Document:

Exhibit
10.2

 

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

 

	Principal
    Amount: Up to $730,000	 	Issue
    Date: November 19, 2020

 

SENIOR
SECURED CONVERTIBLE PROMISSORY NOTE

 

FOR
VALUE RECEIVED, FACT, INC., a Nevada corporation (the “Borrower”), as of November 19, 2020 (the
“Issue Date”), hereby promises to pay to the order of OASIS CAPITAL, LLC, a Puerto Rico limited
liability company, (the “Lender” and including its registered assigns, the “Holder”),
the principal sum of up to $730,000 (the “Principal Amount”), together with interest at the rate of
10% per annum (with the understanding that the initial six months of such interest of each tranche funded shall be
guaranteed), at maturity or upon acceleration or otherwise, as set forth herein (this “Note”). This Note
is being issued by the Borrower to the Lender pursuant to that certain Securities Purchase Agreement (the “Purchase
Agreement”) entered into by the Borrower and the Lender on the Issue Date. The cash consideration to the Borrower
for this Note is up to $600,000 (the “Consideration”) in United States currency, due to the
prorated original issuance discount of up to $120,000 (the “OID”) and a $10,000 credit for
Lender’s transactional expenses (“Credit”). The Holder shall pay $250,000 of the
Consideration (the “First Tranche”) on the Issue Date or as soon as practicable thereafter. At the closing
of the First Tranche, the outstanding principal amount under this Note shall be $310,000, consisting of the First
Tranche plus the prorated portion of the OID and the Credit. The Holder shall fund the portion of the Consideration for the
Second Tranche (as defined in the Purchase Agreement) as set forth in the Purchase Agreement. The maturity date for each of
the First Tranche and Second Tranche (each, a “Tranche”), shall be the date that is six months from the
date on which the Holder paid the portion of Consideration with respect to such Tranche (each, a “Maturity
Date”), and is the date upon which the applicable portion of the Principal Amount, as well as any accrued and
unpaid interest and other fees, shall be due and payable. This Note may not be repaid in whole or in part except as otherwise
explicitly set forth herein. Any amount of principal or interest on this Note that is not paid by the applicable Maturity
Date shall bear interest at the rate of the lesser of (i) 24% per annum or (ii) the maximum amount allowed by law, from the
due date thereof until the same is paid (“Default Interest”). Interest with respect to each Tranche shall
commence accruing on the date on which the Holder paid the Consideration with respect to such Tranche and shall be computed
on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted
into the Borrower’s common stock, par value $0.001 per share (the “Common Stock”)) shall be made in
lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give
to the Borrower by written notice made in accordance with the provisions of this Note. Whenever any amount expressed to be
due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on the next
succeeding day which is a business day and, in the case of any interest payment date which is not the date on which this Note
is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount
of interest due on such date. As used in this Note, the term “business day” shall mean any day other than a
Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or
executive order to remain closed.

 

This
Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to
preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the
holder thereof. Capitalized terms used in this Note shall have the meanings set forth in the Purchase Agreement unless
otherwise defined in this Note.

 

    	 	 	 

    	 

    

 

This
Note shall be a senior secured obligation of the Borrower, with priority over all existing and future Indebtedness (as
defined below) of the Borrower as provided for herein, except that the Company may enter into a traditional factoring
arrangement whereby it grants the factor a security interest in the accounts purchased, with the prior consent of the Lender
(which shall not be unreasonably held).. The obligations of the Borrower under this Note are secured pursuant to the terms of
the Security Agreement of even date herewith by and between the Borrower and the Lender, and such security interest includes
but is not limited to all of the assets of the Borrower. So long as the Borrower shall have any obligation under this Note,
the Borrower shall not (directly or indirectly through any Subsidiary or affiliate) incur or suffer to exist or guarantee any
Indebtedness that is senior to or pari passu with (in priority of payment and performance) the Borrower’s obligations
hereunder. For purposes of this paragraph, the term “Borrower” shall include any Subsidiary of the Borrower in
addition to the Borrower. As used herein, the term “Indebtedness” means (a) all indebtedness of the Borrower for
borrowed money or for the deferred purchase price of property or services, including any type of letters of credit, but not
including deferred purchase price obligations in place as of the Issue Date and as disclosed in the SEC Documents or
obligations to trade creditors incurred in the ordinary course of business, (b) all obligations of the Borrower evidenced by
notes, bonds, debentures or other similar instruments, (c) purchase money indebtedness hereafter incurred by the Borrower to
finance the purchase of fixed or capital assets, including all capital lease obligations of the Borrower which do not exceed
the purchase price of the assets funded, (d) all guarantee obligations of the Borrower in respect of obligations of the kind
referred to in clauses (a) through (c) above that the Borrower would not be permitted to incur or enter into, and (e) all
obligations of the kind referred to in clauses (a) through (d) above that the Borrower is not permitted to incur or enter
into that are secured and/or unsecured by (or for which the holder of such obligation has an existing right, contingent or
otherwise, to be secured and/or unsecured by) any lien or encumbrance on property (including accounts and contract rights)
owned by the Borrower, whether or not the Borrower has assumed or become liable for the payment of such
obligation.

 

The
following additional terms shall also apply to this Note:

 

ARTICLE
I.

 

1.1
Conversion Right. Notwithstanding any other terms in this Note, the Holder shall have the right at any time after the Issue
Date to convert all or any part of the entire outstanding and unpaid Principal Amount and accrued and unpaid interest of this
Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of
capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the
Conversion Price determined as provided herein (a “Conversion”); provided, however, that in no
event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion
of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (excluding shares
of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Note or the unexercised
or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the
limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this
Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder
and its affiliates of more than 4.99% of the outstanding shares of Common Stock (the “Maximum Share Amount”).
The Holder, upon not less than 61 days’ prior written notice to the Borrower, may increase the Maximum Share Amount, provided
that the Maximum Share Amount shall never exceed 9.99% of the number of shares of Common Stock outstanding immediately after giving
effect to the issuance of shares of Common Stock upon conversion of this Note held by the Holder and the provisions of this Section
1.1 shall continue to apply. Any such increase will not be effective until the 61st day after such notice is delivered to
the Borrower. The Maximum Share Amount provisions of this paragraph shall be construed and implemented in a manner otherwise than
in strict conformity with the terms of this Section 1.1 to correct this paragraph (or any portion hereof) which may be
defective or inconsistent with the intended Maximum Share Amount provisions contained herein or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to
any successor holder of this Note. For purposes of this Section 1.1, beneficial ownership shall be determined in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations
13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The number of shares of Common Stock to be issued
upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion
Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice
of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.3 below; provided
that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result
in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”).
The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (A) the Principal
Amount of this Note to be converted in such conversion, plus (B) at the Holder’s option, accrued and unpaid interest, if
any, on such Principal Amount at the interest rates provided in this Note to the Conversion Date, plus (C) at the Holder’s
option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (A) and/or (B), plus (D) at
the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.2, 1.3(g), 4.11, and/or 4.12
and/or Article III hereof.

 

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1.2
Conversion Price.

 

(a)
Conversion Price. The “Conversion Price” per share shall be the lesser of (i) $2.00 per share and (ii)
65% of the lowest traded price of the Common Stock as reported on the Trading Market during the 30 consecutive Trading Day (as
defined in the Purchase Agreement) period ending and including the Trading Day immediately preceding the delivery or deemed delivery
of the applicable Notice of Conversion. If an Event of Default has occurred, regardless of whether such Event of Default has been
cured or remains ongoing, this Note shall be convertible at the lesser of (i) $2.00 per share and (ii) 60% of the lowest traded
price of the Common Stock as reported on the Trading Market during the 30 consecutive Trading Day period ending and including
the Trading Day immediately preceding the delivery or deemed delivery of the applicable Notice of Conversion (the “Default
Conversion Price”). All such Conversion Price determinations are to be appropriately adjusted for any stock dividend, stock
split, stock combination, reclassification or similar transaction that proportionately decreases or increases the Common Stock.

 

(b)
Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve
from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion of this Note, which shall be at least three times the number of shares that is
actually issuable upon full conversion of this Note (based on the Conversion Price of this Note in effect from time to time) (the
“Reserved Amount”). The Reserved Amount shall be increased from time to time in accordance with the Borrower’s
obligations hereunder. The Borrower represents that upon issuance, such shares of Common Stock will be duly and validly issued,
fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure
which would change the number of shares of Common Stock into which this Note shall be convertible at the Conversion Price, the
Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common
Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Notes. The Borrower acknowledges
that it has irrevocably instructed its transfer agent to issue certificates (or book-entry shares) for the Common Stock issuable
upon conversion of this Note, and agrees that its issuance of this Note shall constitute full authority to its officers and agents
who are charged with the duty of executing stock certificates (or applicable instructions for the issuance of book-entry shares)
to execute and issue the necessary certificates (or book-entry shares) for shares of Common Stock in accordance with the terms
and conditions of this Note.

 

If,
at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2
of this Note.

 

1.3
Method of Conversion.

 

(a)
Mechanics of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at
any time, (A) by submitting to the Borrower a Notice of Conversion (by facsimile, e- mail or other reasonable means of communication
dispatched on the Conversion Date prior to 11:00 a.m., New York, New York time) and (B) subject to Section 1.3(b), surrendering
this Note at the principal office of the Borrower.

 

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(b)
Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note
in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless
the entire unpaid Principal Amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the
Principal Amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the
Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion. In the event of any dispute
or discrepancy, such records of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest
error. Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this
Note unless the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and
deliver upon the order of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable
transfer taxes) may request, representing in the aggregate the remaining unpaid Principal Amount of this Note. The Holder and
any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following
conversion of a portion of this Note, the unpaid and unconverted Principal Amount of this Note represented by this Note may be
less than the amount stated on the face hereof.

 

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

 

(d)
Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail
(or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in
this Section 1.3, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the
Holder certificates for the Common Stock issuable upon such conversion within one business days after such receipt (the “Deadline”)
(and, solely in the case of conversion of the entire unpaid Principal Amount hereof, surrender of this Note) in accordance with
the terms hereof.

 

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

 

(f)
Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock
issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast
Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions
contained in Sections 1.1 and 1.2 and in this Section 1.3, the Borrower shall use its best efforts to cause
its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account
of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.

 

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(g)
Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other
remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable
upon conversion of this Note is not delivered by the Deadline the Borrower shall pay to the Holder $1,000 per business day,
for each business day beyond the Deadline that the Borrower fails to deliver such Common Stock (unless such failure results
from war, acts of terrorism, an epidemic, or natural disaster) (“Conversion Default Payments”). Such
amount shall be paid to Holder in cash by the fifth day of the month following the month in which it has accrued or, at the
option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has
accrued), shall be added to the Principal Amount of this Note on the fifth day of the month following the month in which it
has accrued, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional
Principal Amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that
the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate,
interference with such conversion right are difficult if not impossible to qualify. Accordingly the parties acknowledge that
the liquidated damages provision contained in this Section 1.3(g) are justified.

 

1.4
Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred
unless (i) such shares are sold pursuant to an effective registration statement under the Securities Act of 1933 (the “Securities
Act”), or (ii) the Borrower or its transfer agent shall have been furnished with an opinion of counsel (which opinion
shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares
to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii) such shares are
sold or transferred pursuant to Rule 144 under the Securities Act (or a successor rule) (“Rule 144”) or (iv)
such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise
transfer the shares only in accordance with this Section 1.4 and who is an “accredited investor” (as defined
in Rule 501(a) of the Securities Act). Except as otherwise provided (and subject to the removal provisions set forth below), until
such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Securities Act or
otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that
can then be immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been
so included in an effective registration statement or that has not been sold pursuant to an effective registration statement or
an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, OR APPLICABLE STATE SECURITIES
LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S
COUNSEL, IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS.”

 

The
legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer
legend if (i) the Borrower or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary
for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made
without registration under the Securities Act, which opinion shall be accepted by the Borrower so that the sale or transfer is
effected or (ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by
the Holder under an effective registration statement filed under the Securities Act or otherwise may be sold pursuant to Rule
144 without any restriction as to the number of securities as of a particular date that can then be immediately sold.

 

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1.5
Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than
the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the Reserved
Amount or non-waived Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights
as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates
for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder
because of a failure by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not
received certificates or transmission of such shares pursuant to Section 1.3(f) for all shares of Common Stock prior to
the tenth (10th) business day after the expiration of the Deadline with respect to a conversion of any portion of this Note for
any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock by so notifying the Borrower)
the Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note and the Borrower
shall, as soon as practicable, return such unconverted Note to the Holder or, if this Note has not been surrendered, adjust its
records to reflect that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its rights
and remedies (including, without limitation, (i) the right to receive Conversion Default Payments pursuant to Section 1.3(g)
to the extent required thereby for such conversion default and any subsequent conversion default and (ii) the right to have
the Conversion Price with respect to subsequent conversions determined in accordance with Section 1.2) for the Borrower’s
failure to convert this Note.

 

ARTICLE
II. CERTAIN COVENANTS

 

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

 

2.2 Restriction
on Stock Repurchases. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without
the Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or
other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock of the
Borrower or any warrants, rights or options to purchase or acquire any such shares.

 

2.3
Piggyback Registration Rights. If the Company fails to meet its registration obligations under the Registration Rights
Agreement, it will result in liquidated damages of 10% of the outstanding principal balance of this Note, but not less than $15,000,
being immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance of this
Note. In the event that, in accordance with applicable SEC rules, regulations and interpretations, the number of shares available
under such registration statement does not include all shares issuable upon conversion of this Note, the liquidated damages shall
not apply unless the Borrower does not use its reasonable best efforts to cause an amendment and/or new registration statement
that does include all shares issuable upon conversion of this Note to become effective as soon as practicable following the filing
thereof.

 

2.4
Repayment from Proceeds. While any portion of this Note is outstanding, if the Borrower receives cash proceeds in a financing
transaction from any source or series of related or unrelated sources, including but not limited to, the issuance of equity or
debt securities by the Borrower, the exercise of outstanding warrants of the Borrower, the issuance of securities pursuant to
an equity line of credit of the Borrower or the sale of assets other than in the ordinary course of business, the Borrower shall,
within three business days of Borrower’s receipt of such proceeds, inform the Holder of such receipt, following which the
Holder shall have the right in its sole discretion to require the Borrower to immediately apply up to 50% of such proceeds to
repay all or any portion of the outstanding amounts owed under this Note. Failure of the Borrower to comply with this provision
shall constitute an Event of Default. In the event that such proceeds are received by the Holder prior to the Maturity Date, the
required prepayment shall be subject to the terms of Section 4.14 herein.

 

ARTICLE
III. EVENTS OF DEFAULT

 

The
occurrence of any of the following shall each constitute an “Event of Default”, with no right to notice or the right
to cure except as specifically stated:

 

3.1
Failure to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this
Note, whether at the Maturity Date, upon acceleration, or otherwise.

 

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3.2 Reserve/Issuance
Failures. The Borrower fails to reserve a sufficient amount of shares of Common Stock as required under the terms of the
Purchase Agreement, fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will
not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the
terms of any securities of the Borrower held by the Holder, fails to transfer or cause its transfer agent to transfer (issue)
(electronically or in certificated form) shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant
to any securities of the Borrower held by the Holder as and when required by such securities, the Borrower directs its
transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing)
(electronically or in certificated form) shares of Common Stock to be issued to the Holder upon conversion of or otherwise
pursuant to any securities of the Borrower held by the Holder as and when required by such securities, or fails to remove (or
directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive
legend (or to withdraw any stop transfer instructions in respect thereof) on any shares of Common Stock issued to the Holder
upon conversion of or otherwise pursuant to any securities of the Borrower held by the Holder as and when required by such
securities (or makes any written announcement, statement or threat that it does not intend to honor the obligations described
in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor
its obligations shall not be rescinded in writing) for two business days after the Holder shall have delivered an applicable
notice of conversion or exercise. It is an obligation of the Borrower to remain current in its obligations to its transfer
agent. It shall be an event of default of this Note, if a conversion of any securities held by the Holder is delayed,
hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the
Holder advances any funds to the Borrower’s transfer agent in order to process a conversion or exercise (excluding for
the avoidance of doubt, the conversion price which is the Holder’s obligation to pay), such advanced funds shall be
paid by the Borrower to the Holder within five business days, either in cash or as an addition to the balance of this Note,
and such choice of payment method is at the discretion of the Borrower.

 

3.3 Breach
of Covenants. The Borrower breaches any covenant or other term or condition contained in this Note or any other documents
entered into between the Borrower and the Holder.

 

3.4 Breach
of Representations and Warranties. Any representation or warranty of the Borrower made in this Note or in any agreement,
statement or certificate given in writing pursuant hereto or in connection herewith, or in connection with the Purchase
Agreement or any Transaction Document, shall be false or misleading in any material respect when made and the breach of which
has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this
Note.

 

3.5
Receiver or Trustee. The Borrower or any Subsidiary of the Borrower shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise be appointed.

 

3.6
Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any Subsidiary
of the Borrower or any of their respective property or other assets for more than $50,000, and shall remain unvacated, unbonded
or unstayed for a period of 10 days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

 

3.7 Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief
under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any
Subsidiary of the Borrower and, in the case of involuntary proceedings, have not been dismissed within 61 days.

 

3.8 Delisting
of Common Stock on the Trading Market. The Borrower shall fail to maintain the listing or quotation of the Common Stock
on the Trading Market (as defined in the Purchase Agreement).

 

3.9 Failure
to Comply with the Exchange Act. The Borrower shall fail to comply in any material respect with the reporting
requirements of the Exchange Act (including but not limited to becoming delinquent in its filings), and/or the Borrower shall
cease to be subject to the reporting requirements of the Exchange Act.

 

3.10 Liquidation.
The Borrower commences any dissolution, liquidation, or winding up of Borrower or any substantial portion of its
business.

 

    	 	7	 

    	 

    

 

3.11
Cessation of Operations. The Borrower ceases operations or Borrower admits it is otherwise generally unable to pay its debts
as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a
“going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

3.12 Financial
Statement Restatement. The Borrower replaces its auditor, or restates any financial statements filed by the Borrower with
the SEC for any date or period from two years prior to the Issue Date of this Note and until this Note is no longer
outstanding, if the result of such restatement would, by comparison to the unrestated financial statements, have constituted
a material adverse effect on the Borrower or the rights of the Holder with respect to this Note.

 

3.13
Replacement of Transfer Agent. In the event that the Borrower replaces its transfer agent, and the Borrower fails to provide
prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions (including but not
limited to the provision to irrevocably reserve shares of Common Stock under Section

4.9
of the Purchase Agreement) signed by the successor transfer agent to Borrower and the Borrower that reserves 300% of the total
amount of shares previously held in reserve for the Borrower’s immediately preceding transfer agent.

 

3.14 Cross-Default.
Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or
default by the Borrower of any covenant or other term or condition contained in any other agreements or financial instrument,
including but not limited to the Transaction Documents, as well as all convertible promissory notes currently issued, or
hereafter issued, by the Borrower, to the Holder or any 3rd party (the “Other Agreements”),
shall, at the option of the Holder, be considered a default under this Note, in which event the Holder shall be entitled to
apply all rights and remedies of the Holder under the terms of this Note by reason of a default under said Other Agreement or
hereunder.

 

3.15 Inside
Information. Any attempt by the Borrower or its officers, directors, and/or affiliates to transmit, convey, disclose, or
any actual transmittal, conveyance, or disclosure by the Borrower or its officers, directors, and/or affiliates of, material
non-public information concerning the Borrower, to the Holder or its successors and assigns, which is not immediately cured
by Borrower’s filing of a Form 8-K pursuant to Regulation FD on that same date.

 

3.16 No
bid. The lowest Trading Price on the Trading Market for the Common Stock is equal to or less than $0.01.
“Trading Price” means, for any security as of any date, the lowest VWAP price on the Trading Market as
reported by a reliable reporting service designated by the Holder (i.e., www.Nasdaq.com) or, if Nasdaq is not the principal
trading market for such security, on the principal securities exchange or trading market where such security is listed or
traded or, if the lowest intraday trading price of such security is not available in any of the foregoing manners, the lowest
intraday price of any market makers for such security that are quoted on the OTC Markets.

 

3.17
Prohibition on Debt and Variable Securities. The Borrower, without written consent of the Holder, enters into any Variable
Rate Transaction or other similar transaction prohibited under Section 4.17 of the Purchase Agreement.

 

3.18
Failure to Repay Upon Qualified Offering. The Borrower completes an offering and/or sale of securities, or becomes a borrower
under any loan documents and/or credit facilities, on or after the Issue Date and fails to apply the proceeds of such offering,
sale or loan to the repayment of this Note, until this Note is repaid in its entirety as required under Section 2.4.

 

UPON
THE OCCURRENCE OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, UPON WRITTEN DEMAND BY THE HOLDER THIS NOTE SHALL
BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS
HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT AMOUNT (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence of
any Event of Default specified in Sections 3.1, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 3.14, 3.15, 3.16, 3.17
and/or this 3.18, solely upon written demand by the Holder, this Note shall become immediately due and payable and the
Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 135% (plus an
additional 5% per each additional Event of Default that occurs hereunder) multiplied by the then outstanding entire
balance of this Note (including principal and accrued and unpaid interest) plus Default Interest from the date of the
Event of Default, if any, plus any amounts owed to the Holder pursuant to Section 1.3(g) in addition to this Section
3.17 (collectively, in the aggregate of all of the above, the “Default Amount”), and all other amounts
payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby
are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the
Holder shall be entitled to exercise all other rights and remedies available at law or in equity.

 

    	 	8	 

    	 

    

 

ARTICLE
IV. MISCELLANEOUS

 

4.1
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

4.2
Notices. All notices, offers, acceptance and any other acts under this Notice (except payment) shall be in writing, and
shall be sufficiently given if delivered to the addressees in person, by e-mail, by FedEx or similar receipted next day delivery,
as follows:

 

If
to the Borrower, to:

 

	 	If to the Company:	 	Fact, Inc.
	 	 	 	2 Toronto Street Street, Suite 231 
	 	 	 	Toronto, Ontario M5C 2B5 
	 	 	 	Email:________________ 
	 	 	 	Attention: Brian McWilliams, CEO

  

	 	with
    a copy to:	 	 
	 	(which
    shall not constitute	 	Sichenzia
    Ross Ference LLP
	 	notice)	 	1185
    Avenue of the Americas
	 	 	 	New
    York, NY 10036
	 	 	 	Attention:
    Arthur Marcus, Esq.

 

	 	If to Holder:	 	Oasis Capital, LLC
	 	 	 	Email: adam@oasis-cap.com
	 	 	 	Attention: Adam Long, Managing Partner

 

4.3
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and
the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

4.4
Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit
of the Holder and its successors and assigns. Notwithstanding anything to the contrary herein, the rights, interests or obligations
of the Borrower hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by the Borrower without
the prior signed written consent of the Holder, which consent may be withheld at the sole discretion of the Holder (any such assignment
or transfer shall be null and void if the Borrower does not obtain the prior signed written consent of the Holder). This Note
or any of the severable rights and obligations inuring to the benefit of or to be performed by Holder hereunder may be assigned
by Holder to a third party, in whole or in part, without the need to obtain the Borrower’s consent thereto. Each transferee
of this Note must be an “accredited investor” (as defined in Rule 501(a) of the Securities Act). Notwithstanding anything
in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account or other lending
arrangement.

 

    	 	9	 

    	 

    

 

4.5
Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
including reasonable attorneys’ fees.

 

4.6
Governing Law. This Note shall be governed by and interpreted in accordance with the laws of the State of Kansas without
regard to the principles of conflicts of law (whether of the State of Kansas or any other jurisdiction).

 

4.7
Arbitration. Any disputes, claims, or controversies arising out of or relating to this Note, or the transactions, contemplated
thereby, or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope
or applicability of this Note to arbitrate, shall be referred to and resolved solely and exclusively by binding arbitration to
be conducted before the Judicial Arbitration and Mediation Service (“JAMS”), or its successor pursuant to the
expedited procedures set forth in the JAMS Comprehensive Arbitration Rules and Procedures (the “Rules”), including
Rules 16.1 and 16.2 of those Rules. The arbitration shall be held in New York, New York, before a tribunal consisting of three
(3) arbitrators each of whom will be selected in accordance with the “strike and rank” methodology set forth in Rule
15. Either party to this Note may, without waiving any remedy under this Note, seek from any federal or state court sitting in
the State of New York any interim or provisional relief that is necessary to protect the rights or property of that party, pending
the establishment of the arbitral tribunal. The costs and expenses of such arbitration shall be paid by and be the sole responsibility
of the Borrower, including but not limited to the Holder’s attorneys’ fees, and each arbitrator’s fees. The
arbitrators’ decision must set forth a reasoned basis for any award of damages or finding of liability. The arbitrators’
decision and award will be made and delivered as soon as reasonably possible and in any case within sixty (60) days’ following
the conclusion of the arbitration hearing and shall be final and binding on the parties and may be entered by any court having
jurisdiction thereof. Notwithstanding the foregoing, the choice of arbitration shall not limit the Holder’s exercise of
remedies under the Uniform Commercial Code.

 

4.8
JURY TRIAL WAIVER. THE BORROWER AND THE HOLDER HEREBY WAIVE A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT
BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER IN RESPECT OF ANY MATTER ARISING OUT OF OR IN CONNECTION WITH THIS NOTE.

 

4.9
Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding
Principal Amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest
on such interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on
this Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty
and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the
sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant
to this Note. The Borrower and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate
to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares
of Common Stock.

 

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

 

4.11
Section 3(a)(10) Transactions. If at any time while this Note is outstanding, the Borrower enters into a transaction structured
in accordance with, based upon, or related or pursuant to, in whole or in part, Section 3(a)(10) of the Securities Act (a “3(a)(10)
Transaction”), then a liquidated damages charge of 100% of the outstanding principal balance of this Note at that time,
will be assessed and will become immediately due and payable to the Holder, either in the form of cash payment, an addition to
the balance of this Note, or a combination of both forms of payment, as determined by the Holder. The damages resulting from such
a 3(a)(10) Transaction and the potential sale of shares of the Borrower’s capital stock resulting therefrom into the capital
markets are difficult if not impossible to quantify. Accordingly, the parties acknowledge that the liquidated damages provision
contained in this Section 4.11 are justified. The liquidated damages charge in this Section 4.11 shall be in addition
to, and not in substitution of, any of the other rights of the Holder under this Note.

 

    	 	10	 

    	 

    

 

4.12
Restriction on Section 3(a)(9) Transactions. So long as this Note is outstanding, the Borrower shall not enter into any
3(a)(9) Transaction with any party other than the Holder, without prior written consent of the Holder. In the event that the Borrower
does enter into, or makes any issuance of Common Stock related to a 3(a)(9) Transaction while this Note is outstanding, a liquidated
damages charge of 25% of the outstanding principal balance of this Note, but not less than $15,000, will be assessed and will
become immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance of this
Note. “3(a)(9) Transaction” means a transaction structured in accordance with, based upon, or related or pursuant
to, in whole or in part, Section 3(a)(9) of the Securities Act. The damages resulting from such a 3(a)(9) Transaction and the
potential sale of shares of the Borrower’s capital stock resulting therefrom into the capital markets are difficult if not
impossible to quantify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section
4.12 are justified. The liquidated damages charge in this Section 4.12 shall be in addition to, and not in substitution
of, any of the other rights of the Holder under this Note.

 

4.13
Usury. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law
governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest
permitted under applicable law. The Borrower covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or
other law which would prohibit or forgive the Borrower from paying all or any portion of the principal of or interest on this
Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the
performance of this Note, and the Borrower (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage
of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

4.14
Repayment. Notwithstanding anything to the contrary contained in this Note, this Note may be repaid (i) from the Issuance
Date until and through the day that falls on the sixty-day anniversary of the Issue Date (the “60 Day Anniversary”)
at an amount equal to 125% of the aggregate of the outstanding principal balance of the Note and accrued and unpaid interest,
and (ii) after the 60 Day Anniversary at an amount equal to 135% of the aggregate of the outstanding principal balance of the
Note and accrued and unpaid interest. In order to repay this Note in accordance with the preceding sentence, the Borrower shall
provide notice to the Holder seven business days prior to such respective prepayment date, and the Holder must receive such repayment
within nine business days of the Holder’s receipt of the respective repayment notice, but not sooner than seven business
days from the date of notice (the “Repayment Period”). The Holder may convert the Note in whole or in part
at any time during the Repayment Period, subject to the terms and conditions of this Note. Any repayment hereunder shall be applied
to the tranches funded under this Note in reverse chronological order (applied first to the most recently funded tranches under
this Note).

 

4.15
Terms of Future Financings. So long as this Note is outstanding, upon any issuance by the Borrower or any of its Subsidiaries
of any security (or an amendment to an outstanding security) with any term more favorable to the holder of such security or with
a term in favor of the holder of such security that was not similarly provided to the Holder in this Note, then the Borrower shall
notify the Holder of such additional or more favorable term and such term, at Holder’s option and upon written notice to
the Borrower, shall become a part of the transaction documents with the Holder. The types of terms contained in another security
that may be more favorable to the holder of such security include, but are not limited to, terms addressing conversion discounts,
prepayment rate, conversion look back periods, interest rates, original issue discounts, stock sale price, private placement price
per share, and warrant coverage.

 

    	 	11	 

    	 

    

 

4.16
Reverse Split Penalty. If at any time while this Note is outstanding, the Borrower effectuates a reverse split with respect
to the Common Stock, then a liquidated damages charge of 30% of the outstanding principal balance of this Note at that time, will
be assessed and will become immediately due and payable to the Holder, either in the form of cash payment, an addition to the
balance of the Note, or a combination of both forms of payment, as determined by the Holder. The liquidated damages charge in
this Section 4.16 shall be in addition to, and not in substitution of, any of the other rights of the Holder under this
Note.

 

4.17
Security Interest. This Note creates a first priority lien on and grants a security interest in all of the Company’s
Accounts, Goods, Inventory, Equipment, Investment Property, General Intangibles, Instruments, Documents, and all other assets
and personal property of the Company, wherever located, together with all the proceeds now or hereafter arising in connection
therewith (the “Collateral”). This Note shall also constitute a security agreement under the Kansas Uniform Commercial
Code (KS Stat § 84-9-203 (2014)): or other law applicable to the creation of liens on personal property. Capitalized
terms used in this Section 4.17 shall have the meanings that are given to them under the Kansas Uniform Commercial Code. The Company
acknowledges and agrees that the Holder shall have the right to file a UCC-1 financing statement and any renewals and continuations
thereof or other documents as the Holder may reasonably require with respect to this security interest. If a default occurs under
this Note, the Holder shall have all rights and remedies of a secured party under the Kansas Uniform Commercial Code. The Company
shall take all such action in order to cause the Holder to have a first lien and priority security interest in accordance with
this Section 4.17 while this Note is outstanding.

 

4.18
Subsequent Equity Sales.

 

(a)
At any time, for so long as the Note or any amounts accrued and payable thereunder remain outstanding, the Company or any Subsidiary,
as applicable, sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues
(or announces any sale, grant or any option to purchase or other disposition),, any Common Stock or Common Stock Equivalents entitling
any Person to acquire shares of Common Stock at an effective price per share that is lower than the Conversion Price then in effect
(such lower price, the “Base Conversion Price” and each such issuance or announcement a “Dilutive Issuance”),
then the Conversion Price shall be immediately reduced to equal the Base Conversion Price. Such adjustment shall be made whenever
such Common Stock or Common Stock Equivalents are issued.

 

(2)
If any Common Stock Equivalent is amended or adjusted, and such price as so amended shall be less than the Conversion Price
in effect at the time of such amendment or adjustment, then the Conversion Price shall be adjusted upon each such issuance or
amendment as provided in this Section 5(b). In case any Common Stock Equivalent is issued in connection with the issue or
sale of other securities of the Company, together comprising one integrated transaction, (x) the Common Stock Equivalents
will be deemed to have been issued for the Option Value of such Common Stock Equivalents and (y) the other securities issued
or sold in such integrated transaction shall be deemed to have been issued or sold for the difference of (I) the aggregate
consideration received by the Company less any consideration paid or payable by the Company pursuant to the terms of such
other securities of the Company, less (II) the Option Value. If any shares of Common Stock or Common Stock Equivalents are
issued or sold or deemed to have been issued or sold for cash, the amount of such consideration received by the Company will
be deemed to be the net amount received by the Company therefor. If any shares of Common Stock or Common Stock Equivalents
are issued or sold for a consideration other than cash, the amount of such consideration received by the Company will be the
fair value of such consideration, except where such consideration consists of publicly traded securities, in which case the
amount of consideration received by the Company will be the average VWAP of such public traded securities for the ten days
prior to the date of receipt. If any shares of Common Stock or Common Stock Equivalents are issued to the owners of the
non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration
therefor will be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity as is
attributable to such shares of Common Stock or Common Stock Equivalents, as the case may be. For the purposes of this Note,
“Option Value” means the value of a Common Stock Equivalent based on the Black Scholes Option Pricing model
obtained from the “OV” function on Bloomberg determined as of (A) the Trading Day prior to the public
announcement of the issuance of the applicable Common Stock Equivalent, if the issuance of such Common Stock Equivalent is
publicly announced or (B) the Trading Day immediately following the issuance of the applicable Common Stock Equivalent if the
issuance of such Common Stock Equivalent is not publicly announced, for pricing purposes and reflecting (i) a risk-free
interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of the applicable Common Stock
Equivalent as of the applicable date of determination, (ii) an expected volatility equal to the greater of 100% and the 100
day volatility obtained from the HVT function on Bloomberg as of (A) the Trading Day immediately following the public
announcement of the applicable Common Stock Equivalent if the issuance of such Common Stock Equivalent is publicly announced
or (B) the Trading Day immediately following the issuance of the applicable Common Stock Equivalent if the issuance of such
Common Stock Equivalent is not publicly announced, (iii) the underlying price per share used in such calculation shall be the
highest VWAP of the Common Stock during the period beginning on the Trading Day prior to the execution of definitive
documentation relating to the issuance of the applicable Common Stock Equivalent and ending on (A) the Trading Day
immediately following the public announcement of such issuance, if the issuance of such Common Stock Equivalent is publicly
announced or (B) the Trading Day immediately following the issuance of the applicable Common Stock Equivalent if the issuance
of such Common Stock Equivalent is not publicly announced,

(iv)
a zero cost of borrow and (v) a 360 day annualization factor.

 

    	 	12	 

    	 

    

 

(3)
If the holder of Common Stock or Common Stock Equivalents outstanding on the Issue Date or issued after the Issue Date shall at
any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices
or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to
receive shares of Common Stock at an effective price per share that is lower than the Conversion Price then in effect, such issuance
shall be deemed to have occurred for less than the Conversion Price on such date and such issuance shall be deemed to be a Dilutive
Issuance.

 

(5)
The Company shall notify the Holder in writing, no later than the Trading Day following the issuance of any Common Stock or Common
Stock Equivalents subject to this Section 4.18, indicating therein the applicable issuance price, or applicable reset price, exchange
price, conversion price and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification,
whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 4.18, upon the occurrence of any Dilutive
Issuance, the Holder is entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the
date of such Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion Price in the Notice
of Conversion.

 

(6)
The provisions of this Section 4.18 shall apply each time a Dilutive Issuance occurs after the Issue Date for so long as the Note
or any amounts accrued and payable thereunder remain outstanding, but any adjustment of the Conversion Price pursuant to this
Section 4.18 shall be downward only.

 

**
signature page to follow **

 

    	 	13	 

    	 

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer on the Issue Date.

 

FACT,
INC.

 

	By:		 
	Name:
    	Bran
    McWilliams	 
	Title:
    	Chief
    Executive Officer	 

 

Accepted by:

 

ACTION
STOCK TRANSFER

 

	By:	/s/
    Justeene Blankenship	 
	Name:
    	Justeene
    Blankenship	 
	Title:
    	President	 

 

OASIS
CAPITAL, LLC

 

	By:
    	/s/
    Adam Long	 
	 Name: 	Adam Long	 
	Title:
    	Managing
    Partner	 

 

** Signature Page to Senior Secured Convertible Promissory Note **  

 

    	 	 	 

    	 

    

 

EXHIBIT
A — NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert $________________________ amount of this Note (defined below) into that number of shares
of Common Stock to be issued pursuant to the conversion of this Note (“Common Stock”) as set forth below, of
FACT, INC., a Nevada corporation (the “Borrower”), according to the conditions of the senior secured
convertible promissory note of the Borrower dated as of________________________, 2020 (the “Note”), as of the date written below.
No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

	 	[  ]	The Borrower
    shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned
    or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).
	 	 	 
	 	 	Name of DTC Prime
	 	 	Broker: Account Number:
	 	 	 
	 	[  ]	The undersigned hereby requests that the Borrower
    issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the
    Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary,
    on an attachment hereto:

 

OASIS
CAPITAL, LLC

e-mail:
adam@oasis-cap.com

 

	 	Date of Conversion:	
          _______  

	 	Applicable Conversion Price:	  $_______
	 	Number of Shares of Common Stock to be

                                                                            Issued Pursuant to Conversion of this Notes:
	
         

          _______

         

	 	Amount of Principal Balance Due remaining

                                                                            Under this Note after this conversion:
	
        

         

           _______

 

OASIS
CAPITAL, LLC

 

	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	Date:	 	 

 

** Signature Page to Senior Secured Convertible Promissory Note **Exhibit 10.3

  

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of November , 2020 (the “Execution Date”),
is entered into by and between FACT, INC., a Nevada corporation (the “Company”), and OASIS CAPITAL,
LLC, a Puerto Rico limited liability company (together with its permitted assigns, the “Investor”).
Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in that certain Equity
Purchase Agreement by and between the parties hereto, dated as of the Execution Date (as amended, restated, supplemented or otherwise
modified from time to time, the “Purchase Agreement”).

 

WHEREAS:

 

The
Company has agreed, upon the terms and subject to the conditions of the Purchase Agreement, and to induce the Investor to enter
into the Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as
amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the “Securities Act”),
and applicable state securities laws.

 

NOW,
THEREFORE, in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

1.
DEFINITIONS.

 

As
used in this Agreement, the following terms shall have the following meanings:

 

a.
“Business Day” means any day
except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close.

 

b.
“Investor” means the Investor, any transferee or assignee thereof to whom the Investor assigns its rights under
this Agreement in accordance with Section 9 and who agrees to become bound by the provisions of this Agreement, and any
transferee or assignee thereof to whom a transferee or assignee assigns its rights under this Agreement in accordance with Section
9 and who agrees to become bound by the provisions of this Agreement.

 

c.
“Person” means any individual or entity including, but not limited to, any corporation, a limited liability
company, an association, a partnership, an organization, a business, an individual, a governmental or political subdivision thereof
or a governmental agency.

 

d.
“Register,” “Registered,” and “Registration” refer to a registration
effected by preparing and filing one or more registration statements of the Company in compliance with the Securities Act and/or
pursuant to Rule 415 under the Securities Act or any successor rule providing for the offering of securities on a continuous basis
(“Rule 415”), and the declaration or ordering of effectiveness of such registration statement(s) by the United
States Securities and Exchange Commission (the “SEC”).

 

e.
“Registrable Securities” means all of the (i) Shares (as defined in the Purchase Agreement), (ii) any and all
shares of capital stock issued or issuable with respect to each of the Transaction Documents, and (iii) any and all shares of
capital stock issued or issuable with respect to the Execution Shares and the Purchase Agreement as a result of any stock split,
stock dividend, recapitalization, exchange or similar event or otherwise, without regard to any limitation on purchases under
the Purchase Agreement.

 

    	 	 	 

    	 

    

 

f.
“Registration Statement” means one or more registration statements of the Company on Form S-1 covering the
resale of the Registrable Securities including the Initial Registration Statement and any New Registration Statement or Other
Registration Statement (each as defined herein).

 

2.
REGISTRATION.

 

a.
Registration. The Company shall, by January 4, 2020 file with the SEC an initial Registration Statement on Form S-1 covering
the maximum number of Registrable Securities as shall be permitted to be included thereon in accordance with applicable SEC rules,
regulations and interpretations so as to permit the resale of such Registrable Securities by the Investor, including but not limited
to under Rule 415 under the Securities Act at then prevailing market prices (and not fixed prices), as mutually determined by
both the Company and the Investor in consultation with their respective legal counsel (the “Initial Registration Statement”).
The Initial Registration Statement shall register only Registrable Securities. The Company shall use its best efforts to have
the Initial Registration Statement and any amendment thereto declared effective by the SEC at the earliest possible date (in any
event, within 90 calendar days after the Execution Date).

 

b.
Rule 424 Prospectus. In addition to the Initial Registration Statement, the Company shall, as required by applicable securities
regulations, from time to time file with the SEC, pursuant to Rule 424 promulgated under the Securities Act, such prospectuses
and prospectus supplements, if any, to be used in connection with sales of the Registrable Securities under each Registration
Statement. The Investor and its counsel shall have a reasonable opportunity to review and comment upon such prospectuses prior
to its filing with the SEC, and the Company shall give due consideration to all such comments. The Investor shall use its reasonable
best efforts to comment upon any prospectus within two Business Days from the date the Investor receives the final pre-filing
version of such prospectus.

 

c.
Sufficient Number of Shares Registered. In the event the number of shares available under the Initial Registration Statement
is insufficient to cover all of the Registrable Securities, the Company shall amend the Initial Registration Statement or file
a new Registration Statement (a “New Registration Statement”), so as to cover all of such Registrable Securities
(subject to the limitations set forth in Section 2(e)) as soon as practicable, but in any event not later than 10 Business
Days after the necessity therefor arises, subject to any limits that may be imposed by the SEC pursuant to Rule 415 under the
Securities Act. The Company shall use its reasonable best efforts to cause such amendment and/or New Registration Statement to
become effective as soon as practicable following the filing thereof. In the event that any of the Registrable Securities are
not included in the Initial Registration Statement, or have not been included in any New Registration Statement, and the Company
files any other registration statement under the Securities Act (other than on Form S-4, Form S-8, or with respect to other employee
related plans or rights offerings) (an “Other Registration Statement”), then the Company shall include in such
Other Registration Statement first all of such Registrable Securities that have not been previously Registered, and second any
other securities the Company wishes to include in such Other Registration Statement. The Company agrees that it shall not file
any such Other Registration Statement unless all of the Registrable Securities have been included in such Other Registration Statement
or otherwise have been Registered for resale as described above.

 

d.
Effectiveness. The Investor and its counsel shall have a reasonable opportunity to review and comment upon any Registration
Statement and any amendment or supplement to such Registration Statement and any related prospectus prior to its filing with the
SEC, and the Company shall give due consideration to all reasonable comments. The Company shall not be responsible for any legal
expenses of the Investor’s counsel in connection with its review of such Registration Statement. The Investor shall furnish
all information reasonably requested by the Company for inclusion therein. The Company shall use reasonable best efforts to keep
all Registration Statements effective, including, but not limited to, pursuant to Rule 415 promulgated under the Securities Act
and available for the resale by the Investor of all of the Registrable Securities covered thereby at all times until the earlier
of (i) the date as of which the Investor may sell all of the Registrable Securities without restriction pursuant to Rule 144 promulgated
under the Securities Act without any restrictions (including any restrictions under Rule 144(c) or Rule 144(i)) and (ii) the date
on which the Investor shall have sold all the Registrable Securities covered thereby (the “Registration Period”).
In the event that any Registration Statement filed hereunder is no longer effective and Rule 144 is available for sales of the
Registrable Securities, the Company shall provide an opinion upon request of the Investor that the Investor may sell any such
Registrable Securities held by the Investor pursuant to Rule 144 with all costs related to such opinion to be borne by the Company.
Each Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they were made, not misleading.

 

    	 	2	 

    	 

    

 

e.
Offering. If the staff of the SEC (the “Staff”) or the SEC seeks to characterize any offering pursuant
to a Registration Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit such
Registration Statement to become or remain effective and be used for resales by the Investor under Rule 415 at then-prevailing
market prices (and not fixed prices) by comment letter or otherwise, or if after the filing of the Initial Registration Statement
with the SEC pursuant to Section 2(a), the Company is otherwise required by the Staff or the SEC to reduce the number of
Registrable Securities included in such initial Registration Statement, then the Company shall reduce the number of Registrable
Securities to be included in such Initial Registration Statement (with the prior consent, which shall not be unreasonably withheld,
of the Investor and its legal counsel as to the specific Registrable Securities to be removed therefrom) until such time as the
Staff and the SEC shall so permit such Registration Statement to become effective and be used as aforesaid. In the event of any
reduction in Registrable Securities pursuant to this paragraph, the Company shall file one or more New Registration Statements
in accordance with Section 2(c) until such time as all Registrable Securities have been included in Registration Statements
that have been declared effective and the prospectus contained therein is available for use by the Investor. Notwithstanding any
provision herein or in the Purchase Agreement to the contrary, the Company’s obligations to register Registrable Securities
(and any related conditions to the Investor’s obligations) shall be qualified as necessary to comport with any requirement
of the SEC or the Staff as addressed in this Section 2(e).

 

3.
RELATED OBLIGATIONS.

 

With
respect to a Registration Statement and whenever any Registrable Securities are to be Registered pursuant to Section 2,
including on any Other Registration Statement, the Company shall use its reasonable best efforts to effect the registration of
the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall
have the following obligations:

 

a.
The Company shall prepare and file with the SEC such amendments (including post-effective amendments on Form S-1) and supplements
to any Registration Statement and any Other Registration Statement and the prospectus used in connection with such Registration
Statement and Other Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the Securities
Act, as may be necessary to keep the Registration Statement effective at all times during the Registration Period, and, during
such period, comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities of
the Company covered by the Registration Statement or applicable Other Registration Statement until such time as all of such Registrable
Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof
as set forth in such registration statement.

 

    	 	3	 

    	 

    

 

b.
The Company shall permit the Investor to review and comment upon each Registration Statement or any Other Registration Statement
and all amendments and supplements thereto at least two Business Days prior to their filing with the SEC, and not file any document
in a form to which Investor reasonably objects. The Investor shall use its reasonable best efforts to comment upon the Registration
Statement or any Other Registration Statement and any amendments or supplements thereto within two Business Days from the date
the Investor receives the final version thereof. The Company shall furnish to the Investor, without charge, and within one Business
Day, any comments and/or any other correspondence from the SEC or the Staff to the Company or its representatives relating to
the Registration Statement or any Other Registration Statement. The Company shall respond to the SEC or the Staff, as applicable,
regarding the resolution of any such comments and/or correspondence as promptly as practicable and in any event within two weeks
upon receipt thereof.

 

c.
Upon request of the Investor, the Company shall furnish to the Investor, (i) promptly after the same is prepared and filed with
the SEC, at least one copy of such Registration Statement and any amendment(s) thereto, including financial statements and schedules,
all documents incorporated therein by reference and all exhibits, (ii) upon the effectiveness of any Registration Statement, a
copy of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number
of copies as the Investor may reasonably request) and (iii) such other documents, including copies of any preliminary or final
prospectus, as the Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable
Securities owned by the Investor. For the avoidance of doubt, any filing available to the Investor via the SEC’s live EDGAR
system shall be deemed “furnished to the Investor” hereunder.

 

d.
The Company shall use reasonable best efforts to (i) register and qualify the Registrable Securities covered by a Registration
Statement under such other securities or “blue sky” laws of Puerto Rico and such other jurisdictions in the United
States as the Investor reasonably requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective
amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof
during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications
in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify
the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required
to qualify but for this Section 3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general
consent to service of process in any such jurisdiction. The Company shall promptly notify the Investor who holds Registrable Securities
of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of
the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United States
or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

 

e.
As promptly as practicable after becoming aware of such event or facts, the Company shall notify the Investor in writing of the
happening of any event or existence of such facts as a result of which the prospectus included in any Registration Statement,
as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and promptly
prepare a supplement or amendment to such Registration Statement to correct such untrue statement or omission, and deliver a copy
of such supplement or amendment to the Investor (or such other number of copies as the Investor may reasonably request). The Company
shall also promptly notify the Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment
has been filed, and when a Registration Statement or any post-effective amendment thereto has become effective (notification of
such effectiveness shall be delivered to the Investor by email or facsimile on the same day of such effectiveness and by overnight
mail), (ii) of any request by the SEC for amendments or supplements to any Registration Statement or related prospectus or related
information, and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement
would be appropriate.

 

    	 	4	 

    	 

    

 

f.
The Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness
of any registration statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding for such purpose. In addition, if the Company shall receive any comment letter from the SEC relating
to any Registration Statement under which Registrable Securities are Registered, the Company shall notify the Investor of the
issuance of such order and use its best efforts to address such comments in a manner satisfactory to the SEC.

 

g.
The Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the
same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities on the Principal
Market. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

 

h.
The Company shall cooperate with the Investor to facilitate the timely preparation and delivery of DWAC Shares representing the
Registrable Securities to be offered pursuant to any Registration Statement. “DWAC Shares” means shares of
Common Stock that are (i) issued in electronic form, (ii) freely tradable and transferable and without restriction on resale and
(iii) timely credited by the Company to the Investor’s or its designee’s specified DWAC account with The Depository
Trust Company (“DTC”) under the DTC/FAST Program, or any similar program hereafter adopted by DTC performing
substantially the same function.

 

i.
The Company shall at all times maintain the services of its Transfer Agent and registrar with respect to its Common Stock.

 

j.
If reasonably requested by the Investor, the Company shall (i) as soon as practically possible incorporate in a prospectus supplement
or post-effective amendment such information as the Investor believes should be included therein relating to the sale and distribution
of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being
sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities; (ii) make all
required filings of such prospectus supplement or post-effective amendment as soon as practicable upon notification of the matters
to be incorporated in such prospectus supplement or post- effective amendment; and (iii) supplement or make amendments to any
Registration Statement.

 

k.
The Company shall use its reasonable best efforts to cause the Registrable Securities covered by any Registration Statement to
be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition
of such Registrable Securities.

 

l.
Within one Business Day after any Registration Statement which includes Registrable Securities is ordered effective by the SEC,
or any prospectus supplement or post-effective amendment including Registrable Securities is filed with the SEC, the Company shall
deliver, and shall cause legal counsel for the Company to deliver, to the Transfer Agent for such Registrable Securities (with
copies to the Investor) confirmation that such Registration Statement has been declared effective by the SEC in the form attached
hereto as Exhibit A. Thereafter, if requested by the Investor at any time, the Company shall require its counsel to deliver
to the Investor a written confirmation whether or not (i) the effectiveness of such Registration Statement has lapsed at any time
for any reason (including, without limitation, the issuance of a stop order) (ii) any comment letter has been issued by the SEC
and (iii) whether or not the Registration Statement is current and available to the Investor for sale of all of the Registrable
Securities.

 

    	 	5	 

    	 

    

 

m.
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to any Registration Statement.

 

4.
OBLIGATIONS OF THE INVESTOR.

 

a.
The Company shall notify the Investor in writing of the information the Company reasonably requires from the Investor in connection
with any Registration Statement hereunder. The Investor shall furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required
to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration
as the Company may reasonably request. Notwithstanding the foregoing, the Registration Statement shall contain the “Selling
Stockholder” and “Plan of Distribution” sections, each in substantially the form provided to the Company by
the Investor.

 

b.
The Investor agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and
filing of any Registration Statement hereunder.

 

c.
The Investor agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the
kind described in Section 3(f) or the first sentence of Section 3(e), the Investor will immediately discontinue
disposition of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until withdrawal
of a stop order contemplated by Section 3(f) or the Investor’s receipt of the copies of the supplemented or amended
prospectus contemplated by Section 3(e). Notwithstanding anything to the contrary, the Company shall cause its Transfer
Agent to promptly issue DWAC Shares in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable
Securities with respect to which an Investor has entered into a contract for sale prior to the Investor’s receipt of a notice
from the Company of the happening of any event of the kind described in Section 3(f) or the first sentence of Section
3(e) and for which the Investor has not yet settled.

 

5.
EXPENSES OF REGISTRATION.

 

All
reasonable expenses, other than sales or brokerage commissions, incurred in connection with registrations, filings or qualifications
pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees,
printers and accounting fees, and fees and disbursements of counsel for the Company, shall be paid by the Company. the Company
shall not be responsible for fees of the Investor’s counsel in reviewing the S-1.

 

    	 	6	 

    	 

    

 

6.
INDEMNIFICATION.

 

a.
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, each
Person, if any, who controls or is under common control with the Investor, the members, the directors, officers, partners, employees,
agents, representatives of the Investor and each Person, if any, who is an “affiliate” of the Investor within the
meaning of the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (each,
an “Indemnified Person”), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges,
costs, attorneys’ fees, amounts paid in settlement or expenses, joint or several, (collectively, “Claims”)
incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken
from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether
pending or threatened, whether or not an Indemnified Person is or may be a party thereto (“Indemnified Damages”),
to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a
Registration Statement, any Other Registration Statement or any post-effective amendment thereto or in any filing made in connection
with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction in which
Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged omission to state a material
fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged
untrue statement of a material fact contained in the final prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to
make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading,
(iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including, without
limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities
pursuant to a Registration Statement or any Other Registration Statement or (iv) any material violation by the Company of this
Agreement (the matters in the foregoing clauses (i) through (iv) being, collectively, “Violations”). The Company
shall reimburse each Indemnified Person promptly as such expenses are incurred and are due and payable, for any reasonable legal
fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not
apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity
with information about the Investor furnished in writing to the Company by such Indemnified Person expressly for use in connection
with the preparation of a Registration Statement, any Other Registration Statement or any such amendment thereof or supplement
thereto, if such prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e); (ii)
with respect to any superseded prospectus, shall not inure to the benefit of any such person from whom the person asserting any
such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit of any person controlling such
person) if the untrue statement or omission of material fact contained in the superseded prospectus was corrected in the revised
prospectus, as then amended or supplemented, if such revised prospectus was timely made available by the Company pursuant to Section
3(c) or Section 3(e), and the Indemnified Person was promptly advised in writing not to use the incorrect prospectus
prior to the use giving rise to a violation and such Indemnified Person, notwithstanding such advice, used it; (iii) shall not
be available to the extent such Claim is based on a failure of the Investor to deliver or to cause to be delivered the prospectus
made available by the Company, if such prospectus was timely made available by the Company pursuant to Section 3(c) or
Section 3(e); and (iv) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without
the prior written consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer
of the Registrable Securities by the Investor pursuant to Section 9.

 

    	 	7	 

    	 

    

 

b.
Promptly after receipt by an Indemnified Person under this Section 6 of notice of the commencement of any action or proceeding
(including any governmental action or proceeding) involving a Claim, such Indemnified Person shall, if a Claim in respect thereof
is to be made against the Company under this Section 6, deliver to the Company a written notice of the commencement thereof,
and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense
thereof with counsel mutually satisfactory to the Company and to the Indemnified Person; provided, however, that an Indemnified
Person shall have the right to retain its own counsel with the fees and expenses to be paid by the Company, if, in the reasonable
opinion of counsel retained by the Company, the representation by such counsel of the Indemnified Person and the Company would
be inappropriate due to actual or potential differing interests between such Indemnified Person and any other party represented
by such counsel in such proceeding. The Indemnified Person shall cooperate fully with the Company in connection with any negotiation
or defense of any such action or Claim by the Company and shall furnish to the Company all information reasonably available to
the Indemnified Person which relates to such action or Claim. The indemnifying party shall keep the Indemnified Person fully apprised
at all times as to the status of the defense or any settlement negotiations with respect thereto. The Company shall not be liable
for any settlement of any action, Claim or proceeding effectuated without its written consent, provided, however, that the Company
shall not unreasonably withhold, delay or condition its consent. The Company shall not, without the consent of the Indemnified
Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Person of a release from all liability in respect to
such Claim or litigation. Following indemnification as provided for hereunder, the Company shall be subrogated to all rights of
the Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification
has been made. The failure to deliver written notice to the Company within a reasonable time of the commencement of any such action
shall not relieve the Company of any liability to the Indemnified Person under this Section 6, except to the extent that
the Company is prejudiced in its ability to defend such action.

 

c.
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

d.
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified
Person against the Company or others, and (ii) any liabilities the Company may be subject to pursuant to the law.

 

7.
CONTRIBUTION.

 

To
the extent any indemnification by the Company is prohibited or limited by law, the Company agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law;
provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty
of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited to $100,000.

 

8.
REPORTS AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With
a view to making available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar
rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Company to the public without
registration (“Rule 144”), the Company agrees, at the Company’s sole expense, to:

 

a.
make and keep “current public information” available, as such term is understood and defined in Rule 144;

 

b.
file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the
Exchange Act;

 

    	 	8	 

    	 

    

 

c.
furnish to the Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by
the Company that it has complied with the reporting and or disclosure provisions of Rule 144, the Securities Act and the Exchange
Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by
the Company, and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant
to Rule 144 without registration; and

 

d.
take such additional action as is requested by the Investor to enable the Investor to sell the Registrable Securities pursuant
to Rule 144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions
to the Company’s Transfer Agent as may be requested from time to time by the Investor at the Company’s expense and
otherwise fully cooperate with Investor and Investor’s broker to effect such sale of securities pursuant to Rule 144.

 

The
Company agrees that damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and
that Investor shall, whether or not it is pursuing any remedies at law, be entitled to equitable relief in the form of a preliminary
or permanent injunctions, without having to post any bond or other security, upon any breach or threatened breach of any such
terms or provisions.

 

9.
ASSIGNMENT OF REGISTRATION RIGHTS.

 

The
Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor,
or any Investor as assignee pursuant to this Section 9. The Investor may not assign its rights under this Agreement without
the written consent of the Company other than to an affiliate of such Investor.

 

10.
AMENDMENT OF REGISTRATION RIGHTS.

 

No
provision of this Agreement may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived
other than in a written instrument signed by the party against whom enforcement of such waiver is sought. Failure of any party
to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall
not operate as a waiver thereof.

 

11.
MISCELLANEOUS.

 

a.
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from the registered
owner of such Registrable Securities.

 

b.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and shall meet the requirements of Section 9.1of the Purchase Agreement.

 

c.
All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of Kansas, without giving effect to any choice of law or conflict of law provision or rule (whether
of the State of Kansas or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than
the State of Kansas.

 

    	 	9	 

    	 

    

 

d.
Any disputes, claims, or controversies hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein shall be referred to and resolved solely and exclusively by binding arbitration to be conducted before the Judicial Arbitration
and Mediation Service (“JAMS”), or its successor pursuant the expedited procedures set forth in the JAMS Comprehensive
Arbitration Rules and Procedures (the “Rules”), including Rules 16.1 and 16.2 of those Rules. The arbitration
shall be held in New York, New York, before a tribunal consisting of three arbitrators each of whom will be selected in accordance
with the “strike and rank” methodology set forth in Rule 15. Either party to this Agreement may, without waiving any
remedy under this Agreement, seek from any federal or state court sitting in the State of New York any or provisional relief that
is necessary to protect the rights or property of that party, pending the establishment of the arbitral tribunal. The costs and
expenses of such arbitration shall be paid by and be the sole responsibility of the Company, including but not limited to the
Holder’s attorneys’ fees and each arbitrator’s fees. The arbitrators’ decision must set forth a reasoned
basis for any award of damages or finding of liability. The arbitrators’ decision and award will be made and delivered as
soon as reasonably possibly and in any case within 60 days’ following the conclusion of the arbitration hearing and shall
be final and binding on the parties and may be entered by any court having jurisdiction thereof.

 

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

 

f.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT
IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

g.
This Agreement and the Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject
matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred
to herein and therein. This Agreement and the Purchase Agreement supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and thereof.

 

h.
Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the successors
and permitted assigns of each of the parties hereto.

 

i.
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

j.
This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile
transmission, digitally certified electronic signature (for example, DocuSign) or by e-mail in a “.pdf” format data
file of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

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

 

l.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and
no rules of strict construction will be applied against any party.

 

m.
This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

*
* * * * *

 

    	 	10	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the Execution Date.

 

	 	THE
    COMPANY:
	 	 
	 	FACT,
    INC.
	 	 
	 	By:
    	 
	 	Name:
    	Brian
    McWilliams
	 	Title:	Chief
    Executive Officer

 

	 	INVESTOR:
	 	 
	 	OASIS
    CAPITAL, LLC
	 	 	 
	 	By:	/s/ Adam Long
	 	Name:
    	Adam
    Long
	 	Title:	Managing
    Partner

  

    	 	 	 

    	 

    

 

EXHIBIT
A

 

TO
REGISTRATION RIGHTS AGREEMENT

 

FORM
OF NOTICE OF EFFECTIVENESS

OF
REGISTRATION STATEMENT

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