Document:

EXHIBIT 10.27

 

NEITHER THIS WARRANT NOR THE SECURITIES
ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS AND MAY ONLY BE ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO,
OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE OF THIS WARRANT,
IF ANY, MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO
SUCH SECURITIES UNDER THE ACT AND QUALIFICATION UNDER APPLICABLE STATE LAW WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION AND QUALIFICATION ARE NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND
EXCHANGE COMMISSION.

 

 

COMMON STOCK PURCHASE WARRANT

 

To Purchase [ ] Shares of Common Stock of

 

SAFETY QUICK LIGHTING & FANS CORP.

 

[ ], 2014 (the “Issuance Date”)

 

 THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”), dated [ ], 2014, CERTIFIES that, for value received, [ ] (the
“Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after the date of this Warrant and on or prior to the fifth anniversary of the date of this Warrant
(the “Termination Date”) but not thereafter, to subscribe for and purchase from Safety Quick Lighting &
Fans Corp., a Florida corporation (the “Company”), up to [ ] shares (the “Warrant Shares”)
of the Common Stock, no par value, of the Company (the “Common Stock”). The purchase price of one share of
Common Stock (the “Exercise Price”) under this Warrant shall be US $0.375 (thirty-seven and one half cent US).
The Exercise Price and the number of Warrant Shares for which the Warrant is exercisable shall be subject to adjustment as provided
herein. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase
Agreement (the “Purchase Agreement”), dated as of [ ], 2014, among the Company and the Purchaser parties signatory
thereto.

 

1. Title to Warrant.
Prior to the Termination Date and subject to compliance with applicable laws, including transfer restrictions imposed by applicable
securities laws, and Section 7 of this Warrant, this Warrant and all rights hereunder are transferable, in whole or in part, at
the office or agency of the Company by the Holder in person or by duly authorized attorney, upon surrender of this Warrant together
with the Assignment Form annexed hereto properly endorsed. The transferee shall sign an investment letter in form and substance
reasonably satisfactory to the Company.

 

2 Authorization
of Shares. The Company covenants that all Warrant Shares, which may be issued upon the exercise of the purchase rights represented
by this Warrant in accordance with the terms of this Warrant, including the payment of the exercise price for such Warrant Shares,
will, upon exercise of the purchase rights represented by this Warrant, be duly authorized, validly issued, fully paid and nonassessable
and free from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue).

    	 	 	 

    	 

    

3. Exercise of Warrant.

 

(a) Exercise
of the purchase rights represented by this Warrant may be made at any time or times on or before the Termination Date by delivery
to the Company of a duly executed Notice of Exercise Form annexed hereto (or such other office or agency of the Company as it may
designate by notice in writing to the registered Holder at the address of such Holder appearing on the books of the Company) and
surrender of this Warrant, together with payment of the aggregate Exercise Price of the Warrant Shares thereby purchased by wire
transfer or cashier’s check drawn on a United States bank in immediately available funds. Certificates for Warrant Shares
purchased hereunder shall be delivered to the Holder within 5 Trading Days from the delivery to the Company of the Notice of Exercise
Form, surrender of this Warrant and payment of the aggregate Exercise Price as set forth above (“Warrant Share Delivery
Date”). This Warrant shall be deemed to have been exercised on the later of the date the Notice of Exercise is delivered
to the Company and the date the Exercise Price is received by the Company. The Warrant Shares shall be deemed to have been issued,
and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such Warrant
Shares for all purposes, as of the date the Warrant has been exercised by payment to the Company of the Exercise Price and all
taxes required to be paid by the Holder, if any, pursuant to Section 5 prior to the issuance of such Warrant Shares, have been
paid. If the Company fails to deliver to the Holder a certificate or certificates representing the Warrant Shares pursuant to this
Section 3(a) by the end of business (New York, New York time) on the fifth Trading Day following the Warrant Share Delivery Date,
then the Holder will have the right to rescind such exercise. Nothing herein shall limit a Holder’s right to pursue any other
remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or
injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock
upon exercise of the Warrant as required pursuant to the terms hereof.

 

For the purposes of this Warrant, “Trading Day”
means (i) a day on which the Common Stock is listed or quoted for trading on the OTC Bulletin Board, the American Stock Exchange,
the New York Stock Exchange, the NASDAQ Global Market or the NASDAQ Capital Market (each, a “Trading Market”);
or (ii) if the Common Stock is not trading on a Trading Market, a day on which the Common Stock is quoted in the over-the-counter
market as reported by Pink Sheets LLC (or any similar organization or agency succeeding to its functions of reporting price);
provided, that in the event that the Common Stock is not listed or quoted as set forth in (i) and (ii) hereof, then Trading
Day shall mean a day (other than a Saturday or Sunday) on which banks generally are open in New York, New York for the conduct
of substantially all of their activities.

 

(b) If this
Warrant shall have been exercised in part, the Company shall, at the time of delivery of the certificate or certificates representing
Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called
for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

(c) If at
any time after one year from the date of issuance of this Warrant, there is no effective Registration Statement registering the
resale of the Warrant Shares by the Holder at such time, this Warrant may also be exercised at such time by means of a “cashless
exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient
obtained by dividing [(A-B) (X)] by (A), where:

 

	(A)		= the VWAP on the Trading Day immediately preceding the date of such election;

 

	(B)		= the Exercise Price of this Warrant, as adjusted; and

 

	(X)		= the number of Warrant Shares issuable upon exercise of this Warrant in accordance
with the terms of this Warrant by means of a cash exercise rather than a cashless exercise.

    	 	 	 

    	 

    

“VWAP”
shall mean, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then
listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg Financial L.P.
(based on a Trading Day from 9:30 a.m. Eastern Time to 4:02 p.m. Eastern Time); (b) if the Common Stock is not then listed or quoted
on a Trading Market and if prices for the Common Stock are then reported in the “Pink Sheets” published by the National
Quotation Bureau Incorporated (or a similar organization or agency succeeding to its functions of reporting prices), the most recent
bid price per share of the Common Stock so reported; or (c) in all other cases, the fair market value of a share of Common Stock
as determined by an independent appraiser selected in good faith by the Purchasers and reasonably acceptable to the Company.

 

4. No Fractional
Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.
As to any fraction of a share which Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay a
cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price.

 

5. Charges, Taxes
and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer
tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by
the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the
Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of
the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed
by the Holder; and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer
tax incidental thereto.

 

6. Closing of Books.
The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant
to the terms hereof.

 

7. Transfer, Division
and Combination.

 

(a) Subject
to compliance with any applicable securities laws and the conditions set forth in Sections 1 and 7(e) hereof, this Warrant and
all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company,
together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its
agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender
and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor
a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. A Warrant,
if properly assigned, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

(b) This
Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together
with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its
agent or attorney. Subject to compliance with Section 7(a), as to any transfer which may be involved in such division or combination,
the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined
in accordance with such notice.

 

(c) The
Company shall prepare, issue and deliver at its own expense (other than transfer taxes) the new Warrant or Warrants under this
Section 7.

 

(d) The
Company agrees to maintain, at its aforesaid office, books for the registration and the registration of transfer of the Warrants.

    	 	 	 

    	 

    

(e) The Company may require, as a condition of allowing
such transfer (i) that the Holder or transferee of this Warrant, as the case may be, furnish to the Company a written opinion
of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions)
to the effect that such transfer may be made without registration under the Act and under applicable state securities or blue
sky laws, (ii) that the holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable
to the Company and (iii) that the transferee be an “accredited investor” as defined in Rule 501(a) promulgated under
the Act or a qualified institutional buyer as defined in Rule 144A(a) under the Act.

 

8. No Rights as
Shareholder until Exercise. This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder
of the Company prior to the exercise hereof. Upon the surrender of this Warrant and the payment of the aggregate Exercise Price
(or by means of a cashless exercise), the Warrant Shares so purchased shall be and be deemed to be issued to such Holder as the
record owner of such Warrant Shares as of the close of business on the later of the date of such surrender or payment.

 

9. Loss, Theft,
Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and
in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant,
shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of
such Warrant or stock certificate.

 

10. Saturdays, Sundays,
Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted
herein shall be a Saturday, Sunday or a legal holiday, then such action may be taken or such right may be exercised on the next
succeeding day not a Saturday, Sunday or legal holiday.

 

11. Adjustments of Exercise Price and Number of Warrant
Shares. The number and kind of securities purchasable upon the exercise of this Warrant and the Exercise Price shall be subject
to adjustment from time to time in the event that the Company: (i) pays a dividend in shares of Common Stock or make a distribution
in shares of Common Stock to holders of its outstanding Common Stock; (ii) subdivides its outstanding shares of Common Stock into
a greater number of shares; (iii) combines its outstanding shares of Common Stock into a smaller number of shares of Common Stock;
or (iv) issues any shares of its capital stock in a reclassification of the Common Stock, then the number of Warrant Shares purchasable
upon exercise of this Warrant immediately prior thereto shall be adjusted so that the Holder shall be entitled to receive the
kind and number of Warrant Shares or other securities of the Company which it would have owned or have been entitled to receive
had such Warrant been exercised in advance thereof. Upon each such adjustment of the kind and number of Warrant Shares or other
securities of the Company which are purchasable hereunder, the Holder shall thereafter be entitled to purchase the number of Warrant
Shares or other securities resulting from such adjustment at an Exercise Price per Warrant Share or other security obtained by
multiplying the Exercise Price in effect immediately prior to such adjustment by the number of Warrant Shares purchasable pursuant
hereto immediately prior to such adjustment and dividing by the number of Warrant Shares or other securities of the Company that
are purchasable pursuant hereto immediately after such adjustment. An adjustment made pursuant to this paragraph shall become
effective immediately after the effective date of such event retroactive to the record date, if any, for such event.

 

12. Subsequent Equity
Sales. In the event that on or subsequent to the Issuance Date, the Company issues or sells any Common Stock, any securities
which are convertible into or exchangeable for its Common Stock or any convertible securities, or any warrants or other rights
to subscribe for or to purchase or any options for the purchase of its Common Stock or any such convertible securities (the “Common
Stock Equivalents”) (other than (i) securities which are issued pursuant to the Offering Documents, (ii) shares of Common
Stock or options to purchase such shares issued to employees, consultants, officers or directors in accordance with stock plans
approved by the Company’s Board of Directors, and shares of Common Stock issuable under options or warrants that are outstanding
as of the date of the Offering Documents or issued in the future pursuant to any stock incentive plan authorized by the Company’s
Board of Directors, and (iii) shares of Common Stock issued pursuant to a stock dividend, split or other similar transaction) at
an effective price per share which is less than the Exercise Price, then the Exercise Price in effect immediately prior to such
issue or sale shall be reduced to the lowest per share price of Common Stock in such issuance or sale or deemed issuance or sale.

    	 	 	 

    	 

    

13. Reorganization,
Reclassification, Merger, Consolidation or Disposition of Assets. In case the Company shall reorganize its capital, reclassify
its capital stock, consolidate or merge with or into another corporation (where the Company is not the surviving corporation or
where there is a change in or distribution with respect to the Common Stock of the Company), or sell, transfer or otherwise dispose
of its property, assets or business to another corporation and, pursuant to the terms of such reorganization, reclassification,
merger, consolidation or disposition of assets, shares of common stock of the successor or acquiring corporation, or any cash,
shares of stock or other securities or property of any nature whatsoever (including warrants or other subscription or purchase
rights) in addition to or in lieu of common stock of the successor or acquiring corporation (“Other Property”),
are to be received by or distributed to the holders of Common Stock of the Company, then, from and after the consummation of such
transaction or event, the Holder shall have the right thereafter to receive, instead of the Warrant Shares, at the option of the
Holder, (a) upon exercise of this Warrant, the number of shares of Common Stock of the successor or acquiring corporation or of
the Company, if it is the surviving corporation, and Other Property receivable upon or as a result of such reorganization, reclassification,
merger, consolidation or disposition of assets by a Holder of the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event or (b) cash equal to the value of this Warrant as determined in accordance with the Black-Scholes
option pricing formula. For purposes of this Section 13, “common stock of the successor or acquiring corporation” shall
include stock of such corporation of any class which is not preferred as to dividends or assets over any other class of stock of
such corporation and which is not subject to redemption and shall also include any evidences of indebtedness, shares of stock or
other securities which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified
date or the happening of a specified event and any warrants or other rights to subscribe for or purchase any such stock. The foregoing
provisions of this Section 13 shall similarly apply to successive reorganizations, reclassifications, mergers, consolidations or
disposition of assets.

 

14. Notice of Adjustment.
Whenever the number of Warrant Shares or number or kind of securities or other property purchasable upon the exercise of this Warrant
or the Exercise Price is adjusted, as herein provided, the Company shall give notice thereof to the Holder, which notice shall
state the number of Warrant Shares (and other securities or property) purchasable upon the exercise of this Warrant and the Exercise
Price of such Warrant Shares (and other securities or property) after such adjustment, setting forth a brief statement of the facts
requiring such adjustment and setting forth the computation by which such adjustment was made.

 

15. Notice of Corporate
Action. If at any time:

 

(a) the
Company shall take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend or other
distribution,

 

(b) there
shall be any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company
or any consolidation or merger of the Company with, or any sale, transfer or other disposition of all or substantially all the
property, assets or business of the Company to, another corporation, or

 

(c) there shall be a voluntary or involuntary
dissolution, liquidation or winding up of the Company; then, in any one or more of such cases, the Company shall give to
Holder (i) prior written notice of the date on which a record date shall be selected for such dividend or distribution or for
determining rights to vote in respect of any such reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, liquidation or winding up, and (ii) in the case of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, dissolution, liquidation or winding up, prior written notice of the date when the
same shall take place. Such notice in accordance with the foregoing clause also shall specify (i) the date on which the
holders of Common Stock shall be entitled to any such dividend or distribution, and the amount and character thereof, and
(ii) the date on which any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any such time is to be fixed, as of which the
holders of Common Stock shall be entitled to exchange their Warrant Shares for securities or other property deliverable upon
such disposition, dissolution, liquidation or winding up. Each such written notice shall be sufficiently given if addressed
to Holder at the last address of Holder appearing on the books of the Company and delivered in accordance with Section
17(d).

    	 	 	 

    	 

    

16. Authorized Shares. The Company covenants
that during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient
number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this
Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who
are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may
be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or
regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed.

 

Except and to the extent
as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate
of incorporation or through any reorganization, transfer of assets, consolidation, merger, 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 Warrant, but will
at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary
or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality
of the foregoing, the Company will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon
such exercise immediately prior to such increase in par value, (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant, and
(c) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body
having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action
which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price,
the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

 

17. Miscellaneous.

 

(a) Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed
in accordance with the laws of the State of New York applicable to contracts to be wholly performed within such state and without
regard to conflicts of law provisions that would result in the application of any laws other than the laws of the State of New
York. Any legal action or proceeding arising out of or relating to this Warrant may be instituted in the courts of the State of
New York sitting in New York County or in the United States of America for the Southern District of New York, and the parties hereto
irrevocably submit to the jurisdiction of each such court in any action or proceeding. Holder hereby irrevocably waives and agrees
not to assert, by way of motion, as a defense, or otherwise, in every suit, action or other proceeding arising out of or based
on this Warrant and brought in any such court, any claim that Holder is not subject personally to the jurisdiction of the above
named courts, that Holder’s property is exempt or immune from attachment or execution, that the suit, action or proceeding
is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper.

 

(b) Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered for resale, will
have restrictions upon resale imposed by state and federal securities laws.

 

(c) Nonwaiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate
as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding all rights hereunder
terminate on the Termination Date. If the Company willfully and knowingly fails to comply with any provision of this Warrant, which
results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred
by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

(d) Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Purchase Agreement.

    	 	 	 

    	 

    

(e) Limitation
of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant or purchase
Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for
the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

 

(f) Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure
to the benefit of and be binding upon the successors of the Company and the successors and permitted assigns of Holder. The provisions
of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant and shall be enforceable by
any such Holder or holder of Warrant Shares.

 

(g) Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

(h) Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

(i) Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

 

[Signature Page Follows]

    	 

    	 

    

IN WITNESS WHEREOF,
the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first written above.

 

 

	 	 	 	 
	SAFETY QUICK LIGHTING & FANS CORP.
	 	
         

         
	 
	By:	 	
         

         
	 
	 	    	James R. Hills 	 
	 	 	President & CEO 	 

 

    	 

    	 

    

NOTICE OF EXERCISE

 

To: Safety Quick Lighting & Fans Corp.

 

(1) The undersigned hereby
elects to purchase                     
Warrant Shares of the Company pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price
in full, together with all applicable transfer taxes, if any.

 

(2) Payment shall take the
form of (check applicable box):

 

	[ ]		 in lawful money of the United States; or

  

	[ ]		the cancellation of such number of Warrant Shares as is necessary, in accordance
with the formula set forth in subsection 3(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable
pursuant to the cashless exercise procedure set forth in subsection 3(c).

 

(3) Please issue a certificate
or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

__________________________________________

 

The Warrant Shares shall
be delivered to the following:

 

__________________________________________

 

__________________________________________

 

__________________________________________

 

__________________________________________

 

(4) Accredited Investor.
The undersigned is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended.

 

 

(PURCHASER)

 

By:_____________________________________

 

Name:_____________________________________

 

Title:_____________________________________EXHIBIT 10.28

 

NEITHER THIS DEBENTURE NOR THE SECURITIES UNDERLYING THIS DEBENTURE, NOR ANY
SECURITIES ISSUABLE UPON ITS CONVERSION, IF ANY, HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT’), OR QUALIFIED UNDER APPLICABLE STATE SECURITIES LAWS AND MAY ONLY BE ACQUIRED FOR INVESTMENT
PURPOSES ONLY AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. THIS DEBENTURE AND THE
SECURITIES UNDERLYING THIS DEBENTURE, OR THE SECURITIES ISSUABLE UPON ITS CONVERSION, IF ANY, MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES UNDER THE ACT AND
QUALIFICATION UNDER APPLICABLE STATE LAW WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND
QUALIFICATION ARE NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE
COMMISSION.

 

 

SAFETY QUICK LIGHTING & FANS CORP.

 

SECURED CONVERTIBLE PROMISSORY NOTE

 

 

Dated: [ ], 2014

 

FOR VALUE RECEIVED SAFETY
QUICK LIGHTING & FANS CORP., a company organized under the laws of Florida (the “Company”), hereby promises
to pay to [ ] (the “Payee”), or [his/her/its] registered assigns, the principal amount of [ ] Dollars ($[ ]
USD) together with interest thereon calculated from the Interest Commencement Date in accordance with the provisions of this Secured
Convertible Promissory Note (as amended, modified and supplemented from time to time, this “Note” and together
with any other Notes issued in the Offering (as hereinafter defined) or upon transfer or exchange, the “Notes”).
Capitalized terms not defined in this Note shall have the meaning ascribed to them in the Subscription Agreement.

 

Certain capitalized terms
are defined in Section 9 hereof.

 

1. Payment of Interest. Interest shall accrue at a
rate equal to twelve percent (12%) per annum (the “Interest Rate”) beginning the date the Payee submitted funds
in respect of this Note pursuant to the Subscription Agreement (“Interest Commencement Date”) on the unpaid
principal amount of this Note and shall be payable upon the first anniversary of the Interest Commencement Date in cash and then
quarterly in cash thereafter; provided that so long as any Event of Default has occurred and is continuing, the interest
rate shall increase two percent (2%) above the current interest rate, and will continue to increase two percent (2%) above the
then effective interest rate after every 30-day period thereafter in which the Company remains in default of its obligation to
pay principal and interest. In no event shall any interest to be paid under the Notes exceed the maximum rate permitted by law.
In any such event, the Note shall automatically be deemed amended to permit interest charges at an amount equal to, but not greater
than, the maximum rate permitted by law. Interest shall be computed on the basis of the actual number of days elapsed and a 360-day
year.

 

2. Maturity Date. The entire
principal amount of this Note and all accrued but unpaid interest thereon shall be due and payable in full in cash in immediately
available funds twenty-four months from the date of issuance (such date, the “Maturity Date”) upon the tender
of such Note by Payee.

 

3. Conversion.

 

(i)The Payee shall
have the option to (a) convert this Note and any accrued but unpaid interest into shares of the Company’s common stock, no
par value (“Common Stock”), at any time during the term of the Note or (b) upon the Maturity Date, tender this
Note to the Company for immediate repayment of principal and accrued and unpaid interest. The number of shares of Common Stock
that shall be issuable upon conversion of the Note shall equal the number derived by dividing (x) the principal amount of the Note
plus any accrued and unpaid interest thereon by (y) US $0.25 (twenty-five cents US). No fractional shares shall be issued upon
a conversion. In lieu of any fractional shares to which Payee would otherwise be entitled, the Company shall pay cash equal to
such fraction multiplied by the pre-money valuation.

    	 	 	 

    	 

    

In order to convert this
Note into Common Stock, the Holder must deliver a dated and signed notice of conversion (the “Notice of Conversion”),
a copy of which is attached to this Note as Exhibit A, stating its intention to convert the full principal amount of this
Note into Common Stock, Notices of Conversion shall be deemed delivered on the date sent, if personally delivered, to the Company’s
Chief Executive Officer at the Company’s principal place of business, or when actually received if sent by another method.
The Notice of Conversion shall be accompanied by the original Note.

 

(ii) As soon as possible after the
conversion has been effected (but in any event within two (2) Business Days), the Company or acquirer shall deliver to the converting
holder a certificate or certificates representing the shares of Common Stock issuable by reason of such conversion in such name
or names and such denomination or denominations as the converting holder has specified. In the event that the Payee elects to tender
this Note to the Company for immediate repayment, such payment shall be delivered to the Payee within five (5) Business Days to
the address provided by the Payee to the Company at the time of the surrender of this Note.

 

(iii) The issuance of shares of Common
Stock upon conversion of this Note shall be made without charge to the holder hereof in respect thereof or other cost incurred
by the Company or acquirer in connection with such conversion. Upon conversion of this Note, the Company shall take all such actions
as are necessary in order to ensure that Common Stock issuable upon conversion of the Note shall be validly issued, fully paid
and nonassessable.

 

(iv) Neither the Company nor acquirer shall close its books
against the transfer of this Note in any manner which interferes with the timely conversion of this Note. The Company shall assist
and cooperate with any holder of this Note required to make any governmental filings or obtain any governmental approval prior
to or in connection with the conversion of this Note (including, without limitation, making any filings required to be made by
the Company).

 

(v) The Company shall at all times
reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of issuance upon conversion
hereunder, such number of shares of Common Stock issuable upon conversion. All shares of such capital stock which are so issuable
shall, when issued, be duly and validly issued, fully paid and nonassessable and free from all taxes, liens and charges. The Company
shall take all such actions as may be necessary to assure that all such shares of capital stock may be so issued without violation
of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which such shares
of capital stock.

 

4.                 
Prepayment. The principal amount of this Note may be prepaid, in whole or in part, after twelve (12) months from
the date of issuance at the option of the Company, together with interest accrued to the date of prepayment. Any such prepayment
shall be made pro rata based on such Payee’s share of the aggregate principal amount then owed by the Company to all of the
Payees under all the Notes.

 

In the event of prepayment,
in whole or in part, a prepayment penalty rate shall be assessed as follows:

 

(i)10% of
principal value between months 12 and 18.

 

(ii)5% of
principal value between months 19 and 24.

 

 5. Seniority. This Note is
secured indebtedness of the Company and shall be secured by a second priority lien on all the assets of the Company and its subsidiaries,
second only to the existing note payable to Signature Bank in an amount not to exceed $620,000;
subject to a carve out for a traditional revolving credit facility secured by receivables with a maximum borrowing capacity of
$1,000,000, whether now or hereinafter existing except as otherwise stated herein.

    	 	 	 

    	 

    

 6. Method of Payments.

 

 (i) Payment. So long as the Payee or any of its
nominees shall be the holder of any Note, and notwithstanding anything contained elsewhere in this Note to the contrary, the Company
will pay all sums for principal, interest, or otherwise becoming due on this Note held by the Payee or such nominee not later
than 1:00 p.m. New York time, on the date such payment is due, in immediately available funds, in accordance with the payment
instructions that the Payee may designate in writing, without the presentation or surrender of such Note or the making of any
notation thereon. Any payment made after 1:00 p.m. New York time, on a Business Day will be deemed made on the next following
Business Day. If the due date of any payment in respect of this Note would otherwise fall on a day that is not a Business Day,
such due date shall be extended to the next succeeding Business Day, and interest shall be payable on any principal so extended
for the period of such extension. All amounts payable under this Note shall be paid free and clear of, and without reduction by
reason of, any deduction, set-off or counterclaim. The Company will afford the benefits of this Section to the Payee and to each
other Person holding this Note.

 

 (ii) Transfer and Exchange.
Upon surrender of any Note for registration of transfer or for exchange to the Company, in accordance with the terms hereof, at
its principal office, the Company at its sole expense will execute and deliver in exchange therefor a new Note or Notes, as the
case may be, as requested by the holder or transferee, which aggregate principal amount is equal the unpaid principal amount of
such Note, registered as such holder or transferee may request, dated so that there will be no loss of interest on the Note and
otherwise of like tenor; provided that this Note may not be transferred by Payee to any Person other than Payee’s affiliates
without the prior written consent of the Company (which consent shall not be unreasonably withheld or delayed). The issuance of
new Notes shall be made without charge to the holder(s) of the surrendered Note for any issuance tax in respect thereof or other
cost incurred by the Company in connection with such issuance, provided that each Noteholder shall pay any transfer taxes associated
therewith. The Company shall be entitled to regard the registered holder of this Note as the holder of the Note so registered for
all purposes until the Company or its agent, as applicable, is required to record a transfer of this Note on its register.

 

 (iii) Replacement. Upon
receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of any Note and, in the
case of any such loss, theft or destruction of any Note, upon receipt of an indemnity reasonably satisfactory to the Company or,
in the case of any such mutilation, upon the surrender and cancellation of such Note, the Company, at its expense, will execute
and deliver, in lieu thereof, a new Note of like tenor and dated the date of such lost, stolen, destroyed or mutilated Note.

 

7. Covenants of the Company.
The Company covenants and agrees as follows:

 

(i) Consolidation, Merger and Sale.
With the exception of a reverse merger transaction, the Company will not sell or otherwise dispose of (or permit any subsidiary
to sell or otherwise dispose of) a material portion of its property or assets in one or more transactions for so long as any of
the Notes remain outstanding.

 

(ii) Use of Proceeds. The Company
shall use the proceeds of the Notes only for general working capital purposes and not to redeem or make any payment on account
of any securities of the Company other than as provided in Schedule 1 of the Offering Documents.

 

(iii) Notes. All Notes shall
be on the same terms and shall be in substantially the same form. All payments to the holder of any Note shall be made to all holders
of Notes, pro rata, based on the aggregate principal amount plus accrued but unpaid interest outstanding on such Notes at such
time.

 

(iv)Restricted Payments. Other than as set forth
on Schedule 1.1 of the Offering Documents, for as long as the Notes are outstanding, the Company shall not (a) declare
or pay any dividend or make any distribution on or in respect of its capital stock; (b) make any principal payment on, redeem,
repurchase, or retire any outstanding debt; or (c) increase the compensation (including bonuses and incentive compensation) paid
to any consultant or employee other than in the ordinary course of business consistent with past practice.

    	 	 	 

    	 

    

8. Events of Default. If any
of the following events take place before or on the Maturity Date (each, an “Event of Default”), Payee at its
option may declare all principal and accrued and unpaid interest thereon and all other amounts payable under this Note immediately
due and payable; provided, however, that this Note shall automatically become due and payable without any declaration
in the case of an Event of Default specified in clause (iii) or (v), below:

 

(i) Company fails to
make payment of the full amount due under this Note upon the tender of such Note following the Maturity Date;

 

(ii) A receiver, liquidator
or trustee of Company or any substantial partof Company’s assets or properties is appointed by a court order;

 

(iii) Company is adjudicated
bankrupt or insolvent;

 

(iv) Any of Company’s
property is sequestered by or in consequence of a court order and such order remains in effect for more than thirty (30) days;

 

(v) Company files a petition
in voluntary bankruptcy or requests reorganization under any provision of any bankruptcy, reorganization or insolvency law or consents
to the filing of any petition against it under such law;

 

(vi) Proceedings for
the appointment of a receiver, trustee or custodian of the Company or of all or a substantial part of the assets or property thereof,
or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to the Company or
the debts thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order
for relief entered or such proceeding shall not be dismissed or discharged within sixty (60) days of commencement;

 

(vii) Company makes a
formal or informal general assignment for the benefit of its creditors, or admits in writing its inability to pay debts generally
when they become due, or consents to the appointment of a receiver or liquidator of Company or of all or any part of its property;

 

(viii) An attachment
or execution is levied against any substantial part of Company’s assets that is not released within thirty (30) days;

 

(ix) Company dissolves,
liquidates or ceases business activity, or transfers any major portion of its assets other than in the ordinary course of business;
provided that this paragraph (ix) shall not apply to any contemplated real estate transaction;

 

(x) Company breaches
any covenant or agreement on its part contained in this Note or the Subscription Agreement; or

 

(xi) Any material inaccuracy
or untruthfulness of any representation or warranty of the Company set forth in this Note, the Subscription Agreement or the Offering
Documents.

 

 9. Definitions.

 

“Business
Day” means a day (other than a Saturday or Sunday) on which banks generally are open in New York, New York for the conduct
of substantially all of their activities.

 

“Noteholder”
or “Payee” with respect to any Note, means at any time each Person then the record owner hereof and “Noteholders”
or “Payees” means all of such Noteholders or Payees, collectively.

    	 	 	 

    	 

    

“Offering”
shall mean the Secured Convertible Promissory Notes issued by the Company to the Payee and other Noteholders (each in substantially
the form of this Note) in the original principal amount not to exceed $4,250,000 in the aggregate.

 

“Offering Documents”
shall mean those certain Offering Documents (including all schedules therein) dated September 2013, as amended and supplemented
from time to time, prepared by the Company in connection with the Offering.

 

“Person”
means any person or entity of any nature whatsoever, specifically including an individual, a firm, a company, a corporation, a
partnership, a limited liability company, a trust or other entity.

 

“Subscription
Agreement” means the Note Subscription Agreement, dated [ ], 2014, between the Company and the Payee.

 

 10. Expenses of Enforcement, etc. The Company agrees
to pay all reasonable fees and expenses incurred by the Payee in connection with any amendments, modifications, waivers, extensions,
renewals, renegotiations or “workouts” of the provisions hereof or incurred by the Payee in connection with the enforcement
or protection of its rights in connection with this Note, or in connection with any pending or threatened action, proceeding,
or investigation relating to the foregoing, including but not limited to the reasonable fees and disbursements of counsel for
the Payee. The Company indemnifies the Payee and its directors, managers, affiliates, partners, members, officers, employees and
agents against, and agrees to hold the Payee and each such person and/or entity harmless from, any and all losses, claims, damages,
liabilities and related expenses, including reasonable counsel fees and expenses, incurred by or asserted against the Payee or
any such person and/or entity arising out of, in any way connected with, or as a result of (i) the consummation of the loan evidenced
by this Note and the use of the proceeds thereof or (ii) any claim, litigation, investigation or proceedings relating to any of
the foregoing, whether or not the Payee or any such person and/or entity is a party thereto other than any loss, claim, damage,
liability or related expense incurred or asserted against the Payee or any such person on account of the Payee’s or such
person’s gross negligence or willful misconduct. Notwithstanding the foregoing, with respect to the indemnification obligations
of the Company hereunder, (y) the Company’s aggregate liability under this Note to the Payee shall not exceed the aggregate
principal amount of the Note and all accrued and unpaid interest thereon and (z) indemnified liabilities shall not include any
liability of any indemnitee arising out of such indemnitee’s gross negligence. To the extent that the foregoing undertaking
by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction
of each of the indemnified liabilities which is permissible under applicable law.

 

11. Security Interest.

 

(i) Creation of Security Interest.
In order to secure the payment of the principal and interest and all other obligations of the Company hereunder now or hereafter
owed by the Company to Payee (the “Secured Obligations”), the Company hereby grants to Payee (or its designee)
(the “Secured Party”) a second priority security interest (the “Security Interest”) in the
property of the Company described below (the “Collateral”) on the terms and conditions set forth in this Note,
second only to the existing note payable to Signature Bank in an amount not to exceed $620,000:

 

(a)all intellectual
property of any kind or nature whatsoever, including without limitation patents, patent applications, copyrights, copyright applications,
trademarks and service marks and applications therefore, mask works, net lists and trade secrets; and

 

(b) all substitutes
and replacements for, accessions, attachments, and other additions to, and all proceeds, products, and increases of, any and all
of the foregoing Collateral, in whatever form, whether cash or noncash; interest, premium, and principal payments, redemption proceeds
and subscription rights, and shares or other proceeds of conversions or splits of any securities in Collateral, and returned or
repossessed Collateral; and, to the extent not otherwise included, all (A) payments under insurance, or any indemnity, warranty
or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral, (B) cash and
(C) security for the payment of any of the Collateral, and all goods which gave or will give rise to any of the Collateral or are
evidenced, identified, or represented therein or thereby.

    	 	 	 

    	 

    

(ii) Sale or
Removal of Collateral Prohibited. Except for the sale of inventory in the ordinary course of the Company’s business,
the Company shall not sell, lease, encumber, pledge, mortgage, assign, grant a security interest in, or otherwise transfer the
Collateral without the written consent of Payee, which consent shall not be unreasonably withheld.

 

(iii) Uniform Commercial Code Security Agreement.
This section is intended to be a security agreement pursuant to the Uniform Commercial Code for any of the items specified above
as part of the Collateral which, under applicable law, may be subject to a security interest pursuant to the Uniform Commercial
Code, and the Company hereby grants Payee a security interest in said items. The Company agrees that Payee may file any appropriate
document in the appropriate index or filing office as a financing statement for any of the items specified above as part of the
Collateral and the Company shall reimburse Payee for all fees and expenses associated with such filing. In addition, the Company
agrees to execute and deliver to Payee, upon Payee’s request, any financing statements, as well as extensions, renewals
and amendments thereof, and reproductions of this Agreement in such form as Payee may reasonably require to perfect a security
interest with respect to said items. The Company shall pay all costs of filing such financing statements and any extensions, renewals,
amendments, and releases thereof, and shall pay all reasonable costs and expenses of any record searches for financing statements
Payee may reasonably require. Without the prior written consent of Payee, the Company shall not create or suffer to be created
pursuant to the Uniform Commercial Code any other security interest in the Collateral, other than the Security Interests of Secured
Party, including replacements and additions thereto. Upon the occurrence of an Event of Default, each Secured Party shall have
the remedies of a Payee under the Uniform Commercial Code and, at Secured Party’s option, may also invoke the other remedies
provided in this Note as to such items. In exercising any of said remedies, Secured Party may proceed against the items of real
property and any items of personal property specified above as part of the Collateral separately or together and in any order
whatsoever, without in any way affecting the availability of Secured Party’s remedies under the Uniform Commercial Code
or of the other remedies provided in this Agreement.

 

(iv) Rights
of Secured Party. Upon an Event of Default, Secured Party may require the Company to assemble the Collateral and make it available
to Secured Party at the place to be designated by Secured Party which is reasonably convenient to the parties. Secured Party may
sell all or any part of the Collateral as a whole or in parcels either by public auction, private sale, or other method of disposition.
Secured Party may bid at any public sale on all or any portion of the Collateral. Unless the Collateral is perishable or threatens
to decline speedily in value or is of the type customarily sold on a recognized market, Secured Party shall give the Company reasonable
notice of the time and place of any public sale or of the time after which any private sale or other disposition of the Collateral
is to be made, and notice given at least 10 days before the time of the sale or other disposition shall be conclusively presumed
to be reasonable. A public sale in the following fashion shall be conclusively presumed to be reasonable:

 

(a) Notice shall be given
at least 10 days before the date of sale by publication once in a newspaper of general circulation published in the county in which
the sale is to be held;

 

(b) The sale shall be held
in a county in which the Collateral or any part is located or in a county in which the Company has a place of business;

 

(c) Payment shall be in cash
or by certified check immediately following the close of the sale;

 

(d) The sale shall be by
auction, but it need not be by a professional auctioneer; and

 

(e) The Collateral may be
sold as is and without any preparation for sale.

 

(v) Sale of
Collateral. Notwithstanding any provision of this Agreement, Secured Party shall be under no obligation to offer to sell the
Collateral. In the event Secured Party offer to sell the Collateral, Secured Party will be under no obligation to consummate a
sale of the Collateral if, in their reasonable business judgment, none of the offers received by them reasonably approximates the
fair value of the Collateral. In the event Secured Party elects not to sell the Collateral, Secured Party may elect to follow the
procedures set forth in the Uniform Commercial Code for retaining the Collateral in satisfaction of the Company’s obligation,
subject to the Company’s rights under such procedures.

    	 	 	 

    	 

    

(vii) Appointment
of Receiver. In addition to the rights under this Agreement, in the Event of Default by the Company, Secured Party shall be
entitled to the appointment of a receiver for the Collateral as a matter of right whether or not the apparent value of the Collateral
exceeds the outstanding principal amount of the Notes and any receiver appointed may serve without bond. Employment by Secured
Party shall not disqualify a person from serving as receiver.

 

(viii) Additional Rights of Secured
Party. The Company shall execute and deliver to Secured Party concurrently with the Company’s execution and delivery
of this Agreement and at any time thereafter at the reasonable request of Secured Party, all financing statements, continuation
financing statements, fixture filings, security agreements, mortgages, pledges, assignments, endorsements of certificates of title,
applications for title, affidavits, reports, notices, schedules of accounts, letters of authority, and all other documents that
Secured Party may reasonably request, in form reasonably satisfactory to Secured Party, to perfect and maintain perfected Secured
Party’s continuing security interests in the Collateral and in order to fully consummate all of the transactions contemplated
under the Offering Documents, the Company hereby authorizes Secured Party to file and/or record such financing statements and other
documents as Secured Party deems reasonably necessary to perfect and maintain Secured Party’s continuing security interest
in the Collateral, including, but not limited to, any and all filings recognized by the United States Patent and Trademark Office
for the purposes of perfecting a security interest in any Collateral that is considered intellectual property of the Company. The
Company agree any such financing statements may contain an “all asset” or “all property” description of
the Collateral.

 

(ix)Termination of Security Interest.
The Security Interest shall terminate when all the Secured Obligations have been fully and indefeasibly paid in full, at which
time all Uniform Commercial Code termination statements and similar documents which the Company shall reasonably request to evidence
such termination shall be executed.

 

12.             
Right of First Refusal. Noteholders shall have the right in the event the
Company proposes to offer equity or equity derivative securities to any person (other than the shares issued for consideration
other than cash pursuant to a merger, consolidation, acquisition, or similar business combination approved by the Board) to purchase their
pro rata portion of such shares. Any securities not subscribed for by an eligible Noteholder may be reallocated among the other
eligible Noteholders. Such right of first refusal will terminate on upon the second anniversary of the date of issuance of the
Notes. For purposes of this right of first refusal, an Noteholder’s pro rata right shall be equal to the ratio of (i) the
principal value of the Notes purchased in the Offering by such Noteholder to (ii)
the total principal value of aggregate Notes sold by the Company in the Offering.

 

13.             
 Amendment and Waiver. The provisions of this Note may not be modified, amended or waived, and the Company may not
take any action herein prohibited, or omit to perform any act herein required to be
performed by it, without the written consent of the holders of a majority of the then outstanding principal amount of all similar
convertible notes issued in the Company’s Offering; provided, however, that any amendment to this Note which
(i) changes the Interest Rate in Section 1 hereof, (ii) changes the Maturity Date in Section 2 hereof or (iii) adversely affects
the Payee’s ability to convert or to refrain from converting this Note in its sole discretion pursuant to Section 3 hereof,
must be approved in writing by the holders of 100% of the then outstanding principal amount of all similar convertible notes issued
in the Offering (including this Note).

 

14.             
Anti-Dilution Rights. To the extent that during the term of the Notes the Company issues any additional equity securities
(other than an issuance pursuant to an option agreement with an employee or otherwise
to compensate an employee), and the pre-money valuation on which the purchase price is based is less than the pre-money valuation
upon which the Notes were sold to Noteholder(s) (“Dilutive Transaction”),
contemporaneously with the Dilutive Transaction, the Company will issue the Noteholders new
Note certificates which provides them with a revised pre-money valuation upon which the conversion feature of the Notes will be
calculated to reflect the pre-money valuation of the Dilutive Transaction. Accordingly, the exercise price of warrants to purchase
shares of the Company’s common stock provided to Noteholders will be one hundred
and fifty percent (150%) of the revised pre-money valuation.

 

15.             
Remedies Cumulative. No remedy herein conferred upon the Payee is intended to be exclusive of any other remedy and
each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter
existing at law or in equity or by statute or otherwise.

 

16.             
Remedies Not Waived. No course of dealing between the Company and the Payee or any delay on the part of the Payee
in exercising any rights hereunder shall operate as a waiver of any right of the Payee.

    	 	 	 

    	 

    

17.             
Assignments. The Payee may assign, participate, transfer or otherwise convey this Note and any of its rights or obligations
hereunder or interest herein to any affiliate of Payee and to any other Person that the Company consents to (such consent not to
be unreasonably withheld or delayed), and this Note shall inure to the benefit of the Payee’s successors and assigns. The
Company shall not assign or delegate this Note or any of its liabilities or obligations hereunder.

 

18.             
Headings. The headings of the sections and paragraphs of this Note are inserted for convenience only and do not constitute
a part of this Note.

 

19.             
Severability. If any provision of this Note is held invalid or unenforceable by any court of competent jurisdiction,
the other provisions of this Note will remain in full force and effect. Any provision of this Note held invalid or unenforceable
only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

20.             
Cancellation. After all principal, premiums (if any) and accrued interest at any time owed on this Note have been
paid in full, or this Note has been converted this Note will be surrendered to the Company for cancellation and will not be reissued.

 

21.             
Maximum Legal Rate. If at any time an interest rate applicable hereunder exceeds the maximum rate permitted by law,
such rate shall be reduced to the maximum rate so permitted by law.

 

22.             
Place of Payment and Notices. Unless otherwise stated herein, payments of principal and interest are to be delivered
to the Noteholder of this Note at the address provided by the Payee in the Subscription Agreement, or at such other address as
such Noteholder has specified by prior written notice to the Company. No notice shall be deemed to have been delivered until the
first Business Day following actual receipt thereof at the foregoing address.

 

23.             
Waiver of Jury Trial. The Payee and the Company each hereby waives any right it may have to a trial by jury in respect
of any litigation directly or indirectly arising out of, under or in connection with this Note and/or the transactions contemplated
hereunder.

 

24.             
Submission to Jurisdiction.

 

(i)Any legal action or proceeding with
respect to this Note may be brought in the courts of the State of New York or of the United States of America sitting in New York
County, and, by execution and delivery of this Note, the Company hereby accepts for itself and in respect of its property, generally
and unconditionally, the jurisdiction of the aforesaid courts.

 

(ii)The Company hereby irrevocably
waives, in connection with any such action or proceeding, any objection, including, without limitation, any objection to the laying
of venue or based on the grounds of forum non conveniens, which they may now or hereafter have to the bringing of any such action
or proceeding in such respective jurisdictions.

 

(iii)Nothing herein shall affect the
right of the Payee to serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed
against the Company in any other jurisdiction.

 

25. GOVERNING LAW. ALL ISSUES AND
QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS SECURED NOTE SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT
OF LAW RULES OR PROVISIONS (WHETHER OF 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.

 

 

[Signature Page Follows] 

    	 

    	 

    

 IN WITNESS WHEREOF, the Company has executed and delivered
this Secured Convertible Promissory Note on the date first written above.

 

 

COMPANY:

 

SAFETY QUICK LIGHTING & FANS
CORP.

 

 

By:____________________________

 

James R. Hills

President & CEO

    	 

    	 

    

 EXHIBIT A

 

NOTICE OF CONVERSION

(To Be Signed Only Upon Conversion of the Secured
Convertible Promissory Note)

 

The undersigned, the holder
of the foregoing Secured Convertible Promissory Note, hereby surrenders such Note for conversion into shares of Common Stock of
Safety Quick Lighting & Fans Corp. to the extent of $ _______________ unpaid principal amount and any accrued and unpaid interest
of such Note, and requests that the certificates for such shares be issued in the name of, and delivered to:

 

	Name:		___________________________________

	Address		___________________________________

	 		___________________________________

	 		___________________________________

	 		___________________________________

 

Dated: ____/_____/ 20___

 

______________________________________

(Signature must conform in all respects to name of holder
as specified on the face of the Debenture)

 

 

_______________________________________

(Address)

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