Document:

Exhibit 10.7

 

8% NEGOTIABLE CONVERTIBLE PROMISSORY
NOTE

 

NEITHER THE ISSUANCE AND SALE OF THIS
NOTE NOR ANY SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE
UPON CONVERSION OF THIS NOTE MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THIS NOTE OR THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE UNDER THE SECURITIES ACT,
AS APPLICABLE, OR (B) AN OPINION OF COUNSEL (SELECTED BY THE HOLDER AND REASONABLY ACCEPTABLE TO THE COMPANY), IN A FORM REASONABLY
ACCEPTABLE TO THE COMPANY, THAT THIS NOTE AND THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE MAY BE OFFERED FOR
SALE, SOLD, ASSIGNED OR TRANSFERRED PURSUANT TO AN EXEMPTION FROM REGISTRATION; PROVIDED THAT SUCH OPINION OF COUNSEL SHALL NOT
BE REQUIRED IN CONNECTION WITH ANY SUCH SALE, ASSIGNMENT OR TRANSFER TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT IS, PRIOR TO
SUCH SALE, ASSIGNMENT OR TRANSFER, AN AFFILIATE OF THE HOLDER OF THIS NOTE, OR (II) UNLESS THE HOLDER PROVIDES THE COMPANY WITH
ASSURANCE (REASONABLY SATISFACTORY TO THE COMPANY) THAT SUCH NOTE OR THE SHARES OF COMMON STOCK ISSUABLE UPON THE CONVERSION OF
THE NOTE CAN BE SOLD, ASSIGNED OR TRANSFERRED PURSUANT TO RULE 144.

 

ANY TRANSFEREE OF THIS NOTE SHOULD CAREFULLY
REVIEW THE TERMS OF THIS NOTE, INCLUDING, WITHOUT LIMITATION, SECTIONS 3(c)(iii) AND 13(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED
BY THIS NOTE AND, ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE AMOUNTS SET FORTH ON THE FACE
HEREOF PURSUANT TO SECTION 3(c)(iii) OF THIS NOTE.

 

PLAYERS
NETWORK

 

a
nevada corporation

 

8%
NEGOTIABLE CONVERTIBLE PROMISSORY NOTE

	Issuance Date: 	August 9th 2012	Principal Amount: U.S. $50,000.00
	Maturity Date:	June 1, 2013	(subject to Section 3(c)(iii) hereof)

 

FOR VALUE RECEIVED,
Players Network, a Nevada corporation (the “Company”), hereby promises to pay to the order of Continental Equities,
LLC, a New York limited liability company or its assign(s)(each, a “Holder”) the principal amount set forth
above (as increased and/or decreased pursuant to the terms hereof by reason of the accrual of Interest, deferral of Interest, partial
conversion or otherwise, and together with the principal amount of any additional convertible debt instruments issued by the Company
to the Holder in accordance herewith, the “Principal”) when due, whether upon the Maturity Date, acceleration
or otherwise (in each case in accordance with the terms hereof), together with accrued interest at 8% per annum (“Base
Interest Rate”) on any outstanding Principal from time to time (“Interest”).

 

The Principal amount
shall be due and payable on the Maturity Date set forth above. Interest shall be due and payable, in arrears, on the last day of
each month while any portion of the Principal Amount remains outstanding. The first such interest payment shall be August 31,
2012. All accrued and unpaid interest shall be due and payable on the first date that the Principal Amount becomes due and
payable, whether upon the Maturity Date, acceleration, conversion or otherwise (in each case, in accordance with the terms hereof).

 

    	 

    	 

    

This 8% Negotiable Convertible
Promissory Note (this “Note”) is being issued pursuant to that certain Note and Warrant Purchase Agreement,
dated as of the date hereof, by and between the Company and the Holder (the “Purchase Agreement”), and is entitled
to the benefits of, and evidences obligations incurred under, the Purchase Agreement and the other Transaction Documents (as defined
in the Purchase Agreement), to which reference is made for a description of the security for this Note, if any, and for a statement
of the terms and conditions on which the Company is permitted and required to make prepayments and repayments of principal of the
obligations evidenced hereby and on which such obligations may be declared to be immediately due and payable. This Note represents
a full recourse obligation of the Company.

 

Certain capitalized terms
used herein are defined in Section 23.

 

MATURITY AND
PREPAYMENT.

 

(a)On the
Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal, accrued and unpaid
Interest and accrued and unpaid Late Charges (as defined in Section 19(b)), if any. The “Maturity Date”
shall be May 31, 2013, subject to acceleration as provided below.

 

(b)The
Company may prepay this Note together with all accrued and unpaid interest hereon at any time upon not less than 30 days’
prior written notice, and the payment to the Holder of (i) the entire Principal Amount then outstanding
on the Note, (ii) all accrued and unpaid Interest on the Note, (iii) all accrued and unpaid Late Charges, (iv) any fees or expenses
due to the Holder hereunder, and (v) a prepayment premium computed as follows:

 

(A)an amount
equal to all interest that would have accrued on the then outstanding Principal amount of the Note through
its scheduled Maturity Date, plus 

 

(B)an
amount calculated as follows:

 

(2)if
the prepayment is to be made at or before 5:00 pm, local New York City Time on or before the 60th day following the date of this
Note, an amount equal to 125% of the then outstanding Principal amount of the Note, or

 

(3)if
clause (ii) does not apply, and if the prepayment is to be made at or before 5:00 pm local New York City Time on or before the
120th day following the date of this Note, an amount equal to 135% of the then outstanding Principal amount of the Note, or 

 

(4)if
neither clause (ii) nor clause (iii) apply, then an amount equal to 150% of the then outstanding Principal amount of the
Note. or 

 

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(c)During
the 30 day notice period under Section 1(b) applicable to prepayments, the Holder may,
at its option, covert all or any portion of the Principal or Interest on this Note outstanding
on the date of conversion.

 

PAYMENT OF
INTEREST DEFERRAL; POST DEFAULT AND POST JUDGMENT INTEREST.

 

So long as no
Event of Default has occurred and is continuing, (i) the outstanding Principal balance of this Note shall accrue interest from
the Issuance Date at the Base Interest Rate based on a 360-day year and the actual number of days elapsed in any partial year and
(ii) the Company may elect to defer payment of any monthly interest payment due on this Note by giving the Holder notice of its
election to defer interest at least three (3) business days prior to the applicable interest payment date (the “Interest
Deferral Notice”). If the Company has timely given such notice of deferral to the Holder, then the accrued Interest that
would otherwise have become and due and payable on such interest payment date shall be added to the outstanding Principal balance
of this Note on the date that the such Interest would otherwise have become due and payable and such deferred Interest shall thereafter
itself, as part of such Principal balance, accrue Interest at the applicable interest rate reserved hereunder or the Default Rate,
as the came may require. All such accrued Interest added to the outstanding Principal balance pursuant to the immediately preceding
sentence shall be payable on the same terms and subject to the same conditions set forth herein. Upon the occurrence of an Event
of Default, Interest shall be calculated at the Default Rate as set forth in Section 2(c) below.

 

Following the
Maturity Date, or upon the occurrence of an Event of Default, and following the entry of judgment hereon, interest shall accrue,
be payable and be calculated at the rate of 16% per annum (the “Default Rate”) or, if such rate exceeds the
maximum rate permitted under applicable law, then the Default Rate shall be the maximum rate permitted under applicable law.

 

Notwithstanding
any other provision of this Note, the aggregate annual interest rate payable with respect to this Note (including all charges and
fees deemed to be interest pursuant to applicable law) shall not exceed the maximum annual rate permitted by applicable law. In
the event the aggregate annual interest rate payable with respect to this Note (including all charges and fees deemed to be interest
under applicable laws) exceeds the maximum legal rate, the Company shall only pay Interest to the Holder at the maximum permitted
rate and the Company shall continue to make such Interest payments at the maximum permitted rate until all amounts, fees and obligations
required to be paid hereunder have been paid in full.

 

This Note is
one of a series of notes issued by the Company pursuant to the Purchase Agreement containing substantially identical terms and
conditions. Such Notes are referred to herein as the “Notes,” and the holders thereof (including the Holder)
are referred to herein as the “Investors.” The right of an Investor to receive payments of Principal and Interest
under this Note shall be pari passu with the rights of the
other Investors to receive payments of Principal and Interest under their respective Notes, and the Company covenants that any
payments made by it with respect to the Notes shall be made pro rata among the Investors determined based on the ratio of
the outstanding balance of Principal and Interest under each Note divided by the aggregate outstanding balance of Principal and
Interest under all Notes. By the Holder’s acceptance of this Note, the Holder agrees to the foregoing sentence.

 

 

 

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CONVERSION
OF NOTE. This Note shall be convertible into shares of Common Stock, on the terms and conditions set forth in this Section
3.

 

Conversion
Right. At any time or times on or after the Issuance Date, the Holder shall be entitled to convert any portion of the outstanding
and unpaid Conversion Amount (as defined below) into fully paid and nonassessable shares of Common Stock in accordance with Section
3(c), at the Conversion Rate (as defined below). The Company shall not issue any fraction of a share of Common Stock upon any conversion.
If any conversion would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction
of a share of Common Stock to the nearest whole share but shall have no obligation to pay the Holder for any fraction of a share
of Common Stock forfeited as a result of such rounding. The Company shall pay any and all stock issuance taxes and costs, stock
transfer, stamp, documentary and similar taxes (excluding any taxes on the income or gain of the Holder) that may be payable with
respect to the issuance and delivery of this Note, the warrant and any shares of Common Stock to the Holder upon conversion of
any Conversion Amount. To the extent permitted by law, the Company and the Holder acknowledge and agree that any conversion of
all or any portion of the Conversion Amount into shares of Common Stock pursuant to the terms of this Section 3(a) will not be
treated as a taxable transaction and the Company and the Holder agree to report any such conversion in a manner consistent with
the foregoing treatment.

 

Conversion
Rate. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to Section 3(a) (the
“Conversion Rate”) shall be determined by dividing (x) such Conversion Amount by (y) the Conversion Price.

 

“Conversion
Amount” means the sum of (A) the portion of the Principal (including and deferred interest added thereto as Principal
pursuant to this Note) to be converted with respect to which this determination is being made, (B) accrued and unpaid Interest
with respect to such Principal and (C) accrued and unpaid Late Charges with respect to such Principal and Interest.

 

“Conversion
Price” means an amount equal to 30% of the average of the three lowest reported daily sale or daily closing trading
prices (whichever is the lower) for the Company’s common stock as reported on the OTCQB (or such
other OTC Markets or OTC Tiers, stock markets or stock exchange upon which the Company’s common stock is listed or traded)
during the thirty (30) trading days immediately preceding the Conversion Date, subject to adjustment as provided herein (including,
without limitation, adjustment pursuant to Section 6), or a fixed conversion price of $0.001 per share, whichever is greater.

 

 

 

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Mechanics
of Conversion.

 

Optional Conversion.
To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”), a Holder shall
(A) transmit by facsimile (or otherwise deliver), for receipt on or prior to 6:00 p.m., Nevada Time, on such date, a copy of an
executed notice of conversion in the form attached hereto as Exhibit I (the “Conversion Notice”) to the
Company and (B) if required by Section 3(c)(iii), cause this Note to be delivered to the Company as soon as practicable on or following
such date. On or before 5:00 p.m., Nevada Time, on the first (1st) Business Day following the date of receipt of a Conversion
Notice, the Company shall transmit by facsimile a confirmation of receipt of such Conversion Notice to the Holder (at the facsimile
number provided in the Conversion Notice) and to the Company’s transfer agent, if any (the “Transfer Agent”).
On or before 5:00 p.m., Nevada Time, on the third (3rd) Business Day following the date of receipt of a Conversion Notice
(the “Share Delivery Date”), the Company shall (X) provided the Transfer Agent is participating in the
DTC Fast Automated Securities Transfer Program, cause the Transfer Agent to credit such aggregate number of shares of Common Stock
to which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its Deposit/Withdrawal
At Custodian (“DWAC”) system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities
Transfer Program, or if the Holder otherwise requests, issue and deliver to the address as specified in the Conversion Notice,
a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder
shall be entitled. If this Note is physically surrendered for conversion as required by Section 3(c)(iii) and the outstanding Principal
of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall as soon as
practicable and in no event later than three (3) Business Days after receipt of this Note and at its own expense, issue and deliver
to the Holder a new Note (in accordance with Section 14(d)), representing the outstanding Principal not converted. The Person or
Persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes
as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

Company’s
Failure to Timely Convert. If, at any time, the Company shall fail to credit the Holder’s balance account with DTC or
issue a certificate to the Holder, as the case may be, upon conversion of any Conversion Amount on or prior to the date which is
five (5) Business Days after the Conversion Date (a “Conversion Failure”), then (A) the Company shall pay damages
to the Holder for each day of such Conversion Failure in an amount equal to 1.5% of the product of (I) the sum of the number of
shares of Common Stock not issued to the Holder on or prior to the Share Delivery Date and to which the Holder is entitled, and
(II) the higher of Closing Sale Price or highest Closing ask price of the Common Stock on the Share Delivery Date and (B) the Holder,
upon written notice to the Company, may void its Conversion Notice with respect to, and retain or have returned, as the case may
be, any portion of this Note that has not been converted pursuant to such Conversion Notice; provided that the voiding of
a Conversion Notice shall not affect the Company’s obligations to make any payments which have accrued prior to the date
of such notice pursuant to this Section 3(c)(ii) or otherwise.

 

 

 

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Book-Entry.
Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note in accordance with the terms
hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A) the full Conversion Amount
represented by this Note is being converted or (B) the Holder has provided the Company with prior written notice (which notice
may be included in a Conversion Notice) requesting physical surrender and reissue of this Note. The Holder and the Company shall
maintain records showing the Principal, Interest and Late Charges 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
conversion.

 

Disputes.
In the event of a dispute between the Company and the Holder of this Note as to the number of shares of Common Stock issuable to
the Holder in connection with a conversion of this Note, the Company shall issue to the Holder the number of shares of Common Stock
not in dispute and resolve such dispute in accordance with Section 19.

 

Limitations
on Conversion. The maximum face amount of Notes that may be converted in any consecutive two week period shall be $25,000.
This provision shall not apply during any period when (i) a tender offer or other offer to purchase Common Stock is outstanding
to holders of Common Stock generally, (ii) an Event of Default (as defined below) has occurred and is continuing, or an event,
which with the giving of notice or lapse of time, or both would be an Event of Default has occurred and is continuing, (iii) a
Major Event has occurred, (iv) the Common Stock is traded on an Eligible Market, or (v) the average daily trading volume of Common
Stock (including all block trades, trades on or off any and all stock exchanges and markets, etc.) over any three month period
exceeds 100,000 shares. If, in the aggregate, the holders of Notes elect to convert more than the face amount of Notes permitted
to be converted under this Section 3(d), then (x) the maximum dollar amount of Notes permitted under this Section 3(d) to be converted
shall be converted, (y) the Company shall provide to the converting holders a notice setting forth the dollar amount of the Notes
so converted, a statement of the dollar amount of Notes not so converted (and the reasons therefor) and (z) the balance of the
Notes requested to be converted shall be converted, automatically, as soon thereafter as permitted hereunder unless the holders
originally giving notice of conversion advise the Company by a notice received prior to the conversion of the remaining unconverted
Notes that such holders do not wish to have the unconverted Notes so converted. This Section 3(d) shall not limit the conversion
of that portion of the Principal amount due on any of the Notes that reflects unpaid deferred interest added to Principal as provided
in Section 2.

 

RIGHTS UPON
EVENT OF DEFAULT.

 

Event of
Default. Each of the following events shall constitute an “Event of Default”:

 

the Company’s
failure to pay to the Holder any amount of Principal when and as due under this Note (including, without limitation, upon a redemption
request pursuant to Section 2(d));

 

the Company’s
failure to pay to the Holder any amount of Interest, Late Charges or other amounts (other than the amounts specified in clause
(i)) when and as due under this Note if such failure continues for a period of at least three (3) Business Days;

 

 

 

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(i)the
Company’s failure to pay any sums due to the Holder pursuant to any notice given by the Company to prepay all or any portion
of this Note; 

 

(ii)any acceleration
prior to maturity of any Indebtedness referred to in clause (a) or (b) of the definition thereof of the Company or any of its Subsidiaries
consisting of principal individually or in the aggregate equal to or greater than $25,000;

 

(iii)the Company
or any of its Subsidiaries, pursuant to or within the meaning of Title 11, U.S. Code, or any similar Federal, foreign or state
law for the relief of debtors (collectively, “Bankruptcy Law”), (A) commences a voluntary case, (B) consents
to the entry of an order for relief against it in an involuntary case, (C) consents to the appointment of a receiver, trustee,
assignee, liquidator or similar official (a “Custodian”), (D) makes a general assignment for the benefit of
its creditors or (E) admits in writing that it is generally unable to pay its debts as they become due;

 

(iv)a court
of competent jurisdiction enters an order or decree under any Bankruptcy Law that is not vacated, set aside or reversed within
sixty (60) days that (A) is for relief against the Company or any of its Subsidiaries in an involuntary case, (B) appoints a Custodian
of the Company or any of its Subsidiaries or (C) orders the liquidation of the Company or any of its Subsidiaries;

 

(v)a final
judgment, arbitration award or judgments for the payment of money aggregating in excess of $25,000 are rendered against the Company
or any of its Subsidiaries and which judgments are not, within thirty (30) days after the entry thereof, bonded, discharged or
stayed pending appeal, or are not discharged within thirty (30) days after the expiration of such stay; provided, however, that
any judgment which is covered by insurance or an indemnity from a credit worthy institutional lender or insurance or bonding company
shall not be included in calculating the $25,000 amount set forth above so long as the Company provides the Holder a written statement
from such insurer or indemnity provider (which written statement shall be reasonably satisfactory to the Holder) to the effect
that such judgment is covered by insurance or an indemnity and the Company will receive the proceeds of such insurance or indemnity
within thirty (30) days of the issuance of such judgment;

 

(vi)the Company
or any Subsidiary breaches any negative covenant in any Transaction Document;

 

(vii)the Company
breaches any affirmative covenant or agreement or materially breaches any representation or warranty in any Transaction Document,
and such breach continues for a period of at least thirty (30) days;

 

(viii)the
failure of the Company to achieve a listing on an Eligible Market within three (3) years after the Issuance Date;

 

(ix)the Company
or any Subsidiary shall fail to make any payment (whether of principal, interest or otherwise and regardless of amount) in respect
of any Indebtedness in excess of $25,000 (“Material Indebtedness”), when and as the same shall become due and
payable, after giving effect to any grace period with respect thereto;

 

 

 

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(x)any event
or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits
(with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee
or agent on its or their behalf to cause such Material Indebtedness to become due, or to require the prepayment, repurchase, redemption
or defeasance thereof, prior to its scheduled maturity;

 

(xi)A Major
Event shall have occurred;.

 

(xii)either
(a) the Company’s Board of Directors, a committee of the Board of Directors or the officer or officers of the Company authorized
to take such action if board action is not required, concludes that any previously issued financial statements, including interim
periods, should no longer be relied upon because of an error in such financial statements as addressed in Accounting Principles
Board Opinion No. 20, as may be modified, supplemented or succeeded, or (b) the Company is advised by, or receives notice from,
its independent accountant that disclosure should be made or action should be taken to prevent future reliance on a previously
issued audit report or completed interim review related to previously issued financial statements, and in either case the amended
financial statements required in order to permit reliance on such financial statements for the affected periods have not been filed
with the SEC within ninety (90) days of the
earliest such event; provided,
however that if the facts and/or circumstances underlying the Event of Default described in this Section 4(a) would also
create or constitute a separate Event of Default under this Note, the cure period set forth in this Section 4(a)(xiv)
shall not supersede or prevent the application of any shorter cure period associated with such other applicable
Event of Default, each of which may be enforced separately and independently.

 

(d)Rights
Upon Event of Default. Promptly after the occurrence of an Event of Default, the Company shall deliver written notice thereof (an
“Event of Default Notice”) to each Holder, and each Holder may, at its option, by notice to the Company (an “Event
of Default Acceleration Notice”), declare the Default Amount to be due and payable upon demand (an “Acceleration”),
provided that upon the occurrence of an Event of Default described in Sections 4(a)(v) and 4(a)(vi) above, such Acceleration shall
occur automatically without requiring the delivery of an Event of Default Acceleration Notice, such that the Default Amount shall
automatically become immediately due and payable without any further notice, demand or other action.

 

(i)For
purposes hereof, the “Default Amount” shall equal the entire unpaid Principal balance under this Note, plus all previously
accrued and unpaid Interest and Late Charges, together with all future Interest (calculated at the Default Rate) through the later
of the payment date or the Maturity Date, plus the portion of the prepayment premium provided for clause 1(b)(v)(B) that would
have been applicable if the Company gave a timely notice to prepay the Note upon the happening of the applicable Event of Default
giving rise to the Acceleration. 

 

(ii)The
Default Amount shall be due and payable, in each case without presentment, demand, protest or other notice of any kind, all of
which are hereby waived by the Company. 

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(iii)Rights
Upon Event of Default. Promptly after the occurrence of an Event of Default, the Company shall deliver written notice thereof (an
“Event of Default Notice”) to Holder may, at its option, by notice to the Company (an “Event of Default Acceleration
Notice”), declare the Default Amount to be due and payable upon demand (an “Acceleration”), provided that upon
the occurrence of an Event of Default described in Sections 4(a)) above, such Acceleration shall occur automatically without requiring
the delivery of an Event of Default Acceleration Notice, such that the Default Amount shall automatically become immediately due
and payable without any further notice, demand or other action. For purposes hereof, the “Default Amount” shall equal
the entire unpaid Principal balance under this Note, plus all previously accrued and unpaid Interest and Late Charges, together
with all future Interest (calculated at the Default Rate), in each case without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Company. Following an Acceleration, the Holder
shall have the right, but not the obligation, to demand payment in full of the Default Amount at any time prior to the original
Maturity Date of this Note upon written notice to the Company (a “Demand Notice”). In the event a Demand Notice
is not immediately given upon the occurrence of an Event of Default, or the Company otherwise does not immediately pay the Default
Amount when due, interest shall continue to accrue on the Note as provided herein. The Company shall deliver the applicable Default
Amount to the Holder (x) in the case of an Event of Default under Section 4(a)(iv) or 4(a)(v), immediately, and (y) in the case
of any other Event of Default, within five (5) Business Days after the Company’s receipt of the Demand Notice. In the event
the Company fails to deliver the Default Amount as described above, the Holder shall be permitted to exercise such rights as a
secured party or otherwise hereunder or under the other Transaction Documents to the extent permitted by applicable law.

 

RIGHTS UPON
A CHANGE OF CONTROL.

 

Assumption.
The Company shall not enter into or be party to a transaction resulting in a Change of Control unless the Successor Entity assumes
in writing all of the obligations of the Company under this Note and the other Transaction Documents in accordance with the provisions
of this Section 5(a) pursuant to written agreements on or prior to the consummation of such Change of Control, including the agreement
to deliver to the Holder of this Note in exchange for this Note a security of the Successor Entity evidenced by a written instrument
substantially similar in form and substance to this Note, including, without limitation, having a principal amount and interest
rate equal to the principal amounts and the interest rates of this Note (the “Successor Note”). Upon the occurrence
of any Change of Control, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such
Change of Control, the provisions of this Note referring to the “Company” shall refer instead to the Successor Entity),
and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Note with
the same effect as if such Successor Entity had been named as the Company herein, until such time as the Successor Note is delivered.
Upon consummation of a Reclassification or Change of Control as a result of which holders of Common Stock shall be entitled to
receive stock, securities, cash, assets or any other property with respect to or in exchange for such Common Stock, the Company
or Successor Entity, as the case may be, shall deliver to the Holder confirmation that there shall be issued upon conversion of
this Note at any time after the consummation of such Reclassification or Change of Control, in lieu of the shares of Common Stock
(or other securities, cash, assets or other property) issuable upon the conversion of this Note prior to such Reclassification
or Change of Control, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other
purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of such Reclassification
or Change of Control had this Note been converted immediately prior to such Reclassification or Change of Control, as adjusted
in accordance with the provisions of this Note. The provisions of this Section 5(a) shall apply similarly and equally to successive
Change of Control transactions and shall be applied without regard to any limitations on the conversion of this Note.

 

 

 

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Payment of
Accrued and Unpaid Interest. Upon a Change of Control, (i) all accrued and unpaid Interest shall become immediately due and
payable and the Company shall pay to the Holders all such Interest together with an amount equal to the Interest that would have
accrued on the Notes from the effective date of such Change in Control through the Maturity Date whether or not the Notes remain
outstanding as a result of such Change in Control event; and, (ii) the Holders may, in their respective sole elections, by notice
to the Company, accelerate the Maturity Date upon notice to the Company, in which event, the Company shall pay to the Holder or
Holders so accelerating the then outstanding Principal amount due on the Notes so accelerated.

 

RIGHTS UPON
ISSUANCE OF OTHER SECURITIES.

 

Record Date.
If the Company takes a record of the holders of Common Stock for the purpose of entitling them to receive a dividend or other distribution
payable in Common Stock, Options, rights to acquire Company securities or in Convertible Securities, then such record date will
be deemed to be the date of the issue or sale of the Common Stock deemed to have been issued or sold upon the declaration of such
dividend or the making of such other distribution, as the case may be.

 

Adjustment
of Conversion Rate upon Subdivision or Combination of Common Stock; Stock Dividends. If the Company at any time, or from time
to time, subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding
shares of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will
be proportionately reduced. If the Company at any time, or from time to time, combines (by combination, reverse stock split or
otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price
in effect immediately prior to such combination will be proportionately increased. Any adjustment under this Section 6(b) shall
become effective at the close of business on the date the subdivision or combination becomes effective or, in the case of a stock
dividend, the date of such event.

 

(i)Adjustment
of Conversion Rate upon Cash Dividends and Distributions. If the Company at any time, or from time to time, pays a dividend
or makes a distribution in cash to the record holders of any class of Common Stock, then immediately after the close of business
on the day that the Common Stock trades ex-distribution, the Conversion Price then in effect shall be reduced to an amount equal
to the product of (i) the Conversion Price in effect immediately prior to such dividend or distribution and (ii) the quotient determined
by dividing (A) the Closing Sale Price of the Common Stock on the day that the Common Stock trades ex-distribution by (B) the sum
of (1) the Closing Sale Price of the Common Stock on the day that the Common Stock trades ex-distribution plus (2) the amount per
share of such dividend or distribution. The Company shall not be required to give effect to any adjustment in the Conversion Price
pursuant to this Section 6(c) unless and until the net effect of one or more adjustments (each of which shall be carried forward
until counted toward an adjustment), determined in accordance with this Section 6(c), shall have resulted in a change of the Conversion
Price by at least 1%, and when the cumulative net effect of more than one adjustment so determined shall be to change the Conversion
Price by at least 1%, such change in the Conversion Price shall then be given effect.

 

 

 

    	10

    	 

    

(ii)Adjustment
of Conversion Rate upon Distributions of Capital Stock, Indebtedness or Other Non-Cash Assets. If the Company at any time,
or from time to time, distributes any shares of capital stock of the Company (other than Common Stock), evidences of indebtedness
or other non-cash assets (including securities of any person other than the Company but excluding (1) dividends or distributions
paid exclusively in cash or (2) dividends or distributions referred to in Section 6(b)) to the record holders of any class of Common
Stock, then the Conversion Price then in effect shall be reduced to an amount equal to the product of (A) the Conversion Price
then in effect and (B) a fraction of which the numerator shall be the Closing Sale Price per share of the Common Stock on the record
date fixed for determination of stockholders entitled to receive such distribution less the fair market value on such record date
(as determined by the Board of Directors) of the portion of the capital stock, evidences of indebtedness or other non-cash assets
so distributed applicable to one share of Common Stock (determined on the basis of the number of shares of Common Stock outstanding
on the record date) and of which the denominator shall be the Closing Sale Price per share of the Common Stock on such record date.

 

Adjustment
of Conversion Rate Upon Issuance of Additional Shares of Common Stock.

 

In the event the
Company shall, at any time after the Issuance Date and prior to the seven (7) month first anniversary thereof
(the “First Anniversary”), issue or be deemed to issue Additional Shares of Common Stock without consideration
or for a consideration per share less than the Conversion Price in effect immediately prior to such issuance, then the Conversion
Price shall be reduced, concurrently with such issuance, to the consideration per share received by the Company for such issuance
of the Additional Shares of Common Stock; provided that if such issuance was without consideration, then the Company shall
be deemed to have received an aggregate of $0.001 of consideration for all such Additional Shares of Common Stock issued.

 

In the event the
Company shall at any time on or after the FirstAnniversary issue or be deemed to issue Additional Shares of Common Stock without
consideration or for a consideration per share less than the Conversion Price in effect immediately prior to such issuance, then
the Conversion Price shall be reduced, concurrently with such issuance, to a price (calculated to the nearest one-hundredth of
a cent) determined in accordance with the following formula:

 

CP2 = CP1* (A + B)
÷ (A + C).

 

For purposes of the
foregoing formula, the following definitions shall apply:

 

(A)“CP2”
shall mean the Conversion Price in effect immediately after such issuance of Additional Shares of Common Stock

 

 

 

    	11

    	 

    

(B) “CP1”
shall mean the Conversion Price in effect immediately prior to such issuance of Additional Shares of Common Stock;

 

(C) “A”
shall mean the number of shares of Common Stock outstanding immediately prior to such issuance of Additional Shares of Common Stock;

 

(D) “B”
shall mean the number of shares of Common Stock that would have been issued if such Additional Shares of Common Stock had been
issued at a price per share equal to CP1 (determined by dividing the aggregate consideration received by the Company
in respect of such issuance by CP1); and

 

(E) “C”
shall mean the number of such Additional Shares of Common Stock issued or deemed to be issued in such transaction.

 

Determination
of Consideration. For purposes of this Section 6(d), the consideration received by the Company for the issuance of any
Additional Shares of Common Stock shall be computed as follows:

 

(A)Cash and Property:
Such consideration shall:

 

(1)insofar
as it consists of cash, be computed at the aggregate amount of cash received by the Company, excluding amounts paid or payable
for accrued interest;

 

(2)insofar
as it consists of property other than cash, be computed at the fair market value thereof at the time of such issuance, as determined
in good faith by the Board of Directors of the Company; and

 

(3)in
the event Additional Shares of Common Stock are issued together with other shares or securities or other assets of the Company
for consideration which covers both, be the proportion of such consideration so received for the Additional Shares of Common Stock,
computed as provided in clauses (i) and (ii) above, as determined in good faith by the Board of Directors of the Company.

 

 

 

    	12

    	 

    

(B)Options
and Convertible Securities. The consideration per share received by the Company for Additional Shares of Common Stock consisting
of Options and Convertible Securities, shall be determined by dividing: (1) the total amount, if any, received or receivable by
the Company as consideration for the issuance of such Options or Convertible Securities, plus the minimum aggregate amount of additional
consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a subsequent
adjustment of such consideration) payable to the Company upon the exercise of such Options or the conversion or exchange of such
Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for Convertible Securities
and the conversion or exchange of such Convertible Securities, by (2) the maximum number of shares of Common Stock (as set forth
in the instruments relating thereto, without regard to any provision contained therein for a subsequent adjustment of such number)
issuable upon the exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options
for Convertible Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible
Securities.

 

Other Events;
Other Dividends and Distributions. If any event occurs of the type contemplated by the provisions of this Section 6 but not
expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock
rights or other rights with equity features), then the Company’s Board of Directors shall, in good faith, make an adjustment
in the Conversion Price so as to protect the rights of the Holder under this Note; provided that no such adjustment will increase
the Conversion Price as otherwise determined pursuant to this Section 6.

 

Notice of
Adjustment. Whenever the Conversion Price is adjusted pursuant to this Section 6, the Company shall promptly mail notice of
such adjustment to the Holder, which notice shall set forth the Conversion Price after adjustment, the date on which such adjustment
became effective and a brief statement of the facts resulting in such adjustment.

 

Pre-emptive
Right.

 

Issuance of
Additional Equity Securities. The Company hereby grants to each Holder (the right to purchase its Pro Rata Portion of any new equity
securities (other than any Excluded Securities) and of any new convertible debt (collectively the “New Securities”)
that the Company may from time to time propose to issue or sell to any party.

 

Additional Issuance
Notices. The Company shall give written notice (an “Issuance Notice”) of any proposed issuance or sale described
in subsection (a) above to the Holders within five Business Days following any meeting of the Board at which any such issuance
or sale is approved. The Issuance Notice shall, if applicable, be accompanied by a written offer from any prospective purchaser
seeking to purchase New Securities and shall set forth the material terms and conditions of the proposed issuance, including:

 

the number and
description of the New Securities proposed to be issued and the percentage of the Company’s outstanding Equity Securities
such issuance would represent;

 

the proposed issuance
date, which shall be at least 20 Business Days after the date of the Issuance Notice; and

 

the proposed purchase
price per share or debt instrument.

 

 

 

    	13

    	 

    

Exercise of
Pre-emptive Rights. Each Holder shall for a period of 15 Business Days following the receipt of an Issuance Notice (the “Exercise
Period”) have the right to elect irrevocably to purchase its Pro Rata Portion of the New Securities at the purchase price
set forth in the Issuance Notice by delivering a written notice to the Company. The closing of any purchase by any Holder shall
be consummated concurrently with the consummation of the issuance or sale described in the Issuance Notice; provided, however,
that the closing of any purchase by any Pre-emptive Stockholder may be extended beyond the closing of the transaction in the Issuance
Notice to the extent necessary to obtain required government approvals and other required third party approvals or consents (and
the Company shall its best efforts to obtain such approvals and consents).

 

Over-Allotment.
No later than five Business Days following the expiration of the Exercise Period, the Company shall notify each Holder in writing
of the number of New Securities that each Holder has agreed to purchase (including, for the avoidance of doubt, where such number
is zero) (the “Over-allotment Notice”). Each Holder exercising its right to purchase its Pro Rata Portion of
the New Securities in full (an “Exercising Holder”) shall have a right of over-allotment such that if any other
Pre-emptive Stockholder fails to exercise its right under this Section to purchase its Pro Rata Portion of the New Securities (each,
a “Non-Exercising Holder”), such Exercising Holder may purchase its Pro Rata Portion of such Non-Exercising
Holder’s allotment by giving written notice to the Company within five Business Days following receipt of the Over-allotment
Notice (the “Over-allotment Exercise Period”).

 

Sales to the
Prospective Buyer. If any Holder fails to purchase its allotment of the New Securities within the time periods described in subsection
(c) and after the expiration of the Over-allotment Exercise Period, the Company shall be free to complete the proposed issuance
or sale of New Securities described in the Issuance Notice with respect to which Pre-emptive Stockholders failed to exercise the
option set forth in this Section on terms no less favorable to the Company than those set forth in the Issuance Notice (except
that the amount of New Securities to be issued or sold by the Company may be reduced); provided, that (x) such issuance or sale
is closed within 30 Business Days after the expiration of the Over-allotment Exercise Period (subject to the extension of such
30 Business Day period for a reasonable time not to exceed 60 calendar days to the extent reasonably necessary to obtain any government
approvals) and (y) for the avoidance of doubt, the price at which the New Securities are sold is at least equal to or higher than
the purchase price described in the Issuance Notice. If the Company has not sold such New Securities within such time period, the
Company shall not thereafter issue or sell any New Securities without first again offering such securities to the Stockholders
in accordance with the procedures set forth in this Section.

 

Closing of the
Issuance. Upon the issuance of any New Securities in accordance with this Section, the Company shall deliver to each Exercising
Holder certificates (if any) evidencing the New Securities, which New Securities shall be issued free and clear of any liens (other
than those arising hereunder and those attributable to the actions of the purchasers thereof), and the Company shall so represent
and warrant to the purchasers thereof, and further represent and warrant to such purchasers that such New Securities shall be,
upon issuance thereof to the Exercising Holders and after payment therefor, duly authorized, validly issued, fully paid and non-assessable.
Each Exercising Holder shall deliver to the Company the purchase price for the New Securities purchased by it by certified or bank
check or wire transfer of immediately available funds. Each party to the purchase and sale of New Securities shall take all such
other actions as may be reasonably necessary to consummate the purchase and sale including, without limitation, entering into such
additional agreements as may be necessary or appropriate.

 

 

 

    	14

    	 

    

For purposes
of this Section 7 the following terms shall have the following meanings:

 

“Excluded
Securities” means Equity Securities issued in connection with: (a) a grant to any existing or prospective consultants,
employees, officers or Directors pursuant to any stock option, employee stock purchase or similar equity-based plans or other compensation
agreement existing on the date hereof; (b) the conversion or exchange of any securities existing on the date hereof (including
the Warrant Shares and Note Shares issuable pursuant to the Agreement) of the Company into shares of Common Stock, or the exercise
of any options, warrants or other rights to acquire such shares existing on the date hereof; (c) a stock split, stock dividend
or any similar recapitalization; or (d) any issuance of securities in an underwritten public offering by the Company (not including
a registered direct offering.

 

“Pro
Rata Portion” means, with respect to any Holder, on any issuance date for New Securities, the number of New Securities
equal to the product of (i) the total number of New Securities to be issued by the Company on such date and (ii) the fraction determined
by dividing (x) the number of shares of Common Stock owned or issuable to such Holder upon the conversion of this Note and the
exercise of any Warrants issued by the Company to such Holder immediately prior to such issuance by (y) the total number of shares
of Common Stock of the Company outstanding on such date immediately prior to such issuance.

 

NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation, Bylaws or
through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities,
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Note, and will
at all times in good faith carry out all of the provisions of this Note and take all action as may be required to protect the rights
of the Holder of this Note.

 

RESERVATION
OF AUTHORIZED SHARES.

 

Reservation.
The Company shall at all times reserve out of its authorized and unissued shares of Common Stock a number of shares of Common Stock
equal to 120% of the Conversion Rate with respect to the full Conversion Amount of this Note, solely for the purpose of effecting
the conversion of this Note (the “Required Reserve Amount”).

 

Insufficient
Authorized Shares. If at any time while this Note remains outstanding the Company does not have a sufficient number of authorized
and unreserved shares of Common Stock to satisfy its obligation to reserve the Required Reserve Amount (an “Authorized
Share Failure”), then the Company shall take all action necessary to increase the Company’s authorized shares of
Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount. Without limiting the generality
of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event
later than seventy-five (75) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its
stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such meeting,
the Company shall provide each stockholder with a proxy statement and shall use its commercially reasonable efforts to solicit
its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors to recommend
to the stockholders that they approve such proposal.

 

 

 

    	15

    	 

    

VOTING RIGHTS.
The Holder shall have no voting rights as the Holder of this Note, except as required by law, including, but not limited to, the
General Corporation Law of the State of Delaware, and as expressly provided in this Note, the Company’s Charter or any of
the other Transaction Documents.

 

OTHER COVENANTS.

 

Listing.
The Company shall promptly secure the listing of all of the Registrable Securities (as defined in the Registration Rights Agreement)
upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed (subject
to official notice of issuance) and shall maintain such listing of all Registrable Securities from time to time issuable under
the terms of the Transaction Documents. The Company shall maintain the Common Stock’s authorization for quotation on the
principal exchange or market in which it is listed. Neither the Company nor any of its Subsidiaries shall take any action which
would be reasonably expected to result in the delisting or suspension of the Common Stock on the principal market in which it is
listed, other than in connection with a transfer of listing to an Eligible Market. The Company shall pay all fees and expenses
in connection with satisfying its obligations under this Section 10(a).

 

Quarterly
Report of Outstanding Principal and Interest. The Company covenants to deliver to the Holder, within 30 days following the
end of each calendar quarter while any portion of this Note remains outstanding, a written statement signed by an authorized officer
of the Company certifying (i) the amount of the outstanding Principal balance of this Note, including any Interest added to Principal
pursuant to Section 2(a) and 2(b) above, and (ii) all accrued but unpaid Interest on such outstanding Principal balance, and (iii)
all remaining scheduled payments of Interest through the Maturity Date, in each case as of the end of such calendar quarter. 

 

Waiver
of Usury Defense. The Company covenants (to the
extent that it may lawfully do so) that it shall not assert, plead (as a defense or otherwise) or in any manner whatsoever claim
(and shall actively resist any attempt to compel it to assert, plead or claim) in any action, suit or proceeding that the interest
rate on this Note violates present or future usury or other laws relating to the interest payable on any Indebtedness and shall
not otherwise avail itself (and shall actively resist any attempt to compel it to avail itself) of the benefits or advantages of
any such laws.

 

 

 

    	16

    	 

    

Registration
Rights. The Company agrees that the Holder, as a holder of Registrable Securities (as defined in the Registration Rights Agreement,
dated as of the Issuance Date, by and among the Company and the Investors identified therein, as may be amended and/or restated
from time to time (the “Registration Rights Agreement”), is entitled to the benefits of the Registration Rights
Agreement. Further, if (i) the Registration Statement (as defined in Registration Rights Agreement) required by Section 2(a) of
the Registration Rights Agreement, covering the Registrable Securities required to be covered thereby is (A) not filed with the
SEC on or before thirty (30) calendar days after the applicable Registration Request (as defined in Registration Rights Agreement)
(a “Filing Failure”) or (B) not declared effective by the SEC on or before the date that is one hundred and
eighty (180) calendar days after the applicable Registration Request, in each case to the extent required under the Registration
Rights Agreement (an “Effectiveness Failure”) or (ii) after the effective date of any Registration Statement,
after the second (2nd) consecutive Business Day (other than during an allowable blackout period pursuant to Section 3(g) of the
Registration Rights Agreement (“Blackout Period”)) on which sales of all of the Registrable Securities required
to be included on such Registration Statement cannot be made pursuant to such Registration Statement (including, without limitation,
because of a failure to keep such Registration Statement effective, to disclose such information as is necessary for sales to be
made pursuant to such Registration Statement, or to maintain a listing of the Common Stock required for sales to be made under
the Registration Statement) (a “Maintenance Failure”), then, as relief for the damages to the Holder by reason
of any such delay in or reduction of its ability to sell the Registrable Securities, the Company shall pay to the Holder an amount
in cash equal to (A) one percent (1%) of the outstanding Principal balance of this Note on each of the following dates: (i) the
day of a Filing Failure; (ii) the day of an Effectiveness Failure; and (iii) the initial day of a Maintenance Failure, and (B)
one percent (1%) of the outstanding Principal balance of this Note on each of the following dates: (i) on every thirtieth (30th)
day after the initial day of a Filing Failure (prorated for periods totaling less than thirty (30) days) until such Filing Failure
is cured; (ii) on every thirtieth (30th) day after the initial day of an Effectiveness Failure (prorated for periods totaling less
than thirty (30) days) until such Effectiveness Failure is cured; (iii) on every thirtieth (30th) day after the initial day of
a Maintenance Failure (prorated for periods totaling less than thirty (30) days) until such Maintenance Failure is cured. The payments
to which the Holder shall be entitled pursuant to this Section 10(d) are referred to herein as “Registration Default Payments.”
Registration Default Payments shall be paid on the earlier of (I) the last day of the calendar month during which such Registration
Default Payments are incurred and (II) the third (3rd) Business Day after the event or failure giving rise to the Registration
Default Payments is cured. In the event the Company fails to make Registration Default Payments in a timely manner, such Registration
Default Payments shall bear interest at the rate of one and one-half percent (1.5%) per month (prorated for partial months) until
paid in full. If the Company has declared a Blackout Period, a Maintenance Failure shall be deemed not to have occurred and be
continuing in relation to the Registration Statement during the period specified in Section 3(g) of the Registration Rights Agreement.
Registration Default Payments shall be payable from the first day any Blackout Period exceeds the period specified in Section 3(g)
of the Registration Rights Agreement. Registration Default Payments shall cease to accrue at the end of the Effectiveness Period
(as defined in Registration Rights Agreement); provided that the foregoing shall not affect the Company’s obligation
to make Registration Default Payments for any period prior to such time. Whenever in this Note there is mentioned, in any context,
the payment of interest on, or in respect of, this Note, such mention shall be deemed to include mention of the payment of liquidated
damages on this Note to the extent that, in such context, such liquidated damages are, were or would be payable in respect thereof
pursuant to this Section 10(d). For the avoidance of doubt, the Registrable Securities required to be included in any Registration
Statement referred to in this Section 10(d) shall be determined according to the provisions of the Registration Rights Agreement,
including all references to exceptions therein in such provisions related to the “Rule 415 Amount,” as applicable.

 

 

 

 

 

 

    	17

    	 

    

VOTE TO ISSUE,
OR CHANGE THE TERMS OF NOTE. Any provision of this Note may be amended, waived or modified only upon the written consent of
both the Company and the Holder.

 

TRANSFER.
This Note and the shares of Common Stock issuable upon conversion of this Note may not be offered for sale, sold, transferred or
assigned (i) in the absence of (a) an effective registration statement for this Note or the shares of Common Stock issuable upon
conversion of this Note, as applicable, or (b) an opinion of counsel (selected by the Holder and reasonably acceptable to the Company),
in a form reasonable acceptable to the Company, that this Note and the shares of Common Stock issuable upon conversion of this
Note may be offered for sale, sold, assigned or transferred pursuant to an exemption from registration; provided that such
opinion of counsel shall not be required in connection with any such sale, assignment or transfer to an institutional accredited
investor that is, prior to such sale, assignment or transfer, an affiliate of the Holder, or (ii) unless the Holder
provides the Company with assurance (reasonably satisfactory to the Company) that such Note or the shares of Common Stock issuable
upon the conversion of this Note can be sold, assigned or transferred pursuant to Rule 144.

 

REISSUANCE OF
THIS NOTE.

 

Transfer.
This Note is issued in registered form pursuant to Treasury Regulations section 1.871-14(c)(1). The Company (or its agent) will
maintain a record of the Holder of this Note, and of Principal and Interest hereon as required by that regulation. This Note may
be transferred or otherwise assigned only by surrender of this Note and issuance of a new Note in accordance with this Section
14, and neither this Note nor any interest herein may be sold, transferred or assigned to any Person except upon satisfaction of
the conditions specified in this Section 14. If this Note is to be transferred or assigned, the Holder shall surrender this Note
to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Note (in accordance with
Section 14(d)), registered as the Holder may request, representing the outstanding Principal being transferred by the Holder and,
if less than the entire outstanding Principal is being transferred, a new Note (in accordance with Section 14(d)) to the Holder
representing the outstanding Principal not being transferred. The Holder and any assignee, by acceptance of this Note, acknowledge
and agree that, by reason of the provisions of Section 3(c)(iii) following conversion of any portion of this Note, the outstanding
Principal represented by this Note may be less than the Principal stated on the face of this Note.

 

Lost, Stolen
or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Note, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to
the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute
and deliver to the Holder a new Note (in accordance with Section 14(d)) representing the then outstanding Principal.

 

Note Exchangeable
for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the principal office of
the Company, for a new Note or Notes (in accordance with Section 14(d) and in Principal amounts of at least $5,000 representing
in the aggregate the outstanding Principal of this Note (including any deferred interest thereon that has been added to such Principal
amount as provided herein), and each such new Note will represent such portion of such outstanding Principal as is designated by
the Holder at the time of such surrender.

 

 

 

    	18

    	 

    

Issuance
of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall
be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding
(or in the case of a new Note being issued pursuant to Section 14(a) or Section 14(c), the Principal designated by the Holder which,
when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the Principal
remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated
on the face of such new Note, which is the same as the Issuance Date of this Note, (iv) shall have the same rights and conditions
as this Note, and (v) shall represent accrued Interest and Late Charges on the Principal and Interest of this Note, from the Issuance
Date.

 

REMEDIES, CHARACTERIZATIONS,
OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Note shall be cumulative and in addition to
all other remedies available under this Note and any of the other Transaction Documents at law or in equity (including a decree
of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s right to pursue actual
and consequential damages for any failure by the Company to comply with the terms of this Note. Amounts set forth or provided for
herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the
Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance
thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and
that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach
or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any
breach, without the necessity of showing economic loss and without any bond or other security being required.

 

PAYMENT OF
COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this
Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company
or other proceedings affecting Company creditors’ rights and involving a claim under this Note, THEN, in any such
event, the Company shall pay the costs incurred by the Holder for such collection, enforcement or action or in connection with
such bankruptcy, reorganization, receivership or other proceeding, including, but not limited to, reasonable attorneys’ fees,
costs and disbursements.

 

CONSTRUCTION;
HEADINGS. This Note shall be deemed to be jointly drafted by the Company and the Holder of this Note and shall not be construed
against any person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of,
or affect the interpretation of, this Note.

 

 

 

    	19

    	 

    

FAILURE OR
INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other right, power or privilege.

 

DISPUTE RESOLUTION.
In the case of a dispute as to the arithmetic calculation of the Conversion Rate, the Company shall submit the disputed arithmetic
calculations via facsimile within three (3) Business Days of receipt, or deemed receipt, of the Conversion Notice, as the case
may be, to the Holder. If the Holder and the Company are unable to agree upon such calculation within five (5) Business Days of
such disputed arithmetic calculation being submitted to the Holder, then the Company shall, within one Business Day submit via
facsimile the disputed arithmetic calculation of the Conversion Rate to the Company’s independent, outside accountant. The
Company, at the Company’s expense, shall cause the accountant, as the case may be, to perform the calculations and notify
the Company and the Holder of the results no later than ten (10) Business Days from the time it receives the disputed calculations.
Such accountant’s calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

 

NOTICES; PAYMENTS.

 

Notices.
Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in accordance
with the Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this
Note, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the
foregoing, the Company will give written notice to the Holder of any adjustment of the Conversion Price, setting forth in reasonable
detail, and certifying, the calculation of such adjustment.

 

Payments.
Whenever any payment of cash is to be made by the Company to any Person pursuant to this Note, such payment shall be made in lawful
money of the United States of America by a good check drawn on the account of the Company and sent via overnight courier service
to such Person at such address as previously provided to the Company in writing (which address, in the case of each of the initial
Holder of this Note, shall initially be as set forth in the Purchase Agreement); provided that the Holder may elect to receive
a payment of cash via wire transfer of immediately available funds by providing the Company with prior written notice setting out
such request and the Holder’s wire transfer instructions. 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.
Any amount of Principal or other amounts due under the this Note or the Transaction Documents, other than Interest, which is not
paid when due shall result in a late charge being incurred and payable by the Company in an amount equal to interest on such amount
at the rate of five percent (5%) per annum from the date such amount was due until the same is paid in full (“Late Charge”).

 

CANCELLATION.
After all Principal, accrued Interest and other amounts at any time owed on this Note have been paid in full, this Note shall automatically
be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.

 

 

 

    	20

    	 

    

WAIVER OF NOTICE.
To the extent permitted by law, the Company hereby waives demand, notice, presentment, notice of presentment, protest, notice of
protest, and all other demands and notices (other than the notices expressly provided for in this Note) in connection with the
delivery, acceptance, default or enforcement of this Note and the Purchase Agreement.

 

GOVERNING LAW.
This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation
and performance of this Note shall be governed by, the internal laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of New York.

 

CONSENT TO
JURISDICTION. Any legal suit, action or proceeding arising out of or based upon/relating to this instrument, the other Transaction
Documents or the transactions contemplated hereby or thereby shall be instituted in the federal courts of the United States of
America or the courts of the State of New York in each case located in the City of New York, and County of New York, and each party
irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of process, summons,
notice or other document in accordance with the notice provisions of the Agreement, or by certified or registered or express mail
or any other method permitted by rule or law to such party’s address set forth herein (or to such other address as a party
may designate from time to time for notices) shall be effective service of process for any suit, action or other proceeding brought
in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or
proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum or that the court does not have personal jurisdiction
of such party.

 

Waiver of Jury
Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH
MAY ARISE UNDER THIS INSTRUMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE,
EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION
ARISING OUT OF OR RELATING TO THIS INSTRUMENT, THE OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
EACH PARTY TO THIS INSTRUMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY
HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

 

 

    	21

    	 

    

CERTAIN DEFINITIONS.
For purposes of this Note, the following terms shall have the following meanings:

 

“Additional
Shares of Common Stock” shall mean all shares of Common Stock issued and all shares of Common Stock issuable upon conversion
of any Options or Convertible Securities issued by the Company after the Issuance Date, other than (1) the following shares of
Common Stock and (2) shares of Common Stock deemed issued pursuant to the following Options and Convertible Securities:

 

shares of Common
Stock, Options or Convertible Securities issued by reason of a dividend, stock split, combination or other distribution or recapitalization
on shares of Common Stock that is covered by Section 6(b) or 6(c) of this Note; and

 

shares of Common
Stock, Options or Convertible Securities issued to employees or directors of, or consultants or advisors to, the Company or any
of its Subsidiaries pursuant to a plan, agreement or arrangement approved by the Board of Directors of the Company prior to the
date hereof.

 

For the avoidance
of doubt, shares of Common Stock issuable upon conversion or exercise of any Option or Convertible Security shall be deemed to
have been issued, for the consideration described in Section 6(d)(iii)(B), on the date of issuance of the Option or Convertible
Security, as the case may be.

 

“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

“Change
of Control” means the consummation of any Major Event.

 

“Common
Stock” means the shares of the Company’s common stock, par value $0.001 per share, and any other securities
of the Company which may be issued or issuable with respect to, in exchange for, or in substitution of, such shares of common stock
(including without limitation, by way of recapitalization, reclassification, reorganization, merger or otherwise).

 

“Contingent
Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect
to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring
such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will
be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will
be protected (in whole or in part) against loss with respect thereto.

 

 

 

    	22

    	 

    

“Convertible
Securities” means any stock or securities (other than Options) directly or indirectly convertible into or exercisable
or exchangeable for Common Stock.

 

“Eligible
Market” means The New York Stock Exchange, Inc. (“NYSE”), including the NYSE Amex, The Nasdaq Stock Market,
the OTCBB or their successors.

 

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

 

“GAAP”
means United States generally accepted accounting principles, consistently applied, or successor conventions.

 

“Indebtedness”
of any Person means, without duplication (a) all indebtedness for borrowed money, (b) all obligations issued, undertaken or assumed
as the deferred purchase price of property or services including, without limitation, “capital leases” in accordance
with GAAP (other than trade payables entered into in the ordinary course of business), (c) all reimbursement or payment obligations
with respect to letters of credit, surety bonds and other similar instruments, (d) all obligations evidenced by notes, bonds, debentures
or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses,
(e) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing,
in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and
remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property),
(f) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP, consistently applied for
the periods covered thereby, is classified as a capital lease, (g) any amount raised by acceptance under any acceptance credit
facility, (h) receivables sold or discounted (other than within the framework of factoring, securitization or similar transaction
where recourse is only to such receivables or proceeds), (i) any derivative transaction, (j) any counter-indemnity obligation in
respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial
institution (excluding commercial letters of credit issued in the ordinary course of business), (k) all indebtedness referred to
in clauses (a) through (j) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property
or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property
has not assumed or become liable for the payment of such indebtedness, and (l) all Contingent Obligations in respect of indebtedness
or obligations of others of the kinds referred to in clauses (a) through (k) above.

 

 

 

    	23

    	 

    

“Major
Event” means the occurrence of (i) the signing of a definitive agreement or a series of agreements for the transfer,
sale, lease or license of all or substantially all of the Company’s assets, a substantial portion of its intellectual property,
a controlling interest in any Subsidiary of the Company; or capital securities of the Company or any of its Subsidiaries; (ii)
the signing of a definitive agreement to consolidate or merge with or into another Person (whether or not the Company is the Successor
Entity) resulting, after giving effect to the consummation of the transactions contemplated by such agreement, in such other Person
(or the holders of such other Person’s capital stock immediately prior to the transaction) (other than the Holder) being
or becoming the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty-five percent (35%)
or more of any class of the Company’s or the Successor Entity’s outstanding capital securities; (iii) the signing of
a definitive agreement or a series of agreements to consummate a stock acquisition or sale or other business combination (including,
without limitation, a reorganization, recapitalization, or spin-off), or series thereof, with any other Person or Persons (other
than the Holder) that results, after giving effect to the consummation of the transactions contemplated by such agreement or agreements,
in such other Person or Persons being or becoming the beneficial owner (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of thirty-five percent (35%) or more of any class of the Company’s outstanding capital securities; or (iv)
allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 35% of the outstanding
shares of Common Stock (other than the Holder) (not including any shares of Common Stock held by the Person or Persons making or
party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (v) any
“person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act)
(other than the Holder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of either (x) 35% or more of the aggregate ordinary voting power represented by issued and outstanding
Common Stock or (y) 35% or more of the aggregate ordinary voting power represented by issued and outstanding Common Stock not held
by the such Person or Persons as of the date hereof

 

“Options”
means any rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

 

“Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

“Reclassification”
means any reclassification or change of shares of Common Stock issuable upon conversion of this Note (other than a change in par
value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination).

 

“Rule
144” means Rule 144 promulgated under the Securities Act and any successor provision thereto.

 

 

 

    	24

    	 

    

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

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Subsidiary”
means with respect to any Person, any corporation, association or other business entity of which 50% or more of the total voting
power of equity entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees or other governing body thereof is at the time owned or controlled by such Person (regardless of whether such equity is
owned directly or through one or more other Subsidiaries of such Person or a combination thereof).

 

“Successor
Entity” means the Person, which may be the Company, formed by, resulting from or surviving any Change of Control or the
person with which such Change of Control transaction shall have been made. In the event that the Person resulting from or surviving
any Change of Control is a Subsidiary, Successor Entity shall be the parent of such Subsidiary.

 

“Transaction
Documents” has the meaning given to such term in the Purchase Agreement.

 

 

 

 

 

 

 

 

 

    	26

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Note to be duly executed as of the Issuance Date set out above.

 

	 	Players Network

a nevada corporation	 
	 	 	 	 
	 	By:	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	27

    	 

    

EXHIBIT I

 

PLAYERS NETWORK

a Nevada corporation

 

CONVERSION NOTICE

 

Reference is made to the Convertible Note
(the “Note”) issued to the undersigned by Players Network. (the “Company”). In accordance
with and pursuant to the Note, the undersigned hereby elects to convert the Conversion Amount (as defined in the Note) of the Note
indicated below into shares of Common Stock par value $0.001 per share (the “Common Stock”) of the Company,
as of the date specified below.

 

	Date of Conversion:	 
	Aggregate Conversion Amount to be converted:	 
	Please confirm the following information:
	Conversion Price:	 
	Number of shares of Common Stock to be issued:	 
	Please issue the Common Stock into which the Note is being converted in the following name and to the following address:
	Issue to:	 
	 	 
	 	 
	Facsimile Number:	 
	Authorization:	 
	By:	 
	Title:	 
	Dated:	 
	Account Number:	 
	  (if electronic book entry transfer)	 
	Transaction Code Number:	 
	  (if electronic book entry transfer)	 
	 	 	 	 	 	 	 	 	 	 	 	 

 

 

 

28Exhibit 10.8

 

NOTE AND WARRANT PURCHASE AGREEMENT

 

This Note and Warrant Purchase Agreement
(this “Agreement”), dated as of August 9th, 2012, is made by and among Players Network, a Nevada corporation
with offices at 1771 E. Flamingo Road, Suite 201A, Las Vegas, NV 89119 (the “Company”), and Continental Equities,
LLC, a New York limited liability company with offices at 888 7th Avenue, 20th Floor, New York, NY 10106.
(together with its successors and permitted assigns, collectively, the “Investor”).

 

RECITALS

 

The Company and the
Investor are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the
provisions of Regulation D (“Regulation D”), as promulgated by the U.S. Securities and Exchange Commission (the
“Commission”) under the Securities Act of 1933, as amended (the “Act”).

 

The Investor wish to
purchase from the Company, and the Company wishes to sell and issue to the Investor, upon the terms and conditions stated in this
Agreement, (i) secured convertible notes in the form attached hereto as Exhibit A in the initial aggregate principal amount
of $50,000,000 (the “Notes”), and (ii) warrants to purchase an aggregate of up to 200,000
shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”), at an exercise
price of $0.18 per share in the form attached hereto as Exhibit B (the “Warrants,” and together with
the Notes, the “Closing Securities”).

 

Contemporaneous with the sale of the
Closing Securities, the parties shall execute and deliver a Registration Rights Agreement, in the form attached hereto as Exhibit C
(the “Registration Rights Agreement”), pursuant to which the Company will agree to provide the Investor with
certain registration rights under the Act, and the rules and regulations promulgated thereunder, and applicable state securities
laws.

 

Capitalized terms used and not otherwise
defined herein shall have the meanings given such terms in the Notes.

 

NOW, THEREFORE, the Company and
the Investor mutually agree as follows.

 

Article
1

PURCHASE OF THE NOTES AND THE WARRANTS

 

1.1             
Issuance of Closing Securities. Subject to the terms and conditions of this Agreement, on the Closing Date, the
Investor, or its designee, shall purchase from the Company, and the Company shall sell and issue to Investor, the Closing Securities
in exchange for a cash payment by Investor of $50,000.00 (the “Purchase Price”). 

 

    	

    	 

    
 

1.2             
Closing. The closing (the “Closing”) of the purchase and sale of the Closing Securities shall
take place simultaneously with the execution of this Agreement or at such other time as the Company and the Investor may mutually
agree (the date on which the Closing occurs, the “Closing Date”) at the offices of Edwards Wildman Palmer LLP,
750 Lexington Avenue, New York, NY 10022, or at such other location as the Company and the Investor shall mutually agree. At the
Closing, the Company shall deliver to the Investor the Notes and the Warrants, each registered in such name or names as the Investor
may designate, together with the Registration Rights Agreement. On the Closing Date, the Investor shall deliver the Purchase Price
to the Company, payable by good check or wire transfer in same day funds to an account in a bank located in the United States of
America specified by the Company in writing.

 

Article
2

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

The Company represents and warrants to
the Investor that, except as set forth on the Schedule of Exceptions attached hereto (the “Schedule of Exceptions”)
the statements contained in this Article 2 are true and correct as of the Closing Date as though made as of the Closing
Date, except to the extent such representations and warranties are specifically made as of a particular date (in which case such
representations and warranties are true and correct as of such other specified date). The Schedule of Exceptions shall be arranged
in sections and subsections corresponding to the numbered and lettered sections and subsections contained in this Article 2,
but any information disclosed under any section or subsection of the Schedule of Exceptions shall be deemed to be disclosed into
any other section or subsection to the extent that such other section or subsection is reasonably cross-referenced
or the relevance to such other section or subsection is reasonably apparent on the face of the disclosure.

 

2.1             
Organization, Qualifications and Corporate Power. The Company is a corporation incorporated,
validly existing and in good standing under the laws of the State of Nevada and, except as set forth in Schedule 2.1,
is licensed or qualified to transact business as a foreign corporation and is in good standing in each jurisdiction in which the
nature of the business transacted by it or the character of the properties owned or leased by it requires such licensing or qualification.
The Company and each of its Subsidiaries has the corporate power and authority to own and hold its properties and to carry on its
business as now conducted and as proposed to be conducted, and in the case of the Company, to execute, deliver and perform its
obligations under this Agreement, the Notes, the Warrants, the Registration Rights Agreement, and any other agreements contemplated
or necessitated hereby to which it is a party (collectively, the “Transaction Documents”). The Company has the
corporate power and authority to issue, sell and deliver the Closing Securities, to issue and deliver the shares of Common Stock
issuable upon conversion of the Notes (the “Note Shares”), and to issue and deliver the shares of Common Stock
issuable upon exercise of the Warrants (the “Warrant Shares”).

 

    	2

    	 

    
 

2.2             
Authorization.

 

(a)               
The execution and delivery by the Company of the Transaction Documents, the performance
by the Company of its obligations thereunder, the issuance, sale and delivery of the Closing Securities by the Company and the
reservationof the Note Shares and Warrant Shares by the Company have been duly authorized by all requisite corporate action and
will not (i) violate any provision of law, any order of any court or other agency of government, the Certificate of Incorporation
of the Company, as amended to date (the “Charter”), or the By-laws of the Company, as amended to date (the “By-laws”),
or any provision of any indenture, agreement or other instrument to which the Company or any of its Subsidiaries is a party or
by which any of its properties or assets is bound, (ii) conflict with, result in a breach of or constitute (with due notice or
lapse of time or both) a default under any such indenture, agreement or other instrument, or (iii) result in the creation or imposition
of any lien, charge, restriction, claim or encumbrance of any nature whatsoever upon any of the properties or assets of the Company
or any of its Subsidiaries.

 

(b)              
The Closing Securities have been duly authorized and, when issued and delivered pursuant to this Agreement, will have been
duly executed, issued and delivered and will constitute valid and legally binding obligations of the Company, enforceable in accordance
with their terms, subject, as to enforcement, to (i) bankruptcy, insolvency, reorganization and other laws of general applicability
relating to or affecting creditors’ rights and (ii) general equity principles.

 

2.3             
Capitalization.

 

(a)               
The Company is authorized by its Charter to issue up to 162,873,347 shares of capital stock, of which (i) 150,000,000 shares
are designated as Common Stock, and (ii) 2,000,000 shares are designated Series A Preferred Stock, par value $.001 and 10,873,347
shares are designated as preferred stock, par value $0.001 per share (collectively the “Preferred Stock”). As
of the Closing Date, there are _________ shares of Common Stock issued and outstanding, 2,000,000 shares of Series A Preferred
Stock issued and outstanding and 4,349,339 shares of Series B Preferred Stock issued and outstanding. All of the issued shares
of capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable; the Note Shares
and Warrant Shares issuable upon conversion of the Notes and exercise of the Warrants, respectively, have been duly authorized
and reserved for issuance and, when issued, delivered and paid for in accordance with the provisions of the Notes and the Warrants,
respectively, will be validly issued, fully paid and non-assessable; and the issuance of Note Shares and Warrant Shares upon conversion
of the Notes and exercise of the Warrants, respectively, will not be subject to any preemptive or similar rights.

 

    	3

    	 

    
 

(b)              
The designations, powers, preferences, rights, qualifications, limitations and restrictions in respect of each class and
series of authorized capital stock of the Company are as set forth in the Company’s Charter, and all such designations, powers,
preferences, rights, qualifications, limitations and restrictions are valid, binding and enforceable and in accordance with all
applicable laws. Except as set forth in Schedule 2.3(b), there is no commitment by the Company or any of its Subsidiaries
to issue shares, subscriptions, warrants, options, convertible securities, or other such rights or to distribute to holders of
any of its equity securities any evidence of indebtedness or asset. Except as provided for in the Company’s
Charter or as set forth in the attached Schedule 2.3(b), (i) no Person owns of record or is known to the Company to
own beneficially any share of Common Stock, (ii) no subscription, warrant, option, convertible security, or other right (contingent
or other) to purchase or otherwise acquire equity securities of the Company or any of its Subsidiaries is authorized or outstanding
and (iii) neither the Company nor any of its Subsidiaries has any obligation (contingent or other) to purchase, redeem or otherwise
acquire any of its equity securities or any interest therein or to pay any dividend or make any other distribution in respect thereof.
Except as set forth in the attached Schedule 2.3(b), to the Company’s knowledge there are no voting trusts or
agreements, stockholders’ agreements, pledge agreements, buy-sell agreements, rights of
first refusal, preemptive rights or proxies relating to any securities of the Company or any of its Subsidiaries (whether or not
the Company or such Subsidiaries is a party thereto). All of the outstanding securities of the Company were issued in compliance
with all applicable federal and state securities laws.

 

(c)               
The outstanding shares of Common Stock are traded only on the OTCQB Market.

 

(d)              
Except as set forth in Schedule 2.3(d), the Company has not granted registration rights to any holder of Common Stock
or any holder of any right to acquire Common Stock (whether by subscription right, warrant, option, convertible security or other
right (contingent or otherwise)), that would be triggered by the consummation of the transactions contemplated in this Agreement
or any of the other Transaction Documents, or the performance of the Company’s obligations hereunder or thereunder, in each
case that have not been satisfied or waived prior to the Closing Date.

 

2.4             
Subsidiaries. Except as set forth on Schedule 2.4, the Company has no direct or indirect Subsidiaries. Each
direct or indirect Subsidiary of the Company is duly organized, validly existing and in good standing under the laws of its jurisdiction
of organization and has all requisite power and authority to carry on its business as presently conducted and as proposed to be
conducted. Each direct or indirect Subsidiary of the Company is duly qualified to transact business and is in good standing in
each jurisdiction in which the failure to so qualify would have a MAC. Except as set forth on Schedule 2.4, each direct
or indirect Subsidiary of the Company is directly or indirectly wholly-owned by the Company.

 

2.5             
Legal Proceedings. Except as set forth in Schedule 2.5, there are no actions, suits or proceedings at law
or in equity or by or before any governmental instrumentality or other agency or regulatory authority now pending, or, to the knowledge
of the Company, threatened against the Company which, if adversely determined, would materially and adversely affect the business,
assets, operations or condition, financial or otherwise, of the Company. There is no action, suit or proceeding by the Company
currently pending or that the Company currently intends to initiate.

 

    	4

    	 

    
 

2.6             
SEC Documents; Financial Statements.

 

(a)               
The Company is and has been for not less than one year prior to the date hereof a mandatory reporting company under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)..

 

(b)              
The Company has never been a “shell company” as such term is given meaning under Rule 12b-2 promulgated under
the Exchange Act or Rule 144(i) promulgated under the Securities Act.

 

(c)               
Except as set forth on Schedule 2.6, during the five (5) years prior to the date hereof, the Company has filed all
reports, schedules, forms, statements and other documents required to be filed by it with the Commission pursuant to the reporting
requirements of the Exchange Act and the rules and regulations promulgated thereunder (all of the foregoing filed prior to the
date hereof and all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated
by reference therein being hereinafter referred to as the “SEC Documents”). Except for those portions of exhibits
to documents filed with the Commission with respect to which the Company requested confidential treatment under the rules of the
Commission, the Company has delivered to the Investor and/or their representatives true, correct and complete copies of the SEC
Documents not available on the EDGAR system. As of their respective dates, the SEC Documents complied in all material respects
with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated thereunder applicable to
the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, or as of the date of the last amendment
thereof, if amended after filing, 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.

 

(d)              
As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form
in all material respects with applicable accounting requirements and the published rules and regulations of the Commission with
respect thereto. All such financial statements filed with the Commission have been prepared in accordance with generally accepted
accounting principles, consistently applied, during the periods involved (“GAAP”) (except (i) as may be
otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements,
to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects
the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments).

 

    	5

    	 

    
 

2.7             
Absence of Changes. Since March 31, 2012, (a) there has not been any change, effect, event or occurrence resulting
in a material adverse effect on the business, financial condition or results of operations of the Company that has not been disclosed
in the Company’s reports filed with the Commission prior to the date of this Agreement, and (b) the Company has not (i) declared
or paid any dividends, (ii) sold any assets, individually or in the aggregate, in excess of $10,000 outside of the ordinary
course of business or (iii) had capital expenditures outside of the ordinary course of business in excess of $10,000 individually
or in the aggregate (provided that, for the avoidance of doubt, purchases of cable boxes shall be considered capital expenditures
within the ordinary course of the Company’s business). The Company has not taken any steps to seek protection pursuant to
any bankruptcy law nor does the Company have any knowledge or reason to believe that its creditors intend to initiate involuntary
bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company and its
Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions
contemplated hereby to occur at the Closing, will not be Insolvent. For purposes of this Section 2.7, “Insolvent”
means, with respect to any Person, (w) the present fair saleable value of such Person’s assets is less than the amount
required to pay such Person’s total indebtedness (other than any future lease liabilities as such exist on the date hereof),
(x) the Person is unable to pay its debts and liabilities (other than any future lease liabilities as such exist on the date
hereof), subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, (y) such Person
intends to incur or believes that it will incur debts (other than any future lease liabilities as such exist on the date hereof)
that would be beyond its ability to pay as such debts mature or (z) such Person has unreasonably small capital with which
to conduct the business in which it is engaged as such business is now conducted.

 

2.8             
Title to Assets; Sufficiency of Assets. Except as set forth in Schedule 2.8, the Company and its Subsidiaries
have good, valid and marketable title to all real property and good, valid and marketable title to all personal property owned
by them which is material to the business of the Company and its Subsidiaries taken as a whole, in each case free and clear of
all liens, encumbrances and material defects except such as would not materially affect the value of such property to, or materially
interfere with the use made and currently proposed to be made of such property by, the Company and its Subsidiaries taken as a
whole. Any real property and facilities held under lease by the Company and any of its Subsidiaries are held by them under valid,
subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed
to be made of such property and buildings by the Company and its Subsidiaries. The rights, properties and other assets presently
owned, leased or licensed by the Company and its Subsidiaries include all rights, properties and other assets necessary to permit
the Company and its Subsidiaries to conduct the business in the same manner as such business is currently being conducted and is
currently proposed to be conducted.

 

    	6

    	 

    
 

2.9             
Intellectual Property Rights. Except as set forth in Schedule 2.9, the Company and its Subsidiaries own
or possess adequate rights or licenses to use (A) patents (and any renewals and extensions thereof), patent rights (and any
applications therefor), rights of priority and other rights in inventions; (B) trademarks, service marks, trade names and
trade dress, and all registrations and applications therefor and all legal and common-law equivalents of any of the foregoing;
(C) copyrights and rights in mask works (and any applications or registrations for the foregoing, and all renewals and extensions
thereof), common-law copyrights and rights of authorship including all rights to exploit any of the foregoing in any media and
by any manner and means now known or hereafter devised; (D) industrial design rights, and all registrations and applications
therefor; (E) rights in data, collections of data and databases, and all legal or common-law equivalents thereof; (F) rights
in domain names and domain name reservations; (G) rights in trade secrets, proprietary information and know-how (collectively,
“Intellectual Property Rights”), collectively with all licenses and other agreements providing the Company or
its Subsidiaries the Intellectual Property Rights material to the operation of their businesses as now conducted and as described
in the SEC Documents. Except as set forth in Schedule 2.9, none of the Company or any of its Subsidiaries has knowledge
that any of them has infringed on any of the Intellectual Property Rights of any Person or has knowledge that the Company or any
of its Subsidiaries is infringing on any of the Intellectual Property Rights of any Person. There is no action, suit, hearing,
claim, notice of violation, arbitration or other proceeding, hearing or investigation that is pending, or to the Company’s
knowledge, is threatened against, the Company regarding the infringement of any of the Intellectual Property Rights. The Company
is not, to its knowledge, making unauthorized use of any confidential information or trade secrets of any third party, and the
Company has not received any notice of any asserted infringement (nor is the Company aware of any reasonable basis for any third
party asserting an infringement) by the Company of, any rights of a third party with respect to any Intellectual Property Rights
that if proven would have or result in a MAC. The Company and its Subsidiaries have taken reasonable measures to protect the secrecy,
confidentiality and value of all of their Intellectual Property Rights.

 

2.10         
Subsidiary Rights. Except as provided on Schedule 2.10, the Company has the unrestricted right to vote,
and (subject to limitations imposed by applicable law) to receive dividends and distributions on, all capital securities of its
Subsidiaries.

 

2.11         
Internal Accounting and Disclosure Controls. Except as provided on Schedule 2.11, the Company and each of
its Subsidiaries maintain a system of internal control over financial reporting sufficient to provide reasonable assurance (i) that
the records are maintained in reasonable detail to accurately and fairly reflect the transactions and dispositions of the assets
of the Company and its Subsidiaries (ii) that transactions are recorded as necessary to permit preparation of financial statements
in accordance with GAAP, (iii) that receipts and expenditures of the Company and its Subsidiaries are being made only in accordance
with authorizations of management and directors of the Company and its Subsidiaries and (iv) regarding prevention or timely
detection of unauthorized acquisition, use or disposition of the Company’s and its Subsidiaries’ assets that could
have a material effect on the financial statements of the Company. The Company maintains disclosure controls and procedures (as
such term is defined in Rule 13a-14 promulgated under the Exchange Act) that are effective in ensuring that information required
to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the rules and forms of the Commission, including, without limitation, controls
and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits
under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive officer
or officers and its principal financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure.

 

    	7

    	 

    
 

2.12         
Insurance. The Company and its Subsidiaries have in full force and effect fire and casualty insurance policies with
extended coverage, sufficient in amount (subject to reasonable deductions) to allow them to replace any of their properties that
might be damaged or destroyed. Schedule 2.12 sets forth a true, correct and complete list of all insurance policies maintained
as of the Closing by or on behalf of the Company and its Subsidiaries, indicating the type of coverage, name of
insured, name of insurance carrier or underwriter, premium thereon, policy limits, deductibles/retentions and expiration date of
each policy, and sets forth a list of all claims made under such policies for the previous three (3) years. All such insurance
policies are in full force and effect, and neither the Company nor any of its Subsidiaries is in default with respect to any
material obligations under any such insurance policy so as to cause a loss of coverage, including nonpayment of premiums. Neither
the Company nor any Subsidiary has received written notice of cancellation, non-renewal or termination in respect of any such policy,
and neither the Company nor any Subsidiary has knowledge of any basis for such cancellation, non-renewal, termination or loss of
coverage. There have been no time periods in the last twenty-four (24) months in which the Company or its Subsidiaries have lacked
its customary coverage under its insurance policies, as in effect from time to time during its existence.

 

2.13         
Compliance with Privacy Laws.

 

(a)               
For purposes of this Agreement:

 

(i)                
“Foreign Privacy Laws” shall mean (a) the Directive 95/46/EC of the Parliament and of the Council of the European
Union of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement
of such data (the “Directive”), (b) the corresponding national rules, regulations, codes, orders, decrees and rulings
thereunder of the member states of the European Union and (c) any rules, regulations, codes, orders, decree, and rulings thereunder
related to privacy, data protection or data transfer issues implemented in other countries, including, without limitation, those
laws implemented in Australia, Canada, the Czech Republic, Hungary, Iceland, Latvia, Lithuania, New Zealand, Norway, Poland, Slovakia,
Slovenia or Switzerland.

 

(ii)              
“Data Subject” shall have the meaning set forth in Article 2(a) of the Directive.

 

(iii)            
“Personal Data” shall have the meaning set forth in Article 2(a) of the Directive.

 

(iv)            
“Safe Harbor Filing” shall mean the “certification of adherence to the safe harbor” as filed with
the U.S. Department of Commerce under the safe harbor framework set forth in 65 Federal Register 45666 (the “Safe Harbor
Framework”).

 

(v)              
“US Privacy Laws” means any rules, regulations, codes, orders, decrees, and rulings thereunder of any federal,
state, regional, county, city, municipal or local government of the United States or any department, agency, bureau or other administrative
or regulatory body obtaining authority from any of the foregoing that relate to privacy, data protection or data transfer issues,
including all implementing laws, ordinances, regulations, or guidelines including, without limitation the Financial Modernization
Act (Gramm-Leach-Bliley Act) of 2000, as amended; Identity Theft Red Flag Rules under the Fair and Accurate Credit Transactions
Act of 2003; the Privacy Act of 1974, as amended; the Family Education Rights and Privacy Act of 1974, as amended; the Right to
Financial Privacy Act of 1978, as amended; the Privacy Protection Act of 1980, as amended; the Cable Communications Policy Act
of 1984, as amended; the Electronic Communications Privacy Act of 1986, as amended; the Video Privacy Protection Act of 1988, as
amended; the Telephone Consumer Protection Act of 1991, as amended; the Driver’s Privacy Protection Act of 1994, as amended;
the Communications Assistance for Law Enforcement Act of 1994, as amended; the Telecommunications Act of 1996, as amended; the
Health Insurance Portability and Accountability Act (HIPAA) of 1996, as amended; the Children’s Online Privacy Protection
Act (COPPA) of 1998, as amended; and all applicable state privacy, security, data protection and destruction, and data breach notification
statutes and regulations, including without limitation, M.G.L. c. 93H and I, and the Standards for the Protection of Personal Information
of Residents of the Commonwealth of Massachusetts, 201 CMR 17.00 (the “MA Security Regs.”).

 

    	8

    	 

    
 

(b)              
All websites established or maintained by the Company and its Subsidiaries that are accessible to individuals contain privacy
statements advising them how their Personal Information will be used, collected, stored and protected. The Company and its Subsidiaries
do not store or maintain Personal Information received via their website, except in a manner consistent with its published privacy
policies and in a manner that provides safe and secure storage and protection of such Personal Information.

 

(c)               
(e)The Company and its Subsidiaries have entered into written agreements with all of their relevant vendors, service
providers and other entities (“Company Third Party Service Providers”), to which either of them provides Personal Information,
that require Company Third Party Service Providers to protect such Personal Information in a manner that is substantially similar
to the protections that the Company is required by law, or pursuant to its published privacy policies, to provide to the individuals
involved or to the Company and its Subsidiaries.

 

(d)              
The Company and its Subsidiaries are, and will be, from the date hereof through the Closing Date, and will continue after
the closing to be in compliance with all US Privacy Laws and Foreign Privacy Laws. With regard to compliance with Foreign Privacy
Laws, the Company and its Subsidiaries have, at all times, (i) notified the relevant authorities charged with the supervision and/or
enforcement of such Foreign Privacy Laws of its activities related to the processing of Personal Data (“Data Processing Activities”),
prior to engaging in any such Data Processing Activities, (ii) processed Personal Data fairly, lawfully and for specified, explicit
and legitimate purposes, (iii) obtained all necessary consents of the Data Subjects in a form appropriate for each jurisdiction
that requires such consent, (iv) implemented technical and organizational security measures ensuring a level of security appropriate
to the risks represented by the Data Processing Activities and the nature of the data to be protected, (v) implemented technical
and organizational measures sufficient to allow Data Subjects to access Personal Data for the purposes of objecting to and rectifying
errors in Personal Data, (vi) implemented appropriate technical and organizational measures sufficient to protect Personal Data
against accidental or unlawful destruction or accidental loss, alternation, unauthorized disclosure or access or any unlawful forms
of processing, (vii) ensured that any third parties responsible for processing its Personal Data have implemented technical and
organizational measures similar to those set forth in clauses (v) and (vi) above, and (viii) ensured that, in the event of a transfer
of Personal Data to another country that does not adequately protect Personal Data (as specified by the country in which the Personal
Data originates), (A) the recipient of such Personal Data has implemented reasonable technical and organizational measures to protect
personal data against accidental or unlawful destruction or accidental loss, alternation, unauthorized disclosure or access or
any unlawful forms of processing, (B) all effected Data Subjects have validly consented to the transfer of Personal Data to the
recipient, or (C) any recipient of such Personal Data located in the United States has made a valid Safe Harbor Filing, or entered
into an appropriate data protection agreement, if required, or (D) or implemented other legitimate cross-border data transfer mechanisms.

 

(e)               
No action, suit, proceeding, investigation, charge, complaint, claim, demand, or notice has been filed or commenced against
the Company or any Subsidiary, nor to the knowledge of the Company or any Subsidiary threatened against the Company or any of its
Subsidiary, relating to Foreign Privacy Laws or US Privacy Laws; nor has the Company or any Subsidiary incurred any liabilities
(whether accrued, absolute, contingent or otherwise) under any Foreign Privacy Laws or US Privacy Laws.

 

    	9

    	 

    
 

(f)               
With regard to compliance with Foreign Privacy Laws, the Company, and each of its Subsidiaries, have at all times (i) notified
the competent national supervising authorities charged with the supervision and/or enforcement of such Foreign Privacy Laws of
their activities related to the processing of Personal Data (“Data Processing Activities”), prior to engaging in any
such Data Processing Activities, (ii) processed Personal Data fairly, lawfully and for specified, explicit and legitimate purposes,
(iii) obtained all necessary consents of the Data Subjects in a form appropriate for the jurisdiction which requires such consent,
(iv) implemented technical and organizational security measures ensuring a level of security appropriate to the risks represented
by the Data Processing Activities and the nature of the data to be protected, (v) implemented technical and organizational measures
sufficient to allow Data Subjects to access Personal Data for the purposes of objecting to and rectifying errors in Personal Data,
(vi) implemented appropriate technical and organizational measures sufficient to protect Personal Data against accidental or unlawful
destruction or accidental loss, alternation, unauthorized disclosure or access or any unlawful forms of processing, (vii) ensured
that any third parties responsible for processing its Personal Data have implemented technical and organizational measures similar
to those set forth in clauses (v) and (vi) above and (viii) ensured that, in the event of a transfer of Personal Data to another
country that does not adequately protect Personal Data (as specified by the country in which the Personal Data originates), (1)
the recipient of such Personal Data has implemented reasonable technical and organizational measures to protect personal data against
accidental or unlawful destruction or accidental loss, alternation, unauthorized disclosure or access or any unlawful forms of
processing, (2) all effected Data Subjects have validly consented to the transfer of Personal Data to the recipient or (3) any
recipient of such Personal Data located in the United States has made a valid Safe Harbor Filing.

 

2.14         
Brokers and Finders. No agent, broker, investment banker, person or firm acting on behalf of or under the authority
of the Company or any of its Subsidiaries is or will be entitled to any broker’s or finder’s fee or any other commission
or similar fee directly or indirectly from the Company or any of its Subsidiaries in connection with any of the transactions contemplated
by this Agreement or any of the Transaction Documents.

 

2.15         
Material Contracts. Except as set forth on Schedule 2.15, the Company neither has, nor offered to a third
party nor is bound by:

 

(a)               
any agreement, contract or commitment relating to the employment of any person by the Company, or any bonus, deferred compensation,
pension, profit sharing, stock option, employee stock purchase, retirement or other employee benefit plan;

 

(b)              
any agreement, indenture or other instrument which contains restrictions with respect to payment of dividends or any other
distribution in respect of its capital stock;

 

(c)               
any loan or advance to, or investment in, any individual, partnership, joint venture, corporation, trust, unincorporated
organization, government or other entity or any agreement, contract or commitment relating to the making of any such loan, advance
or investment;

 

    	10

    	 

    
 

(d)              
any guarantee or other contingent liability in respect of any indebtedness or obligation of any Person (other than the endorsement
of negotiable instruments for collection in the ordinary course of business);

 

(e)               
any management service, consulting or any other similar type contract;

 

(f)               
any agreement, contract or commitment limiting the freedom of the Company to engage in any line of business or to compete
with any Person;

 

(g)              
any agreement, contract or commitment not entered into in the ordinary course of business which involves $10,000 or more
that is not filed with the SEC and listed on the Company’s most recent SEC Form 10K as a material contract, and is not cancelable
without penalty or premium within 30 days; or

 

(h)              
any agreement, contract or commitment that might reasonably be expected to have a potential adverse impact on the business
or operations of Company.

 

Each contract or agreement to which the
Company is a party or by which it is bound, whether or not required to be set forth on Schedule 2.14, is in full force and
effect and there exists no default or event of default or event, occurrence, condition or act (including the consummation of the
transactions contemplated hereby) which, with the giving of notice, the lapse of time or the happening of any other event or condition,
would become a default or event of default thereunder. The Company has not violated any of the terms or conditions of any contract
or agreement to which it is a party or by which it is bound, whether or not required to be set forth on Schedule 2.14, in
any material respect, and, to the Company’s knowledge, all of the covenants to be performed by any other party thereto have
been fully performed.

 

2.16         
Taxes. Except as set forth on Schedule 2.15, the Company has filed or caused to be filed, within the times
and within the manner prescribed by law, all federal, state, local and foreign tax returns and tax reports which are required to
be filed by, or with respect to the Company. Such returns and reports reflect accurately all liability for taxes of the Company
for the periods covered thereby. Except as set forth on Schedule 2.15, all federal, state, local and foreign income, profits,
franchise, employment, sales, use, occupancy, excise and other taxes and assessments, stock and transfer taxes (including interest
and penalties) payable by, or due from, the Company have been fully paid and fully provided for in the books and financial statements
of the Company. No examination of any tax return of the Company is currently in progress. There are no outstanding agreements or
waivers extending the statutory period of limitation applicable to any tax return of the Company. The Company is not a party to
any tax sharing contracts, agreements or arrangements.

 

2.17         
Disclosure. All disclosure provided to the Investor regarding the Company, its Subsidiaries, its business and the
transactions contemplated hereby, including in the Schedule of Exceptions, furnished by or on behalf of the Company, is true and
correct in all material respects 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 the light of the circumstances under which they were made, not misleading.
Each press release issued by the Company during the twelve (12) months preceding the date of this Agreement did not at the
time of release 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 the light of the circumstances under which they were made, not misleading.
No event or circumstance has occurred or information exists (other than the consummation of the transactions contemplated hereby)
with respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial
conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which
has not been so publicly announced or disclosed.

 

    	11

    	 

    
 

Article
3

REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

 

Investor represents and warrants to the
Company that the statements contained in this Article 3 are true and correct as of the Closing Date as though made as of
the Closing Date, except to the extent such representations and warranties are specifically made as of a particular date (in which
case such representations and warranties are true and correct as of such other specified date).

 

3.1             
Investor is an “accredited investor” as defined by Rule 501 of Regulation D, and Investor is capable of evaluating
the merits and risks of its investment in the Closing Securities and has the ability and capacity to protect its interests.

 

3.2             
Investor understands that, except as provided in the Registration Rights Agreement, the Closing Securities, the Note Shares
and the Warrant Shares have not been registered under the Act on the ground that the issuance thereof is exempt under Section 4(2)
of the Act and/or Regulation D as a transaction by an issuer not involving any public offering and that, in the view of the Commission,
the statutory basis for the exception claimed would not be present if any of the representations and warranties of Investor contained
in this Agreement are untrue or, notwithstanding the Investor’s representations and warranties, the Investor currently has
in mind acquiring any of the Closing Securities for resale upon the occurrence or non-occurrence of some predetermined event.

 

3.3             
Investor is purchasing the Closing Securities and, in the event that the Investor should acquire any Note Shares or Warrant
Shares, will be acquiring such Note Shares or Warrant Shares, as applicable, as principal for its own account, and not for the
benefit of any other Person, for investment purposes and not with a view to distribution or resale, nor with the intention of selling,
transferring or otherwise disposing of all or any part thereof for any particular price, or at any particular time, or upon the
happening of any particular event or circumstance, except selling, transferring, or disposing of the Closing Securities, Note Shares
and Warrant Shares, as applicable, in full compliance with all applicable provisions of the Act, the rules and regulations promulgated
by the Commission thereunder, and applicable state securities laws; and that an investment in the Closing Securities, Note Shares
and Warrant Shares is not a liquid investment.

 

3.4             
Investor confirms that Investor has had the opportunity to ask questions of, and receive answers from, the Company or any
authorized Person acting on its behalf concerning the Company and its business and to obtain any additional information, to the
extent possessed by the Company (or to the extent it could have been acquired by the Company without unreasonable effort or expense)
necessary to verify the accuracy of the information received by Investor. In connection therewith, Investor acknowledges that Investor
has had the opportunity to discuss the Company’s business, management and financial affairs with the Company’s management
or any authorized Person acting on its behalf. Investor has received and reviewed all the information concerning the Company and
the Closing Securities, both written and oral, that Investor desires.

 

    	12

    	 

    
 

3.5             
Investor has all requisite legal and other power and authority to execute and deliver this Agreement and to carry out and
perform its obligations under the terms of this Agreement. This Agreement constitutes a valid and legally binding obligation of
Investor enforceable in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, reorganization and other
laws of general applicability relating to or affecting creditors’ rights and to general equity principles.

 

3.6             
Investor has considered the suitability of this investment and the transactions contemplated by this Agreement for the Investor’s
particular federal, state, and local tax and financial situation and has independently determined that this investment and the
transactions contemplated by this Agreement are a suitable investment for the Investor..

 

3.7             
Investor acknowledges that an investment in the Closing Securities is speculative and involves a high degree of risk and
that Investor can bear the economic risk of the acceptance of the Closing Securities, including a total loss of its investment.
Investor recognizes and understands that no federal or state, agency has recommended or endorsed the purchase of the Closing Securities.
Investor acknowledges that it has such knowledge and experience in financial and business matters that Investor is capable of evaluating
the merits and risks of an investment in the Closing Securities and of making an informed investment decision with respect thereto.

 

3.8             
The principal place of business of the Investor is correctly set forth on the first page of this Agreement.

 

Article
4

CONDITIONS RELATING TO THE CLOSING

 

4.1             
Conditions to the Obligations of the Investor at the Closing. The several obligations of each Investor to consummate
the transactions contemplated hereby on the Closing Date are subject to the satisfaction of the following conditions as of the
Closing Date, unless any such conditions are waived by such Investor prior to or on the Closing Date:

 

(a)               
Investor Approvals. The Investor shall have received all requisite approvals to consummate the transactions contemplated
by this Agreement, including from their respective investment committees.

 

(b)              
Due Diligence. The Investor shall have completed all business, legal, accounting and technical due diligence to their
sole satisfaction.

 

    	13

    	 

    
 

(c)               
Transaction Documents. The Company shall have delivered to the Investor a counterpart of each of the Transaction
Documents, in each case duly executed by an authorized representative of the Company, with each such Transaction Document to be
in a form mutually satisfactory to the Company and the Investor.

 

(d)              
Absence of Certain Changes.

 

(i)                
The Company shall have delivered to the Investor a certificate of its chief executive officer and chief financial officer,
each a duly appointed and acting officer of the Company, dated as of the Closing Date, certifying on behalf of the Company the
absence of:

 

(A)            
any event that has occurred or circumstance that exists which has had or could reasonably be expected to result in a MAC;
and

 

(B)             
any event that has occurred or circumstance that exists which has had or could reasonably be expected to result in a Market
MAC.

 

(ii)              
The Investor shall not have become aware of any information that, in the good faith determination of the Investor, could
reasonably be deemed to be materially unfavorable to the Company or any of its Subsidiaries.

 

(e)               
Consents, Permits, and Waivers. The Company shall have obtained any and all approvals, consents, permits and waivers
necessary or appropriate for the consummation of the transactions contemplated by this Agreement and the other Transaction Documents.

 

(f)               
Authorizations. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body
that are required in connection with the lawful issuance and sale of the Closing Securities pursuant to this Agreement shall have
been duly obtained and shall be effective on and as of the Closing Date.

 

(g)              
Representations, Warranties and Covenants. The representations and warranties made by the Company in Article 2
hereof and in the other Transaction Documents shall be true and correct when made, and shall be true and correct as of the Closing
Date with the same force and effect as if they had been made on and as of that date. The Company shall have performed and complied
in all material respects with all covenants and agreements required by this Agreement to be performed or complied with by it on
or prior to the Closing Date. As of the Closing Date, Company shall have delivered a certificate to the foregoing effect to the
Investor, duly executed on behalf of the Company by an authorized officer thereof.

 

(h)              
Secretary’s Certificate. The Company shall have delivered to the Investor a certificate of the Company’s
Secretary dated as of the Closing Date, certifying on behalf of the Company the following:

 

(i)                
Copies of all of the Company’s
resolutions adopted by the Company’s Board of Directors and shareholders approving the issuance and sale of the Closing
Securities and authorizing the transactions contemplated hereby and the other Transaction Documents;

 

    	14

    	 

    
 

(ii)                
Attesting as to the incumbency
and signature of the officers of the Company who have authority to execute this Agreement and the other Transaction Documents;

 

(iii)                
Certifying as being complete
and correct the copies attached to such certificate of the Company’s Charter and Bylaws; and

 

(iv)                
A Certificate of Good Standing
of the Company from the Nevada Secretary of State, dated as of a date not earlier than three (3) calendar days prior to the
Closing Date.

 

(i)                
Insurance Certificates. The Company shall have delivered to the Investor evidence of all insurance policies and endorsements
thereto required by Section 5.10 of this Agreement.

 

(j)                
Account Control Agreements. The Company shall have obtained account control agreements from each depository bank
where the Company maintains a bank account, in each case for the benefit of the Investor, in form and substance reasonably acceptable
to the Investor, which shall become operative on the Closing Date.

 

(k)              
Other Documents. The Company shall have delivered to the Investor such other documents and instruments relating to
the transactions contemplated by this Agreement as the Investor or their counsel may reasonably request.

 

(l)                
Opinion of Counsel to the Company. The Investor shall have received an opinion of counsel to the Company reasonably
satisfactory to the Investor.

 

Article
5

AFFIRMATIVE COVENANTS

 

For so long as any Note or Warrant remains
outstanding or any Investor holds any Note Shares or Warrant Shares, the Company shall comply with each of the following affirmative
covenants, unless, in any given instance, any such affirmative covenant is waived in writing by the Investor:

 

5.1             
Information Rights.

 

(a)               
At any time that any of the conditions specified in Section 5.1(c) are satisfied, The Company shall furnish to the Investor,
as soon as practicable following the conclusion of each month, an unaudited, consolidated income statement and statement
of cash flows for such month, and an unaudited, consolidated balance sheet and statement of stockholders’ equity as of the
end of such month, together with a management report with respect thereto and such other information as the Investor may reasonably
request.  Each such financial statement shall be prepared in accordance with GAAP (except that such financial statements may
(i) be subject to normal year-end audit adjustments and (ii) not contain all notes thereto that may be required in accordance with
GAAP).

 

    	15

    	 

    
 

(b)              
In addition to the foregoing, the Investor, or representatives thereof, shall have the right, upon advance notice and during
normal business hours, to inspect the books and records of the Company for any proper purpose.

 

(c)               
The Investors shall have the Information Rights provided by this Section 5.1 at any time that the Investors or their affiliates
hold, in the aggregate $24,000 in value of (i) Notes, (ii) Note Shares, (iii) Warrant Shares, or (iv) has the power to vote Note
Shares or Warrant Shares for the election of directors. For this purpose, the Notes shall be valued at face value, each Note Share
shall be valued at the greater of the applicable conversion price or the then market price of the Note Share and each Warrant Share
shall be valued at the greater of the applicable exercise price or the then market price of the Warrant Share. The market price
of each Note Share or Warrant Share shall be the highest ask price if the shares are not traded on a national securities exchange
or the highest ask price of a share of the Company’s common stock as quoted on any bulletin board or market on any of the
10 then most recent trading days in which such shares were quoted for sale.

 

5.2             
Preemptive Rights.

 

(a)               
In the event of any offering of New Securities (as defined below) by the Company, each Investor, for so long as the Notes,
the Warrants or any Note Shares or Warrant Shares remain outstanding, shall have the right to purchase a percentage of the New
Securities being offered that is equal to the percentage of the outstanding Common Stock of the Company owned by such Investor
on an as-converted basis (treating for this purpose as outstanding all shares of Common Stock issuable upon the full exercise of
the Warrants and full conversion of the Notes then outstanding, including conversion of the maximum amount of Interest scheduled
to accrue during the First Five Year Note Period (as defined in the Notes)); provided, however, that this right shall
not apply to (i) equity compensation grants to employees, consultants, or directors pursuant to plans or other arrangements approved
by the Board of Directors of the Company, (ii) securities issued upon the conversion or exercise of any convertible or exercisable
securities that are outstanding as of the date hereof on the terms in effect on such date, (iii) the issuance of securities in
connection with any underwritten public offering (excluding, for the avoidance of doubt, registered direct offerings); (iv) securities
issued upon any split, dividend, combination or other similar event with respect to the capital stock of the Company; (v) securities
subsequently issued upon conversion, exercise or exchange of those securities that have been issued in compliance with, or on issuance
were exempt from the preemptive rights provided for in this Section 5.2, and (vi) shares of Common Stock or convertible
securities issued or issuable in connection with mergers, acquisitions, strategic transactions, and debt financings approved by
the Board of Directors of the Company, including the Investor Designee; provided, further, that in connection with
any underwritten public offering, the Company will use reasonable best efforts to allow each Investor to purchase a sufficient
amount of such offered securities so as to maintain as closely as possible such Investor’s proportionate interest in the
Company on an as-converted basis as described above (disregarding any allocations of such offered securities that may be made by
the underwriters to Affiliates of any Investor in the ordinary course investment business of such Affiliates). An Investor shall
be deemed to have waived its rights under this Section 5.4 if such Investor shall have not delivered to the Company its
written election to purchase such securities within ten (10) Business Days of receipt of the Company’s notice of such offering
describing the material terms thereof (such ten (10) Business Day period, the “Offer Period”). If the Investor
fail to exercise their purchase right pursuant to this Section 5.2, then the Company shall have the right, until the expiration
of ninety (90) days commencing upon the expiration of the Offer Period, to issue such New Securities to one (1) or more third parties
on terms no more favorable to the purchasers thereof than the terms specified in the Company’s notice of such offering to
the Investor, after which the terms of this Section 5.4 shall again apply to the Company’s offering of such New Securities.

 

    	16

    	 

    
 

(b)              
For purposes of this Agreement, the term “New Securities” shall mean securities, contract rights, notes,
obligations, options, warrants, or other rights that are directly or indirectly exercisable for, convertible into, or exchangeable
for shares of Common Stock or other capital or voting stock of the Company.

 

5.3             
Use of Proceeds. The Company will use the net proceeds from the sale of the Closing Securities to fund working capital
for general corporate purposes and shall not use any of the net proceeds for acquisitions of securities issued by any other entities,
loans to its officers, directors or shareholders, contributions to the capital of any Subsidiary, dividends, or redemptions or
repurchases of any outstanding equity or debt. Pending the Company’s application of such net proceeds for the aforementioned
purposes, the Company shall be allowed to invest such proceeds only in short-term, interest-bearing, investment-grade marketable
securities or money market obligations (“Permitted Investments”).

 

5.4             
Corporate Existence. The
Company will do or cause to be done all things necessary to preserve and keep in full force and effect its and its Subsidiaries’
corporate existence, rights and franchises; provided that the Company shall not be required to preserve its corporate existence
or any such right or franchise if the Company shall determine that the preservation thereof is no longer desirable in the conduct
of its business and that the loss thereof is not disadvantageous in any material respect to the Investor.

 

5.5             
Reports by the Company. The Company covenants to make available
to the Investor, within five (5) calendar days after the Company is required to file the same with the Commission, copies of the
annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which the Company may be required to file with the Commission
pursuant to Section 13 or Section 15(d) of the Exchange Act, or if the Company is not required to file information, documents,
or reports pursuant to either of such sections, then to deliver to the Investor, in accordance with rules and regulations prescribed
from time to time by the Commission, such of the supplementary and periodic information, documents, and reports which may be required
pursuant to Section 13 of the Exchange Act; or, in respect of a security listed and registered on a national securities exchange
as may be prescribed from time to time in such rules and regulations. At any time when the Company is not subject to Section 13
or 15(d) of the Exchange Act, upon request of the Investor, the Company will promptly furnish or cause to be furnished to the Investor,
copies of the information required to be delivered to the Investor pursuant to Rule 144A(d)(4) under the Securities Act (or any
successor provision thereto) in order to permit compliance with Rule 144A in connection with resales by holders of securities such
as the Closing Securities or the shares of Common Stock issuable thereunder. The Company will pay the expenses of printing and
distributing to the Investor all such documents. Delivery of such reports, information and documents to the Investor is for informational
purposes only and the Investor’ receipt of such shall not constitute constructive notice of any information contained therein
or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder.
The Investor acknowledge that the Company’s provision of such documents on the Commission’s Electronic Data Gathering
and Retrieval (EDGAR) website shall be deemed “delivery” of said documents for purposes of this Section 5.5.

 

    	17

    	 

    
 

5.6             
Reservation of Shares. The Company shall take all action necessary to at all times have authorized, and reserved
for the purpose of issuance, not less than 120% of the number of shares of Common Stock issuable upon full conversion of the Notes
and exercise of the Warrants (the “Required Reserve Amount”). If at any time while any Note and/or Warrant remains
outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation
to reserve the Required Reserve Amount (an “Authorized Share Failure”), then the Company shall take all action
necessary to increase the Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve
the Required Reserve Amount. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of
the occurrence of an Authorized Share Failure, but in no event later than seventy-five (75) days after the occurrence of such Authorized
Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized
shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and
shall use its commercially reasonable efforts to solicit its stockholders’ approval of such increase in authorized shares
of Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal.  

 

5.7             
Registration Rights and Sales Under SEC Rule 144.

 

(a)               
The Investor shall have the registration rights set forth in the Registration Rights Agreement and the Company shall comply
in all respects with all of its obligations thereunder in a timely fashion.

 

(b)              
With a view to making available to the Holder the benefits of SEC Rule 144 and any other rule or regulation of the SEC that
may at any time permit a Holder to sell securities of the Issuer to the public without registration or pursuant to a registration
on Form S 3, the Issuer shall:

 

(i)                
make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144,
at all times after the Closing; and

 

(ii)              
file with the SEC, in a timely manner, all reports and other documents required of the Issuer under the Securities Act and
the Exchange Act.

 

    	18

    	 

    
 

(c)               
The Note Shares issued pursuant to conversion of the Notes shall be freely tradable pursuant to Rule 144 so long as the
Notes were issued at least six (6) months prior to the date of the proposed sale thereof.

 

(d)              
The Warrant Shares issued pursuant to the exercise of the Warrant shall be freely tradable pursuant to Rule 144 so long
as the Warrant Shares were acquired at least six (6) months prior to the date of the proposed sale thereof.

 

5.8             
Insurance. The Company shall maintain, with financially sound, reputable and solvent companies, insurance policies
reasonably acceptable to the Investor (a) insuring their assets against loss by fire, theft and other risks and casualties
as are customarily insured against by companies engaged in the same or a similar business, (b) insuring them against liability
for personal injury and property damages relating to their assets, such policies to be in such amounts and covering such risks
as are usually insured against by companies engaged in the same or a similar business, and insuring such other matters as may from
time to time be requested by the Investor, and (c) insuring them against business interruption in such amounts as the Investor
shall deem appropriate in the Investor’ reasonable discretion. All general liability insurance policies shall be endorsed
in favor of the Investor as additional insureds, and all casualty policies shall be endorsed in favor of the Investor as loss payees.
The Company shall provide copies of all such insurance policies (or evidence thereof acceptable to the Investor) to the Investor
within ten (10) Business Days following the Investor’ request for the same. The Company shall (i) deliver all such policies
to the Investor promptly upon the Company’s receipt thereof, (ii) pay, or cause to be paid, all premiums for such insurance
on or before the date upon which such premiums become due, (iii) upon the Investor’ request furnish to the Investor
satisfactory proof of the timely making of such payments, (iv) deliver all renewal policies to the Investor promptly upon
receipt thereof, and (v) use its commercially reasonable efforts to cause such policies to require the insurer to give notice
to the Investor of termination of any such policy at least thirty (30) days before such termination is to be effective. If the
Company fails to provide and pay for any such insurance, the Investor may, at their option, but shall not be required to, pay the
same and charge the Company therefor.

 

5.9             
Listing. The Company shall promptly secure the listing of all of the Registrable Securities (as defined in the Registration
Rights Agreement) upon each national securities exchange and automated quotation system, if any, upon which the Common Stock is
then listed (subject to official notice of issuance) and shall maintain such listing of all such Registrable Securities from time
to time issuable under the terms of the Transaction Documents. The Company shall maintain the Common Stock’s authorization
for quotation on the OTCQB Market at any time during which its Common Stock is not listed on a registered national securities exchange
and shall use reasonable commercial efforts to cause its Common Stock to be authorized for quotation on the OTCQX Market or OTCBB
market. Neither the Company nor any of its Subsidiaries shall take any action which would be reasonably expected to result in the
delisting or suspension of the Common Stock on the OTCQB Market, except in connection with a transfer to a registered national
securities exchange or to the OTCBB or OTCQX. The Company shall pay all fees and expenses in connection with satisfying its obligations
under this Section 5.19.

 

    	19

    	 

    
 

5.10         
Compliance With Laws. The Company and its Subsidiaries shall at all times be in compliance with the Foreign Corrupt
Practices Act; the PATRIOT Act, and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations; and the
laws, regulations and Executive Orders and sanctions programs administered by the OFAC, including, without limitation, the Anti-Money
Laundering/OFAC Laws

 

5.11         
Form D and Blue Sky. The Company agrees to file a Form D with respect to the Closing Securities as required
under Regulation D and to provide a copy thereof to the Investor promptly after such filing. The Company shall, on or before
the Closing Date, take such action as is necessary in order to obtain an exemption for or to qualify the Closing Securities for
sale to the Investor at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the
State of New York, and shall provide evidence of any such exemption or qualification so taken to the Investor on or prior to the
Closing Date. The Company shall make all filings and reports relating to the offer and sale of the Closing Securities required
under applicable securities or “Blue Sky” laws of the State of New York following the Closing Date.

 

Article
6

NEGATIVE COVENANTS

 

For so long as any Note or Warrant remains
outstanding or any Investor holds any Note Shares or Warrant Shares, the Company shall comply with each of the following negative
covenants, unless, in any given instance, any such negative covenant is waived in writing by the Investor:

 

6.1             
Amendments. The Company shall not amend, restate, modify, repeal or waive any provision of the Company’s Charter
or Bylaws.

 

6.2             
Change in Operations. The Company shall not change the nature or strategy of its principal business as it exists
on the Closing Date.

 

6.3             
Defaults and Breaches. The Company shall not permit to exist any default or breach of any contract provision beyond
any grace period provided for in any contract if the breach or default may result in any liability on the part of the Company excess
of $10,000 or an amount in excess of $10,000 becoming due and payable by the Company prior to its contractually stated maturity.

 

6.4             
Investments and Acquisitions. Other than Permitted Investments, the Company shall not invest in, acquire any interest
in (including the acquisition of assets out of the ordinary course of business), or otherwise divert any of the funds of the Company
to, any Person.

 

6.5             
Certain Debt. Except for Indebtedness evidenced in favor of the Investor, the Company shall not incur or suffer to
exist any Indebtedness other than as described in the Company’s SEC Form 10K for the period ended December 31, 2011 and SEC
Form 10Q for the period ended March 31, 2012 (“Existing Loan Facilities”).

 

    	20

    	 

    
 

6.6             
Liens and Encumbrances. The Company shall not create, incur, assume or suffer to exist any Lien on its assets or
properties now owned or hereafter acquired other than pursuant to the transactions contemplated by the Transaction Documents and
the Existing Loan Facility.

 

6.7             
Sale-Leaseback Transactions. The Company shall not enter into directly or indirectly any sale-leaseback transactions
with any other Person.

 

6.8             
Guarantees and Loans. The Company shall not guarantee or endorse any obligation of, or make any advance or loan to,
any Person, or assume any contingent liability of any Person.

 

6.9             
Related Party Transactions. The Company shall not enter into or commit directly or indirectly to any transaction,
agreement or arrangement with any Affiliate of the Company or to any manager, member, shareholder, officer, director or employee
of the Company or any Affiliate of the Company unless such transaction, agreement or arrangement is consummated on arms-length
terms and is approved by the Company’s Board of Directors.

 

6.10         
Distributions; Redemptions. The Company shall not directly or indirectly (a) declare or pay any dividend or distribution
to any equityholder of the Company or (b) redeem, purchase, retire or otherwise extinguish any shares of the Company’s capital
stock or securities convertible into shares of the Company’s capital stock (except as required by any of the Transaction
Documents).

 

6.11         
Equity Issuance. As long as the Note is outstanding, the Company shall not issue any capital stock or debt or equity
securities convertible into capital stock without the Investor’ prior written consent, which consent shall not be unreasonably
withheld; provided, that the Company shall be permitted to issue shares of Common Stock without requiring such consent to
(a) employees, consultants and advisors of the Company pursuant to incentive equity arrangements that are approved by the Compensation
Committee of the Board of Directors and (b) holders of Options or Convertible Securities that are outstanding on the Closing Date,
upon the exercise or conversion of such Options or Convertible Securities, upon the terms of such securities existing on the date
of this Agreement.

 

6.12         
Sale of Assets. The Company shall not sell, lease, license or otherwise transfer any assets used or held for use
in the Company’s business outside of the ordinary course of business.

 

6.13         
Capital Expenditures. The Company shall not incur or contract to incur any capital expenditures outside of the ordinary
course of the Company’s business in excess of $25,000 individually or in the aggregate over any twelve (12) month period
(provided that, for the avoidance of doubt, purchases of computers, software, cable boxes, computer peripherals and the like, whether
or not expensed for tax purposes shall be considered capital expenditures within the ordinary course of the Company’s business).

 

6.14         
Certain Business Practices. The Company shall not (a) use any funds for unlawful contributions, gifts, entertainment
or other unlawful expenses related to political activity; (b) make any unlawful payment to foreign or domestic government
officials or employees or to foreign or domestic political parties or campaigns or violate any provision of the Foreign Corrupt
Practices Act of 1977, as amended; or (c) make any other unlawful payment in connection with the Company’s business.

 

    	21

    	 

    
 

6.15         
Loss of Collateral. The Company shall not incur the loss, theft, damage or destruction of an aggregate of more than
Ten Thousand Dollars ($10,000) in fair market value of, or the sale, lease (except as permitted hereby), or furnishing under a
contract of service of any of, its assets, which loss, theft, damage or destruction is not covered by insurance.

 

6.16         
Subsidiaries. The Company shall not create, establish or acquire any direct or indirect Subsidiary.

 

6.17         
Liquidation. The Company shall not liquidate, dissolve or effect a sale or reorganization in any form of transaction
or otherwise alter its legal status.

 

6.18         
Equipment. The Company shall not (a) permit any of its assets to become fixtures to real property unless such real
property is owned by the Company and is subject to a first mortgage in favor of the Investor, or if such real property is leased,
is subject to a landlord’s agreement in favor of the Investor on terms acceptable to the Investor, or (b) permit any of its
assets to become an accession to any other personal property unless such personal property is subject to a first priority lien
in favor of the Investor.

 

Article
7 

 

MISCELLANEOUS

 

7.1             
Definitions. As used herein, the following terms shall have the respective meanings set forth below or provided for
in the section of this Agreement referred to below (such meanings to be equally applicable to both the singular and plural forms
of the terms defined):

 

(a)               
“Affiliate” shall mean any Person directly or indirectly controlling, controlled by, or under direct
or indirect common control with, another Person or a Subsidiary of such other Person. A Person shall be deemed to control another
Person if the controlling Person owns (on a fully diluted basis) ten percent (10%) or more of any class of voting securities of
the controlled Person or possesses, directly or indirectly, the power to direct or cause the direction of the management or policies
of the controlled Person, whether through ownership of Indebtedness or equity securities, by contract or otherwise.

 

(b)              
“Knowledge” shall mean, and shall for all purposes be construed as, the collective knowledge of the directors,
officers, and management personnel of the Company and its Subsidiaries after reasonable investigation.

 

(c)               
“Lien” shall mean any mortgage, deed of trust, pledge, hypothecation, assignment, priority, security
interest, lien (statutory or otherwise), claim or encumbrance, or preference, priority or other security arrangement held or asserted
in respect of any asset, contractual deposit arrangement, whether imposed by statute or otherwise, or charge of any kind (including
any agreement to give any of the foregoing, any conditional sale or other title retention agreement, any lease in the nature thereof,
and filing of or agreement to give any financing statement under the Uniform Commercial Code of any jurisdiction) and any contingent
or other agreement to provide any of the foregoing or any other type of preferential arrangement for the purpose, or having the
effect of, protecting a creditor against loss or securing the payment or performance of any obligation.

 

    	22

    	 

    
 

(d)              
“MAC” shall mean a material adverse effect or change (a) on the business, operations, properties,
assets or condition (financial or otherwise) of the Company or its Subsidiaries, (b) on the ability of the Company to pay
or perform its obligations under this Agreement or any of the other Transaction Documents, or (c) on the rights, privileges,
attributes and remedies of any holder of the Notes or any of the other Transaction Documents.

 

(e)               
“Market MAC” shall mean (i) any material disruption or material adverse change in U.S. or international
financial, political or economic conditions or currency exchange rates or exchange controls; (ii) any suspension or material
limitation of trading in securities generally on the New York Stock Exchange or the NASDAQ Stock Market, or any setting of minimum
or maximum prices for trading on such exchange; (iii)  any suspension of trading of any securities of the Company on any exchange
or in the over-the-counter market; (iv) any banking moratorium declared by any U.S. federal or New York authorities; or (v) any
material disruption of settlements of securities, payment or clearance services in the United States.

 

7.2             
Expenses.

 

(a)               
The Company will pay and bear full
responsibility for the reasonable legal fees and other out-of-pocket costs and expenses of the Investors attributable to the negotiation
and consummation of the transactions contemplated hereby and in the other Transaction Documents, including without limitation all
costs and expenses attributable to legal due diligence, intellectual property due diligence and healthcare regulatory due diligence,
up to an aggregate amount of $150,000. All legal fees and other out-of-pocket costs and expenses in excess of $150,000 shall only
be the responsibility of the Company to the extent the Company provides its written consent to the same, which consent shall not
be unreasonably withheld, delayed or conditioned

 

The Company shall pay or shall direct the
Investor to disburse from the Purchase Price on behalf of the Company, $1,500 directly to counsel to the Investor towards the legal
fees and expenses of the Investor in connection with the negotiation and consummation of the transactions contemplated hereby and
in the other Transaction Documents. Any legal fees and other out-of-pocket costs and expenses of the Investor in such regard (other
than those incurred in connection with the enforcement of the Note, Warrant or other Transaction Documents) shall be the responsibility
of the Investor. The Company shall bear all of its own legal fees and expenses, transaction costs, filing fees, costs associated
with the issuance of the Note, Warrant, Note Shares and Warrant Shares and those otherwise incurred in connection with the negotiation
and consummation of the transactions contemplated hereby and in the other Transaction Documents. The Company shall pay all filing
fees, costs and taxes with respect to the registration, transfer, listing and issuance of the Closing Securities, the Note Shares
and the Warrant Shares and all legal costs of its counsel with respect to any and all opinion letters issued or to be issued in
connection with the issuance of the Closing Securities, conversion of the Note, exercise of the Warrant and sale of the Note Shares
and Warrant Shares.

 

    	23

    	 

    
 

(b)               
The
Company further agrees that it will pay, and will save the Investor harmless from, any and all liabilities,
costs and expenses incurred by the Investor in connection with the ownership of the Closing Securities including, without limitation,
any amendment or waiver of, or enforcement of, any Transaction Document relating to the transactions contemplated hereby. 

 

(c)               
The Company further agrees that
it will pay, and will save the Investor harmless from, any and all Liabilities with respect to any stamp or similar taxes which
may be determined to be payable in connection with the execution and delivery and performance of the Transaction Documents or any
modification, amendment or alteration of the terms or provisions of the Transaction Documents (excluding
any taxes on the income or gain of the Investor).

 

7.3             
Further Assurances. The Company shall duly execute and deliver, or cause to be duly executed and delivered, at its
own cost and expense, such further instruments and documents and to take all such action, in each case as may be necessary or proper
in the reasonable judgment of the Investor to carry out the provisions and purposes of this Agreement and the other Transaction
Documents.

 

7.4             
Remedies. In case any one or more of the representations, warranties, covenants and/or agreements set forth in this
Agreement or any other Transaction Documents shall have been breached by a party, the other parties may proceed to protect and
enforce its rights either by suit in equity and/or by action at law, including an action for damages as a result of any such breach
and/or an action for specific performance of any such covenant or agreement contained in this Agreement or any of the other Transaction
Documents, and may exercise all remedies under the Closing Securities.

 

7.5             
Survival. The representations, warranties, covenants and agreements made herein shall survive any investigation made
by any party hereto, the execution and delivery of this Agreement and the closing of the transactions contemplated hereby.

 

7.6             
Successors and Assigns. This Agreement shall bind and inure to the benefit of the Company and the Investor and their
respective successors and permitted assigns. Subject to applicable federal, state and provincial securities laws and regulations,
the Investor may freely assign either this Agreement or any of their rights, interests, or obligations hereunder without the prior
written approval of the Company.

 

7.7             
Entire Agreement. This Agreement and the other writings referred to herein or delivered pursuant hereto (including
the other Transaction Documents) which form a part hereof contain the entire agreement among the parties with respect to the subject
matter hereof and thereof and supersede all prior and contemporaneous arrangements or understandings with respect thereto.

 

7.8             
Notices. All notices, requests, demands, claims, consents and other communications delivered hereunder (whether or
not required to be delivered hereunder) shall be deemed to be sufficient and duly given if contained in a written instrument (a)
personally delivered, (b) sent by telecopier and confirmed by either the following two methods, (c) sent by nationally-recognized
overnight courier service guaranteeing next business day delivery or (d) sent by first class registered or certified mail, postage
prepaid, return receipt requested, in each case addressed as follows:

 

    	24

    	 

    

 

(i)              if
to the Company, to:

Players Network

1771 E. Flamingo Road, Suite 201A

Las Vegas, NV 89119

Attn:_________________

with a copy to:

[__________________]

 

and

 

(ii)             if to the Investor, to

Continental Equities, LLC

888 7th Avenue, 20th Floor

New York, NY 10106

with a copy to:

Edwards Angell Palmer & Dodge LLP

750 Lexington Avenue

New York, NY 10022

Attn: Barry J. Bendes, Esq.

 

or to such other address as the party to whom such notice
or other communication is to be given may have furnished to each other party in writing in accordance herewith. Any such notice
or communication shall be deemed to have been received (A) when delivered, if personally delivered; (B) when sent, if sent by telecopy
on a business day (or, if not sent on a business day, on the next business day after the date sent by telecopy), but only if a
duplicate thereof is dispatched in one of the methods provided clauses (C) or (D); (C) on the next business day after dispatch,
if sent by nationally recognized, overnight courier service guaranteeing next business day delivery; and (D) on the fifth (5th)
business day following the date on which the piece of mail containing such communication is posted, if sent by mail and delivered
to the United States Postal Service, postage prepaid.

 

7.9             
Amendments, Modifications, Terminations and Waivers. The terms and provisions of this Agreement and the Closing Securities
may not be modified, amended or terminated, nor may any of the provisions hereof be waived, temporarily or permanently, except
pursuant to a written instrument executed by both the Company and the Investor. Oral amendments, oral waivers and purported oral
terminations are void. The parties expressly acknowledge and agree that the representations and warranties and the covenants contained
herein constitute an integral component of the transactions contemplated by the this Agreement and the Transaction Documents and
the parties shall be entitled to withhold their consent in their sole and absolute discretion with respect to any future requests
for waivers of and/or modifications to such representations, warranties and covenants (it being understood and affirmed that it
is the intent of the parties that the affirmative and negative covenants of the Company in Articles 5 and 6 shall continue to apply
following the conversion of the Notes and exercise of the Warrants, for so long as any Investor continues to hold Note Shares or
Warrant Shares, as the case may be).

 

    	25

    	 

    
 

7.10         
Governing Law; Waiver of Jury Trial.

 

(a)               
All questions concerning the construction, interpretation and validity of this Agreement shall be governed by and construed
and enforced in accordance with the domestic laws of the State of New York without giving effect to any choice or conflict of law
provision or rule (whether in the State of New York or any other jurisdiction) that would cause the application of the laws of
any jurisdiction other than the State of New York. In furtherance of the foregoing, the internal law of the State of New York will
control the interpretation and construction of this Agreement, even if under such jurisdiction’s choice of law or conflict
of law analysis, the substantive law of some other jurisdiction would ordinarily or necessarily apply.

 

(b)              
BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY
AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE
THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING
BROUGHT TO ENFORCE OR DEFEND ANY RIGHTS OR REMEDIES UNDER THIS AGREEMENT OR ANY DOCUMENTS RELATED HERETO.

 

7.11         
No Third Party Beneficiaries or Reliance. Anything contained herein to the contrary notwithstanding, the representations
and warranties of the Company contained in this Agreement (a) are being given by the Company as an inducement to the Investor to
enter into this Agreement and the other Transaction Documents (and the Company acknowledges that the Investor have expressly relied
thereon) and (b) are solely for the benefit of the Investor. Accordingly, no third party (including, without limitation, any holder
of capital stock of the Company other than the Investor or its successors or assigns) or anyone acting on behalf of any holder
thereof other than the Investor or its successors or assigns shall be a third-party or other beneficiary of such representations
and warranties and no such third party shall have any rights of contribution against the Investor or the Company with respect to
such representations or warranties or any matter subject to or resulting in indemnification under this Agreement or otherwise.

 

7.12         
Publicity. Neither the Investor nor the Company shall issue any press release or make any public disclosure regarding
the transactions contemplated hereby unless such press release or public disclosure is approved by the Investor and those parties
mentioned in such press release or public disclosure in advance. Notwithstanding the foregoing, the parties hereto may, in documents
required to be filed by it with the Commission or other regulatory bodies, make such statements with respect to the transactions
contemplated hereby as each may be advised by counsel is legally necessary or advisable.

 

    	26

    	 

    
 

7.13         
Severability. It is the desire and intent of the parties that the provisions of this Agreement be enforced to the
fullest extent permissible under the law and public policies applied in each jurisdiction in which enforcement is sought. Accordingly,
in the event that any provision of this Agreement would be held in any jurisdiction to be invalid, prohibited or unenforceable
for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of
this Agreement or affecting the validity or enforceability of such provision in any jurisdiction. Notwithstanding the foregoing,
if such provision could be more narrowly drawn so as to not be invalid, prohibited or unenforceable in such jurisdiction, it shall,
as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.

 

7.14         
Independence of Agreements, Covenants, Representations and Warranties. All agreements and covenants hereunder shall
be given independent effect so that if a certain action or condition constitutes a default under a certain agreement or covenant,
the fact that such action or condition is permitted by another agreement or covenant shall not affect the occurrence of such default,
unless expressly permitted under an exception to such covenant. In addition, all representations and warranties hereunder shall
be given independent effect so that if a particular representation or warranty proves to be incorrect or is breached, the fact
that another representation or warranty concerning the same or similar subject matter is correct or is not breached will not affect
the incorrectness of or a breach of a representation and warranty hereunder. The annexes, exhibits and schedules attached hereto
are hereby made part of this Agreement in all respects.

 

7.15         
Construction and Interpretation. For purposes of this Agreement, (a) the words “include,” “includes”
and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or”
is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto” and
“hereunder” refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Sections
and Exhibits refer to the Sections of, and Exhibits attached to, this Agreement; (y) to an agreement, instrument or other document
means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted
by the provisions thereof and (z) to a statute means such statute as amended from time to time and includes any successor legislation
thereto and any regulations promulgated thereunder. The Company and the Investor acknowledge that the Company and its independent
counsel and the Investor and its independent counsel have jointly reviewed and been involved in the drafting and negotiation of
this document and the other Transaction Documents. Accordingly, this Agreement and the other Transaction Documents shall be construed
without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or
causing any instrument to be drafted. The Exhibits referred to herein shall be construed with, and as an integral part of, this
Agreement to the same extent as if they were set forth verbatim herein.

 

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7.16         
Counterparts; Facsimile and Electronic Signatures. The parties may execute this Agreement in multiple counterparts,
each of which constitutes an original, and all of which, collectively, constitute only one agreement. The signatures of all of
the parties need not appear on the same counterpart. Transmission of an executed copy of a counterpart or counterpart signature
page by facsimile, digital or electronic means shall constitute delivery of the executed counterpart when so transmitted. This
Agreement is effective upon delivery of one executed counterpart from each party to the other parties. In proving this Agreement,
a party must produce or account only for an executed counterpart (or facsimile, digital or electronic copy thereof) of the party
to be charged.

 

7.17         
Headings. The section and paragraph headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.

 

 

 

 

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Signature Page to Note and Warrant
Purchase Agreement

Players Network

July ___, 2012

 

IN WITNESS WHEREOF, each of the
undersigned has duly executed this Note and Warrant Purchase Agreement as of the date first written above.

 

	 	COMPANY:
	 	 
	 	
        Players Network

a Nevada Corporation

	 	 
	 	By: ____________________________________
	 	Name:
	 	Title:  
	 	 
	 	 
	 	INVESTOR:
	 	 
	 	Continental Equities LLC
	 	a New York Limited Liability Company
	 	 
	 	By: ____________________________________
	 	Name:
	 	Title:

 

 

 

 

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