Document:

Exhibit
10.5

 

Execution
Version

 

EXCHANGE
AGREEMENT

 

This
EXCHANGE AGREEMENT (the “Agreement”) is made as of the 13th day of July, 2016, by and among Sigma Opportunity Fund
II, LLC, a Delaware limited liability company (the “Fund”), Sigma Capital Advisors, LLC, a Delaware limited liability
company (“Advisors” and together with the Fund, the “Holders”), and SNAP Interactive, Inc., a Delaware
corporation (the “Company”).

 

WHEREAS,
the Fund is the record owner of warrants (the “Fund Warrants”) to purchase 10,500,000 shares of common stock, par
value $.001 per share, of the Company (“Common Stock”);

 

WHEREAS,
Advisors is the record owner of warrants (the “Advisors Warrants” and together with the Fund Warrants, the “Warrants”)
to purchase 4,500,000 shares of Common Stock;

 

WHEREAS,
the Holders desire to exchange the Warrants for an aggregate of 2,000,000 shares of Common Stock, and the Company has agreed to
issue such shares of Common Stock to the Holders in exchange for the Warrants, upon the terms and conditions set forth in this
Agreement.

 

NOW,
THEREFORE, in consideration of the mutual promises, covenants and agreements herein, and intending to be legally bound hereby,
the parties agree as follows:

 

 

	1.	Exchange
    of Shares.

 

	Exchange. On
        the terms and subject to the conditions set forth in this Agreement, on the date hereof (i) the Holders will surrender
        for cancellation the Warrants and (ii) the Company will issue to the Holders an aggregate of 2,000,000 shares of
        Common Stock (the “Shares”), 1,400,000 of which shall be issued to the Fund and 600,000 of which shall be
        issued to Advisors (the “Exchange”). The Holders acknowledge and agree that upon completion of the Exchange,
        the Warrants shall be terminated and cancelled in full and rendered null and void without any additional action on the
        part of the Company or the Holders, and the Holders shall have no surviving right, title or interest in or to the Warrants
        or any Common Stock purchasable thereunder.

         

        Piggy-Back
        Registrations. If at any time the Company shall determine to prepare and file with the commission a registration
        statement relating to an offering for its own account or the account of others under the Securities Act of 1933, as amended
        (the “Securities Act”), of any of its equity securities, other than on Form S-4 or Form S-8 or their then
        equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business
        or equity securities issuable in connection with stock option or other employee benefit plans, the Company shall send
        to the Holders written notice of such determination and, if within ten (10) days after receipt of such notice, such Holder
        shall so request in writing, the Company shall include in such registration statement all or any part of the Shares such
        Holder requests to be registered, except that if, in connection with any underwritten public offering for the account
        of the Company the managing underwriter(s) thereof shall impose a limitation on the number of Shares which may be included
        in the registration statement because, in such underwriter(s)’ reasonable judgment, such limitation is necessary
        for marketing purposes or to effect an orderly public distribution, then the Company shall be obligated to include in
        such registration statement only such limited portion of the Shares, if any, with respect to which such Holder has requested
        inclusion hereunder and the managing underwriter(s) has approved. Any exclusion of Shares shall be made pro rata among
        the Holders seeking to include Shares and any other holders including securities in the registration statement, in proportion
        to the number of Shares sought to be included by such persons. Notwithstanding anything in this Agreement to the contrary,
        the registration rights contemplated by this section shall expire automatically 180 days following the consummation of
        an M&A Event (as defined in the Lockup Agreement between the Fund and the Company, dated as of the date hereof).

 

    

     

    

 

	

        Removal
        of Legend. Not later than three (3) trading days after request from the Holders (the “Share Delivery Date”)
        on or after the date that the Shares have been sold by the Holders pursuant to Rule 144 (“Rule 144”) promulgated
        under the Securities Act, or a currently effective registration statement, the Company shall issue to the Holders Shares
        that are free of restrictive legends and trading restrictions (other than those which may then be required by law or separate
        agreement between the Company and the Holders). Such Shares will be delivered electronically through the Depository Trust
        Company or another established clearing corporation performing similar functions.

         

        If
        the Company fails for any reason to deliver to the Holders the Shares as described above, the Company shall pay to the
        Holders, in cash, as liquidated damages and not as a penalty, for each $1,000 of Share value (calculated based upon closing
        price of the Common Stock on the date of notice from the Holders and the number of Shares for which the legend is requested
        to be removed), $10 per trading day (increasing to $20 per trading day on the fifth (5th) trading day after such liquidated
        damages begin to accrue) for each trading day following such Share Delivery Date until such Shares are delivered. Nothing
        herein shall limit the Holders’ right to pursue actual damages for the Company’s failure to deliver Shares
        without restrictive legends and trading restrictions (other than those which may then be required by law or separate agreement
        between the Company and the Holders) within the period specified herein, and the Holders shall have the right to pursue
        all remedies available to them hereunder, at law or in equity including, without limitation, a decree of specific performance
        and/or injunctive relief. The exercise of any such rights shall not prohibit the Holders from seeking to enforce damages
        under applicable law.

         

        Buy-in
        Obligation. In addition to such Holders’ other available remedies, if the Company fails to issue and deliver
        (or cause to be delivered) to a Holder by the Share Delivery Date a certificate representing the Shares so delivered to
        the Company by such Holder that is free from all restrictive and other legends and if after the Share Delivery Date such
        Holder is required by such Holder’s brokerage firm to purchase (in an open market transaction or otherwise), or
        the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by
        such Holder of all or any portion of the number of shares of Common Stock that such Holder anticipated receiving from
        the Company without any restrictive legend, then the Company shall pay in cash to the Holder an amount equal to the excess
        of such Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any)
        for the shares of Common Stock so purchased (including brokerage commissions and other out-of-pocket expenses, if any)
        (the “Buy-In Price”) over the product of (A) such number of Shares that the Company was required to deliver
        to such Holder by the Share Delivery Date multiplied by (B) the actual sale price at which the sell order giving rise
        to such purchase obligation was executed (including any brokerage commissions).

	 

        

        Consent.
        The Holders acknowledge that the Company is party to (i) the Warrants, (ii) the 12% Senior Secured Convertible Note in
        the principal amount of $3,000,000 issued to the Fund on February 13, 2015 (the “Note”), (iii) the Securities
        Purchase Agreement, dated as of February 13, 2015, between the Fund and the Company (the “SPA”) and (iv) the
        Advisory Services Agreement, dated February 13, 2015, by and between the Company and Advisors (the “Advisory Agreement”
        and collectively with the Warrants, the Note and the SPA, the “Private Placement Documents”). Notwithstanding
        anything else in the Private Placement Documents to the contrary, each of the Holders consents to the Company’s
        entry into this agreement and the fulfillment of the Company’s obligations hereunder and waives any claim of breach,
        violation or default or right to adjustment under the Private Placement Documents as a result of the Company’s entry
        into this agreement and the fulfillment of the Company’s obligations hereunder.

 

    2

     

    

 

	2.	Representations
    and Warranties.

 

	 	(a)	Representations
    and Warranties of the Holders. Each of the Holders hereby represent and warrant to the Company, as follows:

 

	 	(i)	Organization
        and Qualification. Each of the Holders is duly organized, validly existing and in good standing under the laws
        of the jurisdiction of its incorporation.

         

	 	(ii)	Authorization;
    No Restrictions, Consents or Approvals. Each of the Holders has full power and authority to enter into and perform its
    obligations under this Agreement. This Agreement has been duly executed by each of the Holders and constitutes the legal,
    valid, binding and enforceable obligation of each of the Holders, enforceable against each of the Holders in accordance with
    its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other
    similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity.
	 	 	 
	 	(iii)	Title
    to Warrants. All of the Warrants are owned free and clear of all liens, pledges, encumbrances, changes, restrictions or
    known claims of any kind, nature or description. No Holder has, in whole or in part, (i) assigned, transferred, hypothecated,
    pledged or otherwise disposed of the Warrants or its rights in such Warrants or (ii) given any person or entity any transfer
    order, power of attorney or other authority of any nature whatsoever with respect to such Warrants which would limit the Holder’s
    power to transfer its Warrants hereunder.

  

	 	(iv)	Investment
    Representations.

 

	 	(A)	Each
    of the Holders understands that the Shares have not been registered under the Securities Act or any other applicable securities
    laws. Each of the Holders also understands that the Shares are being offered and issued pursuant to an exemption from the
    registration requirements of the Securities Act under Section 3(a)(9) thereof. Each of the Holders acknowledges that the Company
    will rely on such Holder’s representations, warranties and certifications set forth below for purposes of determining
    such Holder’s suitability as an investor in the Shares and for purposes of confirming the availability of the Section 3(a)(9)
    exemption from the registration requirements of the Securities Act.

    

	 	(B)	Each
        of the Holders has received all the information Holder considers necessary or appropriate for deciding whether to acquire
        the Shares. Each of the Holders understands the risks involved in an investment in the Shares. Each of the Holders further
        represents that such Holder has had an opportunity to ask questions and receive answers from the Company regarding the
        terms and conditions of the offering of the Shares and the business, properties, prospects and financial condition of
        the Company and to obtain such additional information (to the extent the Company possessed such information or could acquire
        it without unreasonable effort or expense) necessary to verify the accuracy of any information furnished to such Holder
        or to which such Holder had access.

         

	 	(C)	Each
    of the Holders further represents that it is an “accredited investor” within the meaning of Rule 501(a) of Regulation
    D promulgated under the Securities Act.

 

	 	(D)	Each
    of the Holders is acquiring the Shares for its own account for investment purposes only and not with a view towards resale
    or “distribution” (within the meaning of the Securities Act) of any part of the Shares.

 

    3

     

    

 

	 	(E)	Each
    of the Holders understands that the Shares may not be offered, sold or otherwise transferred except in compliance with the
    registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption therefrom,
    and in each case in compliance with the conditions set forth in this Agreement. Each of the Holders acknowledges and is aware
    that the Shares may not be sold pursuant to Rule 144 unless certain conditions are met and until such Holder has held the
    Shares for the applicable holding period under Rule 144.

 

	 	(F)	Each
    of the Holders acknowledges and agrees that each certificate representing the Shares shall bear a legend substantially in
    the following form:

 

	 	 	“THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
        “ACT”), OR THE SECURITIES LAWS OF ANY STATE. THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
        REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM
        THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR,
        THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.”

         

	 	(G)	No
    Holder has been solicited by anyone on behalf of the Company to enter into this transaction.

 

	 	(v)	No
    Reliance. No Holder has relied on, and no Holder is relying on, any representations, warranties or other assurances regarding
    the Company or the Shares other than the representations and warranties expressly set forth in this Agreement.

  

	 	(b)	Representations
    and Warranties of the Company. The Company hereby represents and warrants to each of the Holders as follows:

 

	 	(i)	Organization
    and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws
    of the jurisdiction of its incorporation.

 

	 	(ii)	Authorization;
No Restrictions, Consents or Approvals. The Company has full power and authority to enter into and perform its obligations
under this Agreement. This Agreement has been duly executed by the Company and constitutes the legal, valid, binding and enforceable
obligation of the Company, enforceable against the Company in accordance with its terms, except that such enforcement may be subject
to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’
rights generally, and (b) general principles of equity.

 

    4

     

    

 

	 	 	Except
    as would not be reasonably expected to materially adversely affect the Company’s ability to perform its obligations
    to complete the transactions contemplated herein or otherwise have a material adverse effect on the results of operations,
    assets, business, prospects or condition (financial or otherwise) of the Company, the execution and delivery of this Agreement
    and the consummation by the Company of the transactions contemplated herein do not (A) conflict with or violate any of
    the terms of the articles of incorporation and bylaws of the Company or any applicable law relating to the Company, (B) conflict
    with, or result in a breach of any of the terms of, or result in the acceleration of any indebtedness or obligations under,
    any material agreement, obligation or instrument by which the Company is bound or to which any property of the Company is
    subject, or constitute a default thereunder, other than those material agreements, obligations or instruments for which the
    Company has obtained consent for the transactions contemplated under this Agreement (including, without limitation, the consent
    given by the Holders with respect to the Private Placement Documents in Section 1 herein), (C) result in the creation
    or imposition of any lien on any of the assets of the Company, (D) constitute an event permitting termination of any
    material agreement or instrument to which the Company is a party or by which any property or asset of the Company is bound
    or affected, pursuant to the terms of such agreement or instrument, other than those material agreements or instruments for
    which the Company has obtained consent for the transactions contemplated under this Agreement (including, without limitation,
    the consent given by the Holders with respect to the Private Placement Documents in Section 1 herein) or (E) conflict
    with, or result in or constitute a default under or breach or violation of or grounds for termination of, any license, permit
    or other governmental authorization to which the Company is a party or by which the Company may be bound, or result in the
    violation by the Company of any laws to which the Company may be subject. 
	 	 	 
	 	 	No
    authorization, consent or approval of, notice to, or filing with, any public body or governmental authority or any other person
    is necessary or required in connection with the execution and delivery by the Company of this Agreement or the performance
    by the Company of its obligations hereunder.

  

	 	(iii)	Issuance
    of Shares. The issuance of the Shares has been duly authorized and, upon issuance in accordance with the terms hereof,
    shall be validly issued and free from all taxes, liens and charges with respect to the issue thereof, and the Shares shall
    be fully paid and non-assessable with each of the Holders being entitled to all rights accorded to a holder of Common Stock.

 

	3.	General
    Provisions.

 

	 	(a)	Governing
    Law. This Agreement is to be construed in accordance with and governed by the internal laws of the State of New York
    without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than
    the internal laws of the State of New York to the rights and duties of the parties.

  

	 	(b)	Severability. If
    any provision of this Agreement is held by a court or other tribunal of competent jurisdiction to be invalid or unenforceable
    for any reason, the remaining provisions shall continue in full force and effect without being impaired or invalidated in
    any way, and the parties agree to replace any invalid provision with a valid provision which most closely approximates the
    intent and economic effect of the invalid provision.

 

	 	(c)	Waiver. The
    waiver by either party of a breach of or default under any provision of this Agreement shall not be effective unless in writing
    and shall not be construed as a waiver of any subsequent breach of or default under the same or any other provision of this
    Agreement. Further, any failure or delay on the part of either party to exercise or avail itself of any right or remedy that
    it has or may have hereunder shall not operate as a waiver of any such right or remedy or preclude other or further exercise
    thereof or of any other right or remedy.

 

    5

     

    

 

	 	(d)	Notices. Any
        notices required or permitted hereunder shall be given to the appropriate party at the address specified below or at such
        other address as the party may specify in writing. Such notice shall be deemed given: (i) if delivered personally,
        upon delivery as evidenced by delivery records; (ii) if sent by email or facsimile, upon confirmation of receipt;
        (iii) if sent by certified or registered mail, postage prepaid, five (5) days after the date of mailing; or
        (iv) if sent by nationally recognized express courier, two (2) business days after date of placement with such
        courier.

         

        If
        to the Holders:

         

        c/o
Sigma Capital Advisors, LLC

        800
Third Avenue

        17th
Floor

        New
York, NY 10022

        Facsimile:
        ________________

         

        If
        to the Company:

         

        SNAP
Interactive, Inc.

        320
W. 37th Street

        New
York, NY 10018

        Attn:
Alexander Harrington

        Facsimile:
        _________________

	 	 	 
	 	(e)	No
    Third Party Beneficiaries. Nothing in this Agreement shall be construed to confer any rights or benefits upon
    any person other than the parties hereto, and no other person shall have any rights or remedies hereunder.

 

	 	(f)	Public
    Announcements. The Holders and the Company will consult with each other before issuing, and provide each other the
    opportunity to review and comment upon, any press release or other public statements with respect to this Agreement and the
    transaction contemplated hereby and shall not issue any such press release or make any such public statement prior to such
    consultation, except as may be required by applicable law.

 

	 	(g)

        
	Counterparts. This
Agreement may be executed in one or more counterparts (including electronic (PDF) or fax counterparts) each of which shall be
deemed an original and all of which shall be taken together and deemed to be one instrument.

	 	 	 
	 	(h)	Fees
    and Expenses. The Company shall pay all reasonable fees and expenses of the Holders incurred in connection with the negotiation,
    preparation, execution, delivery and enforcement of this Agreement.
	 	 	 
	 	(i)	Further
    Assurances. The Holders and the Company hereby agree to execute and deliver, or cause to be executed and delivered, such
    other documents, instruments and agreements, and take such other actions, as either party may reasonably request in connection
    with the transactions contemplated by this Agreement.
	 	 	 

[SIGNATURE
PAGES FOLLOW]

 

    6

     

    

 

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

 

	 	HOLDER:
    Sigma Opportunity Fund II, LLC
	 	 
	 	/s/
    Thom Waye
	 	(Signature
    of Signatory)
	 	 
	 	Thom
    Waye
	 	(Print
    Name of Signatory)
	 	 
	 	Manager
	 	(Title
    of Signatory)
	 	 
	 	HOLDER:
    Sigma Capital Advisors, LLC
	 	 
	 	/s/
    Thom Waye
	 	(Signature
    of Signatory)
	 	 
	 	Thom
    Waye
	 	(Print
    Name of Signatory)
	 	 
	 	Manager
	 	(Title
    of Signatory)

 

	 	COMPANY:
	 	 
	 	SNAP INTERACTIVE, INC.
	 	 
	 	By:	/s/ Alexander Harrington
	 	 	Name: Alex Harrington
	 	 	Title: CEO

 

 

7Exhibit 10.6

 

THIS
SUBORDINATED MULTIPLE ADVANCE TERM NOTE IS SUBJECT TO THE SUBORDINATION PROVISIONS SET FORTH IN SECTION 7 HEREOF UNDER WHICH THIS
SUBORDINATED MULTIPLE ADVANCE TERM NOTE AND BORROWER’S OBLIGATIONS HEREUNDER ARE SUBORDINATED IN THE MANNER SET FORTH THEREIN
TO THE PRIOR PAYMENT OF THE SENIOR DEBT TO THE HOLDERS OF SENIOR DEBT AND IS SUBJECT IN ALL RESPECTS TO THE TERMS AND PROVISIONS
SET FORTH THEREIN.

 

	July 18, 2016 (“Closing Date”)	$250,000.00

 

SUBORDINATED
MULTIPLE ADVANCE TERM NOTE

 

THIS
SUBORDINATED MULTIPLE ADVANCE TERM NOTE is a duly authorized and validly issued Note of Snap Interactive, Inc., a Delaware corporation
(the “Borrower”), having its principal place of business at 462 Seventh Avenue, 4th Floor, New York, New York
10018 (this “Note”).

 

FOR
VALUE RECEIVED, the Borrower promises to pay to A.V.M. Software, Inc., a New York corporation (the “Lender”),
or shall have paid pursuant to the terms hereunder, the principal sum of $250,000.00 (or such lesser amount as may be outstanding)
on July 18, 2017 or such earlier date as this Note is required or permitted to be repaid as provided hereunder (the “Maturity
Date”), and to pay interest to the Lender on the then outstanding principal amount of this Note in accordance with the
provisions hereof. This Note is subject to the following additional provisions:

 

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

 

“Advance
Request” shall have the meaning set forth in Section 2(a).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Bankruptcy
Event” means any of the following events: (a) the Borrower or any Significant Subsidiary (as such term is defined in
Rule 1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the
Borrower or any Significant Subsidiary thereof, (b) there is commenced against the Borrower or any Significant Subsidiary thereof
any such case or proceeding that is not dismissed within seventy-five (75) calendar days after commencement, (c) the Borrower
or any Significant Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any
such case or proceeding is entered, (d) the Borrower or any Significant Subsidiary thereof suffers any appointment of any custodian
or the like for it or any substantial part of its property that is not discharged or stayed within sixty (60) calendar days after
such appointment, (e) the Borrower or any Significant Subsidiary thereof makes a general assignment for the benefit of creditors,
(f) the Borrower or any Significant Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition,
adjustment or restructuring of its debts or (g) the Borrower or any Significant Subsidiary thereof, by any act or failure to act,
expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action
for the purpose of effecting any of the foregoing.

 

    

     

    

 

“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.

 

“Cash
Balance Requirement Minimum” means (a) the amount by which the aggregate cash balance in the Borrower’s bank accounts
on a rolling ten-Business Day average basis is below the Cash Balance Requirement (as such term is defined in the Senior Notes)
or (b) the amount by which Borrower determines in its reasonable discretion (and provides reasonably detailed backup calculations
thereof) that the aggregate cash balance in the Borrower’s bank accounts on a rolling ten-Business Day average basis would
reasonably be expected to be below the Cash Balance Requirement (as such term is defined in the Senior Notes) at the conclusion
of the applicable period of determination.

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act)
of effective control (whether through legal or beneficial ownership of capital stock of the Borrower, by contract or otherwise)
of in excess of 50% of the voting securities of the Borrower (other than by means of conversion or exercise of the Senior Notes
and the securities issued together with the Senior Notes), (b) the Borrower merges into or consolidates with any other Person,
or any Person merges into or consolidates with the Borrower and, after giving effect to such transaction, the stockholders of
the Borrower immediately prior to such transaction own less than 50% of the aggregate voting power of the Borrower or the successor
entity of such transaction, (c) the Borrower sells or transfers all or substantially all of its assets to another Person and the
stockholders of the Borrower immediately prior to such transaction own less than 50% of the aggregate voting power of the acquiring
entity immediately after the transaction, (d) a replacement at one time or within a three year period of all of the individuals
who are members of the board of directors of Borrower (the “Board of Directors”) on the Closing Date which
is not approved by the individuals who are members of the Board of Directors on the Closing Date (or by those individuals who
are serving as members of the Board of Directors on any date whose nomination to the Board of Directors was approved by the members
of the Board of Directors who are members on the Closing Date), or (e) the Borrower, directly or indirectly, in one or more related
transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making
or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or
other business combination); provided, however, that neither the Merger nor any of the transactions contemplated
by the Merger Agreement shall be deemed a Change of Control Transaction.

 

“Common
Stock” means the common stock of the Borrower, par value $0.001 per share, and any other class of securities into which
such securities may hereafter be reclassified or changed.

 

“Common
Stock Equivalents” means any securities of the Borrower or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive,
Common Stock.

 

    2

     

    

 

“Default
Rate” means as of any date of determination, a rate per annum equal to the sum of (i) the Note Rate plus (ii)
2.00%.

 

“Event
of Default” shall have the meaning set forth in Section 5(a).

 

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

 

“GAAP”
means United States generally accepted accounting principles applied on a consistent basis during the periods involved.

 

“Insider
Loans” means one or more loans to the Borrower or a Subsidiary by an executive officer or director or relative of an
executive officer or director, provided that such loans (i) do not exceed $300,000 in the aggregate, (ii) mature on a date that
is later than ninety (90) days following the Maturity Date, as the same may be amended or extended from time to time, (ii) are
not convertible into Common Stock or Common Stock Equivalents, (iii) no shares of Common Stock or Common Stock Equivalents are
issued in connection with such Insider Loans, (iv) are unsecured and (v) do not require cash or other payment of principal or
interest for at least ninety (90) days after the Maturity Date, as the same may be amended or extended from time to time.

 

“Junior
Indebtedness” means any and all indebtedness, obligations and liabilities of Borrower to Lender under this Note.

 

“Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

 

“Merger”
shall have the meaning set forth in the Merger Agreement.

 

“Merger
Agreement” means that certain Agreement and Plan of Merger to be entered into between Borrower and Lender.

 

“New
York Courts” shall have the meaning set forth in Section 6(d).

 

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

 

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

 

“Paid
in Full” and “Payment in Full” means, with respect to any and all of the Senior Debt, the payment
in full thereof in cash all in accordance with the terms of the Senior Debt documents.

 

    3

     

    

 

“Permitted
Indebtedness” means (a) the indebtedness of the Borrower that is outstanding on the Closing Date and set forth on Schedule
4(a) hereof and, upon the prior written approval of Lender, any refinancing, renewal, extension, replacement, restructuring
or modification of such indebtedness, (b) the indebtedness evidenced by this Note, (c) the indebtedness evidenced by then Senior
Notes, (d) lease obligations and purchase money indebtedness of up to $200,000, in the aggregate, incurred in connection with
the acquisition of capital assets and lease obligations with respect to newly acquired or leased assets, (e) indebtedness of up
to an aggregate of $100,000 that (i) matures on a date that is later than 90 days following the Maturity Date, as the same may
be amended or extended from time to time, (ii) is unsecured and (iii) is not convertible into Common Stock or Common Stock Equivalents
and (f) subject to Section 4(h), Insider Loans.

 

“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Borrower)
have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of the Borrower’s
business, such as carriers’, warehousemens’ and mechanics’ Liens, statutory landlords’ Liens, and other
similar Liens arising in the ordinary course of the Borrower’s business, and which (x) do not individually or in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business
of the Borrower and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien,
(c) Liens incurred in connection with Permitted Indebtedness under clause (c) thereunder, (d) Liens incurred in connection with
Permitted Indebtedness under clause (d) thereunder, provided that such Liens are not secured by assets of the Borrower or its
Subsidiaries other than the assets so acquired or leased.

 

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

 

“Refinancing”
means, in respect of the Senior Debt, to refinance, defer, extend, renew, refund, repay or to issue other debt in exchange or
replacement for such indebtedness; provided, however, that such Refinancing shall not incorporate any provisions
that would not be permitted pursuant to Section 7(g) in connection with an amendment to the Senior Notes.

 

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

 

“Security
Agreement” has the meaning set forth in Section 7(j).

 

“Security
Agreement Conditions” means the following conditions: (a) the Senior Debt is Paid in Full or is converted in full, (b)
the Merger has not occurred, and (c) there are outstanding advances under the Junior Indebtedness.

 

“Senior
Debt” means (a) all principal, premium (if any), interest, fees, charges, expenses (including but not limited to expenses
in connection with claims and litigation), damages, indemnities, reimbursement obligations, guarantees and all other amounts payable
under or in respect of the Senior Notes and (b) any modifications, amendments, refunding, Refinancing, renewals, or extensions
of any indebtedness, liability, or obligation described in clause (a) above.

 

“Senior
Lender” means” Sigma Opportunity Fund II, LLC or its registered assigns in its capacity as Holder under the Senior
Notes and their respective successors and/or assigns and each of the other financial institutions from time to time party to the
Senior Notes.

 

“Senior
Notes” means Borrower’s 12% Senior Secured Convertible Notes due February 13, 2017, in the original aggregate
principal amount of $3,000,000, as such Notes may be modified, amended, renewed, extended, restated, or replaced from time to
time in accordance with the terms hereof.

 

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“Subsidiary”
means any subsidiary of the Borrower and shall, where applicable, also include any direct or indirect subsidiary of the Borrower
formed or acquired after the date hereof.

 

“Transaction
Documents” means this Note and all exhibits and schedules hereto and any other documents or agreements executed in connection
with the transactions contemplated hereunder.

 

Section
2.Borrowing
Procedure; Payment Terms.

 

(a)Borrowing
Procedure. Subject to the terms and conditions of this Note, at any time and from time to time on and the date hereof and
prior to the Maturity Date, Lender shall, pursuant to the terms hereof, make one or more credit advances to the Borrower in an
aggregate principal amount at any time outstanding up to but not exceeding $250,000.00; provided that as of the date of
any advance, (x) no event shall have occurred and be continuing that would constitute an Event of Default, (y) the Borrower shall
not be in breach of Section 2.1 or Section 2.2 under the heading titled “Exclusivity” in that certain Letter of Intent
dated as of June 17, 2016 between Borrower and Lender, and (z) no material breach of the covenants under the Merger Agreement
shall have occurred and be continuing (subject to any grace or cure period provided in the Merger Agreement). No principal amount
repaid may be reborrowed. The Borrower shall give Lender notice of each advance in writing in substantially the same form as Exhibit
A attached hereto (each an “Advance Request”) containing the information specified therein and delivered
(by mail, fax or electronic mail) to Lender no later than 1:00 p.m. (New York City time) at least two (2) Business Days prior
to on the date on which the advance is desired to be funded and Lender shall fund such advance on the date set forth in such Advance
Request. Lender at its option may accept telephonic requests for such advances. Any telephonic request for an advance by the Borrower
shall be promptly confirmed by submission of a properly completed Advance Request to Lender. Each Advance Request shall include
the following: (i) aggregate amount of the requested advance (which amount shall not exceed the applicable Cash Balance Requirement
Minimum) and (ii) the date for the requested advance.

 

(b)Payment
of Interest.

 

(i)Interest
Generally. The Borrower shall pay interest to the Lender on the then outstanding principal balance of this Note at the rate
of 8.0% per annum (the “Note Rate”), payable on the Maturity Date, in cash. 

 

(ii)Default
Rate. Upon the occurrence and during the continuance of an Event of Default, the principal amount of this Note shall bear
interest at the Default Rate.

 

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

 

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(d)Prepayments.

 

(i)Optional
Prepayment at Election of Borrower. To the extent permitted by Section 7 hereof, the Borrower shall have the right to prepay,
at any time and from time to time upon at least one (1) Business Day prior written notice to Lender, without fee, premium or penalty,
all or any portion of the outstanding principal balance hereof; provided, however, that such prepayment
shall also include any and all accrued but unpaid interest on the amount of principal being so prepaid through and including the
date of prepayment, plus any other sums which have become due to Lender under the other Transaction Documents on or before the
date of prepayment, but which have not been fully paid.

 

(ii)Mandatory
Prepayment. To the extent permitted by Section 7 hereof, on the date of receipt by Borrower of any cash proceeds from (A)
a capital contribution to, or the issuance of any capital stock of, Borrower (other than with respect to the Merger), or (B) from
the incurrence of any indebtedness, Borrower shall prepay the outstanding principal balance hereof in an aggregate amount up to
100% of such proceeds, net of underwriting discounts and commissions and other reasonable costs and expenses associated therewith,
in each case, paid to non-Affiliates, including reasonable legal fees and expenses.

 

Section
3.Reliance
on Note Register.

 

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

 

Section
4. Negative Covenants. As long as any portion
of this Note remains outstanding, unless the Lender shall have otherwise given prior written consent, the Borrower shall not,
and shall not permit any of the Subsidiaries to, directly or indirectly:

 

(a)other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money
of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter
acquired or any interest therein or any income or profits therefrom;

 

(b)other
than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of
its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

(c)other
than with respect to the Merger, amend its charter documents, including, without limitation, its certificate of incorporation
and bylaws, in any manner that materially and adversely affects any rights of the Lender; it being understood and agreed provided
that the Merger shall not be deemed to be materially and adversely affect any rights of the Lender;

 

(d)repay,
repurchase or offer to repay, repurchase or otherwise acquire any shares of its Common Stock or Common Stock Equivalents other
than as permitted or required under the Senior Notes or the Merger;

 

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(e)to
the extent permitted by Section 7 hereof, repay, repurchase or offer to repay, repurchase or otherwise acquire any indebtedness,
other than this Note or the Senior Note, other than (i) regularly scheduled principal and interest payments as such terms are
in effect as of the Closing Date and (ii) regularly scheduled principal and interest payments in respect of Permitted Indebtedness;

 

(f)pay
cash dividends or distributions on any equity securities of the Borrower;

 

(g)other
than with respect to the Merger, issue any Common Stock or Common Stock Equivalents pursuant to Section 3(a)(9) of the Securities
Act (except such transaction exclusively with the original purchasers of the securities being exchanged) or Section 3(a)(10) of
the Securities Act;

 

(h)enter
into any transaction with any Affiliate of the Borrower, unless such transaction is made on an arm’s-length basis and expressly
approved in writing by the Lender and a majority of the disinterested directors of the Borrower (even if less than a quorum otherwise
required for board approval); provided, however, that (i) any extension or renewal of any currently existing arrangements
with Affiliates listed on Schedule 4(h) hereof on substantially the same terms as in effect on the date hereof shall not require
the Lender’s prior consent, and (ii) the Lender’s written consent to any Insider Loan shall not be unreasonably withheld,
delayed or conditioned;

 

(i)transfer
any assets of the Borrower or any domestic Subsidiary to SNAP Mobile Limited (or any successor thereto); or

 

(j)enter
into any agreement with respect to any of the foregoing.

 

Section
5.Events
of Default.

 

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

 

(i)unless
any such payment is prohibited pursuant to Section 7 hereof, any default in the payment of (A) the principal amount of any Note
or (B) interest and other amounts owing to a Lender or an Affiliate of Lender on the Note or pursuant to any other Transaction
Document, as and when the same shall become due and payable (whether on the Maturity Date or by acceleration or otherwise) which
default, solely in the case of an interest payment or other default under clause (B) above, is not cured within three (3) Business
Days;

 

(ii)the
Borrower shall fail to observe or perform any other covenant or agreement contained in this Note or any other Transaction Document
which failure is not cured, if possible to cure, within the earlier to occur of (A) 10 Business Days after notice of such failure
sent by the Lender to the Borrower and (B) 10 Business Days after the Borrower has become or should have become aware of such
failure;

 

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

 

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(iv)any
representation or warranty made in this Note, any other Transaction Documents, any written statement pursuant hereto or thereto
or any other report, financial statement or certificate made or delivered to the Lender or any other Lender shall be untrue or
incorrect in any material respect as of the date when made or deemed made;

 

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

 

(vi)the
Borrower or any Subsidiary shall default on any of its obligations under any mortgage, credit agreement or other facility, indenture
agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced,
any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves an obligation
greater than $150,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness
becoming or being declared due and payable prior to the date on which it would otherwise become due and payable;

 

(vii)any
monetary judgment, writ or similar final process shall be entered or filed against the Borrower, any Subsidiary or any of their
respective property or other assets for more than $100,000, and such judgment, writ or similar final process shall remain unvacated,
unbonded or unstayed for a period of forty-five (45) calendar days; or

 

(viii)
a Change of Control Transaction shall occur without
the consent of Lender.

 

(b)Remedies
Upon Event of Default. Subject to the provisions of Section 7 hereof, if any Event of Default has occurred and is continuing,
then Lender may without notice terminate this Note or declare the Junior Indebtedness or any part thereof to be immediately due
and payable, or both, and the same shall thereupon become immediately due and payable, without notice, demand, presentment, notice
of dishonor, notice of acceleration, notice of intent to accelerate, notice of intent to demand, protest, or other formalities
of any kind, all of which are hereby expressly waived by Borrower; provided, however, that upon the occurrence of
an Event of Default under Section 5(a)(v), this Note shall automatically terminate, and the Junior Indebtedness shall become
immediately due and payable, in each case without notice, demand, presentment, notice of dishonor, notice of acceleration, notice
of intent to accelerate, notice of intent to demand, protest, or other formalities of any kind, all of which are hereby expressly
waived by Borrower. In addition to the foregoing, if any Event of Default shall occur and be continuing, Lender may exercise all
rights and remedies available to it in law or in equity, under the Transaction Documents, or otherwise.

 

Section
6.Miscellaneous.

 

(a)Notices.
Any and all notices or other communications or deliveries to be provided by the Lender hereunder, shall be in writing and delivered
personally, by facsimile, by email attachment, or sent by a nationally recognized overnight courier service, addressed to the
Borrower, at the address set forth above, or such other facsimile number, email address, or address as the Borrower may specify
for such purposes by notice to the Lender delivered in accordance with this Section 6(a). Any and all notices or other communications
or deliveries to be provided by the Borrower hereunder shall be in writing and delivered personally, by facsimile, by email attachment,
or sent by a nationally recognized overnight courier service addressed to each Lender at the following facsimile number or email
address or address of the Lender at 122 East 42nd Street, New York, New York 10017. Any notice or other communication
or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or email attachment to the email address set forth on the signature
pages attached hereto prior to 5:30 p.m. (New York City time) on any date, (ii) the next Business Day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile number or email attachment to the email address set
forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m. (New York City time)
on any Business Day, (iii) the next Business Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

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

 

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

 

(d)Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by
and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of
conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense
of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective
Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting
in the City of New York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for
such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this
Note or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of
this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’
fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

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(e)Waiver;
Amendment. Any waiver by the Borrower or the Lender of a breach of any provision of this Note shall not operate as or be construed
to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the
Borrower or the Lender to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered
a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this
Note on any other occasion. Any waiver by the Borrower or the Lender must be in writing. Any provision of this Note may be waived
by the Lender in writing, which waiver shall be binding on all of the Lender’s successors and assigns. Subject to Section
7, any provision of this Note may be amended by a written instrument executed by the Borrower and the Lender, which amendment
shall be binding on all of the Lender’s successors and assigns.

 

(f)Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any
provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances.
If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury,
the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under
applicable law. The 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 Lender,
but will suffer and permit the execution of every such law as though no such law has been enacted.

 

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

 

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

 

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

 

(j)Notices.
Promptly upon any officer of Borrower obtaining knowledge of any condition or event that constitutes an Event of Default, Borrower
shall notify Lender of such Event of Default.

 

Section
7.Subordination.

 

(a)Borrower
covenants and agrees and Lender by its acceptance hereof likewise covenants and agrees that the Junior Indebtedness and the payment
of the principal and interest in respect of the Junior Indebtedness each are hereby expressly made subordinate and subject in
right of payment to the prior Payment in Full of the Senior Debt on the terms set forth herein. So long as the Payment in Full
of the Senior Debt has not occurred, the Lender will not ask for, demand, sue for, take or receive (by way of voluntary prepayment,
acceleration, set-off or counterclaim, foreclosure or other realization on security, dividends in bankruptcy or otherwise) any
payment with respect to the Junior Indebtedness, and the Lender waives any such rights with respect to the Junior Indebtedness
nor shall the Lender (i) commence any collection or enforcement action or exercise any remedy with respect to the Junior Indebtedness
or (ii) exercise any rights of subrogation or other similar rights with respect to the Senior Debt. The foregoing notwithstanding,
nothing contained herein shall impair, as between Borrower and Lender, the obligation of Borrower to pay to the Lender all amounts
payable in respect of the Junior Indebtedness as and when the same shall become due and payable, provided such obligation
remains subject to the terms and conditions set forth herein.

 

(b)In
any insolvency or receivership proceeding or any other proceeding under any laws relating to the relief of debtors, readjustment
of indebtedness, reorganizations, compositions or extensions which may be brought by or against Borrower and at any meeting of
creditors of Borrower whether or not such meeting is held in a proceeding under any insolvency, bankruptcy or similar laws, the
Lender shall retain the right to vote and otherwise act with respect to the Junior Indebtedness (including, without limitation,
the right to vote to accept or reject any plan of partial or complete liquidation, reorganization, arrangement, composition or
extension); provided that the Lender shall not vote with respect to any such plan or take any other action in any way so
as to contest or challenge (i) the validity, enforceability, perfection, or priority of the Senior Debt, any liens or security
interests securing payment thereof, or any collateral therefore or guaranties thereof, (ii) the relative rights and duties of
Senior Lender established in any instruments or agreements creating or evidencing any of the Senior Debt with respect to any of
such collateral or guaranties, or (iii) the Lender’s obligations and agreements set forth in Section 7 of this Note. In
any of the foregoing proceedings, (w) Senior Lender shall first receive Payment in Full in cash of all Senior Debt (or have such
payments duly provided for in a manner satisfactory to Senior Lender) before Lender is entitled to receive any payment on account
of or accrued or incurred in connection with any Junior Indebtedness, (x) any payment or distribution of assets of Borrower of
any kind or character, whether in cash, property or securities to which any Lender would be entitled except for the provisions
of this Note shall be paid by Borrower, the liquidating trustee or agent or other person making such a payment or distribution,
directly to Senior Lender, for application to the payment of all Senior Debt until such Senior Debt shall have been Paid in Full
in cash, (y) in the event that, notwithstanding the foregoing, any payment or distribution of assets of Borrower of any kind or
character, whether in cash, property or securities, shall be received by any Lender on account of, or accrued or incurred in connection
with, any Junior Indebtedness before all Senior Debt is Paid in Full in cash, or effective provision (in a manner satisfactory
to the Senior Lender) made for its payment, then such payment or distribution shall be segregated and received and held in trust
for the benefit of and shall be promptly paid over to Senior Lender, for application to the payment of all Senior Debt until such
Senior Debt shall have been Paid in Full in cash, and (z) Senior Lender shall be entitled to receive and collect any distributions,
dividends or other payments upon the Junior Indebtedness by filing such claim, proof of debt or proof of claim as appropriate
in the proceeding, in Senior Lender’s name, as applicable, or the Lender’s name and apply such distribution, dividends
or other payments to the Senior Debt until all of the Senior Debt shall have been Paid in Full in cash, rendering to the Lender
any surplus to which the Lender is then entitled. Senior Lender and its officers or employees designated by them for such purpose
is hereby constituted and appointed attorney-in-fact for the Lender with full power (which power, being coupled with an interest,
shall be irrevocable so long as this Note is in effect) to file any claim, proof of debt or proof of claim in any such proceeding.

 

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(c)The
provisions of this Section 7 shall continue in full force and effect notwithstanding (i) the commencement by
Borrower of a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, (ii)
Borrower’s consent to the entry of an order for relief in an insolvency case under any such law, or consent to the appointment
of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Borrower
or for any substantial part of its property, (iii) the making by Borrower of a general assignment for the benefit of creditors,
(iv) Borrower’s failure generally to pay its debts as they become due, or (v) the institution of a proceeding having jurisdiction
in the premises seeking a decree or order for relief in respect of Borrower in an involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or for the appointment of a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or other similar official) of Borrower or for any substantial part of its property, or for the winding-up
or liquidation of its affairs.

 

(d)Should
any payment, distribution or security or proceeds be received by the Lender upon or with respect to the Junior Indebtedness prior
to the Payment in Full of the Senior Debt, the Lender shall immediately deliver same to Senior Lender in the form received or,
with the agreement of Senior Lender, in good funds (except for endorsement or assignment by the Lender where required by Senior
Lender), for application on the Senior Debt (whether or not then due and in such order of maturity as Senior Lender elects) and,
until so delivered, the same shall be held in trust by the Lender as the property of Senior Lender.

 

(e)Subject
to the Payment In Full of the Senior Debt, the Lender shall be subrogated to the extent of the payments or distributions made
to Senior Lender pursuant to the provisions of this Section 7 to the rights of Senior Lender to receive payments or distributions
of cash, property or securities applicable to the Senior Debt until the principal, and all accrued unpaid interest hereon shall
be Paid In Full.

 

(f)The
provisions of this Section 7 are and are intended solely for the purpose of defining the relative rights of the Lender, on the
one hand, and Senior Lender, on the other hand. All payments due under this Note, subject to the rights under this Section 7 of
Senior Lender, are intended to rank equally with all other general obligations of Borrower and nothing hereunder is intended to
or shall affect the relative rights against Borrower of the Lender and creditors of Borrower other than Senior Lender.

 

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(g)No
right of Senior Lender to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any
act or failure to act on the part of Borrower or by any act or failure to act, in good faith, by Senior Lender, or by any noncompliance
by Borrower with the terms, provisions and covenants of this Note, regardless of any knowledge thereof any Senior Lender may have
or be otherwise charged with. Without in any way limiting the generality of the foregoing paragraph, Senior Lender may, at any
time and from time to time, without the consent of or notice to the Lender, without incurring responsibility to the Lender and
without impairing or releasing the subordination provided in this Section 7 or the obligations hereunder of the Lender to Senior
Lender, do any one or more of the following: (i) change the manner, place or terms of payment or extend the time of payment of,
or alter the Senior Debt, or otherwise amend or supplement in any manner the Senior Debt or any instrument evidencing the same
or any agreement under which the Senior Debt is outstanding; (ii) release any person liable in any manner for the collection of
the Senior Debt; and (iii) exercise or refrain from exercising any rights against Borrower and any other person; provided,
however, that Borrower shall not agree to or enter into any amendment or other modification of the Senior Notes
or Transaction Documents (as defined therein) which expressly impose any additional or more restrictive conditions on the ability
of the Borrower to pay any and all required principal and interest payments when due under this Note other than the restrictions
set forth herein (it being agreed that Borrower and Senior Lender shall not be prohibited from agreeing to additions or changes
to the covenants and events of defaults in the Senior Notes or Transaction Documents that may cause the covenants or events of
default therein to otherwise be more restrictive to Borrower). The Lender waives any and all notices (except notices specifically
provided for herein) of the creation or modification of the Senior Debt and notice of or proof of reliance by Senior Lender, upon
the subordination provided for herein. The Senior Debt shall conclusively be deemed to have been created, contracted or incurred
in reliance upon the provisions of this Note. Until the Senior Debt shall have been Paid in Full, the Note And Security Agreement
shall not be amended without Senior Lender’s prior written consent.

 

(h)All
rights, interests, agreements and obligations of Senior Lender and the Lender hereunder shall remain in full force and effect
irrespective of:

 

(i)any
lack of validity or enforceability in part, or in whole, of any document or agreement executed in connection with the Senior Debt
or this Note;

 

(ii)any
change in the time, manner or place of payment of, or in any other terms of, all or any of the Senior Debt, or any amendment or
waiver or other modification, including, without limitation, any increase in the amount thereof, whether by course of conduct
or otherwise, of the Senior Debt;

 

(iii)the
commencement of any proceeding; or

 

(iv)any
other circumstances which otherwise might constitute a defense available to, or a discharge of, Borrower or any other obligor
in respect of the Senior Debt, or of the Lender in respect of this Note.

 

(i)Third
Party Beneficiary. It is specifically understood and agreed that Senior Lender is a third party beneficiary of Section 7 of
this Note, and the provisions of this Section 7 are also for the benefit of and enforceable by Senior Lender.

 

(j)Security
Agreement. This Note is unsecured prior to the satisfaction of the Security Agreement Conditions. Upon satisfaction of the
Security Agreement Conditions, then that certain Security Agreement, dated as of the date hereof (but not effective until the
Effective Date (as defined therein)) (the “Security Agreement”), shall become effective and Borrower shall
execute such other documents as are necessary to secure the outstanding advances under this Note with substantially all of Borrower’s
assets.

 

*********************

 

(Signature
Page Follows)

 

    13

     

    

 

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

 

	 	SNAP INTERACTIVE, INC.
	 	 	 	 
	 	By:	/s/
    Alexander Harrington
	 	 	Name:	Alexander
    Harrington
	 	 	Title:	Chief
    Executive Officer and
	 	 	 	Chief
    Financial Officer
	 	 	 	 
	 	 	Email
    for delivery of Notices: alex@snap-interactive.com

  

ACKNOWLEDGED
AND AGREED TO (SOLELY WITH RESPECT TO SECTION 7):

 

SIGMA
OPPORTUNITY FUND II, LLC

 

	By:	/s/
    Thom Waye	 
	Name:	Thom
    Waye	 
	Title:	Manager	 

 

SIGNATURE PAGE TO SUBORDINATED MULTIPLE ADVANCE TERM
NOTE

 

    14

     

    

 

EXHIBIT
A

 

ADVANCE
REQUEST

 

Date:
[________], 201[__]

 

		To:	A.V.M.
                                         Software, Inc., a New York corporation (“Lender”)

 

This
Advance Request is furnished pursuant to Section 2(a) of that certain SUBORDINATED MULTIPLE ADVANCE TERM NOTE, dated as
of July 18, 2016 (as may be amended, restated, renewed, extended or otherwise modified from time to time, the “Note”)
between Snap Interactive, Inc., a Delaware corporation (the “Borrower”) and Lender. Unless otherwise defined
herein, capitalized terms used in this Advance Request have the meanings ascribed thereto in the Note.

 

Borrower
hereby notifies Lender of its request of an advance pursuant to Section 2(a) of the Note. Borrower hereby requests that:

 

		(1)	The
                                         aggregate amount of the requested advance is $[_________] (which amount does not exceed
                                         the applicable Cash Balance Requirement Minimum).

 

		(2)	The
                                         date of the requested advance is [_______] (which date is a Business Day and is no less
                                         than two (2) Business Days following the date hereof).

 

		(3)	Borrower
                                         hereby represents that, as of the date referenced in Section 2 above, and after giving
                                         effect to the advance requested hereby:

 

(a)no
Event of Default has occurred and is continuing or would result from the consummation of the borrowing contemplated hereby; and

 

(b)the
person signing this Advance Request is duly authorized to execute and deliver it to Lender on behalf of Borrower.

 

		(4)	The
                                         location and number of the Borrower’s account to which funds are to be disbursed,
                                         are as follows:

 

[___________]

[___________]

[___________]

[___________]

 

[Signature
Page Follows]

 

    15

     

    

 

	 	SNAP INTERACTIVE, INC.
	 	 
	 	By:	
	 	 	Name:	Alexander
    Harrington
	 	 	Title:	Chief
    Executive Officer and
	 	 	 	Chief
    Financial Officer

 

 

16

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