreement, the parties hereto acknowledge and agree that the purpose of such representations
and warranties is, among other things, to ensure that the Exchange qualifies as an exchange of securities under Section 4(a)(2)
of the Securities Act.

 

1.3
Legal Opinion. At the Closing, the Company shall provide a legal opinion of the Company’s counsel, substantially
in the form of Exhibit B attached hereto. Such opinion shall opine on the availability of an exemption from registration under
the Securities Act as it relates to the Exchange, the tacking of the holding period of the Exchange Note to each Original Issue
Date under Rule 144 of the Securities Act (“Rule 144”) and other matters reasonably requested by the Holder.

 

Section
2. Representations and Warranties of the Company. The Company represents and warrants to the Holder that:

 

2.1
Organization and Qualification. Each of the Company and its subsidiaries (each, a “Subsidiary” and collectively,
the “Subsidiaries”) is an entity duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the respective jurisdiction of its incorporation or organization, with the requisite power and authority to
own and use its respective properties and assets and to carry on its respective business as currently conducted. Neither the Company
nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or certificates of incorporation,
bylaws or other organizational or charter documents. 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 this Agreement or any other agreements, notes or other agreements or documents executed by the Company and/or
the Holder in connection herewith (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.

 

    2

     

    

 

2.2
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Company’s board of directors or the Company’s
stockholders in connection herewith or therewith other than in connection with the Required Approvals (as defined below). This
Agreement and each other Transaction Document to which the Company is a party has been (or upon delivery will have been) duly
executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding
obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited by general equitable
principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement
of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable
law.

 

2.3
Issuance of Exchange Note. The issuance of the Exchange Note is duly authorized and, upon issuance in accordance with the
terms hereof, the Exchange Note shall be validly issued, fully paid and non-assessable. The shares of common stock, par value
$0.00001 per share, of the Company (the “Common Stock”) issued upon conversion of the Exchange Note (the “Underlying
Shares”), when issued and delivered in accordance with the terms of the Exchange Note, will be duly and validly issued,
fully paid and non-assessable, free and clear of all Liens (as defined below) imposed by the Company, other than restrictions
on transfer under applicable state and federal securities laws. Upon issuance in accordance herewith, the issuance by the Company
of the Exchange Note is exempt from the registration requirements of the Securities Act under Section 4(a)(2) of the Securities
Act and all of the shares of Common Stock issuable upon conversion of the Exchange Note will be freely transferable and freely
tradable by the Holder without restriction pursuant to Rule 144, assuming the Holder is not an Affiliate (as defined below) and
the holding period and public information requirements of Rule 144 have been met. The shares of Common Stock issuable upon conversion
of the Exchange Note shall not bear any restrictive or other legends or notations. The Company has reserved from its duly authorized
capital stock a number of shares of Common Stock for issuance of the shares underlying the Exchange Note at least equal to the
Required Minimum (as defined below) on the date hereof, which number of reserved shares shall be confirmed (and adjusted, if necessary)
by the Company on a monthly basis. The “Required Minimum” means, as of any date, the maximum aggregate number
of shares of Common Stock then issued or potentially issuable in the future pursuant to the Transaction Documents, including any
shares of Common Stock issuable upon conversion in full of the Exchange Note (including shares of Common Stock issuable as payment
of interest on the Exchange Note), ignoring any conversion limits set forth therein. A “Trading Day” is a day
on which the principal Trading Market on which the Company’s Common Stock trades is open for trading.

 

    3

     

    

 

2.4
No Conflicts. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents
to which it is a party, the issuance of the Exchange Note and the consummation by it of the transactions contemplated hereby and
thereby do not and will not: (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate
or certificates of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any options, contracts,
agreements, liens, security interests, or other encumbrances (“Liens”) upon any of the properties or assets
of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset
of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in
a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental
authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by
which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and
(iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

2.5
Acknowledgment Regarding the Exchange. The Company acknowledges and agrees that the Holder is acting solely in the capacity
of an arm’s length third party with respect to this Agreement and the transactions contemplated hereby and that such Holder
is not (i) an officer or director of the Company, (ii) an Affiliate of the Company or (iii) to the knowledge of the Company, a
“beneficial owner” of more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the Exchange
Act. The Company further acknowledges that the Holder is not acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to this Agreement and the transactions contemplated hereby, and any advice given by the Holder
or any of its representatives or agents in connection with this Agreement is merely incidental to the Exchange. The Company further
represents to the Holder that the Company’s decision to enter into the Transaction Documents has been based solely on the
independent evaluation by the Company and its representatives.

 

2.6
No Commission; No Other Consideration. The Company has not paid or given, and has not agreed to pay or give, directly or
indirectly, any commission or other remuneration for soliciting the Exchange. The Exchange Note is being issued exclusively for
the exchange of the Original Notes and no other consideration has or will be paid for the Exchange Note.

 

    4

     

    

 

2.7
Section 4(a)(2) Representation. The Company has not, nor has any person acting on its behalf, directly or indirectly made
any offers or sales of any security or solicited any offers to buy any security under circumstances that would cause the Exchange
and the issuance of the Exchange Note pursuant to this Agreement to be integrated with prior offerings by the Company for purposes
of the Securities Act which would prevent the Company from delivering the Exchange Note to the Holder pursuant to Section 4(a)(2)
of the Securities Act, nor will the Company take any action or steps that would cause the Exchange, issuance and delivery of the
Exchange Note to be integrated with other offerings to the effect that the delivery of the Exchange Note to the Holder would be
seen not to be exempt pursuant to Section 4(a)(2) of the Securities Act.

 

2.8
No Third-party Advisors. Other than legal counsel, the Company has not engaged any third parties to assist in the solicitation
with respect to the Exchange.

 

2.9
SEC Reports; Financial Statements.  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 Exchange Act of 1934, as amended (the “Exchange
Act”), including pursuant to Section 13(a) or 15(d) of the Exchange Act, 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 U.S Securities and Exchange Commission (the “SEC”) with respect thereto as
in effect at the time of filing.  Such financial statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“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.

 

    5

     

    

 

2.10
Subsidiaries.  All of the direct and indirect subsidiaries of the Company are set forth in the SEC Reports.  The
Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of
any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid,
non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.  The Company has the
unrestricted right to vote, and (subject to limitations imposed by applicable law) to receive dividends and distributions on,
all capital securities of its Subsidiaries as owned by the Company or any Subsidiary.

 

2.11
Filings, Consents and Approvals.  The Company is not required to obtain any consent, waiver, authorization or
order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental
authority or any natural person, firm, partnership, association, corporation, company, trust, business trust or other entity (each,
a “Person”) in connection with the execution, delivery and performance by the Company of the Transaction Documents,
other than: (i) the notice and/or application(s) to each applicable Trading Market (as defined below) for the issuance and the
listing of the shares of Common Stock issuable upon conversion of the Exchange Note for trading thereon in the time and manner
required thereby, and (ii) the filing of a Form D with the SEC and such filings as are required to be made under applicable state
securities laws (collectively, the “Required Approvals”).

 

2.12
Capitalization.   No Person has any right of first refusal, preemptive right, right of participation, or any
similar right to participate in the transactions contemplated by the Transaction Documents.  Other than as set forth
in the SEC Reports, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any
Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements
by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or any securities of
the Company which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt,
preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable
for, or otherwise entitles any holder thereof to receive, Common Stock. All of the outstanding shares of capital stock of the
Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and
state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights
to subscribe for or purchase securities.  No further approval or authorization of any Company stockholder, the Company’s
board of directors or others is required for the issuance of the Exchange Note.  There are no stockholder agreements
or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge
of the Company, between or among any of the Company’s stockholders.

 

    6

     

    

 

2.13
DTC Eligibility. The Company, through the Company’s transfer agent, currently
participates in the DTC Fast Automated Securities Transfer (FAST) Program and the Common Stock can be transferred electronically
to third parties via the DTC Fast Automated Securities Transfer (FAST) Program. 

 

2.14
Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements
included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i)
there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse
Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued
expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the SEC, (iii) the Company has
not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other
property to its stockholder or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock
and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company
stock option plans. The Company does not have pending before the SEC any request for confidential treatment of information. Except
for the issuance of the Exchange Note contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or development
has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective
businesses, properties, operations, assets or financial condition, that would be required to be disclosed by the Company under
applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least
1 Trading Day prior to the date that this representation is made.

 

2.15
Litigation.  Other than as set forth in the SEC Reports, there is no action, suit, inquiry, notice of violation,
proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary
or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory
authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects
or challenges the legality, validity or enforceability of any of the Transaction Documents or the Exchange Note or (ii) could,
if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect.  Neither
the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim
of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been,
and to the knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company
or any current or former director or officer of the Company.  The SEC has not issued any stop order or other order suspending
the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities
Act.

 

    7

     

    

 

2.16
Labor Relations.  No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any
of the employees of the Company, which could reasonably be expected to result in a Material Adverse Effect.  None of
the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship
with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining
agreement, and the Company and its Subsidiaries believe that their respective relationships with their employees are good.  To
the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation
of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition
agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment
of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of
the foregoing matters.  The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign
laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours,
except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

 

2.17
Compliance. Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred
that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary
under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation
of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any
of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree
or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance
or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating
to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters,
except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

 

2.18
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described
in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material
Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any Material Permit.

 

    8

     

    

 

2.19
Title to Assets.  The Company and the Subsidiaries have good and marketable title in fee simple to all real property
owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company
and the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens that do not materially affect the value of
such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the
Subsidiaries, (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor
in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties, and (iii) Liens held by the
Holder.  Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under
valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance.

 

2.20
Intellectual Property.  The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
property rights and similar rights as described in the SEC Reports as necessary or required for use in connection with their respective
businesses and which the failure to so have could have a Material Adverse Effect (collectively, the “Intellectual Property
Rights”).  None of, and neither the Company nor any Subsidiary has received a notice (written or otherwise),
that any of, the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate
or be abandoned, within two (2) years from the date of this Agreement.  Neither the Company nor any Subsidiary has received,
since the date of the latest audited financial statements included within the SEC Reports, a written notice of a claim or otherwise
has any knowledge that the Intellectual Property Rights violate or infringe upon the rights of any Person, except as could not
have or reasonably be expected to not have a Material Adverse Effect.  To the knowledge of the Company, all such Intellectual
Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights.  The
Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all
of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

2.21
Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against
such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries
are engaged, including, but not limited to, directors and officers insurance coverage at least equal to the aggregate principal
amount of the Exchange Note.  Neither the Company nor any Subsidiary has any reason to believe that it will not be able
to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business without a significant increase in cost.

 

    9

     

    

 

2.22
Transactions With Affiliates and Employees.  Except as set forth in the SEC Reports, none of the officers or
directors of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary
is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from providing for the borrowing of money from or lending of money to, or otherwise
requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which
any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member
or partner, in each case in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements
under any stock option plan of the Company.

 

2.23
Sarbanes-Oxley; Internal Accounting Controls.  The Company and the Subsidiaries are in compliance with any and
all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable
rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof and as of the Closing Date.  The
Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that:
(i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and
procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms.  The
Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company
and the Subsidiaries as of the end of the period covered by the most recently filed periodic report filed by the Company pursuant
to the Exchange Act (such date, the “Evaluation Date”).  The Company presented in its most recently
filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure
controls and procedures based on their evaluations as of the Evaluation Date.  Since the Evaluation Date, there have
been no changes in the internal control over financial reporting (as such term is defined in the Exchange Act) that have materially
affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

2.24
Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiaries
to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect
to the transactions contemplated by the Transaction Documents.

 

    10

     

    

 

2.25
Investment Company. The Company is not, and is not an affiliate of, and immediately after receipt of payment for the Exchange
Note, will not be or be an affiliate of, an “investment company” within the meaning of the Investment Company Act
of 1940, as amended.  The Company shall conduct its business in a manner so that it will not become an “investment
company” subject to registration under the Investment Company Act of 1940, as amended.

 

2.26
Registration Rights. No Person has any right to cause the Company to effect the registration under the Securities Act of
any securities of the Company or any Subsidiaries.

 

2.27
Listing and Maintenance Requirements. 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 SEC is contemplating
terminating such registration.  The Company has not, in the 12 months preceding the date hereof, received notice from
the OTC Pink marketplace operated by the OTC Markets Group (“OTC Pink”) or any other exchange or quotation
service on which the Common Stock is or has been listed or quoted (the “Trading Market”) 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.

 

2.28
Application of Takeover Protections.  The Company and its board of directors have taken all necessary action,
if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or other similar anti-takeover provision under the Company’s certificate of incorporation (or
similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Holder as a result
of the Holder and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including
without limitation as a result of the Company’s issuance of the Exchange Note pursuant to the Exchange.

 

2.29
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided the Holder or its agents
or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company
understands and confirms that the Holder will rely on the foregoing representation in effecting transactions in securities of
the Company.  All of the disclosure furnished by or on behalf of the Company to the Holder regarding the Company and
its Subsidiaries, their respective businesses and the transactions contemplated hereby is true and correct and does not contain
any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during
the twelve months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact
or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that the Holder
makes no nor have made any representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in Section 3 hereof.

 

    11

     

    

 

2.30
No Integrated Offering. Assuming the accuracy of the Holder’s representations and warranties set forth in Section
3, neither the Company, nor any of its Affiliates, nor any Person acting on any of their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause the Exchange
to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would require the registration
of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any Trading Market
on which any of the securities of the Company are listed or designated.

 

2.31
Solvency. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account
the timing and amounts of cash to be payable on or in respect of its debt).   The SEC Reports set forth as of the date
hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary
has commitments.  For the purposes of this Agreement, “Indebtedness” means (x) any liabilities for
borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business),
(y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same,
are, or should be, reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties by endorsement
of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present
value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Neither
the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

2.32
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and
local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which
it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the
payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There
are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of
the Company or of any Subsidiary know of no basis for any such claim.

 

    12

     

    

 

2.33
Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary,
any agent or other person acting on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii)
made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties
or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made
by any person acting on its behalf of which the Company is aware) which is  in violation of law or (iv) violated in
any material respect any provision of the Foreign Corrupt Practices Act of 1977.

 

2.34
No Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the
Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s
ability to perform any of its obligations under any of the Transaction Documents.

 

2.35
Acknowledgment Regarding Holder’s Exchange of the Original Notes. The Company acknowledges and agrees that the Holder
is acting solely in the capacity of an arm’s length party with respect to the Transaction Documents and the transactions
contemplated thereby.

 

2.36
Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of
the Company to facilitate the issuance or resale of the Exchange Note or the shares of Common Stock into which the Exchange Note
is convertible, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, the Exchange Note or the
shares of Common Stock into which the Exchange Note is convertible, or (iii) paid or agreed to pay to any Person any compensation
for soliciting another to purchase any other securities of the Company.

 

2.37
Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company’s knowledge, any director,
officer, agent, employee or Affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department.

 

    13

     

    

 

2.38
Bank Holding Company Act.  Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank
Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal
Reserve System (the “Federal Reserve”).  Neither the Company nor any of its Subsidiaries or Affiliates
owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities
or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation
by the Federal Reserve.  Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence
over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

2.39
Money Laundering.  The operations of the Company and its Subsidiaries are and have been conducted at all times
in compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting
Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the
“Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending
or, to the knowledge of the Company or any Subsidiary, threatened.

 

2.40
Burdensome Obligations. Except as set forth on Schedule 2.40, the Company is not a party to any indenture, agreement,
lease, contract, deed or other instrument or subject to any partnership restrictions or has any knowledge of anything which could
have a Material Adverse Effect.

 

2.41
Employee Benefit Plans. The term “Plan” means an “employee pension benefit plan” (as defined in
Section 3 of Employee Retirement Income Security Act of 1974, as amended from time to time (“ERISA”)) which
is or has been established or maintained, or to which contributions are or have been made, by the Company. Each plan and/or employee
benefit plan (as defined in Section 3(3) of ERISA), if any, maintained by the Company complies in all material respects with all
applicable requirements of law and regulations and all payments and contributions required to be made with respect to such plans
have been timely made.

 

2.42
Officers and Ownership. As of the date hereof, the Persons set forth in the SEC Reports (i) hold the respective office
or offices, position or positions (including director positions if a director), in the Company and (ii) except as may be updated
by a subsequent filing of Form 4 or 5, own the percentage of each and every class of issued and outstanding capital stock, other
ownership interests and/or securities of the Company and the voting power over said capital stock, other ownership interests and/or
securities of the Company.

 

    14

     

    

 

2.43
 Rule 506(d) Bad Actor Disqualification Representations and Covenants.

 

(i) No
Disqualification Events. Neither the Company, nor any of its predecessors, affiliates, any manager, executive officer, other
officer of the Company participating in the offering, any beneficial owner (as that term is defined in Rule 13d-3 under the Exchange
Act) of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor
any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity as of the
date of this Agreement and on the Closing Date (each, a “Company Covered Person” and, together, “Company
Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i)
to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered
by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine (A) the identity of each person that is a
Company Covered Person; and (B) whether any Company Covered Person is subject to a Disqualification Event. The Company will comply
with its disclosure obligations under Rule 506(e).

 

(ii) Other
Covered Persons. The Company is not aware of any person (other than any Company Covered Person) who has been or will be paid
(directly or indirectly) remuneration in connection with the purchase and sale of the Exchange Notes who is subject to a Disqualification
Event (each, an “Other Covered Person”).

 

(iii) Reasonable
Notification Procedures. With respect to each Company Covered Person, the Company has established procedures reasonably designed
to ensure that the Company receives notice from each such Company Covered Person of (A) any Disqualification Event relating to
that Company Covered Person, and (B) any event that would, with the passage of time, become a Disqualification Event relating
to that Company Covered Person; in each case occurring up to and including the Closing Date.

 

(iv) Notice
of Disqualification Events. The Company will notify the Holder immediately in writing upon becoming aware of (A) any Disqualification
Event relating to any Company Covered Person and (B) any event that would, with the passage of time, become a Disqualification
Event relating to any Company Covered Person and/or Other Covered Person.

 

2.44 Affiliate
Transactions. Other than as disclosed in the SEC Reports, the Company has not purchased, acquired or leased any property from,
or sold, transferred or leased any property to, or entered into any other transaction with (i) any Affiliate, (ii) any officer,
director, manager, stockholder or member of the Company or any Affiliate of any thereof, or (iii) any member of the immediate
family of any of the foregoing, except on terms comparable to the terms that would prevail in an arms-length transaction between
unaffiliated third parties.

 

2.45 Variable
Rate Transactions. Other than as disclosed in the SEC Reports, and in connection with the transactions contemplated hereby,
the Company has not directly and/or indirectly entered into, any agreement that (except for the transactions contemplated hereby)
could constitute a, nor has the Company any immediate intention and/or obligation to enter into any, Variable Rate Transaction
(as defined in the Exchange Note).

 

    15

     

    

 

2.46
USA Patriot Act. The Company is in compliance, in all material respects, with (i) the Trading with the Enemy Act, as amended,
and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V,
as amended) and any other enabling legislation or executive order relating thereto, and (ii) the USA Patriot Act (Title III of
Pub. L. 107-56, signed into law on October 26, 2001) (the “Act”). No part of the proceeds of the Exchange Note
will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as
amended.

 

2.47 Indebtedness;
Liens, Etc. Except for Permitted Indebtedness and Permitted Liens, the Company has no Indebtedness nor any Liens other than
as disclosed on Schedule 2.47. “Permitted Indebtedness” means Indebtedness of the Company evidenced
by the Exchange Note, this Agreement and/or any other Transaction Document in favor of the Holder, including all Liabilities (as
defined below), and any other Indebtedness of the Company outstanding as of the date hereof as disclosed to the Holder in the
Disclosure Schedules (as defined in the Security Agreement). “Permitted Lien” has the meaning set forth in
the Security Agreement. “Liabilities” means all direct or indirect liabilities, Indebtedness and obligations
of any kind of Company to the Holder, howsoever created, arising or evidenced, whether now existing or hereafter arising (including
those acquired by assignment), absolute or contingent, due or to become due, primary or secondary, joint or several, whether existing
or arising through discount, overdraft, purchase, direct loan, participation, operation of law, or otherwise, including, but not
limited to, pursuant to the Exchange Note, this Agreement and/or any of the other Transaction Documents, all accrued but unpaid
interest on the Exchange Note the principal, any letter of credit, any standby letter of credit, and/or outside attorneys’
and paralegals’ fees or charges relating to the preparation of the Transaction Documents and the enforcement of the Holder’s
rights, remedies and powers under this Agreement, the Exchange Note and/or the other Transaction Documents.

 

2.48 Bankruptcy
Status; Indebtedness. The Company has no current intention or expectation to file for reorganization or liquidation under
the bankruptcy or reorganization laws of any jurisdiction within one year from the applicable representation date. All outstanding
material secured and unsecured Indebtedness (as defined below) of the Company, or for which the Company has commitments, is set
forth in the SEC Reports.

 

2.49 No
General Solicitation. Neither the Company, nor any of its affiliates, nor, to the knowledge of the Company, any Person acting
on its behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in
connection with the offer or sale of the Exchange Note or the Underlying Shares.

 

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2.50 Off-Balance
Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company and an unconsolidated
or other off-balance sheet entity that is required to be disclosed by the Company in its Exchange Act filings and is not so disclosed
or that otherwise would be reasonably likely to have a Material Adverse Effect.

 

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

 

3.1
Ownership of the Original Notes. The Holder is the legal and beneficial owner of each of the Original Notes. The Holder
paid for each of the Original Notes and has continuously held each of the Original Notes since the Holder’s purchase of
each of the Original Notes. The Holder, individually or through an affiliate, owns each of the Original Notes outright and free
and clear of any options, contracts, agreements, liens, security interests, or other encumbrances.

 

3.2
No Public Sale or Distribution. The Holder is acquiring the Exchange Note in the ordinary course of business for its own
account and not with a view toward, or for resale in connection with, the public sale or distribution thereof; provided, however,
that by making the representations herein, the Holder does not agree to hold the Exchange Note, or the shares of Common Stock
into which such securities are convertible, for any minimum or other specific term and reserves the right to dispose of the Exchange
Note and the Underlying Shares at any time in accordance with an exemption from the registration requirements of the Securities
Act and applicable state securities laws. Except as contemplated herein, the Holder does not presently have any agreement or understanding,
directly or indirectly, with any person to distribute, or transfer any interest or grant participation rights in, the Original
Notes or the Exchange Note.

 

3.3
Accredited Investor and Affiliate Status. The Holder is an “accredited investor” as that term is defined in
Rule 501 of Regulation D under the Securities Act. The Holder is not, and has not been, for a period of at least three months
prior to the date of this Agreement (a) an officer or director of the Company, (b) an “affiliate” of the Company (as
defined in Rule 144) (an “Affiliate”) or (c) a “beneficial owner” (as defined for purposes of Rule
13d-3 of the Exchange Act) of more than 10% of the Common Stock.

 

3.4
Reliance on Exemptions. The Holder understands that the Exchange is being made in reliance on specific exemptions from
the registration requirements of United States federal and state securities laws and that the Company is relying in part upon
the truth and accuracy of, and the Holder’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Holder set forth herein in order to determine the availability of such exemptions and the eligibility
of the Holder to complete the Exchange and to acquire the Exchange Note.

 

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3.5
Information. The Holder has been furnished with all materials relating to the business, finances and operations of the
Company and materials relating to the Exchange which have been requested by the Holder. The Holder has been afforded the opportunity
to ask questions of the Company. Neither such inquiries nor any other due diligence investigations conducted by the Holder or
its representatives shall modify, amend or affect the Holder’s right to rely on the Company’s representations and
warranties contained herein. The Holder acknowledges that all of the documents filed by the Company with the SEC under Sections
13(a), 14(a) or 15(d) of the Exchange Act that have been posted on the SEC’s EDGAR site are available to the Holder, and
the Holder has not relied on any statement of the Company not contained in such documents in connection with the Holder’s
decision to enter into this Agreement and the Exchange.

 

3.6
Risk. The Holder understands that its investment in the Exchange Note involves a high degree of risk. The Holder is able
to bear the risk of an investment in the Exchange Note including, without limitation, the risk of total loss of its investment.
The Holder has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision
with respect to the Exchange. There is no assurance that the Exchange Note or any securities into which the Exchange Note may
convert will continue to be quoted, traded or listed for trading or quotation on the OTC Pink or on any other organized market
or quotation system.

 

3.7
No Governmental Review. The Holder understands that no United States federal or state agency or any other government or
governmental agency has passed on or made any recommendation or endorsement in connection with the Exchange or the fairness or
suitability of the investment in the Exchange Note, nor have such authorities passed upon or endorsed the merits of the Exchange
Note.

 

3.8
Organization; Authorization. The Holder is duly organized, validly existing and in good standing under the laws of its
state of formation and has the requisite organizational power and authority to enter into and perform its obligations under this
Agreement.

 

3.9
Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Holder
and shall constitute the legal, valid and binding obligations of the Holder enforceable against the Holder in accordance with
its terms. The execution, delivery and performance of this Agreement by the Holder and the consummation by the Holder of the transactions
contemplated hereby (including, without limitation, the irrevocable surrender of each of the Original Notes) will not result in
a violation of the organizational documents of the Holder.

 

3.10
Prior Investment Experience. The Holder acknowledges that it has prior investment experience, including investment in securities
of the type being exchanged, including each of the Original Notes and the Exchange Note, and has read all of the documents furnished
or made available by the Company to it and is able to evaluate the merits and risks of such an investment on its behalf, and that
it recognizes the highly speculative nature of this investment.

 

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3.11
Tax Consequences. The Holder acknowledges that the Company has made no representation regarding the potential or actual
tax consequences for the Holder which will result from entering into the Agreement and from consummation of the Exchange. The
Holder acknowledges that it bears complete responsibility for obtaining adequate tax advice regarding the Agreement and the Exchange.

 

3.12
No Registration, Review or Approval. The Holder acknowledges, understands and agrees that the Exchange Note is being exchanged
hereunder pursuant to an exchange offer exemption under Section 4(a)(2) of the Securities Act.

 

Section
4. Conditions Precedent to Obligations of the Company. The obligation of the Company to consummate the transactions contemplated
by this Agreement is subject to the satisfaction of each of the following conditions, provided that these conditions are for the
Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing the Holder with
prior written notice thereof:

 

4.1
Delivery. The Holder shall have delivered to the Company each of the Original Notes.

 

4.2
No Prohibition. No order of any court, arbitrator, or governmental or regulatory authority shall be in effect which purports
to enjoin or restrain any of the transactions contemplated by this Agreement; and

 

4.3
Representations. The accuracy in all material respects when made and on the Closing Date of the representations and warranties
of the Holder contained herein (unless as of a specific date therein);

 

Section
5. Conditions Precedent to Obligations of the Holder. The obligation of the Holder to consummate the transactions contemplated
by this Agreement is subject to the satisfaction of each of the following conditions, provided that these conditions are for the
Holder’s sole benefit and may be waived by the Holder at any time in its sole discretion by providing the Company with prior
written notice thereof:

 

5.1
No order of any court, arbitrator, or governmental or regulatory authority shall be in effect which purports to enjoin or restrain
any of the transactions contemplated by this Agreement;

 

5.2
the representations and warranties of the Company herein (i) shall be true and correct in all material respects when made and
on the Closing Date (unless as of a specific date therein) for such representations and warranties contained herein that are not
qualified by “materiality” or “Material Adverse Effect” and (ii) shall be true and correct when made and
on the Closing Date (unless as of specific date therein) for such representations and warranties contained herein that are qualified
by “materiality” or “Material Adverse Effect”;

 

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5.3
all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been
performed; and

 

5.4
from the date hereof to the Closing Date, trading in the Company’s Common Stock shall not have been suspended by the SEC
or any Trading Market and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P.
shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported
by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New
York State authorities, nor shall there have occurred any material outbreak or escalation of hostilities or other national or
international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each
case, in the reasonable judgment of the Holder makes it impracticable or inadvisable to purchase the Exchange Note at the closing
of the Exchange.

 

Section
6. Holding Period. For the purposes of Rule 144, the Company acknowledges that the holding period of the Exchange Note
may be tacked on the holding period of each of the Original Notes, and the Company agrees not to a position contrary to this Section
6.

 

Section
7. Other Agreements between the Parties.

 

7.1 Public
Information Failure. At any time during the period commencing from the date hereof and ending at such time that the Exchange
Note and Underlying Shares may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise
without restriction or limitation pursuant to Rule 144, if the Company shall fail for any reason to satisfy the current public
information requirement under Rule 144(c) (a “Public Information Failure”) then, in addition to the Holder’s
other available remedies, the Company shall pay to a Holder, in cash, as partial liquidated damages and not as a penalty, by reason
of any such delay in or reduction of its ability to sell the Underlying Shares, an amount in cash equal to two percent (2.0%)
of the aggregate principal amount of Exchange Note of the Holder’s Exchange Note on the day of a Public Information Failure
and on every thirtieth (30th) day (pro rated for periods totaling less than thirty days) thereafter until the earlier
of (a) the date such Public Information Failure is cured and (b) such time that such public information is no longer required 
for the Holder to transfer the Underlying Shares pursuant to Rule 144.  The payments to which a Holder shall be entitled
pursuant to this Section 4.3(b) are referred to herein as “Public Information Failure Payments.”  Public
Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information
Failure Payments are incurred and (ii) the third (3rd) business day after the event or failure giving rise to the Public
Information Failure Payments is cured.  In the event that the Company fails to make Public Information Failure Payments in
a timely manner, such Public Information Failure Payments shall bear interest at the rate of 1.5% per month (prorated for partial
months) until paid in full. Nothing herein shall limit the Holder’s right to pursue actual damages for the Public Information
Failure, and the Holder shall have the right to pursue all remedies available to it at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief.

 

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7.2 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 Exchange of the Original Notes in a manner that would require
the registration under the Securities Act of the sale of the Exchange Note or that would be integrated with the offer of the Exchange
Note for purposes of the rules and regulations of any Trading Market such that it would require Company shareholder approval prior
to the closing of such other transaction unless such shareholder approval is obtained before the closing of such subsequent transaction.

 

7.3 Current
Report on Form 8-K.

 

(i)
The Company shall, by 9:00 a.m. (New York City time) on the second Trading Day immediately following the date hereof, file with
the SEC a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto. From and after the issuance of
such Current Report on Form 8-K, the Company represents to the Holder that it shall have publicly disclosed all material, non-public
information delivered to the Holder by the Company or any of its Subsidiaries, or any of their respective officers, directors,
employees or agents in connection with the transactions contemplated by the Transaction Documents. The Company and the Holder
shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither
the Company nor the Holder shall issue any such press release nor otherwise make any such public statement without the prior consent
of the Company, with respect to any press release of the Holder, or without the prior consent of the Holder, with respect to any
press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required
by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or
communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of the Holder, or include the name
of the Holder in any filing with the SEC or any regulatory agency or Trading Market, without the prior written consent of the
Holder, except: (a) as required by federal securities law in connection with the filing of final Transaction Documents with the
SEC and (b) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide
the Holder with prior notice of such disclosure permitted under this clause (b).

 

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(ii)
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, which
shall be disclosed pursuant to Section 7.3(i), and any notice required to be made pursuant to Sections 7.19 and 7.22 hereof or
any Transaction Document, to which notices the Holder hereby consents, the Company covenants and agrees that neither it, nor any
other Person acting on its behalf, will provide the Holder or its agents or counsel with any information that constitutes, or
that the Company reasonably believes constitutes, material non-public information, unless prior thereto the Holder shall have
consented to the receipt of such information and agreed with the Company to keep such information confidential. The Company understands
that the Holder may be relying on the foregoing covenant in effecting transactions in securities of the Company. To the extent
that the Company delivers any material, non-public information to the Holder without the Holder’s consent, the Company hereby
covenants and agrees that the Holder shall not have any duty of confidentiality to Company, any of its Subsidiaries, or any of
their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, and its Subsidiaries or any of
their respective officers, directors, agents, employees or Affiliates not to trade on the basis of such material, non-public information,
provided that the Holder shall remain subject to applicable law. To the extent that any notice provided pursuant to any Transaction
Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall
simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. the Holder shall not have any liability
to the Company, any of its Subsidiaries, or any of their respective directors, officers, employees, stockholders or agents, for
any such disclosure. The Company understands that the Holder may be relying on the foregoing covenants and obligations in effecting
transactions in securities of the Company.

 

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7.4 Indemnification
of Holder. Subject to the provisions of this Section 7.4, 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 persons (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 (a) any breach of any of the representations, warranties, covenants
or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against
the Holder Parties in any capacity, or any of them or their respective affiliates, by any stockholder of the Company who is not
an Affiliate of such Holder Party, with respect to any of the transactions contemplated by the Transaction Documents (unless
such action is based upon understandings such Holder Party may have with any such stockholder outside of the Transaction Documents).
If any action shall be brought against any 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 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 an 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
breach of any of the representations, warranties, covenants, securities law violations, fraud, or agreements made by such Holder
Party in this Agreement or in the other Transaction Documents. The indemnification required by this Section 7.4 shall be made
by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or
are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Holder
Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

 

7.5 Certain
Transactions and Confidentiality. The Holder covenants that neither it, nor any affiliate acting on its behalf or pursuant
to any understanding with it, will execute any Short Sales (as defined below) of any of the Company’s securities during
the period commencing with the execution of this Agreement and ending on the date that the Exchange Note is no longer outstanding
(provided that this provision shall not prohibit any sales made where a corresponding Notice of Conversion is tendered to the
Company and the shares of Common Stock received upon such conversion or exercise are used to close out such sale) (a “Prohibited
Short Sale”). The Holder covenants that until such time as the transactions contemplated by this Agreement are publicly
disclosed by the Company pursuant to the press release described in Section 7.3, the Holder will maintain the confidentiality
of the existence and terms of this transaction and the information included in the Transaction Documents. Notwithstanding the
foregoing, and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees
that (i) the Holder makes no representation, warranty or covenant hereby that it will not engage in effecting transactions in
any securities of the Company after the time that the transactions contemplated by this Agreement and the Transaction Documents
are first publicly announced pursuant to the press release as described in Section 7.3, (ii) except for a Prohibited Short Sale,
the Holder shall not be restricted or prohibited from effecting any transactions in any securities of the Company in accordance
with applicable securities laws from and after the time that the transactions contemplated by this Agreement and the Transaction
Documents are first publicly announced pursuant to the press release as described in Section 7.3, and (iii) the Holder shall have
any duty of confidentiality to the Company or its Subsidiaries after the issuance of the press release as described in Section
7.3. For purposes of this section, “Short Sales” means all “short sales” as defined in Rule 200
of Regulation SHO under the Exchange Act.

 

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7.6 Replacement
of Securities. If any certificate or instrument evidencing the Exchange Note is mutilated, lost, stolen or destroyed, the
Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation),
or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory
to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement.

 

7.7 Usury.
To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim,
and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at
any time hereafter in force, in connection with any claim, action or proceeding that may be brought by the Holder in order to
enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction
Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents for payments
in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum Rate”),
and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated
with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed
such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction
Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum
contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective date
thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess
of the Maximum Rate is paid by the Company to the Holder with respect to indebtedness evidenced by the Transaction Documents,
such excess shall be applied by the Holder to the unpaid principal balance of any such indebtedness or be refunded to the Company,
the manner of handling such excess to be at the Holder’s election.

 

7.8 Maintain
Listing. The Company shall at all times maintain a listing for its Common Stock on a Trading Market and ensure no regulatory
or judicial stop orders are entered against trading its Common Stock.

 

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7.9 Judgments.
The Company shall ensure that no monetary judgment, writ or similar final process shall be entered or filed against the Company,
any subsidiary or any of their respective property or other assets for more than $500,000, and such judgment, writ or similar
final process shall remain unvacated, unbonded or unstayed for a period of forty-five (45) calendar days.

 

7.10 Insurance.
The Company shall maintain such insurance as may be required by law and such other insurance to the extent and such hazards and
liabilities as is customarily maintained by companies similarly situated.

 

7.11 Financial
Statements and Certificates. Commencing on the Closing Date and until all the Liabilities are paid in full under this Agreement,
while any amounts are owed to the Holder from the Company (including, but not limited to, any Liability), the Company shall continue
to remain current in its filing obligations under the Exchange Act, including, without limitation, with respect to all SEC Reports.

 

7.13 Taxes
and Liabilities. The Company shall pay when due all material taxes, assessments and other liabilities except as contested
in good faith and by appropriate proceedings and for which adequate reserves in conformity with GAAP have been established.

 

7.14 Maintenance
of Business; Company Names. The Company shall (i) keep all property and systems useful and necessary in its business in good
working order and condition, (ii) preserve its existence, rights and privileges in the jurisdiction of its organization or formation,
as set forth on the SEC Reports and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified and
in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction
of its business makes such qualification necessary, (iii) not operate in any business other than a business substantially the
same as the business as in effect on the date of this Agreement; provided, however, that it may change its jurisdiction of organization
or formation establishment upon thirty (30) days’ prior written notice to the Holder.

 

7.15 Employee
Benefit Plans, Etc. The Company shall (i) maintain each plan and/or each employee benefit plan as to which it may have any
liability in substantial compliance with all applicable requirements of law and regulations; (ii) make all payments and contributions
required to be made pursuant to such Plans and/or plans in a timely manner; and (iii) neither establish any new Plan and/or employee
benefit plan, agree or contribute to any Plan and/or multi-employer plan nor amend any existing Plan and/or employee pension benefit
plan in a manner that would increase its obligation to contribute to such Plan and/or plan.

 

7.16 Good
Title. The Company shall at all times maintain good and marketable title to all of its assets necessary for the operation
of its business.

 

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7.17 Maintenance
of Intellectual Property Rights. The Company will take all reasonable action necessary or advisable to maintain all of the
Intellectual Property Rights of the Company that are necessary or material to the conduct of its business in full force and effect.

 

7.18 Locations.
The Company shall give the Holder thirty (30) days’ prior written notice of a change in its jurisdiction of organization
or the location of its Chief Executive Office or sole place of business or principal residence.

 

7.19 Notices.
The Company shall, after receipt of knowledge thereof, give prompt written notice to the Holder of:

 

		(i)	the
                                         occurrence of any Event of Default or any event that with the passage of time or the
                                         giving of notice or both would become an Event of Default;

 

		(ii)	any
                                         litigation, investigation or proceeding that may exist at any time between the Company
                                         and any governmental authority that, in either case, if not cured or if adversely determined,
                                         as the case may be, could have a Material Adverse Effect;

 

		(iii)	any
                                         litigation or proceeding affecting the Company (A) in which the amount involved is $250,000
                                         or more, (B) in which injunctive and/or other equitable relief is sought and/or (C) that
                                         relates the Holder, any Transaction Document and/or any of the transactions contemplated
                                         by any Transaction Document;

 

		(iv)	any
                                         Lien (other than security interests created hereby or Permitted Liens) and/or any Indebtedness
                                         other than Indebtedness related to the Transaction Documents or Permitted Indebtedness;
                                         and

 

		(v)	Any
                                         matter, development and/or event that has resulted or could reasonably be expected to
                                         result in a Material Adverse Effect, including any such matter arising from: any breach
                                         or non-performance of, or any default or event of default under the Transaction Documents
                                         and/or any other material agreements that the Company is a party to and/or any of its
                                         property is bound by.

 

Each
notice pursuant to this Section 7.19 shall be accompanied by a statement of the Company setting forth details of the occurrence
referred to therein and stating what action the Company proposes to take with respect thereto.

 

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7.20 Environmental
Laws. The Company shall (i) comply in all material respects with, and endeavor to ensure compliance in all material respects
by all tenants and subtenants, if any, with, all applicable all laws, rules, orders, regulations, statutes, ordinances, guidelines,
codes, decrees, or other legally enforceable requirements (including, without limitation, common law) of any international authority,
foreign government, the United States, or any state, local, municipal or other governmental authority, regulating, relating to
or imposing liability or standards of conduct concerning protection of the environment or of human health, or employee health
and safety, as has been, is now, or may at any time hereafter be, in effect (“Environmental Laws”), and obtain
and comply in all material respects with and maintain, and endeavor to ensure that all tenants and subtenants obtain and comply
in all material respects with and maintain, any and all licenses, approvals, notifications, registrations or permits required
by applicable Environmental Laws, and (ii) conduct and complete all investigations, studies, sampling and testing, and all remedial,
removal and other actions required under Environmental Laws and promptly comply in all material respects with all lawful orders
and directives of all governmental authorities regarding Environmental Laws.

 

7.21 Restriction
on Redemption and Dividends. Except to the Holder, the Company shall not, directly or indirectly, redeem, repurchase or declare
or pay any dividend or distribution on any of its capital stock whether in cash, stock rights and/or property, except as set forth
in the SEC Reports.

 

7.22 Restriction
on Transfer of Assets. The Company shall not, directly or indirectly, sell, lease, license, assign, transfer, spin-off, split-off,
close, convey or otherwise dispose of any assets or rights of the Company owned or hereafter acquired whether in a single transaction
or a series of related transactions, other than sales, leases, licenses, assignments, transfers, conveyances and other dispositions
of such assets or rights by the Company in the ordinary course of business; provided, however, that, in the event that the Company
wishes to effect a transaction under this Section 7.22, it shall, prior to undertaking such effort, provide the Holder with a
high-level understanding of the objectives and ideal terms of such anticipated transaction the (“Initial Notice”).
No fewer than four (4) Trading Days prior to the execution of each of a binding term sheet and definitive documentation, the Company
shall deliver to the Holder a written notice of any material terms and/or changes since the prior notice given to the Company
and shall include a term sheet or similar document relating thereto as an attachment. Thereafter, upon receipt of draft execution
copies of such definitive documentation, the transaction shall be subject to the Holder’s consent, which consent will not
be unreasonably withheld. The Company shall file a Current Report on Form 8-K no later than 9:30 am (EDT) on the next Trading
Day following the execution of any such documentation. The Holder acknowledges that any of the foregoing information relating
to the anticipated transaction may constitute material non-public information, consents to the receipt such information and agrees
not to transfer any interest in any securities of the Company from the time of the Initial Notice through that filing of such
Form 8-K.

 

7.23 Indebtedness.
The Company shall not incur or permit to exist any Indebtedness, except for Permitted Indebtedness or Indebtedness otherwise consented
to by the Holder.

 

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7.24
 Liens. The Company shall not create or permit to exist any Liens or security
interests with respect to any assets, whether now owned or hereafter acquired and owned, except for Permitted Liens.

 

7.25 Guaranties,
Loans or Advances. The Company shall not become or be a guarantor or surety of, or otherwise become or be responsible in any
manner with respect to any undertaking of any other Person, or make or permit to exist any loans or advances to or investments
in any other Person, except for the endorsement, in the ordinary course of collection, of instruments payable to it or to its
order.

 

7.26 Violation
of Law. The Company shall not violate any law, statute, ordinance, rule, regulation, judgment, decree, order, writ or injunction
of any federal, state or local authority, court, agency, bureau, board, commission, department or governmental body if such violation
could have a Material Adverse Effect.

 

7.27 Use
of Proceeds. The Company shall not permit any proceeds of the Notes to be used either directly or indirectly for the purpose,
whether immediate, incidental or ultimate, of “purchasing or carrying any margin stock” within the meaning of Regulation
U, as amended from time to time, of the Board of Governors of the Federal Reserve System.

 

7.28 Hedge
Agreements. The Company shall not enter into any hedge agreement other than hedge agreements entered into in the ordinary
course of business, and not for speculative purposes, to protect against changes in interest rates or foreign exchange rates.

 

7.29 Transactions
with Affiliates. The Company shall not directly and/or indirectly enter into, renew, extend or be a party to, any transaction
or series of related transactions (including, without limitation, lending funds to an Affiliate and/or borrowing funds from any
Affiliate, the purchase, sale, lease, transfer or exchange of property, securities or assets of any kind or the rendering of services
of any kind) with any officer, director, Affiliate and/or any Affiliate of such person if such transaction or series of related
transactions could have a Material Adverse Effect.

 

7.30 Subsidiaries.
Without the consent of the Holder, which consent shall not be unreasonably withheld, delayed, denied, or conditioned, the Company
shall neither, and shall not permit any Subsidiary to, create or acquire any additional Subsidiary nor permit any Subsidiary to,
sell, assign or otherwise dispose of any Equity Interests in any Subsidiary to any Person.

 

    28

     

    

 

7.31 Most
Favored Nation Status. At any time during the period commencing from the date hereof and ending at such time that the Exchange
Note and Underlying Shares are no longer held by the Holder, if the Company effects a Subsequent Offering (as defined in the Exchange
Note) following an initial Subsequent Offering, if the Holder then holding such securities reasonably believes that the terms
and conditions appurtenant to such issuance or sale are more favorable to such investors than were granted to the Holder pursuant
to the Transaction Documents, the Holder may elect, in its sole discretion, in lieu of cash consideration (or whatever form of
consideration is payable in such Subsequent Offering) to tender all or some of the Exchange Note then held by the Holder to the
Company for the purchase of any securities issued in such Subsequent Offering on a $1.00 for $1.00 basis based on the then outstanding
Principal Amount of such Exchange Note, along with any accrued but unpaid interest, liquidated damages and other amounts owing
thereon, and the effective price at which such securities were sold in such Subsequent Offering so as to give the Holder the benefit
of such more favorable terms and provisions, upon notice to the Company by the Holder within five (5) Trading Days after the Company’s
disclosure of such issuance or sale; provided, however, that this Section 7.32 shall not apply with respect to an Exempt Issuance.

 

7.32 Fees
and Expenses. On the Closing Date, all direct and indirect costs and expenses of the Holder related to the negotiation, due
diligence, preparation, closing, and all other items regarding or related to this Agreement and the other Transaction Documents
and all of the transactions contemplated herein and/or therein including, but not limited to the legal fees and expenses of the
Holder’s legal counsel (collectively, the “Holder’s Expenses”), shall be due and payable from the
Company to the Holder. The Company and the Holder agree that Holder’s legal counsel, Robinson Brog Leinwand Greene Genovese
& Gluck P.C., shall be paid $25,000 on the Closing Date for its legal services.

 

Section
8. Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be construed under the laws of the state of
New York, without regard to principles of conflicts of law or choice of law that would permit or require the application of the
laws of another jurisdiction. The Company and the Holder each hereby agrees that all actions or proceedings arising directly or
indirectly from or in connection with this Agreement shall be litigated only in the Supreme Court of the State of New York or
the United States District Court for the Southern District of New York located in New York County, New York. The Company and the
Holder each consents to the exclusive jurisdiction and venue of the foregoing courts and consents that any process or notice of
motion or other application to either of said courts or a judge thereof may be served inside or outside the State of New York
or the Southern District of New York by generally recognized overnight courier or certified or registered mail, return receipt
requested, directed to such party at its or his address set forth below (and service so made shall be deemed “personal service”)
or by personal service or in such other manner as may be permissible under the rules of said courts. THE COMPANY AND THE HOLDER
EACH HEREBY WAIVES ANY RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LITIGATION PURSUANT TO THIS AGREEMENT.

 

    29

     

    

 

Section
9. Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party; provided that an electronic or facsimile signature shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if such signature were an original, not an electronic or facsimile, signature, as applicable.

 

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

 

Section
11. Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity
or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or
the validity or enforceability of any provision of this Agreement in any other jurisdiction.

 

Section
12. No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties
hereto to express their mutual intent, and no rules of strict construction will be applied against any party hereto.

 

Section
13. Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the Holder,
the Company, their respective affiliates and persons acting on their behalf with respect to the matters discussed herein, and
this Agreement and the instruments referenced herein contain the entire understanding of the parties hereto with respect to the
matters covered herein and therein. No provision of this Agreement may be amended other than by an instrument in writing signed
by the Company and the Holder. No provision hereof may be waived other than by an instrument in writing signed by the party hereto
against whom enforcement is sought.

 

Section
14. Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of
this Agreement must be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally; (b)
upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept
on file by the sending party); or (c) one calendar day (excluding Saturdays, Sundays, and national banking holidays) after deposit
with an overnight courier service, in each case properly addressed to the party to receive the same.

 

The
addresses and facsimile numbers for such communications shall be:

 

If
to the Company:

 

Spectrum
Global Solutions, Inc.

300
Crown Oak Centre

Longwood,
Florida 32750

Attn:
Roger Ponder, Chief Executive Officer

 

If
to the Holder:

 

Dominion
Capital LLC

256
West 38th Street, 15th Floor

New
York NY 10018

Attn:
Mikhail Gurevich, Managing Partner

 

or
to such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified
by written notice given to each other party five (5) days prior to the effectiveness of such change.

 

    30

     

    

 

Section
15. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, including any purchaser(s) of the Exchange Note. The Holder may assign some or all of its rights
hereunder without the consent of the Company, in which event such assignee shall be deemed to be the Holder hereunder with respect
to such assigned rights.

 

Section
16. No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

Section
17. Survival of Representations. The representations and warranties of the Company and the Holder contained in Sections
2 and 3, respectively, will survive the closing of the transactions contemplated by this Agreement.

 

Section
18. Further Assurances. Each party hereto shall do and perform, or cause to be done and performed, all such further acts
and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party
hereto may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation
of the transactions contemplated hereby.

 

[Signature
Page Follows]

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

 

	SPECTRUM
        GLOBAL SOLUTIONS, INC.	 
	 	 	 
	By:	 	 
	 	Name: Roger Ponder	 
	 	Title:  Chief Executive Officer	 

  

[Company
signature page to the Exchange Agreement]

 

    32

     

    

 

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

 

	DOMINION CAPITAL LLC	 
	 	 	 
	By:	 	 
	 	Name: Mikhail Gurevich	 
	 	Title:  Managing Partner	 
	 	Fax: 708-844-2883	 
	 	Email: mikhail@domcapllc.com	 

 

[Holder
signature page to the Exchange Agreement]

 

    33

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