Document:

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

 	 	Principal Balance:	$112,393.15
	 	Original Issue Date:	June 7, 2019
	 	Issue Date:	March 13, 2020
	 	Maturity Date:	December 13, 2020

 

 

SECURED
PROMISSORY NOTE

 

 

Rocky
Mountain High Brands, Inc., (hereinafter called the "Company"), hereby promises to pay to the order of GUS
Investments, LLC, a Neva irnited liability company, or its registered assigns
(the "Holder") the sum of $112,393.l5 by December 13, 2020 (the "Maturity Date")
together with any interest as set forth
herein, and to pay interest on the unpaid principal balance hereof at the rate of ten percent (10%) (the "Interest
Rate") per annum from the date hereof (the " Issue Date") until
the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. This Note is being
issued in lieu of and in exchange for that certain Convertible Promissory Note dated June 7, 2019.

 

This
Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Following any Event of Default, all
amounts owing pursuant to this Note shall bear interest at the rate of the lesse r of

		(a)	twenty
                                         percent (20%) per annum or (b)themaximum interested
                                         allowed by law, from the due date thereof until the same is paid ("Default
                                         Interest") . Interest shall be computed on the basis of a 365-day year and the actual
                                         number of days elapsed. All payments due hereunder
                                         (to the extent not made in common stock) shall be made in lawful money of the
                                         United States ofArnerica.

 

All
payments shall be made at such address as the Holder sha ll hereafter give to the Company by written
notice made in accordance with the provisions of this Note. Whenever any amount
expressed to be due by the terms of this Note is due on any day which is not a business day,
the same shall instead be due on the next succeeding day which is
a business day and, in the case of any interest payment date which is not
the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes
of determining the amount of interest due on such
date. As used in this Note, the term " business day" shall mean
any day other than a Saturday, Sunday or a day on which commercial banks in the city of New York, New Yorkareauthorizedorreq uiredbylawore
xecutiveordertoremainclosed. Each capitalized
term

 

    	 		 

    	 

    

 

used
herein, and not otherwise defined, shall have the meaning ascribed thereto in the supporting documents of same date (attachedhereto).

 

This
Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive
rights or other similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

The following terms shall
apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS

 

1.1                
Conversion Right. Following the execution of this Note, the Holder shall have the right
to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non assessable shares
of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Company
into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the "Conversion Price")
determined as provided herein (a "Conversion").

(a)        
Beneficial Ownership Limitation. In no event shall the Holder be entitled to convert
any portion of this Note in excess of that portion of this Note upon conversion of which the sum of

(1)   
the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other
than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes
or the unexercised or unconvertedportion of any other security of the Company subject to a limitation on conversion or exercise
analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the
portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership
by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to
the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and Regulations 13D-G thereunder. The number of shares of Common
Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below)
by the applicable Conversion Price then in effect on the date specified in the notice of conversion, (the ''Notice of Conversion"),
delivered to the Company by the Holder in accordance with the Sections below; provided that the Notice of Conversion is submitted
by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Company before 6:00
p.m., New York, New York time on such conversion date (the "ConversionDate").

The
term "Conversion Amount" means, with respect to any conversion of this Note, the sum of (1) the principal amount of
this Note to be converted in such conversion plus (2) at the Company's option, accrued and unpaid interest, if any, on such principal
amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Company's option, Default Interest,
if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder's option, any amounts
owed to the Holder.

		(b)	ConversionPrice.At
                                         any time after the execution of this Note, the Holder shall have the right, at its
                                         option, to convert all or any portion of this Note into shares of fully paid and non-assessable
                                         Common Stock of the Company at the price of $0.03per share, (the "ConversionPrice").lf,
                                         however, during any time while this Note remains issued and outstanding, the lowest reported
                                         trading price for the Company's common stock is equal to or less than $0.04for any two
                                         (2) consecutive trading days, then the Conversion Price shall be adjusted to

$0.02per
share for any remaining amounts due and owing hereunder. If, however, during any time while this Note remains issued and outstanding,
the lowest reported trading price for the Company's common stock is

 

    	 	2	 

    	 

    

 

equal
to or less than $0.02 for any two (2) consecutive trading days, then the Conversion Price shall be adjusted to $0.01 per share
for any remaining amounts due and owing hereunder. For so long as the Company is not in Default under the terms of this Note,
the Holder shall not, on any individual trading day, sell an amount of shares of common stock received upon conversion of all
Notes issued by the Company to the Holder that is in excess of: 15% of the total trading volume in U.S. Dollars for such trading
day if the daily trading volume is greater than $100,000.00, 30% if the daily trading volume is between $50,000.00 to

$99,999.00,
40% if the daily trading volume is between $25,000.00 to $49,999.00, 60% if the daily trading volume is between $12,500.00 to
$24,999.00, and 75% if the daily trading volume is below $12,500.00.For purposes of the foregoing trading restrictions, daily
trading volume shall be the calculated off of the trading volume for the trading day which immediately precedes the relevant date.

 

 

 

 

12                
Authorized Shares. The Company covenants that during the period the conversion right
exists the Company will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive
rights, to provide for the issuance of Common Stock upon the full conversion of this Note. The Company is required at all times
to have authorized and reserved three times the number of shares that is actually issuable upon full conversion of the Note (based
on the Conversion Price of the Notes in effect from time to time)(the "Reserved Amount"). The Reserved Amount shall
be increased from time to time in accordance with the Company'sobligations.

 

The
Company represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition,
if the Company shall issue any secwities or make any change to its capital structure which would change the number of shares of
Common Stock into which the Notes shall be convertible at the then currentConversion Price, the Company shall at the same time
make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved,
free from preemptive rights, for conversion of the outstandingNotes.

 

The
Company (i) acknowledges that it will irrevocably instruct its transfer agentto issue certificates for the Common
Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to
its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates
for shares of Common Stock in accordance with the terms and conditions ofthisNote.

 

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

 

		13	Method
                                         ofConversion.

 

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

 

		(b)	Surrender
                                         of Note Upon Conversion. Notwithstanding anything to the contrary

 

    	 	3	 

    	 

    

 

set
forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically
surrender this Note to the Company unless the entire unpaid principal amount of this Note is so converted. The Holder and the
Company shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other
method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon each
such conversion. In the event of any dispute or discrepancy, such records of the Holder shall, prima facie, 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 represented by this Note may be less than the amount stated on the facehereof.

 

(c)                           
Payment of Taxes. The Company shall not be required to pay any tax which may be
payable in respect of any transfer involved in the issue and delivery of shares of Common Stock or other securities or property
on conversion of this Note in a name other than that of the Holder (or in street name), and the Company shall not be required
to issue or deliver any such shares or other securities or property unless and until the person or persons (other than the Holder
or the custodian in whose street name such shares are to be held for the Holder's account) requesting the issuance thereof shall
have paid to the Company the amount of any such tax or shall have established to the satisfaction of the Company that such tax
has beenpaid.

(d)                               
Delivery of Common Stock upon Conversion. Upon receipt by the Company from the
Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the
requirements for conversion as provided in this Section, the Company shall issue and deliver or cause to be issued and delivered
to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days
after such receipt (the "Deadline") (and, solely in the case of conversion of the entire unpaid principal amount hereof,
surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. The Company will pay any and all legal,
deposit and transfer agent fees that may be incurred or charged in connection with the issuance of shares of the Company's Common
Stock to the Holder arising out of or relating to the conversions of this Note.

 

(e)                    
Obligation of Company to Deliver Common Stock. Upon receipt by the Company of
a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion,
the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion,
and, unless the Company defaults on its obligations under this Article I, all rights with respect to the portion of this Note
being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets,
as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Company's
obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence
of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of
any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation
of the Company to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder of any obligation to the Company, and irrespective of any other circumstance which might otherwise limit
such obligation of the Company to the Holder in connection with such conversion. The Conversion Date specified in the Notice of
Conversion shall be the Conversion Date so long as the Notice of Conversion is received by the Company before 6:00 p.m., New York,
New York time, on suchdate.

 

    	 	4	 

    	 

    

 

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

 

(g)
Failure toDeliverCommonStockPrior to Deadline. Without in any way limiting the Holder's right to pursue other remedies,
including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion
of this Note is not delivered by the Deadline the Company shall pay totheHolder $2,000 per day in cash, for each day beyond the
Deadline that the Company fails to deliver such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the
month following the month in which it has accrued or, at the option of the Holder (by written notice to the Company by the first
day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event
interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible
into Common Stock in accordance with the terms of this Note. The Company agrees that the right to convert is a valuable right
to the Holder. The damages resulting from a failure, attempt to frustrate, and interference with such conversion right are difficult
if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages provision contained in this Section
are justified. Any delay or failure of performance by the Company hereunder shall be excused if and to the extent caused by Force
Majeure. For purposes of this agreement, Force Majeure shall mean a cause or event that is not reasonably foreseeable and not
caused by the Company, including acts of God, fires, floods, explosions, riots wars, hurricanes,etc.

 

1.4
Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred
unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Company or its transfer
agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for
opinions of counsel in com parable transactions) to the effect that the shares to be sold or transferred may be sold or transferred
pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act
(or a successor rule) ("Rule 144") or (iv) such shares are transferred to an "affiliate" (as defined in Rule
144) of the Company who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an
Accredited Investor. Except as otherwise provided herein (and subject to the removal provisions set forth below), until such time
as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold
pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately
sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective
registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits
removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

"NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,OR APPLICABLE STATE SECURITIES
LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION

 

    	 	5	 

    	 

    

 

STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY
IHEHOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATIONIS NOT
REQUIRED UNDER SAID ACTOR(Il) UNLESS SOLD PURSUANT TO RULE 144 0R RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES."

 

The
legend set forth above shall be removed and the Company shall issue to the Holder a new certificate therefore free of any transfer
legend if (i) the Company or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary
for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made
without registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected or
(ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder
under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction
as to the number of securities as of a particular date that can then be immediately sold. In the event that the Company does not
accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration,
such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to thisnote.

 

1.5       Effect
of CertainEvents.

 

(a)                    
Effect otMerger,Consolidation, Etc. At the option of the Holder, the sale, conveyance
or disposition of all or substantially all of the assets of the Company, the effectuation by the Company of a transaction or series
of related transactions in which more than 50% of the voting power of the Company is disposed of, or the consolidation, merger
or other business combination of the Company with or into any other Person (as defined below) or Persons when the Company is not
the survivor shall either: (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the Company shall
be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default
Amount (as defined in Article III) or (ii) be treated pursuant to Section l .6(b) hereof. "Person" shall mean any individual,
corporation, limited liability company, partnership, association, trust or other entity or organization.

(b)                    
Adjustment Due to Merger,Consolidation,Etc. If, at any time when this Note is
issued and outstanding and prior to conversion of all of the Notes, there shall be any merger, consolidation, exchange of shares,
recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Company shall be
changed into the same or a different number of shares of another class or classes of stock or securities of the Company or another
entity, or in case of any sale or conveyance of all or substantially all of the assets of the Company other than in connection
with a plan of complete liquidation of the Company, then the Holder of this Note shall thereafter have the right to receive upon
conversion of this Note, upon the basis and upontheterms and conditions specified herein and in lieu of the shares of Common Stock
immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to
receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any
limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights
and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for
adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be

 

    	 	6	 

    	 

    

 

applicable,
as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The
Company shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable,
thirty (30) days prior written notice (but in any event at least fifteen

(15)  
days prior written notice) of the record date of the special meeting of shareholders to approve,
or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization
or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting
successor or acquiring entity (if not the Company) assumes by written instrument the obligations of this Section l .6(b). The
above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

(c)             
Adjustment Due to Distribution.If the Company shall declare or make any distribution
of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend,
stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Company's shareholders
in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-oft)) (a "Distribution"),
then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders
entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to
the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the
record date for the determination of shareholders entitled to such Distribution.

 

(d)        
Adjustment Due to Dilutive Issuance.If, at any time when any Notes are issued
and outstanding, the Borrower issues or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold,
any shares of Common Stock in connection with a financing transaction executed and made effective subsequent to the date of this
Note based on a variable price formula (the "Alternative Variable Price Formula") that is more favorable to the investor
in such financing transaction than the formula for calculating the Conversion Price in effect on the date of such issuance (or
deemed issuance) of such shares of Common Stock (a "Dilutive Issuance"),
then immediately upon the Dilutive Issuance, the formula for the Conversion Price will be adjusted to match the Alternative Variable
Price Formula. If it is unclear whether the Alternative Variable Price Formula is better or worse, then Holder, in its sole discretion,
may elect at the time of such issuance whether to switch to the Alternative Variable Price Formula ornot.

 

(e)          
Purchase Rights. If, at any time when any Notes are issued and outstanding, the
Company issues any convertible securities or rights to purchase stock, warrants, securities or other property (the "Purchase
Rights") pro rata to the record holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire,
upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such
Holder had held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations
on conversion contained herein) immediately before the date on which a record is taken for the grant, issuance or sale of such
Purchase Rights or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for
the grant, issue or sale of such PurchaseRights.

 

(t)
Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the
events described in this Section 1.6, the Company, at its expense, shall promptly compute such adjustment or readjustment and
prepare and furnish to the Holder of a certificate setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based. The Company shall, upon the written request at any time of the Holder, furnish
to such

 

    	 	7	 

    	 

    

 

Holder
a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii)
the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received
upon conversion of theNote.

 

1.6                
Security. As Security for the Company's obligations contained herein and in all Notes issued by the Company to the
Holder, the Holder shall be granted an unconditional first priority interest in and to, any and all property of the Company and
its subsidiaries, of any kind or description, tangible or intangible, whether now existing or hereafter arising or acquired until
the balance of all Notes has been reduced to $0. "Any and all property," as described herein shall be inclusive of,
but not limited to, assets reported by the Company on its SEC filings, cash, inventory, accounts receivable, intellectual property
rights, equipment and property. The Investor is authorized to make all filings the Investor, in its discretion, deems necessary
to evidence its security interests.

 

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

 

1.8                
Prepayment. Maker may prepay this Note for 135% of the outstanding amount then due in onepayment.

 

1.9                
No Short Sales. No short sales shall be permitted by the Holder or its affiliates at any time while this Note
is issued and outstanding in any amount.

ARTICLE
II. CERTAIN COVENANTS

 

2.1
Distributions on Capital Stock. So long as the Company shall have any obligationunder this Note, the Company shall not
without the Holder's written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether
in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the
form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution
in respect of its capital stock except for distributions pursuant to any shareholders' rights plan which is approved by a majority
of the Company's disinteresteddirectors.

 

22       Restriction
on Stock Repurchases. So long as the Company shall have any obligation

 

    	 	8	 

    	 

    

 

under
this Note, the Company shall not without the Holder's written consent redeem, repurchase or otherwise acquire (whether for cash
or in exchange for property or other securities or otherwise) in any one transaction or series of related transactions any shares
of capital stock of the Company or any warrants, rights or options to purchase or acquire any suchshares.

 

2.3              
Borrowings. So long as the Issuer shall have any obligation under this Note, the Issuer
shall not, without written notice to the holder, create, incur, assume guarantee, endorse, contingently agree to purchase or otherwise
become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the endorsement of
negotiable instruments for deposit or collection, or suffer to exist any liability for borrowed money, except (a) borrowings in
existence or committed on thedatehereof and of which the Issuer has informed Holder in writing prior to the date hereof, (b) indebtedness
to trade creditors or financial institutions incurred in the ordinary course of business or (c)
borrowings, the proceeds of which shall be used to repay this Note.

 

2.4              
Sale of Assets. So long as the Company shall have any obligation under this Note, the
Company shall not, without the Holder's written consent, sell, lease or otherwise dispose of any significant portion of its assets
outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned on a specified use of
the proceeds ofdisposition.

 

2.5              
Advances and Loans. So long as the Company shall have any obligation under this Note,
the Company shall not, without the Holder's written consent, lend money, give credit or make advances to any person, firm, joint
venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Company,
except loans, credits or advances (a) in existence or committed on the date hereof and which the Company has informed Holder in
writing prior to the date hereof, (b) made in the ordinary course of business or (c) not in excess of$50,000.

 

ARTICLE
III. EVENTS OF DEFAULT

 

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

 

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

 

32                Conversionand
the Shares.The Company fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it
will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with
the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated
form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note
as and when required by this Note, the Company directs its transfer agent not to transfer or delays, impairs, and/or hinders
its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common
Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or
fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or
hindersitstransferagentfromremoving)anyrestrictivelegend(ortowithdrawanystop transfer instructions in respect thereof) on any
certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and
when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the
obligations described in this paragraph) and any such

 

    	 	9	 

    	 

    

 

failure
shall continue uncured (or any written announcement, statement or threat not to honor its obligations shallnotberescindedinwriting)forthree(3)businessdaysaftertheHoldershallhavedeliveredaNoticeofConversion.
It is an obligation of the Company to remain current in its obligations to its transfer agent. It shall be an event of default
of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Company to its transfer
agent. If at the option of the Holder, the Holder advances any funds to the Company's transfer agent in order to process a conversion,
such advanced funds shall be paid by the Company to the Holder within forty eight (48) hours of a demand from the Holder.

 

33               
Breach of Covenants. The Company breaches any covenant or other term or condition contained in this Note and
any collateral documents including but not limited to the Equity Financing Agreement and the Registration RightsAgreement.

 

3.4
Breach of Representations and Warranties.Any representation or warranty of the Company made herein or in any agreement,
statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase
Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of
time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Equity Financing Agreement
and the Registration RightsAgreement.

 

35
Receiver or Trustee. The Company or any subsidiary of the Company shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise beappointed.

 

3.6                
Judgments. Any money judgment, writ or similar process shall be entered or filed againsttheCompanyoranysubsidiaryoftheCompanyoranyofitspropertyorotherassetsformorethan

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

 

3.7                
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or
involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Company
or any subsidiary of theCompany.

 

3.8                
Delisting of Common Stock. If the Company shall fail to maintain in good standing the listing of the Common Stock
on the over-the-counter market operated by OTC Markets Group, Inc. or an equivalent replacement exchange, the Nasdaq National
Market, the Nasdaq SmallCap Market or the New York Stock Exchange or if the Company's shall lose the "bid" price for
its common stock on any given trading day.

 

3.9                
Failure to Comply with the Exchange Act. If the Company shall fail to comply, in a timely manner, with the reporting
requirements of the Exchange Act; and/or the Company shall cease to be subject to the reporting requirements of the ExchangeAct.

 

3.10                 
Liquidation. Any dissolution, liquidation, or winding up of Company or any substantial portion of itsbusiness.

 

3.11                 
Cessation of Operations. Any cessation of operations by Company or Company admitsitisotherwisegenerallyunabletopayitsdebtsassuchdebtsbecomedue,provided,however,thatany
disclosure

 

    	 	10	 

    	 

    

 

of
the Company's ability to continue as a "going concern" shall not be an admission that the Company cannot pay its debts
as they becomedue.

 

3.12                
Maintenance of Assets. The failure by Company to maintain any material intellectual property rights, personal, real
property or other assets which are necessary to conduct its business (whether now or in thefuture).

 

3.13                 
FinancialStatementRestatement. The restatement of any financial statements filed by the Company with the SEC for
any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the result
of such restatement would, by comparison to the original financial statement, have constituted a material adverse effect on the
rights of the Holder with respect to this Note or supportingdocuments.

 

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

3.15                 
Replacement of Transfer Agent. In the event that the Company proposes to replace its transfer agent, the Company
fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in
a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve
shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Company and theCompany.

 

3.16                 
Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion
documents, a breach or default by the Company of any covenant or other term or condition contained in any of the Other Agreements,
after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default
under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all
rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other
Agreement or hereunder. "Other Agreements" means, collectively, all agreements and instruments between, among or by:
(1) the Company, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory
notes; provided, however, the term "Other Agreements" shall not include the related or companion documents to this Note.
Each of the loan transactions between the Holder and the Company will be cross-defaulted with each other loan transaction and
with all other existing and future debt ofCompany.

 

Further,
the Company shall not be deemed in default under this Note as a result of any actual or alleged breach or default under any of
the following agreements:

 

		•	$184,300
                                         1 Year 6% Convertible Promissory Note dated June 30, 2017 by and between Rocky Mountain
                                         High Brands, Inc. and Jerome Grisaffi

 

		•	$200,150.20
                                         6 Month 6% Convertible Promissory Note dated June 19, 2017 by and between Rocky Mountain
                                         High Brands, Inc. and Jerome Grisaffi

 

		•	$79,000
                                         6 Month 6% Convertible Promissory Note dated May 19, 2017 by and between Rocky Mountain
                                         High Brands, Inc. and LSW Holdings, LLC

 

		•	$100,000
                                         6 Month 6% Convertible Promissory Note dated July 11, 2017 by and between Rocky

 

    	 	11	 

    	 

    

 

Mountain High Brands, Inc.
and LSW Holdings, LLC.

 

Upon
the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to
pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable
and the Company shall pay to the holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum
(as defined herein).

UPON
THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY
DUE AND PAYABLE AND THE COMPANY SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONSHEREUNDER,ANAMOUNTEQUALTO:(Y)THEDEFAULTSUM(ASDEFINEDHEREIN);

MULTIPLIED
BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with
respect to failure to pay the principal hereof or interest thereon when due on this Note upon a Trading Market Prepayment Event
pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12,
3.13, 3.14, and/or 3. 15 exercisable through the delivery of written notice to the Company by such Holders (the "Default
Notice"), and upon the occurrence of an Event of Default specified the remaining sections of Articles III, the Note shall
become immediately due and payable and the Company shall pay to the Holder, in full satisfaction of its obligations hereunder,
an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding principal amount of this Note
plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the "Mandatory
Prepayment Date") plus(y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus
(z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstandingprincipalamountofthisNotetothedateofpaymentplustheamountsreferredtoinclauses(x),(y)
and (z) shall collectively be known as the "Default Sum") or (ii) the "parity value" of the Default Sum to
be prepaid, where parity value means (a) the highest number of shares of Common Stock issuable upon conversion of or otherwise
pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment
Date as the "Conversion Date" for purposes of determining the lowest applicable Conversion Price, unless the Default
Event arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion Date shall be the
Conversion Date), multiplied by (b) the highest Closing Price for the Common Stock during the period beginning on the date
of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the "Default Amount")
and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all
of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection,
and the Holder shall be entitled to exercise all other rights and remedies available at law or inequity.

 

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

 

 

ARTICLE
IV. MISCELLANEOUS

4.1
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other

 

    	 	12	 

    	 

    

 

right,
power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwiseavailable.

 

4.2Notices.Allnotices,demands,requests,consents,approvals,andother
communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally
served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable
air courier service with charges prepaid, or (iv) transmitted by hand delivery, email, or facsimile, addressed as set forth below
or to such other address as such party shall have specified most recently by written notice. Any notice or other communication
required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate
confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business
day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day
following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of
such mailing, whichever shall first occur. The addresses for such communications shall be:

If to the Company,
to:

 

Rocky Mountain High Brands,
Inc.

9101 LBJ Freeway,
Suite 200

Dallas, TX 75243

Attn: Michael Welch,
President &CEO

 

 

If to the Holder:

 

GHS Investments, LLC.

420 Jericho TpkeSuitel02

Jericho, NY 11753

 

 

4.3              
Amendments. This Note and any prov1s1on hereof may only be amended by an instrument in writing signed by the Company
and the Holder. The term "Note" and all reference thereto, as used throughout this instrument, shall mean this instrument
(and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then
as so amended or supplemented.

4.4              
Assignability.This Note shall be binding upon the Company and its successors and assigns, and shall inure to be
the benefit of the Holder and itssuccessorsand assigns. Notwithstanding anything in this Note to the contrary, this Note may be
pledged as collateral in connection with a bona fide margin account or other lending arrangement.

 

4.5              
Cost of Collection. If default is made in the payment of this Note, the CompanyshallpaytheHolderhereofcostsofcollection,includingreasonableattomeys'fees.

 

4.6               
GovemingLaw. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without
regard to principles of conflictsoflaws. Any action brought by either

 

    	 	13	 

    	 

    

 

party
against the other concerning the transactions contemplated by this Note shall be brought only in the state or federal courts located
in New York City, New York. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action
instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based uponforum non conveniens.
The Company and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable
attorney's fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith
is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision
which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision
of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any
suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered
or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. Wherever
possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be prohibited by, unenforceable or invalid under any jurisdiction, such provision
shall as to such jurisdiction, be severable and be ineffective to the extent of such prohibition or invalidity, without invalidating
the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any otherjurisdiction.

 

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

4.8              
Equity Financing Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms
of the Equity Financing Agreement and supporting documents of samedate.

4.9               
Notice ofComorateEvents.Except as otherwise provided below, the Holder of this Note shall have no rights as a Holder
of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Company shall provide the Holder
with prior notification of any meeting of the Company's shareholders (and copies of proxy materials and other information sent
to shareholders). In the event of any taking by the Company of a record of its shareholders for the purpose of determining shareholders
who are entitled to receive payment of any dividend or other distribution, any right to subscribe for, purchase or otherwise acquire
(including by way of merger, consolidation, reclassification or recapitalization) any share of any class or any other securities
or property, or to receive any other right, or for the purpose of determining shareholders who are entitled to vote in connection
with any proposed sale, lease or conveyance of all or substantially all of the assets of the Company or any proposed liquidation,
dissolution or winding up of the Company, the Company shall mail a notice to the Holder, at least twenty (20) days prior to the
record date specified therein (or thirty (30) days prior to the consummation of the transaction or event,

 

    	 	14	 

    	 

    

 

whichever
is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right or other
event, and a brief statement regarding the amount and character of such dividend, distribution, right or other event to the extent
known at such time. The Company shall make a public announcement of any event requiring notification to the Holder hereunder substantially
simultaneously with the notification to the Holder in accordance with the terms of this Section 4.9.

 

4.10               
Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm
to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby.
Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations
under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions
of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition
to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

 

IN
WITNESS WHEREOF, Holder and Company have caused this Second Amended and Restated Note to be signed in its name by its respective
duly authorized officer:

 

 

GHS Investments, LLC

 

 

By: /s/ Mark Grober

Mark Grober, Member

 

 

 

Rocky Mountain High
Brands, Inc.

By: /s/ Michael
R. Welch

Michael R. Welch, President
& CEO

 

    	 	15EXCHANGE
AGREEMENT

 

 

THIS
EXCHANGE AGREEMENT (the "Agreement") is dated this 13th day of March 2020, by and among Rocky
Mountain High Brands, Inc., a Nevada corporation (the "Company"), all of the subsidiaries of the Company that
are party to the Agreement (collectively, "Subsidiaries") and GHS INVESTMENTS, LLC (the "Holder").

 

WHEREAS,
the Holder beneficially owns and holds certain $157,500.00 Promissory Note dated May 16, 2019 as set forth on Exhibit A
here to (the "Note");

 

WHEREAS
the total outstanding principal and interest on the Note as of February 19, 2020 equals $169,539.04;
and

 

WHEREAS,
the Holder desires to exchange (the " Exchange") the Note for a new Convertible Promissory Note (the "Exchange
Security") of the Company as set forth and memorialized on Exhibit B hereto , and the Company desires to issue
the Exchange Security in exchange for the Note, all on the terms and conditions set forth in this Agreement in reliance on the
exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended (the "Securities Act").

 

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 Note and, m exchange therefore, the Company shall issue to the Holder
the Exchange Security.

 

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
Security 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 Note. The closing of the Exchange shall occur on
February 20, 2020, or as soon thereafter as the parties may
mutually agree in writing (the "Closing Date"), subject to the provisions of Section
4 and Section 5 herein.

 

1.2   
Section 3(a)(9). 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 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 3(a)(9) of the Securities Act.

 

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

 

    	 		 

    	 

    

 

2.1    
Organization and Qualification. The Company and each of the subsidiaries of the Company
(the "Subsidiaries") is an entity duly incorporated or otherwise organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use
its properties and assets and to carry on its 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 articles 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 documents executed in connection herewith (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    
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 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 it 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 Security. The issuance of the Exchange Security is duly authorized
and, upon issuance in accordance with the terms

 

    	 	2	 

    	 

    

 

hereof,
the Exchange Security shall be
validly issued, fully paid and non assessable. The shares of common stock, par value $0.001 per share (the "Common
Stock") issued upon conversion of
the Exchange Security, when issued and delivered in accordance with the terms of the Exchange Security, 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 Security shall
be exempt from the registration requirements of the Securities Act by virtue
of Section 3(a)(9) thereunder and all of the shares of Common Stock issuable upon
conversion of the Exchange Security will be freely transferable and freely tradable
by the Holder without restriction pursuant to Rule 144 of the Securities Act,
assuming the Holder is not an Affiliate (as defined herein) and the holding period
requirements of Rule 144 have been satisfied. The shares of Common Stock issuable
upon con version of the Exchange Security shall
not bear any restrictive or other legends or
notations if the requirements of Rule 144 have been satisfied . 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 Security at least equal to the greater of 25 ,010,000 shares of
Common Stock and 300% of the Required Minimum on the date hereof. "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 all Exchange Security (including shares of Common Stock issuable as payment of interest on the Exchange
Security), ignoring any conversion limits set forth therein, and assuming
that the Conversion Price is at all times on
and after the date of determination 75% of the then Conversion Price on the trading day immediately prior to the date of
determination.

 

2.4    
No Conflicts. The execution,
deli very and performance by the Company of this Agreement and the other Transaction
Documents to which it is a party , the issuance of the Exchange Security 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 articles
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 (as defined herein), 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

 

    	 	3	 

    	 

    

 

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. The Company further acknowledges 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 their representatives or agents in connection with this Agreement is merely incidental to the Exchange.

 

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 Security
is being issued exclusively for the exchange of the Note and no other consideration has or will be paid for the Exchange Security.

 

2.7    
3(a)(9) 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 Security 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 Security
to the Holder pursuant to Section 3(a)(9) of the Securities Act, nor will the Company take any action or steps that would cause
the Exchange, issuance and delivery of the Exchange Security to be integrated with other offerings to the effect that the delivery
of the Exchange Security to the Holder would be seen not to be exempt pursuant to Section 3(a)(9) 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

 

    	 	4	 

    	 

    

 

requirements
of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company
included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations
of the 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.

 

2.10     
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth
on Schedule 2.10. 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.

 

2.11     
Filings, Consents and Approvals. Other than as set forth on Schedule 2.11, 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 herein) for the issuance and the listing of the shares of Common
Stock issuable upon conversion of the Exchange S for trading thereon in the time and manner required thereby, and (ii)
the filing of 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. The capitalization of the Company is as set forth on Schedule 2.12.
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 on Schedule 2.12, 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

 

    	 	5	 

    	 

    

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 the 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 stockholder, the Board of
Directors or others is required for the issuance of the Exchange Security. 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.

 

2.13     
DTC Eligibility. The Company, through the 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. Except as set forth in Schedule 2.14 or in a subsequent
SEC Report filed prior to the date hereof, since the date of the latest audited financial statements included within the SEC
Reports: (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 (as defined below), except pursuant to
existing Company stock option plans. The Company does not have pending any request for confidential treatment of information
before the SEC. Except for the issuance of the Exchange Security 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 one (1) trading day prior to the date that this representation is
made.

 

    	 	6	 

    	 

    

 

2.15     
Litigation. Other than as set forth on Schedule 2.15, 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 Security
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.

 

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 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. Other than as set forth on Schedule 2.17, 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

 

    	 	7	 

    	 

    

 

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.

 

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 as 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. Other than as set forth on Schedule 2.20, 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"). Except as
set forth on Schedule 2.20 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

 

    	 	8	 

    	 

    

 

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	Intentionally Omitted.

 

2.22     
Transactions With Affiliates and Employees. Other than as set forth on Schedule
2.22, 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	Intentionally Omitted.

 

2.24     
Certain Fees. Other than as set forth on Schedule 2.24, 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.

 

2.25     
Investment Company. The Company is not, and is not an Affiliate of, and immediately
after receipt of payment for the Exchange Security, 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. Other than as set forth on Schedule 2.26 and the Transaction
Documents, 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.

 

    	 	9	 

    	 

    

 

2.27     
Listing and Maintenance Requirements. Other than as set forth in Schedule 2.27,
the Company has not, in the 12 months preceding the date hereof, received notice from the OTC Markets 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. Other than as set forth
in Schedule 2.27, 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 the 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 articles
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 Security 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, including the Disclosure Schedules
to this Agreement, 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 has made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in Section 3 hereof.

 

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 their behalf has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy

 

    	 	10	 

    	 

    

 

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). Except as set forth in Schedule 2.31,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. Other than as set forth in Schedule 2.31, 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.

 

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)

 

    	 	11	 

    	 

    

 

which is in
violation of law or (iv) violated in
any material respect any provision ofFCPA.

 

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 Note. 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 any of the Exchange Security or the shares
of Common Stock into which the Exchange Security is convertible or exercisable, as applicable, (ii)
sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the
Exchange Security or the shares of Common Stock into which the Exchange Security is convertible or exercisable, as applicable,
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 ("OFAC").

 

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.

 

    	 	12	 

    	 

    

 

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.

 

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

 

3.1    
Ownership of the Note. The Holder is the legal and beneficial owner of the Note.
The Holder paid for the Note, and has continuously held the Note since its issuance or purchase. The Holder, individually or through
an affiliate, owns the Note 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 Security 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 any of
the Exchange Security or the shares of Common Stock into which such security is convertible, for any minimum or other specific
term and reserves the right to dispose of the Exchange Security and the shares of Common Stock into which such security is convertible
at any time in accordance with an exemption from the registration requirements of the Securities Act and applicable state securities
laws. 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 Note or the Exchange Security.

 

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" of more than 10%
of the Company's Common Stock (as defined for purposes of Rule 13d-3 of the Exchange Act).

 

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

 

    	 	13	 

    	 

    

 

availability of such
exemptions and the eligibility of the Holder to complete the Exchange and to acquire the Exchange Security.

 

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 Security involves
a high degree of risk. The Holder is able to bear the risk of an investment in the Exchange Security 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 Security or any securities
into which the Exchange Security may convert will continue to be quoted, traded or listed for trading or quotation on the OTC Markets
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 Security nor have such authorities passed upon or
endorsed the merits of the Exchange Security.

 

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 the Note) will
not result in a violation of the organizational documents of the Holder.

 

    	 	14	 

    	 

    

 

3.10   
Prior Investment Experience. The Holder acknowledges that it has prior investment experience,
including investment in securities of the type being exchanged, including the Note and the Exchange Security, 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.

 

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 Security is being exchanged hereunder pursuant to an exchange offer exemption under Section 3(a)(9) 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 the
Note.

 

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 applicable
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 (i) shall be true and correct in all material
respects when made and on the applicable Closing Date (unless as of a specific date therein) for such representations and warranties

 

    	 	15	 

    	 

    

 

contained herein
that are not qualified by "materiality" or "Material Adverse Effect" and (ii) shall be true and correct when
made and on the applicable Closing Date (unless as of specific date therein) for such representations and warranties contained
herein that are qualified by ''materiality" or "Material Adverse Effect";

 

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

 

5.4    
from the date hereof to the relevant 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 Security at the closing.

 

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

 

Section
7. Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be construed under the laws of the state of Nevada,
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.

 

Section 8. Counterparts.This
Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and

 

    	 	16	 

    	 

    

 

shall
become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature
shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature
were an original, not a facsimile signature.

 

Section 9. 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
10. 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
11. No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be applied against any party.

 

Section
12. Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the Holder,
the Company, their 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 with respect to the matters covered herein
and therein and, except as specifically set forth herein or therein, neither the Company nor the Holder makes any representation,
warranty, covenant or undertaking with respect to such matters. 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 against whom enforcement is sought.

 

Section
13. 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.

 

    	 	17	 

    	 

    

 

The addresses and facsimile numbers for such
communications shall be:

 

If
to the Company:

 

Rocky Mountain High
Brands, Inc.

9101 LBJ Freeway #200

Dallas TX 75243

 

 

 

Attn: David M. Seeberger

 

If to the Holder:

 

GHS Investments, LLC

420 Jericho Turnpike, Suite 102

Jericho NY 11753

 

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.

 

Section
14. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of the Exchange Security. 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
15. 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
16. 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
17. Further Assurances. Each party 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 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]

 

    	 	18	 

    	 

    

 

 

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

 

Rocky
Mountain High Brands, Inc.

 

By:
Michael Welch

Name:
Michael Welch

Title:
Chief Executive Officer

 

 

 

GHS
INVESTMENTS, LLC

 

By:
/s/ Mark Grober

Name:
Mark Grober

Title:
Member

 

    	 	19	 

    	 

    

 

EXHIBIT
A

 

e
Promissory Notes

 

	Principal	Interest	OID	Date

 

 

Cumulative
Total for Face Value and Interests: $

 

    	 	20	 

    	 

    

 

EXHIBIT
B

 

Form
of and Schedule of Security being Exchanged

 

	Promissory
    Note	$

 

    	 	21	 

    	 

    

 

SCHEDULES

 

Disclosure
Schedules to Exchange Agreement between GHS Investments LLC and ________. dated ________, 2020

 

 

[Company
to complete schedules]

 

    	 	22

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