Document:

CONSOLIDATED PROMISSORY NOTE

 

 

	U.S. $1,400,000.00	Miami, Florida
	 	January 11, 2013

 

1.          Parties:

 

1.1          Net Talk.Com, Inc., a Florida
corporation (the "Borrower")

 

1.2          1080 NW 163 DRIVE, LLC, a
Florida Limited Liability Company (the "Lender")

 

2.          Borrower's Promise to Pay:          For
value received Borrower promises to pay to the order of Lender, its successors or assigns ONE MILLION FOUR HUNDRED THOUSAND
& NO/100 DOLLARS ($1,400,000.00) (the "Principal") or so much thereof as may be advanced hereunder,
plus interest (the "Interest") on the Principal from time to time remaining unpaid.

 

3.          Interest:

 

3.1          Rate:          TWELVE PERCENT
(12%) per annum, such rates sometimes referred to as the "Applicable Interest Rate".

 

3.2          Interest Computation:
Interest shall be computed on the outstanding principal balance for the actual number of days which have elapsed from the date
of each advance, calculated on a basis of a 360-day year. Upon the occurrence of any default under the loan documents as delivered
below (regardless of whether or not the maturity date of the indebtedness evidenced hereby (the "Loan") is accelerated),
all advances of the Loan shall bear interest at the lesser of (a) eighteen percent (18%) or (b) the highest rate allowed by law
(the "Default Rate").

 

4.          Payments:          Interest only
monthly at the Applicable Interest Rate. The first such monthly interest payment to be due and payable February 28, 2013,
and monthly thereafter on the 29th of each month (with the exception of February which shall be due on the last day of that
month)until the Maturity Date.

 

5.          Maturity Date:          This Note
shall mature and the entire unpaid Principal and any accumulated unpaid Interest thereon shall be due and payable on November
29, 2014 (the "Maturity Date").

 

6.          Additional Interest Rate Provisions:

 

6.1          All payments hereunder shall
be made in lawful money of the United States of America.

 

6.2          In the event that the interest
rates applicable under this Note (collectively the "Applicable Interest Rate") or the Default Rate exceeds the maximum
rate of interest allowed by applicable law, as amended from time to time, in any interest period during the initial term or any
extension of this Note, only the maximum rate of interest allowed shall then be charged but thereafter in any interest period or
periods during which the rate is less than the maximum rate allowed by applicable law, as amended from time to time, the Applicable
Interest Rate and the Default Rate shall be increased so that Lender, its successors or assigns, may collect interest in such amount
as may have been charged pursuant to the terms of this Note, but which was not charged because of the limitation imposed by law.

 

6.3          It is the intent of the parties
hereto that in no event shall the amount of interest due or payment in the nature of interest payable hereunder exceed the maximum
rate of interest allowed by applicable law, as amended from time to time, and in the event any such payment is paid by the Borrower
or received by the Lender, then such excess sum shall be credited as a payment of Principal, unless the Borrower shall notify the
Lender, in writing, that the Borrower elects to have such excess sum returned to it forthwith. The Lender may, in determining the
maximum rate of interest allowed under applicable law, as amended from time to time, take advantage of: (i) the rate of interest
permitted by Florida Statutes, Chapter 687.12 ("Interest rates; parity among licensed lenders or creditors") and 12 United
States Code, Section 85 and 86, and (ii) any other law, rule or regulation in effect from time to time, available to Lender which
exempts Lender from any limit upon the rate of interest it may charge or grants to Lender the right to charge a higher rate of
interest than that allowed by Florida Statutes, Chapter 687.

 

 

	Future Advance - Consolidated
        Promissory Note 

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        Initials:
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7.          Prepayment:          This promissory
note may only be prepaid in whole or in part during the first twelve (12) months of its existence, upon the payment of a
prepayment premium from the borrower to the holder hereof in an amount equal to the amount of interest that would have been earned
upon the portion so prepaid had it remained in existence for a full twelve (12) months from the date of this Promissory Note,
less any interest payments actually made during such 12 month period. Thereafter this promissory note may be prepaid in whole
or part without penalty at any time.

 

The aforedescribed prepayment premium shall
be due and payable by the borrower to the holder hereof, regardless of whether the prepayment is voluntary or involuntary, by reason
of default and acceleration and regardless of whether the holder hereof collects default interest or not.

 

8.          Application of Payments:          So
long as no default has occurred in this Note, all payments hereunder shall first be applied to Interest, then to Principal. Upon
default in this Note, all payments hereunder shall first be applied to costs, then to Interest, and the remainder to Principal.

 

9.          Other Instruments:          The
term "Loan Documents" shall mean all and any of the documents now or hereafter executed by Borrower, by others, or by
Borrower and others, in favor of Lender, which wholly or partly secure or are executed in connection with this Note, including,
but not limited to any loan commitment given by Lender to Borrower.

 

10.          Place of Payment:          All
payments hereunder shall be made at Lender's Offices at 1541 Sunset Drive - Suite 302, South Miami, FL 33143, or such other
place as Lender may from time to time designate in writing.

 

11.          Default:

 

11.1          If any payment of Principal,
Interest, or other sum due Lender hereunder or under any of the Loan Documents is not paid within fifteen (15) days of the date
as and when due, or if any other default occurs under any of the Loan Documents, or if any obligation of Borrower under any of
the Loan Documents is not fully performed, then this Note shall be in default.

 

11.2          Upon default in this Note,
the Lender, at its option, may declare the entire unpaid Principal balance of this Note, together with accrued Interest, to be
immediately due and payable without notice or demand.

 

11.3          In addition to payments of
Interest and Principal, if there is a default in this Note the Lender shall be entitled to recover from the Borrower all of the
Lender's costs of collection, including the Lender's attorney, paralegal, and legal assistant fees and court costs (whether for
services incurred in collection, litigation, bankruptcy proceedings, appeals or otherwise), and all other costs incurred in connection
therewith, including but not limited to preparation of default letters or notices related thereto.

 

11.4          Upon default in this Note,
the unpaid principal balance (together with all sums due hereunder) shall thereafter bear interest at the lesser of (a) eighteen
percent (18%) or (b) the maximum rate allowed by law, "the default rate" and Post-judgment interest shall accrue on the
unpaid balance of any judgment entered on this promissory note at the default rate provided herein, pursuant to Section 55.03(1),
Florida Statutes, as amended from time to time.

 

11.5          The default rate of interest
will prevail after judgment pursuant to Section 55.03, Florida Statutes, as amended from time to time.

 

12.          Late Charge:          A late charge
of five percent (5%) of any payment required hereunder shall be imposed on each and every payment, other than the final lump sum
principal payment due hereunder, not received by the Lender within ten (10) days after it is due. The late charge is not a penalty,
but liquidated damages to defray administrative and related expenses due to such late payment. The late charge shall be immediately
due and payable and shall be paid by the Borrower to the Lender without notice or demand. This provision for a late charge is not
and shall not be deemed a grace period, and Lender has no obligation to accept a late payment. Further, the acceptance of a late
payment shall not constitute a waiver of any default then existing or thereafter arising in this Note.

 

13.          Waivers:          The Borrower
and any endorsers, sureties, guarantors and all others who are, or may become liable for the payment hereof severally: (a) waive
presentment for payment, demand, notice of demand, notice of non-payment or dishonor, protest and notice of protest of this Note,
and all other notices in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this
Note, (b) waive any exemption of disposable earnings from attachment or garnishment under Florida Statutes, Section 222.11, (c)
consent to all extensions of time, renewals, postponements of time of payment of this Note or other modifications hereof from time
to time prior to or after the maturity date hereof, whether by acceleration or in due course, without notice, consent or consideration
to any of the foregoing, (d) agree to any substitution, exchange, addition, or release of any of the security for the indebtedness
evidenced by this Note or the addition or release of any party or person primarily or secondarily liable hereon, (e) agree that
the Lender shall not be required first to institute any suit, or to exhaust its remedies against the undersigned or any other person
or party to become liable hereunder or against the security in order to enforce the payment of this Note and (f) agree that, notwithstanding
the occurrence of any of the foregoing (except by the express written release by Lender of any such person), the undersigned shall
be and remain, jointly and severally, directly and primarily liable for all sums due under this Note.

 

 

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        Promissory Note - Page 2

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14.          Set-Offs:          The Borrower
and any endorsers, sureties, guarantors, and all others who are, or who may become liable for the payment hereof, severally expressly
grant to the Lender a continuing First lien security interest in and authorize and empower the Lender, at its sole discretion,
at any time after the occurrence of a default hereunder to appropriate and, in such order as Lender may elect, apply to the payment
hereof or to the payment of any and all indebtedness, liabilities and obligations of such parties to the Lender or any of Lender's
affiliates (whether such indebtedness, liabilities and obligations are or will be joint or several, direct or indirect, absolute
or contingent, liquidated or unliquidated, matured or unmatured, including, but not limited to, any letter of credit issued by
Lender for the account of any such parties), any and all money, general or specific deposits, or collateral of any such parties
now or hereafter in the possession of the Lender.

 

15.          Submission to Jurisdiction:          Borrower,
and any endorsers, sureties, guarantors and all others who are, or who may become liable for the payment hereof severally, irrevocably
and unconditionally (a) agree that any suit, action, or other legal proceeding arising out of or relating to this Note may be brought,
at the option of the Lender, in a court of record of the State of Florida in Miami-Dade County, in the United States District Court
for the Southern District of Florida, or in any other court of competent jurisdiction; (b) consent to the jurisdiction of each
such court in any such suit, action or proceedings; and (c) waive any objection which it or they may have to the laying of venue
of any such suit, action, or proceeding in any of such courts.

 

16.          Miscellaneous Provisions:

 

16.1          The term Lender as used herein
shall mean any holder of this Note.

 

16.2          Time is of the essence in this
Note.

 

16.3          The captions of sections of
this Note are for convenient reference only, and shall not affect the construction or interpretation of any of the terms and provisions
set forth in this Note.

 

16.4          All notices, demands, requests
and other communications required under this Note shall be given in writing delivered by hand or mail, and shall be conclusively
deemed to have been received when, upon receipt or refusal of such receipt, by United States first class mail, return receipt requested,
postage prepaid, addressed to the party for whom it is intended at the following address: For Lender at 1541 Sunset Drive -
Suite 302, South Miami, FL 33143, and for Borrower at 1080 NW 163 Drive, Miami, FL 33169. Any party may designate a change
of address by written notice to the other party, received by such other party at least ten (10) days before such change of address
is to become effective.

 

16.5          This Note shall be construed,
interpreted, enforced and governed by and in accordance with the laws of the State of Florida (excluding the principles thereof
governing conflicts of law), and federal law, in the event federal law permits a higher rate of interest than Florida law.

 

16.6          If any provision or portion
of this Note is declared or found by a court of competent jurisdiction to be unenforceable or null and void, such provision or
portion thereof shall be deemed stricken and severed from this Note, and the remaining provisions and portions thereof shall continue
in full force and effect.

 

16.7          This Note may not be amended,
extended, renewed or modified nor shall any waiver of any provision hereof be effective, except by an instrument in writing executed
by an authorized officer of the Lender and Borrower. Any waiver of any provision hereof shall be effective only in the specific
instance and for the specific purpose for which given.

 

16.8          This promissory note is
a consolidation and renewal of the original Promissory Note between the parties hereto, dated November 29, 2012, and the Future
Advance Promissory Note between the parties hereto dated January 11, 2013.

 

 

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        Promissory Note - Page 3

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17.          Waiver or Trial by Jury:          BORROWER
AND LENDER (BY ACCEPTANCE OF THIS INSTRUMENT) HEREBY KNOWINGLY, IRREVOCABLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EITHER
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM BASED ON THIS NOTE, OR ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS NOTE OR ANY LOAN DOCUMENTS OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS(WHETHER VERBAL OR WRITTEN)
OR ACTIONS OF ANY PARTY HERETO OR TO ANY LOAN DOCUMENT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR BORROWER AND LENDER ENTERING
INTO THE SUBJECT LOAN TRANSACTION.

 

 

THE PROPER FLORIDA
DOCUMENTARY STAMP TAX HAS BEEN PAID ON THIS CONSOLIDATED PROMISSORY NOTE AND EVIDENCE OF SUCH PAYMENT APPEARS ON THE MORTGAGE and
FUTURE ADVANCE AND CONSOLIDATION AGREEMENT SECURING THIS NOTE.

 

 

 

	 	NET TALK.COM, INC, a Florida Corporation
	 	 
	 	By:    /s/ Anastasios Kyriakides
	 	          Anastasios Kyriakides, President
	 	 
	 	 
	 	(Corporate Seal)
	 	 
	 	 

 

 

	State of Florida
	County of Miami-Dade
	 
	The foregoing instrument was acknowledged before me this 11 day of January, 2013 by Anastasios Kyriakides, President of NET TALK.COM, INC, a Florida Corporation, on behalf of the corporation. He [_] is personally known to me or [X] has produced a driver's license as identification.
	 
	 	 
	[Notary Seal]	Notary Public
	 	 
	 	Printed Name:	 
	 	 
	 	My Commission Expires:	 
	 	 	 	 

 

 

 

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        Promissory Note - Page 4

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        Initials:
        ______ _____NEITHER THIS NOTE, NOR ANY SECURITY ISSUABLE
UPON CONVERSION HEREOF, HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR APPLICABLE
STATE SECURITIES LAWS. NO INTEREST IN THIS NOTE MAY BE OFFERED OR SOLD EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT, OR (ii) AN EXEMPTION FROM REGISTRATION UNDER THE ACT WHERE THE HOLDER HAS FURNISHED TO THE COMPANY AN OPINION OF
ITS COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION UNDER THE ACT IS AVAILABLE.

 

THIS NOTE MAY HAVE BEEN ISSUED WITH ORIGINAL
ISSUE DISCOUNT (“OID”). IF SO, BEGINNING NO LATER THAN 10 DAYS AFTER THE FUNDING DATE, AN INVESTOR MAY, UPON REQUEST,
OBTAIN FROM THE COMPANY THE NOTE’S ISSUE PRICE, ISSUE DATE, AMOUNT OF OID AND YIELD TO MATURITY BY CONTACTING THE CHIEF FINANCIAL
OFFICER OF THE COMPANY, AT [INSERT ADDRESS].

 

BOOMERANG SYSTEMS, INC.

 

6% CONVERTIBLE PROMISSORY NOTE

 

	$________	As of __________, 201_     

 

Boomerang Systems,
Inc., a Delaware corporation, (the “Company”), for value received, hereby promises to pay to the order of
_________ or registered assigns (the “Holder”), the principal sum of ______________ ($_________) on December
31, 2017 (the “Maturity Date”), and interest on the unpaid principal balance hereof at the rate of six percent
(6%) per annum, in arrears, quarterly, on March 31, June 30, September 30 and December 31 of each year, commencing on March 31,
2013 (each such date an “Interest Payment Date”). This Note is one of a series of Notes (the “Notes”)
being issued to investors pursuant to a series of subscription agreements (the “Subscription Agreements”) in
connection with a private offering (the “Offering”) of Notes and warrants to purchase shares of common stock
of the Company (the “Warrants”), and includes those Notes and Warrants to be issued in connection with the Offering
to certain holders of outstanding debt of the Company in exchange for cancellation of outstanding notes or debentures of the Company.

 

1.           Interest
and Payment

 

1.1     Interest
shall be computed on the basis of the actual number of days elapsed in the period during which interest accrues and a year of 365
days.

 

    	 

    	 

    

 

1.2     At
the option of the Company, the Company may pay a scheduled interest payment in a number of whole shares of common stock, par value
$0.001 per share (“Common Stock”), of the Company, in lieu of paying such interest in cash, equal to the quotient
obtained by dividing the amount of accrued and unpaid interest payable on such Interest Payment Date by the lesser of: (i) the
Conversion Price (as defined herein) then in effect, and (ii) a price equal to the average of the last sale price of the Common
Stock during the ten (10) consecutive trading days ending on the fifth (5th) trading day immediately preceding the Interest Payment
Date, provided, however, if the average daily trading volume (“ADTV”) value during such ten (10) day period
equals or exceeds $100,000 per day, and then only subsection 1.2 (ii) shall be used for the calculation on such Interest Payment
Date and subsection 1.2 (i) shall not apply and shall not be used for the calculation on such Interest Payment Date. ADTV will
be determined in accordance with the rules and regulations of the Securities Exchange Act of 1934. No fractional shares of Common
Stock will be issued to the Holder in lieu of cash interest. The Company may exercise its option to cause the Company to issue
shares of Common Stock, in lieu of cash interest payable on an Interest Payment Date, by giving the Holder written notice of its
exercise of such option at least three (3) Business Days (as defined herein) prior to such Interest Payment Date and, on the Interest
Payment Date, the Company will instruct its transfer agent to issue to the Holder duly executed certificates for the number of
whole shares of Common Stock so issuable to the Holder registered in the Holder’s name, and, if applicable, a check payable
to the Holder for any cash adjustment in lieu of a fractional share. “Business Day” means any day other than
a Saturday, Sunday or other day on which banks in the City of New York, New York are authorized or required by law to be closed.

 

1.3     All
payments received on account of this Note shall be applied first to the payment of accrued and unpaid interest on this Note and
then to the reduction of the unpaid principal amount of this Note. In case the entire principal amount of this Note is paid or
this Note is purchased by the Company, this Note shall be surrendered to the Company for cancellation and shall not be reissued,
and no Note shall be issued in lieu of the paid principal amount of any Note.

 

1.4     If
any payment due on account of this Note shall fall due on a day other than a Business Day, then such payment shall be made on the
first Business Day following the day on which such payment shall have so fallen due; provided that if all or any portion of such
payment shall consist of a payment of interest, for purposes of calculating such interest, such payment shall be deemed to have
been originally due on such first following business day, such interest shall accrue and be payable to (but not including) the
actual date of payment, and the amount of the next succeeding interest payment shall be adjusted accordingly.

 

1.5     Subject
to Section 1.2, principal and interest due hereunder shall be paid in lawful money of the United States of America in immediately
available federal funds or the equivalent at the address of the Holder set forth in Section 9.2 below, or at such other address
as the Holder may designate.

 

2.           Registration;
Exercise; Substitution

 

2.1     The
Company will keep at its principal executive office a register for the registration and transfer of this Note. The name and address
of the Holder of this Note, each transfer hereof made in accordance with Section 2.2(a) and the name and address of each transferee
of this Note shall be registered in such register. The person in whose name this Note shall be registered shall be deemed and treated
as the owner and holder thereof, and the Company shall not be affected by any notice or knowledge to the contrary, other than in
accordance with Section 2.2(a).

 

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2.2      (a)
Upon surrender of this Note at the principal executive office of the Company, duly endorsed or accompanied by a written instrument
of transfer duly executed by the Holder or the Holder’s attorney duly authorized in writing, the Company will execute and
deliver, at the Company’s expense, a new Note (or Notes) in exchange therefor, in an aggregate principal amount equal to
the unpaid principal amount of the surrendered Note. Subject to Section 2.2(b), the new Note(s) shall be registered in such name(s)
as the Holder may request. Each such new Note shall be dated and bear interest from the date to which interest shall have been
paid on the surrendered Note or dated the date of the surrendered Note, if no interest shall have been paid thereon. Each such
new Note shall carry the same rights to unpaid interest and interest to accrue on the unpaid principal amount thereof as were carried
by the Note so exchanged or transferred.

 

   (b)     This
Note has been acquired for investment and has not been registered under the securities laws of the United States of America or
any state thereof. Accordingly, notwithstanding Section 2.2(a), neither this Note nor any interest thereon may be offered for sale,
sold or transferred in the absence of registration and qualification of this Note under applicable federal and state securities
laws or an opinion of counsel of the Holder reasonably satisfactory to the Company that such registration and qualification are
not required. This Note shall not be transferred in denominations of less than $1,000 and integral multiples thereof, provided
that the Holder may transfer this Note as an entirety regardless of the principal amount thereof.

 

2.3     Upon
receipt by the Company from the Holder of evidence of the loss, theft, destruction or mutilation of this Note and (a) in the case
of loss, theft or destruction, upon indemnity reasonably satisfactory to the Company; or (b) in the case of mutilation, upon surrender
and cancellation thereof; the Company at its own expense will execute and deliver, in lieu thereof, a replacement Note, dated and
bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated
the date of such lost, stolen, destroyed or mutilated Note, if no interest shall have been paid thereon.

 

2.4     The
Company will pay taxes (if any) due (but not, in any event, income taxes of the Holder) in connection with and as the result of
the initial issuance of this Note and in connection with any modification, waiver or amendment of this Note and shall save the
Holder harmless, without limitation as to time, against any and all liabilities with respect to all such taxes.

 

3.          [Intentionally
Omitted].

 

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4.           Conversion.

 

4.1     The
Holder may convert the outstanding principal amount of this Note, and accrued and unpaid interest thereon (or a portion of such
outstanding principal amount as provided in Section 4.3) into fully paid and nonassessable shares of Common Stock of the Company
(“Conversion Shares”) at any time prior to the time the outstanding principal amount of this Note, and accrued
and unpaid interest thereon is paid in full, at the Conversion Price (as defined herein) then in effect. The number of shares of
Common Stock issuable upon conversion of this Note shall be determined by dividing the principal amount (and accrued and unpaid
interest, if any) to be converted by the conversion price in effect on the Conversion Date (the “Conversion Price”).
The initial Conversion Price is $5.00 and is subject to adjustment as provided in this Section 4. The provisions of this Note that
apply to conversion of the outstanding principal amount of this Note and accrued and unpaid interest thereon also apply to a partial
conversion of this Note. The Holder is not entitled to any rights of a holder of Conversion Shares until the Holder has converted
this Note (or a portion thereof) into Conversion Shares, and only to the extent that this Note is deemed to have been converted
into Conversion Shares under this Section 4.

 

4.2     To
convert all or a portion of this Note, the Holder must (a) complete and sign a notice of election to convert substantially in the
form annexed hereto (each, a “Conversion Notice”), (b) surrender the Note to the Company, (c) if registered
in a different name from the Holder, furnish appropriate endorsements or transfer documents if reasonably required by the Company
and (d) if registered in a different name from the Holder, pay any transfer or similar tax, if required. The date on which the
Holder satisfies all of such requirements is the conversion date (the “Conversion Date”). As soon as practicable,
and in no event more than three (3) Business Days after the Conversion Date, the Company will (1) provided that: (a) the Company’s
Transfer Agent is participating in The Depository Trust Company’s Fast Automated Securities Transfer Program, (b) the Conversion
Shares are eligible for such program, (c) a registration statement covering the re-sale of the Conversion Shares is effective,
and (d) on the Conversion Date a letter from a broker has been delivered to the Transfer Agent representing that all of the Conversion
Shares were sold pursuant to the registration statement referred to in clause (c) (collectively, the “DTC FAST Requirements”),
credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder’s or its designee’s
balance account with DTC through its Deposit/Withdrawal at Custodian system, or (2) if any of the DTC Fast Requirements are not
met, issue and deliver (via reputable overnight courier) to the address as specified in the Conversion Notice a certificate for
the number of whole Conversion Shares issuable upon such conversion. The person in whose name the certificate for Conversion Shares
is to be registered shall become the stockholder of record on the Conversion Date and, as of the Conversion Date, the rights of
the Holder shall cease as to the portion thereof so converted; provided, however, that no surrender of a Note on any date when
the stock transfer books of the Company shall be closed shall be effective to constitute the person entitled to receive the Conversion
Shares upon such conversion as the stockholder of record of such Conversion Shares on such date, but such surrender shall be effective
to constitute the person entitled to receive such Conversion Shares as the stockholder of record thereof for all purposes at the
close of business on the next succeeding day on which such stock transfer books are open; provided, further that such conversion
shall be at the Conversion Price in effect on the date that this Note shall have been surrendered for conversion, as if the stock
transfer books of the Company had not been closed.

 

4.3     In
the case of a partial conversion of this Note, upon such conversion, the Company shall execute and deliver to the Holder, at the
expense of the Company, a new Note in an aggregate principal amount equal to the unconverted portion of the principal amount. This
Note may be converted in part in a principal amount equal to $10,000 or an integral multiple thereof, unless the outstanding principal
amount of this Note is less than $10,000, in which case, only such outstanding principal amount and accrued and unpaid interest
thereon is convertible into Conversion Shares.

 

    	-4-

    	 

    

 

4.4     No
fractional Conversion Shares shall be issued upon conversion of this Note. Instead of any fractional Conversion Share which would
otherwise be issuable upon conversion of this Note, the Company shall round up to the next whole number of shares.

 

4.5     The
issuance of certificates for Conversion Shares upon the conversion of this Note shall be made without charge to the Holder for
such certificates or for any tax in respect of the issuance of such certificates, and such certificates shall be issued in the
name of, or in such names as may be directed by, the Holder; provided, however, that in the event that certificates for Conversion
Shares are to be issued in a name or names other than the name of the Holder, such Note, when surrendered for conversion, shall
be accompanied by an instrument of transfer, in form reasonably satisfactory to the Company, duly executed by the Holder or its
duly authorized attorney; and provided further, moreover, that the Company shall not be required to pay any tax which may be payable
in respect of any transfer involved in the issuance and delivery of any such certificates in a name or names other than that of
the Holder, and the Company shall not be required to issue or deliver such certificates unless or until the person or persons requesting
the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the reasonable satisfaction
of the Company that such tax has been paid or is not applicable.

 

4.6      (a)     In case the Company shall pay or make a dividend or other distribution to all holders of its Common Stock or any class of capital
stock that is payable in shares of Common Stock, the Conversion Price in effect at the opening of business on the day next following
the date fixed for the determination of stockholders entitled to receive such dividend or other distribution shall be reduced by
multiplying such Conversion Price by a fraction, of which the numerator shall be the number of shares of Common Stock outstanding
at the close of business on the date fixed for such determination, and the denominator shall be the sum of the numerator and the
total number of shares constituting such dividend or other distribution, such reduction to become effective immediately after the
opening of business on the day next following the date fixed for such determination. For the purposes of this Section 4.6(a), the
number of shares of Common Stock at any time outstanding shall not include shares of Common Stock held in the treasury of the Company.
The Company will not pay any dividend or make any distribution on shares of Common Stock held in the treasury of the Company.

 

   (b)     In
the event that the Company shall at any time prior to the conversion in full of the Note declare a dividend (other than a dividend
consisting solely of shares of Common Stock) or otherwise distribute to its shareholders any monies, assets, property, rights,
evidences of indebtedness, securities (other than shares of Common Stock), whether issued by the Company or by another person or
entity, or any other thing of value, the Holder or Holders of the Note to the extent of the unconverted portion thereof shall thereafter
be entitled, in addition to the shares of Common Stock or other securities receivable upon the conversion thereof, to receive,
upon conversion of such unconverted portion of the Note, the same monies, property, assets, rights, evidences of indebtedness,
securities or any other thing of value that they would have been entitled to receive at the time of such dividend or distribution.
At the time of any such dividend or distribution, the Company shall make appropriate reserves to ensure the timely performance
of the provisions of this Subsection.

 

    	-5-

    	 

    

 

   (c)     In
case the outstanding shares of Common Stock shall be subdivided into a greater number of shares of Common Stock, the Conversion
Price in effect at the opening of business on the day following the day upon which such subdivision becomes effective shall be
proportionately reduced, and, conversely, in case the outstanding shares of Common Stock shall each be combined into a smaller
number of shares of Common Stock, the Conversion Price in effect at the opening of business on the day following the day upon which
such combination becomes effective shall be proportionately increased, such reduction or increase, as the case may be, to become
effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes
effective.

 

   (d)     In
case the Company shall fail to take a record of the holders of its shares of Common Stock for the purpose of entitling them to
receive a dividend or other distribution payable in shares of Common Stock, then such record date shall be deemed to be the date
of the issue of the shares of Common Stock deemed to have been issued as a result of the declaration of such dividend or other
distribution or the date of the granting of such right of subscription or purchase, as the case may be.

 

4.7     No
adjustment in the Conversion Price shall be required unless such adjustment would require an increase or decrease of at least one
cent ($.01) in the Conversion Price; provided, however, that any adjustments which by reason of this Section 4.7 are not required
to be made shall be carried forward and taken into account in any subsequent adjustment.

 

4.8     In
the event that: (i) the Company takes any action which would require an adjustment in the Conversion Price; (ii) the Company takes
any action described in Section 4.9(a), (b) or (c); or (iii) there is a dissolution or liquidation of the Company; the Holder may
wish to convert this Note into shares of Conversion Shares prior to the record date for, or the effective date of the transaction,
so that such Holder may receive the securities or assets which a holder of shares of Common Stock on that date may receive. Therefore,
the Company shall give written notice to the Holder at least ten (10) Business Days in accordance with the provisions of this Section
4.8 stating the proposed record or effective date, as the case may be, which notice shall be given prior to the proposed record
or effective date and, in any case, no later than notice of such transaction is given to holders of Common Stock. Failure to give
such notice or any defect therein shall not affect the validity of any transaction referred to in clause (i), (ii) or (iii) of
this Section.

 

4.9     If
any of the following shall occur, namely:

 

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

 

    	-6-

    	 

    

 

   (b)     any
consolidation or merger to which the Company is a party, other than a merger in which the Company is the continuing corporation
and which does not result in any reclassification of, or change (other than a change in name, or par value, or from par value to
no par value, or from no par value to par value or as a result of a subdivision or combination) in, outstanding shares of Common
Stock; or

 

   (c)     any
sale or conveyance of all or substantially all of the property or business of the Company and its subsidiaries as an entirety;

 

then the Company, or such successor or
purchasing corporation, as the case may be, shall, as a condition precedent to such reclassification, change, consolidation, merger,
sale or conveyance, execute and deliver to the Holder, an agreement in form satisfactory to the Holder providing that the Holder
shall have the right to convert this Note into the kind and amount of shares of stock and other securities and property (including
cash) receivable upon such reclassification, change, consolidation, merger, sale or conveyance by a holder of the number of shares
of Common Stock deliverable upon conversion of this Note immediately prior to such reclassification, change, consolidation, merger,
sale or conveyance. Such agreement shall provide for adjustments of the Conversion Price which shall be as nearly equivalent as
may be practicable to the adjustments of the Conversion Price provided for in this Section 4. If, in the case of any such consolidation,
merger, sale or conveyance, the stock or other securities and property (including cash) receivable thereupon by a holder of Common
Stock includes shares of stock or other securities and property of a corporation other than the successor or purchasing corporation,
as the case may be, in such consolidation, merger, sale or conveyance, then such agreement shall also be executed by such other
corporation and shall contain such additional provisions to protect the interests of the Holder as the Board of Directors shall
reasonably consider necessary by reason of the foregoing. The provisions of this Section 4.9 shall similarly apply to successive
reclassifications, changes, consolidations, mergers, sales or conveyances.

 

4.10     The
Company shall at all times reserve and keep available, free from preemptive rights, out of its authorized and unissued Common Stock,
solely for the purpose of effecting the conversion of this Note, the full number of Conversion Shares then issuable upon the conversion
in full of this Note.

 

4.11     If
the Company shall at any time after the date hereof and prior to the conversion of the Note in full issue any rights to subscribe
for shares of Common Stock or any other securities of the Company or of such affiliate to all the shareholders of the Company,
the Holder of the unconverted portion of the Note shall be entitled, in addition to the shares of Common Stock or other securities
receivable upon the Conversion thereof, to receive such rights at the time such rights are distributed to the other shareholders
of the Company.

 

    	-7-

    	 

    

 

4.12     In
the event the Company shall, at any time, from time to time, issue or sell any additional shares of Common Stock (“Additional
Shares of Common Stock”) (excluding shares issued or issuable as a dividend, distribution or combination as provided
in Section 4.6 or an Exempt Issuance (as defined below)), without consideration or for a consideration per share (the “New
Price”) less than the applicable Conversion Price in effect on the date of and immediately prior to such issue, then
and in such event, such Conversion Price shall be reduced, concurrently with such issue to the New Price; provided, however, that
the Conversion Price shall not be adjusted pursuant to this Section 4.12 below $0.25 (subject to adjustment pursuant to Section
4.6). “Exempt Issuance” means the issuance of (a) up to an aggregate of 1,250,000 shares of Common Stock, options
or other stock-based awards or grants to employees, officers, directors or consultants of the Company pursuant to any existing
stock or option plan or any future stock or option plan duly adopted by a majority of the non-employee members of the Board of
Directors of the Company or a majority of the members of a committee of non-employee directors established for such purpose and
(b) securities upon the exercise or exchange of or conversion of the Notes and Warrants and/or securities exercisable or exchangeable
for or convertible into shares of Common Stock issued and outstanding on the date of the Term Sheet.

 

4.13     If
the Company in any manner issues or sells any Convertible Securities (as defined herein) and the lowest price per share for which
one share of Common Stock is issuable upon such conversion or exchange or exercise thereof is less than the Conversion Price, then
such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the
issuance of sale of such Convertible Securities for such price per share and shall trigger the adjustment provisions of Section
4.12. For the purposes of this Section 4.13, the “lowest price per share for which one share of Common Stock is issuable
upon such conversion or exchange or exercise” shall be equal to the sum of the lowest amounts of consideration (if any) received
or receivable by the Company with respect to any one share of Common Stock upon the issuance or sale of the Convertible Securities
and upon the conversion or exchange or exercise of such Convertible Securities. No further adjustment of the Conversion Price shall
be made upon the actual issuance of such share of Common Stock upon conversion or exchange or exercise of such Convertible Securities
at the price used to calculate the adjustment provisions of Section 4.12. “Convertible Securities” means any
stock or securities directly or indirectly convertible into or exercisable or exchangeable for Common Stock.

 

4.14     Upon
the occurrence of each adjustment pursuant to this Section 4, the Company, at its expense, will promptly compute such adjustment
in accordance with the terms hereof and prepare and deliver to the Holder a certificate describing in reasonable detail such adjustment
and the transactions giving rise thereto, including all facts upon which such adjustment is based.

 

4.15     On
the Mandatory Conversion Date (defined below), the outstanding principal amount of this Note and accrued unpaid interest thereon,
shall automatically, without action by the Holder or the Company convert into a number of Conversion Shares determined by dividing
the outstanding principal amount of this Note plus accrued and unpaid interest thereon, by the Conversion Price in effect on the
Mandatory Conversion Date. The “Mandatory Conversion Date” means the date on which (i) the last sale price of
the Common Stock on 20 of the 30 immediately preceding trading days equals or exceeds 200% of the Conversion Price; (ii) the Conversion
Shares are eligible for resale under an effective registration statement and/or Rule 144 promulgated under the Securities Act of
1933, as amended, without restriction as to volume or manner of sale and (iii) the ADTV during such 30 trading day period equals
or exceeds $500,000.

 

    	-8-

    	 

    

 

4.16     If
the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) Business Days after the Company’s
receipt of a Conversion Notice (whether via facsimile or otherwise), a certificate for the number of shares of Common Stock to
which the Holder is entitled and register such shares of Common Stock on the Company’s share register or to credit the Holder’s
or its designee’s balance account with DTC for such number of shares of Common Stock to which the Holder is entitled upon
the Holder’s conversion of any Conversion Amount (as the case may be) (a “Conversion Failure”), then,
in addition to all other remedies available to the Holder, the Holder, upon written notice to the Company and prior to receipt
of such shares of Common Stock, may void its Conversion Notice with respect to, and retain or have returned (as the case may be)
any portion of this Note that has not been converted pursuant to such Conversion Notice, provided that the voiding of a Conversion
Notice shall not affect the Company’s obligations to make any payments which have accrued prior to the date of such notice
pursuant to this Section 4.16 or otherwise. In addition to the foregoing, if within three (3) Business Days after the Company’s
receipt of a Conversion Notice (whether via facsimile or otherwise), the Company shall fail to issue and deliver a certificate
to the Holder and register such shares of Common Stock on the Company’s share register or credit the Holder’s or its
designee’s balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s
conversion hereunder (as the case may be), and if on or after such third (3rd) Business Day the Holder (or any other Person in
respect, or on behalf, of the Holder) purchases (in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by the Holder of all or any portion of the number of shares of Common Stock, or a sale of a number of
shares of Common Stock equal to all or any portion of the number of shares of Common Stock, issuable upon such conversion that
the Holder so anticipated receiving from the Company, then, in addition to all other remedies available to the Holder, the Company
shall, within three (3) Business Days after the Holder’s request, pay cash to the Holder in an amount equal to the 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, without limitation, by any other Person in respect, or on behalf, of the Holder) (the “Buy-In
Price”), at which point the Company’s obligation to so issue and deliver such certificate or credit the Holder’s
balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion
hereunder (as the case may be) (and to issue such shares of Common Stock) shall terminate.

 

4.17     In
the event that any provision contained in the 6% convertible promissory notes due in 2016 is amended in a favorable manner, such
provision contained herein shall automatically be amended in the same manner; provided, however, that in no event shall the Conversion
Price be adjusted below $0.25 subject to as provided in Section 4.6.

 

5.           Events
of Default.

 

5.1     An
“Event of Default” exists at any time if any of the following occurs (whether such occurrence shall be voluntary or
come about or be effected by operation of law or otherwise):

 

   (a)     the
Company defaults in the payment of the principal of this Note when due or defaults in the payment of accrued interest on this Note
in cash on an Interest Payment Date (or within five (5) Business Days following the Initial Payment Date (the “Fifth Day”)
if interest is paid in stock in accordance with Section 1.2 and such stock is not delivered by the Fifth Day) and such default
continues for a period of five (5) Business Days after the date such interest became due; or

 

    	-9-

    	 

    

 

   (b)     the
Company’s insolvency, assignment for the benefit of creditors, application for or appointment of a receiver, filing of a
voluntary or involuntary petition under any provision of the U.S. Federal Bankruptcy Code or amendments thereto or any other federal
or state statute affording relief to debtors; or there shall be commenced against the Company any such proceeding or filed against
the Company any such application or petition which proceeding, application or petition is not dismissed or withdrawn within ninety
(90) days of commencement or filing, as the case may be; or

 

   (c)     the
occurrence and continuation of an event of default under any liabilities in excess of $500,000 with respect to (i) borrowed money,
(ii) the deferred purchase price of property acquired by the Company, (iii) capital leases, (iv) letters of credit or similar instruments
serving a similar function issued or accepted by banks and other institutions for the account of the Company;

 

   (d)     the
Company shall fail to observe or perform any covenant or agreement contained in this Note (other than Section 4.2) which failure
is not cured, if possible to cure, within ten (10) Business Days after notice to the Company of such default sent by the Holder
or by any other Holder; or

 

   (e)     the
Company’s notice to the Holder, including by way of public announcement, at any time, of its inability to comply or its intention
not to comply with proper requests for conversion of this Note into shares of Common Stock; or

 

   (f)     any
material representation or warranty made by the Company herein or in the Subscription Agreement, or in any other offering document
shall prove to have been false or incorrect or breached in a material respect on the date as of which made.

 

5.2     Any
amount of principal of, or interest on this Note which is not paid when due shall bear interest at the Default Rate (as defined
herein) from the due date thereof until the same is paid. “Default Rate” means a rate of eighteen percent (18%)
per annum, or such lesser rate equal to the highest rate permitted by applicable law.

 

5.3     If
any Event of Default shall exist, the Holder may exercise any right, power or remedy permitted to such Holder by law, and shall
have in particular, without limiting the generality of the foregoing, the right to declare the entire principal of, and all interest
accrued and unpaid on, this Note then outstanding to be, and this Note shall thereupon become, forthwith due and payable, without
any presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, and the Company shall forthwith
pay to the Holder such principal and interest.

 

    	-10-

    	 

    

 

5.4     During
the continuance of an Event or Default and irrespective of whether this Note shall become due and payable pursuant to Section 5.2
and irrespective of whether the Holder shall otherwise have pursued or be pursuing any other rights or remedies, the Holder may
proceed to protect and enforce its rights under this Note by exercising such remedies as are available to such holder in respect
thereof under applicable law, either by suit in equity or by action at law, or both, whether for specific performance of any agreement
contained herein or in aid of the exercise of any power granted herein.

 

5.5     No
course of dealing on the part of the Holder nor any delay or failure on the part of the Holder to exercise any right shall operate
as a waiver of such right or otherwise prejudice the Holder’s rights, powers and remedies. All rights and remedies of the
Holder hereunder and under applicable law are cumulative to, and not exclusive of, any other rights or remedies the Holder would
otherwise have.

 

6.         Repayment
upon Reorganization, Merger, Consolidation or Sales of Assets. If at any time or from time to time after the date hereof
there shall be: (i) a capital reorganization of the Company (other than by way of a stock split or combination of shares or stock
dividends or distributions provided for in Section 4), or a merger or consolidation of the Company with or into another corporation
where the holders of outstanding voting securities of the Company prior to such merger or consolidation do not own over fifty percent
(50%) of the outstanding voting securities of the merged or consolidated entity, immediately after such merger or consolidation,
or (ii) the sale of all or substantially all of the Company’s properties or assets to any other person (in each case, an
“Organic Change”), then as a part of such Organic Change, the Holder shall have the right, but not the obligation to
demand prepayment of this Note together with all unpaid accrued interest during the period commencing on the date that it receives
written notice (the “Organic Change Notice”) from the Company that an Organic Change is contemplated or has occurred
and ending on the later of (i) ten (10) business days after the date of the Organic Change Notice and (ii) the date on which the
Organic Change is consummated.

 

7.        Covenants.
For so long as this Note is outstanding, without the prior written consent of the holders of at least a majority of the aggregate
principal amount of the Notes (the “Required Note Holders”):

 

   (a)     The
Company shall not create, incur, assume or suffer to exist, any indebtedness, contingent and otherwise, which should, in accordance
with generally accepted accounting principles consistently applied, be classified upon the Company’s balance sheet as liabilities
and which would be senior or pari passu in right of payment to this Note, except for: (i) secured or unsecured debt issued to a
bank or financial institution on commercially reasonable terms, or (ii) any other debt not to exceed $5 million, individually,
or in the aggregate.

 

   (b)     The
Company shall, and shall cause each of its subsidiaries to, comply with all laws and duly observe and conform in all material respects
to all valid requirements of governmental authorities relating to the conduct of its business or to its properties or assets.

 

    	-11-

    	 

    

 

   (c)     The
Company shall not, and shall not permit its subsidiaries to, engage in any transactions with any officer, director, employee or
any Affiliate of the Company, including any contract, agreement or other arrangement providing for the furnishing of services to
or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director
or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial
interest or is an officer, director, trustee or partner, in each case in excess of $50,000, other than: (i) for payment of reasonable
salary for services actually rendered, as approved by the Board of Directors of the Company as fair in all respects to the Company,
(ii) reimbursement for expenses incurred on behalf of the Company (iii) transactions and written arrangements in existence on the
date of the initial issuance of this Note, and any amendments, modifications, cancellations, terminations, limitations and waivers
approved by a majority of the independent disinterested directors of the Company.

 

   (d)     The
Company shall not, and shall not permit any subsidiary to: (i) declare or pay any dividends or make any distributions to any holder(s)
of Common Stock or such subsidiaries (other than dividends and distributions from a subsidiary to the Company) or (ii) purchase
or otherwise acquire for value, directly or indirectly, any shares or other equity security of the Company, other than the Notes
or Warrants.

 

8.           Interpretation
of this Note

 

8.1     Where
any provision herein refers to action to be taken by any person, or which such person is prohibited from taking, such provision
shall be applicable whether such action is taken directly or indirectly by such person, including actions taken by or on behalf
of any partnership in which such person is a general partner.

 

8.2      (a)
The titles of the Sections of this Note appear as a matter of convenience only, do not constitute a part hereof and shall not affect
the construction hereof. The words “herein,” “hereof,” “hereunder” and “hereto”
refer to this Note as a whole and not to any particular Section or other subdivision. References to Annexes and Sections are, unless
otherwise specified, references to Sections of this Note. References to Annexes and Schedules are, unless otherwise specified,
references to Schedules attached to this Note.

 

   (b)     Each
covenant contained herein shall be construed (absent an express contrary provision herein) as being independent of each other covenant
contained herein, and compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse
compliance with one or more other covenants.

 

8.3     THIS
NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
ANY CHOICE OF LAW RULES WHICH WOULD REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION. IN ADDITION, THE PARTIES HERETO
SELECT, TO THE EXTENT THEY MAY LAWFULLY DO SO, THE INTERNAL LAWS OF THE STATE OF NEW YORK AS THE APPLICABLE INTEREST LAW.

 

    	-12-

    	 

    

 

9.          Miscellaneous

 

9.1     Nothing
contained in this Note shall be construed as conferring upon the Holder or any other person the right to vote or to consent or
to receive notice as a stockholder in respect of meetings of stockholders for the election of directors of the Company or any other
matters or any rights whatsoever as a stockholder of the Company; and no dividends or interest shall be payable or accrued in respect
of this Note or the interest represented hereby or the Conversion Shares obtainable hereunder until, and only to the extent that,
this Note has been converted.

 

9.2     All
communications under this Note shall be in writing and shall be delivered either by nationwide overnight courier, by facsimile
transmission (confirmed by delivery by nationwide overnight courier sent on the day of the sending of such facsimile transmission)
or electronic delivery (if the Holder has provided an email address). Communications to the Company shall be addressed as set forth
on Annex 1, or at such other address of which the Company shall have notified the Holder. Communications to the Holder shall be
addressed as set forth on Annex 1, or at such other address of which such Holder shall have notified the Company (and the Company
shall record such address in the register for the registration and transfer of this Note). Any communication addressed and delivered
as herein provided shall be deemed to be received when actually delivered to the address of the addressee (whether or not delivery
is accepted) or received by the telecopy machine of the recipient. Any communication not so addressed and delivered shall be ineffective.
Notwithstanding the foregoing provisions of this Section 9.2, service of process in any suit, action or proceeding arising out
of or relating to this Note or any transaction contemplated hereby, or any action or proceeding to execute or otherwise enforce
any judgment in respect of any breach hereunder or under any document hereby, shall be delivered in the manner provided in Section
9.5(c).

 

9.3     The
provisions hereof are intended to be for the benefit of the Holder, from time to time, of this Note, and shall be enforceable by
any such Holder whether or not an express assignment to such Holder of rights hereunder shall have been made by the payee or his
successors or assigns. In the event that the payee named herein transfers or assigns less than all of this Note, the term “Holder”
as used herein shall be deemed to refer to the assignor and assignee or assignees hereof, collectively, and any action permitted
to be taken by the Holder hereunder shall be taken only upon the consent or approval of persons comprising the Holder that own
that percentage interest in the principal amount of this Note as shall be designated by the payee named herein at the time of such
assignment.

 

9.4      (a)
This Note may be amended, and the observance of any term hereof may be waived, with (and only with) the written consent of the
Company and the Holder.

 

   (b)     Any
amendment or waiver consented to as provided in this Section 9.4 shall be binding upon the then current Holder and upon each future
holder of this Note and upon the Company whether or not this Note shall have been marked to indicate such amendment or waiver.
No such amendment or waiver shall extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly
amended or waived or impair any right consequent thereon.

 

9.5      (a)     THE
PARTIES HERETO VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR TRANSACTIONS CONTEMPLATED HEREBY.

 

    	-13-

    	 

    

 

   (b)     
ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR TRANSACTIONS CONTEMPLATED HEREBY OR ANY ACTION OR
PROCEEDING TO EXECUTE OR OTHERWISE ENFORCE ANY JUDGMENT IN RESPECT OF ANY BREACH UNDER THIS NOTE MAY BE BROUGHT BY SUCH PARTY
IN ANY FEDERAL DISTRICT COURT LOCATED IN NEW YORK, NEW YORK, OR ANY NEW YORK STATE COURT LOCATED IN NEW YORK, NEW YORK AS
SUCH PARTY MAY IN ITS SOLE DISCRETION ELECT, AND BY THE EXECUTION AND DELIVERY OF THIS NOTE, THE PARTIES HERETO IRREVOCABLY
AND UNCONDITIONALLY SUBMIT TO THE NON-EXCLUSIVE IN PERSONAM JURISDICTION OF EACH SUCH COURT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES AND AGREES NOT TO ASSERT IN ANY PROCEEDING BEFORE ANY TRIBUNAL, BY WAY OF MOTION, AS A DEFENSE OR
OTHERWISE, ANY CLAIM THAT IT IS NOT SUBJECT TO THE IN PERSONAM JURISDICTION OF ANY SUCH COURT. IN ADDITION, EACH OF THE
PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR TRANSACTION CONTEMPLATED
HEREBY BROUGHT IN ANY SUCH COURT, AND HEREBY IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN
ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

   (c)     EACH
PARTY HERETO IRREVOCABLY AGREES THAT PROCESS PERSONALLY SERVED OR SERVED BY U.S. EXPRESS, REGISTERED OR CERTIFIED MAIL OR BY NATIONWIDE
OVERNIGHT COMMERCIAL COURIER OR DELIVERY SERVICE AT THE ADDRESSES PROVIDED HEREIN FOR NOTICES SHALL CONSTITUTE, TO THE EXTENT PERMITTED
BY LAW, ADEQUATE SERVICE OF PROCESS IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR TRANSACTION CONTEMPLATED
HEREBY, OR ANY ACTION OR PROCEEDING TO EXECUTE OR OTHERWISE ENFORCE ANY JUDGMENT IN RESPECT OF ANY BREACH HEREUNDER. RECEIPT OF
PROCESS SO SERVED SHALL BE CONCLUSIVELY PRESUMED AS EVIDENCED BY A DELIVERY RECEIPT FURNISHED BY THE UNITED STATES POSTAL SERVICE
OR ANY COMMERCIAL DELIVERY SERVICE.

 

   (d)     NOTHING
HEREIN SHALL IN ANY WAY BE DEEMED TO LIMIT THE ABILITY OF ANY HOLDER OF THIS NOTE TO SERVE ANY WRITS, PROCESS OR SUMMONSES IN ANY
MANNER PERMITTED BY APPLICABLE LAW OR TO OBTAIN JURISDICTION OVER THE COMPANY IN SUCH OTHER JURISDICTION, AND IN SUCH OTHER MANNER,
AS MAY BE PERMITTED BY APPLICABLE LAW.

 

    	-14-

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed and delivered by one of its duly authorized officers or representatives.

 

	 	BOOMERANG SYSTEMS, INC.
	 	 	 
	 	By: 	 
	 	 	Name:
	 	 	Title:

 

    	-15-

    	 

    

 

Annex I

 

(1)          If
to the Company, to:

Boomerang Systems,
Inc.

30B Vreeland
Road

Florham Park,
New Jersey 07932

Attention: Chief
Executive Officer

Telephone No.:
(   )

Facsimile No.:
(   )

 

(2)          If
to the payee, to:

 

Attention:

 

Telephone No.: (  
)    -    

Facsimile No.:
(   )    -    

Email:

 

    	-16-

    	 

    

 

[FORM OF ELECTION TO CONVERT]

 

The undersigned hereby
elects to exercise its right, pursuant to the 6% Convertible Promissory Note due December 31, 2017 (the “Note”)
of Boomerang Systems, Inc. (the “Company”) in the outstanding principal amount of $_________, which Note is
tendered herewith, to convert $__________ of the principal amount outstanding (plus accrued interest thereon) under the Note into
__________________ shares of the common stock $0.001 par value per share of the Company (the “Shares”), all in accordance
with the terms of the Note.

 

The undersigned requests
that [the Company credit the undersigned’s or its designee’s balance account with DTC for such number of shares of
Common Stock] [a Certificate for such Shares be registered in the name of ______________, whose address is ____________, and that
such Certificate be delivered to ________________, whose address is _________________], [and that a replacement Note in the principal
amount of $___________, representing the balance of the principal amount outstanding thereunder after giving effect to this conversion,
be issued in the amount of $_________ and delivered to ___________, whose address is ____________].

 

	Dated:	Signature:	 
	 	 	(Signature must conform in all respects to name of
	 	 	Holder as specified on the face of the Note.)
	 	 	 
	 	 	 
	 	 	(Insert Social Security or Other
	 	 	Identifying Number of Holder)
	 	 	 
	 	 	 
	 	 	(Address)
	 	 	 
	 	 	 
	 	 	(Address)

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