Document:

THIS
NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT")

 

US
$183,750.00

ROCKY
MOUNTAIN HIGH BRANDS, INC. 8% CONVERTIBLE REDEEMABLE NOTE DUE AUGUST 19, 2021

 

 

FOR
VALUE RECEIVED,ROCKY MOUNTAINHIGH BRANDS, INC. (the "Company") promises
to pay to the order of EAGLE EQUITIES, LLC and its authorized successors and Permitted Assigns, defined below, ("Holder"),
the aggregate principal face amount ONE HUNDRED EIGHTY-THREE THOUSAND SEVEN HUNDRED FIFTY DOLLARS (U.S. $183,750.00) on August
19, 2021 ("Maturity Date") and to pay interest on the principal amount outstanding hereunder at the rate of 8%
per annum commencing on February 19, 2020. The interest will be paid to the Holder in whose name this Note is registered on the
records of the Company regarding registration and transfers of this Note. This Note shall contain an $8,750.00
Original Issue Discount (OID) such that the purchase price shall be $175,000.00.
The principal of, and interest on, this Note are payable at 390 Whalley Avenue, New Haven, CT 06511, initially, and
if changed, last appearing on the records of the Company as designated in writing by the Holder hereof from time to time. The
Company will pay each interest payment and the outstanding principal due upon this Note before or on the Maturity Date, less any
amounts required by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder
at the last address appearing on the records of the Company. The forwarding of such check or wire transfer shall constitute a
payment of outstanding principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent
of the sum represented by such check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to
paragraph 4(b) herein. Permitted Assigns means any Holder assignment, transfer or sale of all or a portion of this Note accompanied
by an Opinion of Counsel as provided for in Section 2(f) of the Securities Purchase Agreement.

 

This
Note is subject to the following additional provisions:

 

		1.	This
                                         Note is exchangeable for an equal aggregate principal amount of Notes

 

    	 		 

    	 

    

 

of
different authorized denominations, as requested by the Holder surrendering the same. No service charge will be made for such
registration or transfer or exchange, except that Holder shall pay any tax or other governmental
charges payable in connection therewith. To the extent that Holder subsequently transfers, assigns, sells or exchanges any of
the multiple lesser denomination notes, Holder acknowledges that it will provide the Company with Opinions of Counsel as provided
for in Section 2(f) of the Securities Purchase Agreement by the between the Company and the Holder dated February 19, 2020.

 

2.                                     
The Company shall be entitled to
withhold from all payments any amounts required to be withheld under applicable laws.

 

3.                                      This
Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended ("Act"),
applicable state securities laws and Sections 2(f) and 5(f) of the Securities Purchase Agreement. Any attempted transfer to a
non-qualifying party shall be treated by the Company as void. Prior to due presentment for transfer of this Note, the Company
and any agent of the Company may treat the person in whose name this Note is duly registered on the Company's records as the
owner hereof for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be
affected or bound by notice to the contrary. Any Holder of this Note electing to exercise the right of conversion set
forth in Section 4(a) hereof, in addition to the requirements set forth in Section
4(a), and any prequalified prospective transferee of this Note, also is required to give the Company written confirmation
that this Note is being converted ("Notice of Conversion") in the form annexed hereto as Exhibit A.
The date of receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date. All notices of
conversion will be accompanied by an Opinion of Counsel.

 

4.                                     
(a) The Holder of this Note is
entitled, at its option, during the first 180 days that this note is in effect, to convert all or any amount of the principal
face amount of this Note then outstanding into shares of the Company's Common Stock (the "Common Stock") at a price
of $0.03 per share (the "Fixed Price"). The Holder of this Note is entitled, at its option, at any time
after 180 days, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's
Common Stock at a price (the "Conversion Price") for each share of Common Stock equal to 60% of the lowest
closing bid price of the Common Stock as reported on the National Quotations Bureau OTC Markets exchange which the Company's
shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the Twenty
(20) prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice
of Conversion is delivered together with an Opinion of Counsel, by fax or other electronic method of communication to the Company
after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). If the shares
have not been delivered within 3 business days, the Notice of Conversion may be rescinded. Such conversion shall be effectuated
by the Company delivering the shares of Common Stock to the Holder within 3 business days of receipt by the Company of the Notice
of Conversion. Accrued, but unpaid interest shall be subject to conversion. No fractional shares or scrip representing fractions
of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. To the
extent the Conversion Price of the Company's Common Stock closes below the par value per share, the Company will take all steps
necessary to solicit the consent of the stockholders to reduce the par value to the

 

    	 	2	 

    	 

    

 

lowest
value possible under law. The Company agrees to honor all conversions submitted pending this increase. In the event the Company
experiences a DTC "Chill" on its shares, the conversion price shall be decreased to 50% instead of 60% while that "Chill"
is in effect. If the Company fails to maintain the share reserve at the 4x discount of
the note 60 days after the issuance of the note, the conversion discount shall be increased by 10%. In no event shall the Holder
be allowed to effect a conversion if such conversion, along with all other shares of Company Common Stock beneficially owned by
the Holder and its affiliates would exceed 4.99% of the outstanding shares of the Common Stock of the Company (which may be increased
up to 9.9% upon 61 days prior written notice by the Investor). If the Company offers a
conversion discount or other more favorable conversion terms (whether via interest, rate OID or otherwise) or lookback period
to another party ("Third Party Note") or otherwise grants any other more favorable terms to any third party than those
contained herein while this note is in effect, then, the Holder, at its option, may incorporate any or all those terms in this
note. If those terms pertain to a conversion discount or lookback period, then the Holder
shall be allowed to convert this note at the same price as that which was offered in the Third Party Note.

 

(b)              
Interest on any unpaid principal balance of this Note shall be paid at the rate of 8% per annum. Interest shall be paid by the
Company in Common Stock ("Interest Shares"). Holder may, at any time, send in a Notice of Conversion to the Company
for Interest Shares based on the formula provided in Section 4(a) above. The dollar amount converted into Interest Shares shall
be all or a portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.

 

(c)               
During the first six months this Note is in effect, the Company may redeem this Note by paying to the Holder an amount as follows:

 

	Date	Amount
	
    0-30 days	120%
    * (P+I)
	31-60
    days	125%
    * (P+I)
	61-90
    days	130%
    * (P+I)
	91-120
    days	135%
    * (P+I)
	121-150
    days	140%
    * (P+I)
	151-180
    days	145%
    * (P+I)

 

This
Note may not be redeemed after 180 days. The redemption must be closed and paid for within 3 business days of the Company sending
the redemption demand or the redemption will be invalid and the Company may not redeem this Note. Such redemption must be closed
and funded within 3 days of giving notice of redemption of the right to redeem shall be null and void.

 

 

(d)              
Upon (i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of
related transactions, (ii) a reclassification, capital reorganization (excluding an increase in authorized capital) or other change
or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock split or stock dividend, or (iii)
any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving entity
(other than a merger which is effected solely to

 

    	 	3	 

    	 

    

 

change
the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares
of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale Event"),
then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash for 150% of the principal amount,
plus accrued but unpaid interest through the date of redemption, or at the election of the Holder, such Holder may convert the
unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into shares of Common Stock immediately
prior to such Sale Event at the Alternative Conversion Price.

 

(e)               
In case of any Sale Event (not to include a sale of all or substantially all of the Company's assets) in connection with which
this Note is not redeemed or converted, the Company shall cause effective provision to be made so that the Holder of this Note
shall have the right thereafter, by converting this Note, to purchase or convert this Note into the kind and number of shares
of stock or other securities or property (including cash) receivable upon such reclassification, capital reorganization or other
change, consolidation or merger by a holder of the number of shares of Common Stock that could have been purchased upon exercise
of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing provisions
shall similarly apply to successive Sale Events. If the consideration received by the holders of Common Stock is other than cash,
the value shall be as determined by the Board of Directors of the Company or successor person or entity acting in good faith.

 

5.                                     
No provision of this Note shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on,
this Note at the time, place, and rate, and in the form, herein prescribed.

 

6.                                     
The Company hereby expressly waives
demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration
or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder and shall be directly and
primarily liable for the payment of all sums owing and to be owing hereto.

 

7.                                     
The Company agrees to pay all costs
and expenses, including reasonable attorneys' fees and expenses, which may be incurred by the Holder in collecting any amount
due under this Note.

 

		8.	If
                                         one or more of the following described "Events of Default" shall occur:

 

(a)              
The Company shall default in the
payment of principal or interest on this Note or any other note issued to the Holder by the Company; or

 

(b)              
Any of the representations or warranties
made by the Company herein or in any certificate or financial or other written statements heretofore or hereafter furnished by
or on behalf of the Company in connection with the execution and delivery of this Note, or the Securities Purchase Agreement under
which this note was issued shall be false or misleading in any respect; or

 

    	 	4	 

    	 

    

 

(c)               
The Company shall fail to perform
or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note or
any other note issued to the Holder; or

 

(d)              
The Company shall (1) become insolvent
(which does not include a "going concern opinion); (2) admit in writing its inability to pay its debts generally as they
mature; (3) make an assignment for the benefit of creditors or commence proceedings for its dissolution; (4) apply for or consent
to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; (5) file
a petition for bankruptcy relief, consent to the filing of such petition or have filed against it an involuntary petition for
bankruptcy relief, all under federal or state laws as applicable; or

 

(e)               
A trustee, liquidator or receiver
shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be
discharged within sixty (60) days after such appointment; or

 

(f)               
Any governmental agency or any
court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any
substantial portion of the properties or assets of the Company; or

 

(g)               
One or more money judgments, writs
or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered
or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed
for a period of fifteen (15) days or in any event later than five (5) days prior to the date of any proposed sale thereunder;
or

 

(h)              
Defaulted on or breached any term
of any other note of similar debt instrument into which the Company has entered and failed to cure such default within the appropriate
grace period; or

 

(i)                
The Company shall have its Common
Stock delisted from an exchange (including the OTC Markets exchange) or, if the Common Stock trades on an exchange, then trading
in the Common Stock shall be suspended for more than 10 consecutive days or ceases to file its 1934 act reports with the SEC;

 

G)
If a majority of the members of
the Board of Directors of the Company on the date hereof are no longer serving as members of the Board;

 

(k)              
The Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within
3 business days of its receipt of a Notice of Conversion which includes an Opinion of Counsel expressing an opinion which supports
the removal of a restrictive legend; or

 

(I)           
The Company
shall not replenish the reserve set forth in Section 12, within 3 business days of the request of the Holder.

 

    	 	5	 

    	 

    

 

(m)            
The Company shall be delinquent
in its periodic report filings with the Securities and Exchange Commission; or

 

(n)              
The Company shall cause to lose
the "bid" price for its stock in a market (including the OTC marketplace or other exchange).

 

Then,
or at any time thereafter, unless cured within 5 days, and in each and every such case, unless such Event of Default shall have
been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option
of the Holder and in the Holder's sole discretion, the Holder may consider this Note immediately due and payable, without presentment,
demand, protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly waived,
anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately,
and without expiration of any period of grace, enforce any and all of the Holder's rights and remedies provided herein or any
other rights or remedies afforded by law. Upon an Event of Default, interest shall accrue at a default interest rate of 24% per
annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law. In
the event of a breach of Section 8(k) the parties agree that damages shall be difficult to determine and agree on liquidated damages
in the amount of $250 per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to
the Company. The agreed liquidated damages shall increase to $500 per day beginning on the 10th day. In the event of a breach
of Section 8(n), the parties agree that damages shall be difficult to determine and hereby agree to an increase of the outstanding
principal amounts by 20% as a liquidated damages payment. In case of a breach of Section 8(i), the parties agree that damages
will be difficult to determine and agree that the outstanding principal due under this Note shall increase by 50% as a liquidated
damages payment. If this Note is not paid at maturity, or within 10 days thereof, the outstanding principal due under this Note
shall increase by 10%. Further, if a breach of Section 8(m) occurs or is continuing after the 6 month anniversary of the Note,
then the Holder shall be entitled to use the lowest closing bid price during the delinquency period as a base price for the conversion.
For example, if the lowest closing bid price during the delinquency period is $0.01 per share and the conversion discount is 50%
the Holder may elect to convert future conversions at $0.005 per share.

 

If
the Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging
an attorney, then if the Holder prevails in such action, the Holder shall be reimbursed by the Company for its attorneys' fees
and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

 

Make-Whole
for Failure to Deliver Loss. At the Holder's election, if the Company fails for any reason to deliver to the Holder the conversion
shares by the by the 3rd business day following the delivery of a Notice of Conversion to the Company and if the Holder incurs
a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice indicating the amounts payable to
the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows:

 

Failure
to Deliver Loss= [(Highest VWAP for the 30 trading days on or after the day of exercise)

 

    	 	6	 

    	 

    

x
(Number of conversion shares)]

 

The
Company must pay the Failure to Deliver Loss by cash payment, and any such cash payment must be made by the third business day
from the time of the Holder's written notice to the Company.

 

 

9.                                     
In case any provision of this Note
is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall
be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability
of the remaining provisions of this Note will not in any way be affected or impaired thereby.

 

10.                              
Neither this Note nor any term
hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.

 

11.                             
The Company represents that it
is not a "shell" issuer and that if it previously has been a "shell" issuer that at least 12 months have passed
since the Company has reported Form 10 type information indicating it is no longer a "shell issuer.

 

12.                         
The Company shall issue irrevocable
transfer agent instructions reserving sufficient shares of its Common Stock for conversions under this Note (the "Share Reserve").
Upon full conversion of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all transfer
agent costs associated with issuing and delivering the share certificates to Holder. If such amounts are to be paid by the Holder,
it may deduct such amounts from the Conversion Price. The company should at all times reserve a minimum of three times the amount
of shares required if the note would be fully converted. The Holder may reasonably request increases from time to time to maintain
such reserved amounts. The Company will instruct its transfer agent to provide the outstanding share information to the Holder
in connection with its conversions.

 

13.                              
If it shall be found that any interest
or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable provision shall automatically
be revised to equal the maximum rate of interest or other amount deemed interest permitted under applicable law. The Company covenants
(to the extent that it may lawfully do so) that it will not seek to claim or take advantage of any law that would prohibit or
forgive the Company from paying all or a portion of the principal or interest on this Note.

 

14.                              
This Note shall be governed by
and construed in accordance with the laws of Nevada applicable to contracts made and wholly to be performed within the State of
Nevada and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company hereby mutually waive
trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York or in the Federal courts
sitting in the county or city of New York. This Agreement may be executed in counterparts, and the facsimile transmission of an
executed counterpart to this Agreement shall be effective as an original.

 

    	 	7	 

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed

by
an officer thereunto duly authorized.

 

 

Dated:
February 19, 2020

 

 

 

	 	 	ROCKY MOUNTAIN
    HIGH BRANDS, INC.	 
	 	 	 	 
	 	 	By:
    Michael R. Welch	 
	 	 	Name:
    Michael R. Welch	 
	 	 	It’s:
    President & CEO	 

 

    	 	8	 

    	 

    

 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

(To
be Executed by the Registered Holder in order to Convert the Note)

 

The
undersigned hereby irrevocably elects to convert $ __________________of the above
Note into ____________Shares of Common Stock of ROCKY MOUNTAIN HIGH BRANDS, INC. ("Shares") according to the conditions
set forth in such Note, as of the date written below.

 

If
Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer and other truces
and charges payable with respect thereto.

 

Date
of Conversion: ____________________________________________

Applicable
Conversion Price: ______________________________________

Signature:
____________________________________________________

[Print
Name of Holder and Title of Signer]

Address:
_____________________________________________________

___________________________________________________

 

 

SSN
or EIN: _________________________

Shares
are to be registered in the following name: _______________________________________

 

 

Name:
____________________________________________________________

Address:
__________________________________________________________

Tel:
_____________________________________________

Fax:
____________________________________________

SSN
or EIN: ______________________________________

 

 Shares
are to be sent or delivered to the following account:

 

Account
Name: _____________________________________________________

Address:
__________________________________________________________

 

    	 	9EXCHANGE
AGREEMENT

  

THIS
EXCHANGE AGREEMENT (the “Agreement”) is dated this 13th day of March 2020, by and among Rocky Mountain High
Brands, Inc., a Nevada corporation (the "Company"), all of the subsidiaries of the Company that are
party to the Agreement (collectively, "Subsidiaries") and OHS INVESTMENTS, LLC (the "Holder").

 

WHEREAS,
the Holderbeneficially owns andholds certain $55,000.00 Promissory Note dated
September 28, 2018 as set forth on Exhibit A hereto (the "Note");

 

WHEREAS
the total outstanding principal and interest on the Note as of February 19, 2020 equals $62,669.86; and

 

WHEREAS,
the Holder desires to exchange (the "Exchange") the Note for a new Convertible Promissory Note (the "Exchange
Security") of the Company as set forth and memorialized on Exhibit B hereto, and the Company desires to issue
the Exchange Security in exchange for the Note, all on the terms and conditions set forth in this Agreement in reliance on the
exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended (the "Securities Act").

 

NOW,
THEREFORE, in consideration of the terms and conditions contained herein, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Company and the Holder hereby agree as follows:

 

Section
1. Exchange. Subject to and upon the terms and conditions set forth in this
Agreement, the Holder agrees to surrender to the Company the
Note and, m exchange therefore, the Company
shall issue to the Holder the Exchange Security.

 

1.1   
Closing. On the Closing Date (as defined below), the Company will issue and deliver (or cause
to be issued and delivered) the Exchange Security to the Holder, or in the name of
a custodian or nominee of the Holder, or as otherwise requested by the Holder in writing, and the Holder will
surrender to the Company the Note. The closing of the Exchange shall occur on February 20,
2020, or as soon thereafter as the parties may mutually agree in writing (the
"Closing Date"), subject to the provisions of Section 4 and
Section 5 herein.

 

1.2   
Section 3(a)(9). Assuming the accuracy of the representations and warranties of each of the Company and the Holder set
forth in Sections 2 and 3 of this Agreement, the parties acknowledge and agree that the purpose of such representations and warranties
is, among other things, to ensure that the Exchange qualifies as an exchange of securities under Section 3(a)(9) of the Securities
Act.

 

Section
2. Representations and Warranties of the  Company.The
Company represents and warrants to the Holder that:

 

    	 		 

    	 

    

 

2.1    
Organization and Qualification. The Company and each of the subsidiaries of the Company (the "Subsidiaries")
is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry
on its business as currently conducted. Neither the Company, nor any Subsidiary is in violation or default of any of the provisions
of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company
and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in
each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result
in: (i) a material adverse effect on the legality, validity or enforceability of this Agreement or any documents executed in connection
herewith (the "Transaction Documents"), (ii) a material adverse effect
on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries,
taken as a whole, or (iii) a material adverse effect on the Company's ability to perform
in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii)
or (iii), a "Material Adverse Effect") and no proceeding has been
instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority
or qualification.

2.2    
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company
and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company, the Board of Directors or the Company's stockholders
in connection herewith or therewith other than in connection with the Required Approvals (as
defined below). This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will
have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the
valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except: (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors' rights generally; (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited
by applicable law.

2.3    
Issuance of Exchange Security. The issuance of the Exchange Security is duly authorized and, upon issuance in accordance
with the terms

 

    	 	2	 

    	 

    

 

hereof,
the Exchange Security shall be validly issued, fully paid and non assessable. The shares of common stock, par value $0.001 per
share (the "Common Stock") issued upon conversion of the Exchange Security, when issued and delivered in accordance
with the terms of the Exchange Security, will be duly and validly issued, fully paid
and non-assessable, free and clear of all Liens (as defined below) imposed by the Company, other than restrictions on transfer
under applicable state and federal securities laws. Upon issuance in accordance herewith, the issuance by the Company of the Exchange
Security shall be exempt from the registration requirements of the Securities Act by virtue of Section 3(a)(9) thereunder and
all of the shares of Common Stock issuable upon conversion of the Exchange Security will be freely transferable and freely tradable
by the Holder without restriction pursuant to Rule 144 of the Securities Act, assuming the Holder
is not an Affiliate (as defined herein) and the holding period requirements of Rule 144 have been satis fied.
The shares of Common Stock issuable upon conversion of the Exchange Security shall not bear any restrictive or other lege
nds or notations if the requirements of Rule 144 have been satisfied. The Company has reserved from its duly authorized capital
stock a number of shares of Common Stock for issuance of the shares underlying the Exchange Security at least equal to the greater
of 9,410,000 shares of Common Stock and 300% of the Required Minimum on the date hereof.
" Required Minimum" means, as of any date, the maximum aggregate number of shares of Common Stock then issued
or potentially issuable in the future pursuant to the Transaction Documents, including any shares of Common Stock issuable upon
conversion in full of all Exchange Security (including shares of Common Stock issuable
as payment of interest on the Exchange Security), ignoring any conversion limits set forth there in, and assuming that the Conversion
Price is at all times on and after the date of determination 75% of the then Conversion Price on the trading day immediately
prior to the date of determination.

2.4     
No Conflicts. The execution, delivery and performance by the Company of this
Agreement and the other Transaction Documents to which it is a party, the issuance of the Exchange Security and the consummation
by it of the transactions contemplated hereby and thereby do not and will not: (i)
conflict with or violate any provis ion of the Company's or any Subsidiary's certificate or articles of incorporation,
bylaws or other organizationa l or charter documents; (ii)
conflict with, or constitute a default (or an event that with notice or lapse
of time or both would become a default) under, result in the creation of any options,
contracts, agreements, liens, security interests, or other encumbrances ("
Liens") upon any of the properties or assets of the Company or any Subsidiary,
or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice,
lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset
of the Company or any Subsidiary is bound or affected; or (iii) subject to the Required Approvals (as defined herein), conflict
with or result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the Company or a

 

    	 	3	 

    	 

    

 

Subsidiary
is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or
a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii),
such as could not have or reasonably be expected to result in a Material Adverse Effect.

2.5    
Acknowledgment Regarding the Exchange. The Company acknowledges and agrees that the Holder is acting solely in the capacity
of an arm's length third party with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges
the Holder is not acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to this Agreement and the transactions contemplated hereby, and any advice given by the Holder
or any of their representatives or agents in connection with this Agreement is merely incidental to the Exchange.

2.6    
No Commission; No Other Consideration. The Company has not paid or given, and has not agreed to pay or give, directly or
indirectly, any commission or other remuneration for soliciting the Exchange. The Exchange Security is being issued exclusively
for the exchange of the Note and no other consideration has or will be paid for the Exchange Security.

 

2.7    
3(a)(9) Representation. The Company has not, nor has any person acting on its behalf, directly or indirectly made any offers
or sales of any security or solicited any offers to buy any security under circumstances that would cause the Exchange and the
issuance of the Exchange Security pursuant to this Agreement to be integrated with prior offerings by the Company for purposes
of the Securities Act which would prevent the Company from delivering the Exchange Security to the Holder pursuant to Section
3(a)(9) of the Securities Act, nor will the Company take any action or steps that would cause the Exchange, issuance and delivery
of the Exchange Security to be integrated with other offerings to the effect that the delivery of the Exchange Security to the
Holder would be seen not to be exempt pursuant to Section 3(a)(9) of the Securities Act.

2.8    
No Third-party Advisors. Other than legal counsel, the Company has not engaged any third parties to assist in the solicitation
with respect to the Exchange.

2.9    
SEC Reports; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange Act of 1934, as amended (the "Exchange Act"),
including pursuant to Section 13(a) or 15(d) of the Exchange Act, for the two years preceding the date hereof (or such shorter
period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits
thereto and documents incorporated by reference therein, being collectively referred to herein as the "SEC Reports")
on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the
expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the

 

    	 	4	 

    	 

    

 

requirements
of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company
included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations
of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance
with United States generally accepted accounting principles applied on a consistent basis during the periods involved ("GAAP"),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial
statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position
of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows
for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year end audit adjustments.

2.10     
Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth on Schedule 2.10. The Company
owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens,
and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable
and free of preemptive and similar rights to subscribe for or purchase securities.

 

2.11     
Filings, Consents and Approvals. Other than as set forth on Schedule 2.11, the Company is not required to obtain
any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other
federal, state, local or other governmental authority or any natural person, firm, partnership, association, corporation, company,
trust, business trust or other entity (each, a "Person") in connection with the execution, delivery and performance
by the Company of the Transaction Documents, other than: (i) the notice and/or application(s) to each applicable Trading Market
(as defined herein) for the issuance and the listing of the shares of Common Stock issuable upon conversion of the Exchange S
for trading thereon in the time and manner required thereby, and (ii) the filing of Form D with the SEC and such filings as are
required to be made under applicable state securities laws (collectively, the "Required Approvals").

2.12     
Capitalization. The capitalization of the Company is as set forth on Schedule 2.12. No Person has any right of first
refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the
Transaction Documents. Other than as set forth on Schedule 2.12, there are no outstanding options, warrants, scrip rights
to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible
into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock,
or

 

    	 	5	 

    	 

    

 

contracts,
commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional
shares of Common Stock or any securities of the Company 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. All of the outstanding
shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in
compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive
rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the
Board of Directors or others is required for the issuance of the Exchange Security. There are no stockholder agreements or other
similar agreements with respect to the Company's capital stock to which the Company is a party or, to the knowledge of the Company,
between or among any of the Company's stockholders.

2.13     
DTC Eligibility. The Company, through the Transfer Agent, currently participates in the DTC Fast Automated Securities Transfer
(FAST) Program and the Common Stock can be transferred electronically to third parties via the DTC Fast Automated Securities Transfer
(FAST) Program.

2.14     
Material Changes; Undisclosed Events, Liabilities or Developments. Except as set forth in Schedule 2.14 or in a
subsequent SEC Report filed prior to the date hereof, since the date of the latest audited financial statements included within
the SEC Reports: (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result
in a Material Adverse Effect; (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade
payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not
required to be reflected in the Company's financial statements pursuant to GAAP or disclosed in filings made with the SEC; (iii)
the Company has not altered its method of accounting; (iv) the Company has not declared or made any dividend or distribution of
cash or other property to its stockholder or purchased, redeemed or made any agreements to purchase or redeem any shares of its
capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate (as defined below),
except pursuant to existing Company stock option plans. The Company does not have pending any request for confidential treatment
of information before the SEC. Except for the issuance of the Exchange Security contemplated by this Agreement, no event, liability,
fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect
to the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial condition, that
would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed
made that has not been publicly disclosed at least one (1) trading day prior to the date that this representation is made.

 

    	 	6	 

    	 

    

 

2.15    
Litigation. Other than as set forth on Schedule 2.15, there is no action, suit, inquiry, notice of violation, proceeding
or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any
of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an "Action") which (i) adversely affects or challenges
the legality, validity or enforceability of any of the Transaction Documents or the Exchange Security or (ii) could, if there
were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any
Subsidiary, nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or
liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge
of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company or any current or former
director or officer of the Company. The SEC has not issued any stop order or other order suspending the effectiveness of any registration
statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

2.16    
Labor Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees
of the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company's or its Subsidiaries'
employees is a member of a union that relates to such employee's relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries
believe that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company
or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive
covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company
or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are
in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices,
terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.

2.17     
Compliance. Other than as set forth on Schedule 2.17, neither the Company nor any Subsidiary: (i) is in default
under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would
result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim
that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument
to which it is a party or by which it or any of its

 

    	 	7	 

    	 

    

 

properties
is bound (whether or not such default or violation has been waived); (ii) is in violation of any judgment, decree or
order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule,
ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local
laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment
and labor matters, except in each case as could not have or reasonably be expected to result in a Material Adverse
Effect.

2.18     
Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described
in the SEC Reports, except where the failure to possess such permits could not reasonably be expected to result in a Material
Adverse Effect ("Material Permits"), and neither the Company nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any Material Permit.

2.19    
Title to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned
by them and good and marketable title in all personal property owned by them that is material to the business of the Company and
the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens as do not materially affect the value of such
property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries,
(ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance
with GAAP and, the payment of which is neither delinquent nor subject to penalties and (iii) Liens held by the Holder. Any real
property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable
leases with which the Company and the Subsidiaries are in compliance.

 

2.20    
Intellectual Property. Other than as set forth on Schedule 2.20, the Company and the Subsidiaries have, or have
rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets,
inventions, copyrights, licenses and other intellectual property rights and similar rights as described in the SEC Reports as
necessary or required for use in connection with their respective businesses and which the failure to so have could have a Material
Adverse Effect (collectively, the "Intellectual Property Rights"). Except as set forth on Schedule 2.20
neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of, the Intellectual Property Rights
has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within two (2) years from the
date of this Agreement. Neither the Company nor any Subsidiary has received, since the date of the latest audited financial statements
included within the SEC Reports, a written notice of a claim or otherwise has any knowledge that the Intellectual Property Rights
violate or infringe upon the rights of any Person, except as could

 

    	 	8	 

    	 

    

 

not
have or reasonably be expected to not have a Material Adverse Effect. To the knowledge of the Company, all such Intellectual Property
Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The
Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all
of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

		2.21	Intentionally
                                         Omitted.

2.22     
Transactions With Affiliates and Employees. Other than as set forth on Schedule 2.22, none of the officers or directors
of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary
is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and
directors), 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 providing for the borrowing of money from or lending of money to, 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, stockholder, member
or partner, in each case in excess of $120,000 other than for: (i) payment of salary or consulting fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements
under any stock option plan of the Company.

 

		2.23	Intentionally
                                         Omitted.

2.24     
Certain Fees. Other than as set forth on Schedule 2.24, no brokerage or finder's fees or commissions are or will
be payable by the Company or any Subsidiaries to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents.

 

2.25     
Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Exchange
Security, will not be or be an Affiliate of, an "investment company" within the meaning of the Investment Company Act
of 1940, as amended. The Company shall conduct its business in a manner so that it will not become an "investment company"
subject to registration under the Investment Company Act of 1940, as amended.

2.26     
Registration Rights. Other than as set forth on Schedule 2.26 and the Transaction Documents, no Person has any right
to cause the Company to effect the registration under the Securities Act of any securities of the Company or any Subsidiaries.

    	 	9	 

    	 

    

2.27     
Listing and Maintenance Requirements. Other than as set forth in Schedule 2.27, the Company has not, in the 12 months
preceding the date hereof, received notice from the OTC Markets or any other exchange or quotation service on which the Common
Stock is or has been listed or quoted (the "Trading Market") to the effect that the Company is not in compliance
with the listing or maintenance requirements of such Trading Market. Other than as set forth in Schedule 2.27, the Company
is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing
and maintenance requirements.

2.28     
Application of Takeover Protections. The Company and the Board of Directors have taken all necessary action, if any, in
order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under
a rights agreement) or other similar anti-takeover provision under the Company's articles of incorporation (or similar charter
documents) or the laws of its state of incorporation that is or could become applicable to the Holder as a result of the Holder
and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation
as a result of the Company's issuance of the Exchange Security pursuant to the Exchange.

2.29     
Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction
Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided the Holder or its agents
or counsel with any information that it believes constitutes or might constitute material, non-public information. The Company
understands and confirms that the Holder will rely on the foregoing representation in effecting transactions in securities of
the Company. All of the disclosure furnished by or on behalf of the Company to the Holder regarding the Company and its Subsidiaries,
their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is
true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press
releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made and when made, not misleading. The Company
acknowledges and agrees that the Holder makes no nor has made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in Section 3 hereof.

2.30     
No Integrated Offering. Assuming the accuracy of the Holder's representations and warranties set forth in Section 3, neither
the Company, nor any of its Affiliates, nor any Person acting on their behalf has, directly or indirectly, made any offers or
sales of any security or solicited any offers to buy

    	 	10	 

    	 

    

 

any
security, under circumstances that would cause the Exchange to be integrated with prior offerings by the Company for purposes
of (i) the Securities Act which would require the registration of any such securities under the Securities Act, or (ii)
any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed
or designated.

2.31      Solvency.
The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the
timing and amounts of cash to be payable on or in respect of its debt). Except as set forth in Schedule 2.31,the SEC
Reports set forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary,
or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, "Indebtedness"
means (x) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred
in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of
indebtedness of others, whether or not the same, are, or should be, reflected in the Company's consolidated balance sheet (or
the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $50,000
due under leases required to be capitalized in accordance with GAAP. Other than as set forth in Schedule 2.31, neither
the Company nor any Subsidiary is in default with respect to any Indebtedness.

2.32     
Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result
in a Material Adverse Effect, the Company and its Subsidiaries each (i) has made or filed all United States federal, state and
local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which
it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined
to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the
payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There
are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of
the Company or of any Subsidiary know of no basis for any such claim.

2.33    
Foreign Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary,
any agent or other person acting on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity; (ii)
made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties
or campaigns from corporate funds; (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made
by any person acting on its behalf of which the Company is aware)

    	 	11	 

    	 

    

 

which
is in violation of law or (iv) violated in any material
respect any provision ofFCPA.

2.34     
No Disagreements with Accountants and Lawyers. There are no disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the
Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company's
ability to perform any of its obligations under any of the Transaction Documents.

2.35     
Acknowledgment Regarding Holder's Exchange of the Note. The Company acknowledges and agrees that the Holder is acting solely
in the capacity of an arm's length party with respect to the Transaction Documents and the transactions contemplated thereby.

2.36       
Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of
the Company to facilitate the issuance or resale of any of the Exchange Security or the shares of Common Stock into which the
Exchange Security is convertible or exercisable, as applicable, (ii) sold, bid for, purchased, or paid any compensation for soliciting
purchases of, any of the Exchange Security or the shares of Common Stock into which the Exchange Security is convertible or exercisable,
as applicable, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities
of the Company.

 

2.37      Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer,
agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department ("OFAC").

2.38     
Bank Holding Company Act. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding
Company Act of 1956, as amended (the "BHCA") and to regulation by the Board of Governors of the Federal Reserve
System (the "Federal Reserve"). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls,
directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent
(25%) or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.
Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies
of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

    	 	12	 

    	 

    

2.39     
Money Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance
with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of
1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the "Money
Laundering Laws"), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company or any Subsidiary, threatened.

 

Section
3. Representations and Warranties of the Holder. The Holder represents and warrants to the Company that:

3.1    
Ownership of the Note. The Holder is the legal and beneficial owner of the Note. The Holder paid for the Note, and has
continuously held the Note since its issuance or purchase. The Holder, individually or through an affiliate, owns the Note outright
and free and clear of any options, contracts, agreements, liens, security interests, or other encumbrances.

3.2   
No Public Sale or Distribution. The Holder is acquiring the Exchange Security in the ordinary course of business for its
own account and not with a view toward, or for resale in connection with, the public sale or distribution thereof; provided, however,
that by making the representations herein, the Holder does not agree to hold any of the Exchange Security or the shares of Common
Stock into which such security is convertible, for any minimum or other specific term and reserves the right to dispose of the
Exchange Security and the shares of Common Stock into which such security is convertible at any time in accordance with an exemption
from the registration requirements of the Securities Act and applicable state securities laws. The Holder does not presently have
any agreement or understanding, directly or indirectly, with any person to distribute, or transfer any interest or grant participation
rights in, the Note or the Exchange Security.

3.3   
Accredited Investor and Affiliate Status. The Holder is an "accredited investor" as that term is defined in Rule
501 of Regulation D under the Securities Act. The Holder is not, and has not been, for a period of at least three months prior
to the date of this Agreement (a) an officer or director of the Company, (b) an "affiliate" of the Company (as defined
in Rule 144) (an "Affiliate") or (c) a "beneficial owner" of more than 10% of the Company's Common
Stock (as defined for purposes of Rule 13d-3 of the Exchange Act).

3.4    
Reliance on Exemptions. The Holder understands that the Exchange is being made in reliance on specific exemptions from
the registration requirements of United States federal and state securities laws and that the Company is relying in part upon
the truth and accuracy of, and the Holder's compliance with, the representations, warranties, agreements, acknowledgments and
understandings of the Holder set forth herein in order to determine the

 

    	 	13	 

    	 

    

 

availability
of such exemptions and the eligibility of the Holder to complete the Exchange and to acquire the Exchange Security.

3.5   
Information. The Holder has been furnished with all materials relating to the business, finances and operations of the
Company and materials relating to the Exchange which have been requested by the Holder. The Holder has been afforded the opportunity
to ask questions of the Company. Neither such inquiries nor any other due diligence investigations conducted by the Holder or
its representatives shall modify, amend or affect the Holder's right to rely on the Company's representations and warranties contained
herein. The Holder acknowledges that all of the documents filed by the Company with the SEC under Sections 13(a), 14(a) or 15(d)
of the Exchange Act that have been posted on the SEC's EDGAR site are available to the Holder, and the Holder has not relied on
any statement of the Company not contained in such documents in connection with the Holder's decision to enter into this Agreement
and the Exchange.

3.6   
Risk. The Holder understands that its investment in the Exchange Security involves a high degree of risk. The Holder is
able to bear the risk of an investment in the Exchange Security including, without limitation, the risk of total loss of its investment.
The Holder has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision
with respect to the Exchange. There is no assurance that the Exchange Security or any securities into which the Exchange Security
may convert will continue to be quoted, traded or listed for trading or quotation on the OTC Markets or on any other organized
market or quotation system.

3.7    
No Governmental Review. The Holder understands that no United States federal or state agency or any other government or
governmental agency has passed on or made any recommendation or endorsement in connection with the Exchange or the fairness or
suitability of the investment in the Exchange Security nor have such authorities passed upon or endorsed the merits of the Exchange
Security.

3.8   
Organization; Authorization. The Holder is duly organized, validly existing and in good standing under the laws of its
state of formation and has the requisite organizational power and authority to enter into and perform its obligations under this
Agreement.

3.9   
Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Holder
and shall constitute the legal, valid and binding obligations of the Holder enforceable against the Holder in accordance with
its terms. The execution, delivery and performance of this Agreement by the Holder and the consummation by the Holder of the transactions
contemplated hereby (including, without limitation, the irrevocable surrender of the Note) will not result in a violation of the
organizational documents of the Holder.

 

    	 	14	 

    	 

    

 

3.10   
Prior Investment Experience. The Holder acknowledges that it has prior investment experience, including investment in securities
of the type being exchanged, including the Note and the Exchange Security, and has read all of the documents furnished or made
available by the Company to it and is able to evaluate the merits and risks of such an investment on its behalf, and that it recognizes
the highly speculative nature of this investment.

3.11   
Tax Consequences. The Holder acknowledges that the Company has made no representation regarding the potential or actual
tax consequences for the Holder which will result from entering into the Agreement and from consummation of the Exchange. The
Holder acknowledges that it bears complete responsibility for obtaining adequate tax advice regarding the Agreement and the Exchange.

3.12   
No Registration, Review or Approval. The Holder acknowledges, understands and agrees that the Exchange Security is being
exchanged hereunder pursuant to an exchange offer exemption under Section 3(a)(9) of the Securities Act.

 

Section
4. Conditions Precedent to Obligations of the Company. The obligation of the Company to consummate the transactions contemplated
by this Agreement is subject to the satisfaction of each of the following conditions, provided that these conditions are for the
Company's sole benefit and may be waived by the Company at any time in its sole discretion by providing the Holder with prior
written notice thereof:

		4.1	Delivery.
                                         The Holder shall have delivered to the Company the Note.

4.2    
No Prohibition. No order of any court, arbitrator, or governmental or regulatory authority shall be in effect which purports
to enjoin or restrain any of the transactions contemplated by this Agreement; and

 

4.3    
Representations. The accuracy in all material respects when made and on the applicable Closing Date of the representations
and warranties of the Holder contained herein (unless as of a specific date therein);

 

Section
5. Conditions Precedent to Obligations of the Holder. The obligation of the Holder to consummate the transactions contemplated
by this Agreement is subject to the satisfaction of each of the following conditions, provided that these conditions are for the
Holder's sole benefit and may be waived by the Holder at any time in its sole discretion by providing the Company with prior written
notice thereof:

 

5.1    
No order of any court, arbitrator, or governmental or regulatory authority shall be in effect which purports to enjoin or restrain
any of the transactions contemplated by this Agreement;

 

5.2    
the representations and warranties of the Company (i) shall be true and correct in all material respects when made and on the
applicable Closing Date (unless as of a specific date therein) for such representations and warranties

 

    	 	15	 

    	 

    

 

contained
herein that are not qualified by "materiality" or "Material Adverse Effect" and (ii) shall be true and correct
when made and on the applicable Closing Date (unless as of specific date therein) for such representations and warranties contained
herein that are qualified by "materiality" or "Material Adverse Effect";

 

5.3    
all obligations, covenants and agreements of the Company required to be performed at or prior to the applicable Closing Date shall
have been performed; and

 

5.4    
from the date hereof to the relevant Closing Date, trading in the Company's common stock shall not have been suspended by the
SEC or any Trading Market and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on any trading market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of the Holder makes it impracticable or inadvisable to purchase the Exchange Security at
the closing.

 

Section
6. Holding Period. For the purposes of Rule 144 of the Securities Act, the Company acknowledges that the holding period
of the Exchange Security may be tacked on the holding period of the Note, and the Company agrees not to a position contrary to
this Section 6.

 

Section
7. Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be construed under the laws of the state of
Nevada, without regard to principles of conflicts of law or choice of law that would permit or require the application of the
laws of another jurisdiction. The Company and the Holder each hereby agrees that all actions or proceedings arising directly or
indirectly from or in connection with this Agreement shall be litigated only in the Supreme Court of the State of New York or
the United States District Court for the Southern District of New York located in New York County, New York. The Company and the
Holder each consents to the exclusive jurisdiction and venue of the foregoing courts and consents that any process or notice of
motion or other application to either of said courts or a judge thereof may be served inside or outside the State of New York
or the Southern District of New York by generally recognized overnight courier or certified or registered mail, return receipt
requested, directed to such party at its or his address set forth below (and service so made shall be deemed "personal service")
or by personal service or in such other manner as may be permissible under the rules of said courts. THE COMPANY AND THE HOLDER
EACH HEREBY WAIVES ANY RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LITIGATION PURSUANT TO THIS AGREEMENT.

 

Section
8. Countemarts.This Agreement may be executed in two or more identical counterparts, all of which shall be considered
one and the same agreement and

    	 	16	 

    	 

    

 

shall
become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile
signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as
if the signature were an original, not a facsimile signature.

 

Section
9. Headings.The headings of this Agreement are for convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement.

 

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

 

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

 

Section
12. Entire Agreement; Amendments. This Agreement supersedes all other prior oral or written agreements between the Holder,
the Company, their affiliates and persons acting on their behalf with respect to the matters discussed herein, and this Agreement
and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein
and therein and, except as specifically set forth herein or therein, neither the Company nor the Holder makes any representation,
warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be amended other than by an
instrument in writing signed by the Company and the Holder. No provision hereof may be waived other than by an instrument in writing
signed by the party against whom enforcement is sought.

 

Section
13. Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms
of this Agreement must be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally;
(b) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated
and kept on file by the sending party); or (c) one calendar day (excluding Saturdays, Sundays, and national banking holidays)
after deposit with an overnight courier service, in each case properly addressed to the party to receive the same.

 

    	 	17	 

    	 

    

 

The
addresses and facsimile numbers for such communications shall be:

If to the Company:

Rocky
Mountain High Brands, Inc.

9101 LBJ Freeway #200

 

Dallas
TX 75243

 

 

 

Attn:
David M. Seeberger

 

If
to the Holder:

 

GHS
Investments, LLC

420
Jericho Turnpike, Suite 102

Jericho
NY 11753

 

or
to such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified
by written notice given to each other party five

(5)
days prior to the effectiveness of such change.

 

Section
14. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns, including any purchasers of the Exchange Security. The Holder may assign some or all of its rights hereunder
without the consent of the Company, in which event such assignee shall be deemed to be the Holder hereunder with respect to such
assigned rights.

 

Section
15. No Third Party Beneficiaries. This Agreement is intended for the benefit of the·parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

Section
16. Survival of Representations. The representations and warranties of the Company and the Holder contained in Sections
2 and 3, respectively, will survive the closing of the transactions contemplated by this Agreement.

 

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

 

 

[Signature
Page Follows]

 

    	 	18	 

    	 

    

 

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

 

Rocky
Mountain High Brands, Inc.

 

By:
Michael Welch

Name:
Michael Welch

Title:
Chief Executive Officer

 

 

 

GHS
INVESTMENTS, LLC

 

By:
/s/ Mark Grober

Name:
Mark Grober

Title:
Member

    	 	19	 

    	 

    

  

EXHIBIT
A

 

e
Promissory Notes

 

	Principal	Interest	OID	Date

 

 

Cumulative
Total for Face Value and Interests: $

 

    	 	20	 

    	 

    

 

EXHIBIT
B

 

Form
of and Schedule of Security being Exchanged

 

	Promissory
    Note	$

 

 

 

 

    	 	21	 

    	 

    

 

SCHEDULES

 

Disclosure
Schedules to Exchange Agreement between GHS Investments LLC and ________. dated ________, 2020

 

 

[Company
to complete schedules]

 

    	 	22

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