Document:

dloc_ex1027.htm

  EXHIBIT 10.27
   
 NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.
  
 	 Principal Amount: $43,750.00
	 Issue Date: October 7, 2021

	 Purchase Price: $43,750.00
	  

   
 CONVERTIBLE PROMISSORY NOTE
  
 FOR VALUE RECEIVED, DIGITAL LOCATIONS, INC., a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of                                                                                                              corporation, or registered assigns (the “Holder”) the sum of $43,750.00 together with any interest as set forth herein, on October 7, 2022 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at the rate of twelve percent (12%)(the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of a 365‐day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”).
  
 This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.
  
 	 
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 The following terms shall apply to this Note:
  
 ARTICLE I. CONVERSION RIGHTS
  
 1.1 Conversion Right. The Holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount (as defined in Article III), each in respect of the remaining outstanding amount of this Note to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non‐ assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”); provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D‐G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived by the Holder. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e‐mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business day. The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.
  
 1.2 Conversion Price. The Conversion Price shall be equal to the Variable Conversion Price (as defined herein)(subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 55% multiplied by the Market Price (as defined herein) (representing a discount rate of 45%). “Market Price” means the lowest Trading Price (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. “Trading Price” means, for any security as of any date, the closing bid price on the OTCQB, OTCQX, Pink Sheets electronic quotation system or applicable trading market (the “OTC”) as reported by a reliable reporting service (“Reporting Service”) designated by the Holder (i.e. Bloomberg) or, if the OTC is not the principal trading market for such security, the closing bid price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no closing bid price of such security is available in any of the foregoing manners, the average of the closing bid prices of any market makers for such security that are listed in the “pink sheets”. If the Trading Price cannot be calculated for such security on such date in the manner provided above, the Trading Price shall be the fair market value as mutually determined by the Borrower and the holders of a majority in interest of the Notes being converted for which the calculation of the Trading Price is required in order to determine the Conversion Price of such Notes. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then being traded.
  
 	 
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 1.3 Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have authorized and reserved seven times the number of shares that would be issuable upon full conversion of the Note (assuming that the 4.99% limitation set forth in Section 1.1 is not in effect)(based on the respective Conversion Price of the Note (as defined in Section 1.2) in effect from time to time, initially 47,814,207 shares)(the “Reserved Amount”). The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from time to time in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non‐assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note.
  
 If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note.
  
 1.4 Method of Conversion.
  
 (a) Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e‐mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder).
  
 The Holder shall be entitled to deduct $500.00 from the conversion amount in each Notice of Conversion to cover Holder’s deposit fees associated with each Notice of Conversion. Any additional expenses incurred by Holder with respect to the Borrower’s transfer agent, for the issuance of the Common Stock into which this Note is convertible into, shall immediately and automatically be added to the balance of the Note at such time as the expenses are incurred by Holder.
  
 If at any time the Conversion Price as determined hereunder for any conversion would be less than the par value of the Common Stock, then at the sole discretion of the Holder, the Conversion Price hereunder may equal such par value for such conversion and the Conversion Amount for such conversion may be increased to include Additional Principal, where “Additional Principal” means such additional amount to be added to the Conversion Amount to the extent necessary to cause the number of conversion shares issuable upon such conversion to equal the same number of conversion shares as would have been issued had the Conversion Price not been adjusted by the Holder to the par value price.
  
 	 
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 (b) Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.
  
 (c) Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e‐mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.
  
 (d) Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.
  
 (e) Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section
 1.4(e) are justified.
  
 	 
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 1.5 Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (iii) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement).
  
 Any restrictive legend on certificates representing shares of Common Stock issuable upon conversion of this Note shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if the Borrower or its transfer agent shall have received an opinion of counsel from Holder’s counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that (i) a public sale or transfer of such Common Stock may be made without registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected; or (ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration statement filed under the Act; or otherwise may be sold pursuant to an exemption from registration. In the event that the Company does not reasonably accept the opinion of counsel provided by the Holder with respect to the transfer of Securities pursuant to an exemption from registration (such as Rule 144), at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.
  
 1.6 Effect of Certain Events.
  
 (a) Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.
  
 	 
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 (b) Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.
  
 (c) Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin‐off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution.
  
 1.7 Prepayment. Notwithstanding anything to the contrary contained in this Note, at any time during the periods set forth on the table immediately following this paragraph (the “Prepayment Periods”) or as otherwise agreed to between the Borrower and the Holder, the Borrower shall have the right, exercisable on not more than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.7. Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment (the “Optional Prepayment Date”), the Borrower shall make payment of the Optional Prepayment Amount (as defined below) to Holder, or upon the direction of the Holder as specified by the Holder in a writing to the Borrower (which shall direction to be sent to Borrower by the Holder at least one (1) business day prior to the Optional Prepayment Date). If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash equal to the percentage (“Prepayment Percentage”) as set forth in the table immediately following this paragraph opposite the applicable Prepayment Period, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment
  
 	 
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 Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Section 1.4 hereof (the “Optional Prepayment Amount”).
  
 	 Prepayment Period
	 Prepayment Percentage

	 1. The period beginning on the Issue Date and ending on the date which is one hundred eighty (180) days following the Issue Date.
	 150%

  
 After the expiration of the Prepayment Periods set forth above, the Borrower may submit an Optional Prepayment Notice to the Holder. Upon receipt by the Holder of the Optional Prepayment Notice post Prepayment Periods, the prepayment shall be subject to the Holder’s and the Borrower’s agreement with respect to the applicable Prepayment Percentage.
  
 Notwithstanding anything contained herein to the contrary, the Holder’s conversion rights herein shall not be affected in any way until the Note is fully paid (funds received by the Holder) pursuant to an Optional Prepayment Notice.
  
 ARTICLE II. CERTAIN COVENANTS
  
 2.1 Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition.
  
 ARTICLE III. EVENTS OF DEFAULT
  
 If any of the following events of default (each, an “Event of Default”) shall occur:
  
 3.1 Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder.
  
 3.2 Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty‐eight (48) hours of a demand from the Holder.
  
 	 
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 3.3 Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20) days after written notice thereof to the Borrower from the Holder.
  
 3.4 Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.
  
 3.5 Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed.
  
 3.6 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.
  
 3.7 Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.
  
 3.8 Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.
  
 3.9 Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.
  
 3.10 Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.
  
 3.11 Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC at any time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement would, by comparison to the un‐restated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.
  
 	 
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 3.12 Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.
  
 3.13 Cross‐Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross‐defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.
  
 Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Sum”) or (ii) the “parity value” of the Default Sum to be prepaid, where parity value means (a) the highest number of shares of Common Stock issuable upon conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment Date as the “Conversion Date” for purposes of determining the lowest applicable Conversion Price, unless the Default Event arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion Date shall be the Conversion Date), multiplied by (b) the highest Closing Price for the Common Stock during the period beginning on the date of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.
  
 	 
	9
	

	 

   
 If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect.
  
 ARTICLE IV. MISCELLANEOUS
  
 4.1 Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.
  
 4.2 Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:
  
 If to the Borrower, to: 
  
 DIGITAL LOCATIONS, INC.
 3700 State Street, Suite 350
 Santa Barbara, California 93105
 Attn: William E. Beifuss, Jr., Chief Executive Officer
 Fax:
 Email: bill@digitallocations.com
  
 	 
	10
	

	 

  
 If to the Holder:
  
                                                                              
                                                                               
                                                                               
                                                                               
 e-mail: 
  
 With a copy by fax only to (which copy shall not constitute notice): 
  
                                                                                           
                                                                                          
                                                                                           
                                                                                            
                                                                                            
  
 4.3 Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented.
  
 4.4 Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account or other lending arrangement; and may be assigned by the Holder without the consent of the Borrower.
  
 4.5 Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees.
  
 4.6 Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of New York or in the federal courts located in the state and county of Nassau. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.
  
 4.7 Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.
  
 	 
	11
	

	 

   
 4.8 Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required.
  
 IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this on October 7, 2021
  
 	DIGITAL LOCATIONS, INC.	
	 	 	 
	By:	 
	
	  
	William E. Beifuss, Jr.	 
	 	Chief Executive Officer	 

  
 	 
	12
	

	 

  
 EXHIBIT A ‐‐ NOTICE OF CONVERSION
  
 The undersigned hereby elects to convert $_____________ principal amount of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of DIGITAL LOCATIONS, INC., a Nevada corporation (the “Borrower”) according to the conditions of the convertible note of the Borrower dated as of October 7, 2021 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.
  
 Box Checked as to applicable instructions:
  
 	  
	 [ ]
	 The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).

	  
	  
	  

	  
	  
	 Name of DTC Prime Broker: 
 Account Number:

	  
	  
	  

	  
	 [ ]
	 The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:

	  
	  
	  

	  
	  
	                                                                                
                                                                                
                                                                                
                                                                                 
                                                                                 

	  
	  
	  

	  
	  
	 Date of conversion:                                                                                    __________________
 Applicable Conversion Price:                                                                   $__________________ 
 Number of shares of common stock to be issued 
 pursuant to conversion of the Notes:                                                 __________________
 Amount of Principal Balance due remaining 
 under the Note after this conversion:                                                  __________________
  
                                                                                  
  
 By:                                                                                          
 Name:                                     
 Title: Chief Executive Officer
 Date: ______________________________ 

  
 	 
	13Exhibit 4.1

 

THIS WARRANT
AND THE SHARES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT
BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933, AS AMENDED OR EVIDENCE THAT AN EXEMPTION FROM SUCH REGISTRATION EXISTS.

 

 

 

ORION OFFICE REIT INC.

 

WARRANT TO PURCHASE SHARES

 

This
Warrant is issued to [●], a Delaware limited liability company (“Arch Street”) by Orion Office REIT
Inc., a Maryland corporation (the “Company”), effective as of the Distribution Date.

 

1.            Purchase
of Shares. On the terms and subject to the conditions hereinafter set forth, the holder of this Warrant is entitled, upon surrender
of this Warrant at the principal office of the Company (or at such other place as the Company shall notify the holder hereof in writing),
to purchase from the Company up to [●] ([●]) shares, as adjusted pursuant to Section 7 below (the “Shares”),
of the Company’s common stock, par value $0.001 per share (the “Common Stock”), at the Exercise Price (as defined
below).

 

2.            Definitions.

 

(a)            Change
of Control. The term “Change of Control” shall mean (i) the acquisition of the Company by another entity by
means of any transaction or series of related transactions with the Company (including, without limitation, any stock purchase, reorganization,
merger or consolidation but, excluding any merger effected exclusively for the purpose of changing the domicile of the Company); or (ii) a
sale of all or substantially all of the assets of the Company, unless the Company’s shareholders of record as constituted immediately
prior to such acquisition or sale will, immediately after such acquisition or sale (solely by virtue of securities issued as consideration
for the Company’s acquisition or sale or otherwise) hold at least 50% of the voting power of the surviving or acquiring entity.
For the avoidance of doubt, notwithstanding the foregoing, the transactions contemplated by the Merger Agreement, including the Mergers
(as defined in the Merger Agreement) and the distribution of shares of Common Stock (the “Distribution”) to the shareholders
of Realty Income Corporation (“Realty Income”) contemplated thereby, shall not be deemed a Change of Control for purposes
of this Warrant.

 

(b)            Distribution
Date. The “Distribution Date” means the date the Distribution occurs.

 

     

     

    

 

(c)            Exercise
Price. The exercise price for the Shares shall be equal to the product of (1) the 30-day volume weighted average per share
price of the Common Stock (based on closing price) for the first 30 trading days beginning on the date the shares of the
Company’s common stock become listed and tradable on a national stock exchange following the Distribution (the
 “Initial Listing Date”), multiplied by (2) 1.15, as adjusted for any stock splits, dividends, combinations
and the like as provided in Section 7 below (such price, as adjusted from time to time, is herein referred to as the
 “Exercise Price”).

 

(d)            Merger
Agreement. The term “Merger Agreement” means the agreement and plan of merger, dated as of April 29, 2021,
as amended, by and among VEREIT, Inc., VEREIT Operating Partnership, L.P., Realty Income, Rams MD Subsidiary I, Inc., and Rams
Acquisition Sub II, LLC.

 

3.            Change
of Control. In the event of a Change of Control, the holder of this Warrant (at the holder’s option) may elect to receive, in
regards to any Shares not yet purchased pursuant to the Warrant, an amount, in cash, equal to the difference between the exercise price
for such Shares and the price per share of Common Stock that the holder would have received upon consummation of the Change of Control
if this Warrant had been exercised for shares of Common Stock prior to such event.

 

4.            Exercise.

 

(a)          Method
of Exercise. While this Warrant remains outstanding and exercisable, the holder may exercise, in whole or in part, the purchase rights
evidenced hereby. Such exercise shall be effected by:

 

		(i)	the surrender of the Warrant, together with a notice of exercise to the Secretary of the Company at its
principal offices, which shall be delivered at least 30 calendar days prior to the requested date of exercise; and

 

		(ii)	the payment to the Company of an amount equal to the aggregate Exercise Price for the number of Shares being
purchased.

 

		(iii)	In lieu of exercising this Warrant as specified in this Section 4(a)(ii), the holder may convert
this Warrant, in whole or in part, into a number of Shares determined by dividing (A) the aggregate fair market value of the Shares
issuable upon exercise of this Warrant (or such applicable lesser number of Shares in the case of a partial exercise) minus the aggregate
Exercise Price of such Shares by (B) the fair market value of one Share, rounded down to the nearest whole Share. The fair market
value of the Shares shall be the closing price of the Company’s Common Stock reported for the business day immediately before the
holder delivers its notice of exercise to the Company.

 

(b)          Exercise
Period. This Warrant shall be immediately exercisable for the Shares upon the date that is 31 trading days after the Distribution
Date (the “Effective Date”). This Warrant shall cease to be exercisable upon the expiration of this Warrant pursuant
to Section 17 hereof.

 

    2 

     

    

 

(c)          Limitations
on Exercise. Notwithstanding anything to the contrary in this Warrant, no exercise of all or a portion of this Warrant shall be permitted
if such exercise would violate the restrictions on ownership and transfer set forth in the Company’s Articles of Incorporation then
in effect (the “Charter”), including the limits that provide that no Person (as defined in the Charter) may Beneficially
Own (as defined in the Charter) or Constructively Own (as defined in the Charter) Common Stock or Capital Stock (as defined in the Charter)
of the Company that would cause any Person to own in excess of 9.8% (or such other percentage set forth in the Charter) of the outstanding
Common Stock (by value or number of shares, whichever is more restrictive) or more than 9.8% (or such other percentage set forth in the
Charter) of the value of the Capital Stock or that would otherwise cause the Company to fail to qualify as a REIT for U.S. federal income
tax purposes, in each case, as determined in the sole discretion of the board of directors of the Company (the “Board”).

 

5.           Certificates
for Shares. Upon the exercise of the purchase rights evidenced by this Warrant, one or more certificates for the number of Shares
so purchased and, if this Warrant has not been fully exercised or converted and has not expired, a new Warrant representing the Shares
not so acquired, shall be issued as soon as practicable thereafter.

 

6.           Issuance
of Shares. The Company covenants that the Shares, when issued pursuant to the exercise of this Warrant, will be duly and validly issued,
fully paid and nonassessable.

 

7.           Adjustment
of Exercise Price and Number of Shares. The number of and kind of securities purchasable upon exercise of this Warrant and the Exercise
Price shall be subject to adjustment from time to time as follows:

 

(a)            Extraordinary
Dividends, Subdivisions, Combinations and Other Issuances. If, at any time following the Distribution, the Company declares or pays
a non-pro rata dividend or distribution on the shares of Common Stock payable in Common Stock or other securities or property (other than
cash), then upon exercise of this Warrant, for each Share acquired, holder shall receive, without additional cost to holder, the total
number and kind of securities and property which holder would have received had holder owned the Shares of record as of the date the dividend
or distribution occurred. If the Company subdivides the outstanding shares of Common Stock by reclassification or otherwise into a greater
number of shares, the number of Shares purchasable hereunder shall be proportionately increased and the Warrant Price shall be proportionately
decreased. If the outstanding shares of Common Stock are combined or consolidated, by reclassification or otherwise, into a lesser number
of shares, the Warrant Price shall be proportionately increased and the number of Shares shall be proportionately decreased. Any adjustment
under this Section 7(a) shall become effective at the close of business on the date the subdivision or combination becomes
effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend or
distribution.

 

(b)            Reclassification,
Reorganization and Consolidation. Upon any event whereby all of the outstanding shares of Common Stock are reclassified,
exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or series, then from
and after the consummation of such event, this Warrant will be exercisable for the number, class and series of Company
securities that holder would have received had the Shares been outstanding on and as of the consummation of such event, and subject
to further adjustment thereafter from time to time in accordance with the provisions of this Warrant.

 

    3 

     

    

 

(c)            Notice
of Adjustment and Certain Events. The Company shall provide the holder with not less than 10 days prior written notice of, including
a description of the material facts surrounding, any of the events that would require adjustments pursuant to this Section 7.
When any adjustment is required to be made in the number or kind of shares purchasable upon exercise of the Warrant, or in the Exercise
Price, the Company shall promptly compute such adjustment or readjustment in accordance with the provisions hereof and prepare a certificate
showing such adjustment or readjustment, and shall mail such certificate to the holder of this Warrant in accordance with the notice provisions
of Section 18. The certificate shall set forth such adjustment or readjustment and indicate the number of shares of Common
Stock and the Exercise Price in effect after such adjustment or readjustment.

 

(d)            For
the avoidance of doubt, the terms and conditions of Section 7 shall not apply to, and no adjustment shall be made with respect
to, (i) the Distribution or (ii) any dividends or distributions by the Company upon its Common Stock, whether in cash or stock,
that are payable to all holders of Common Stock.

 

8.           No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this
Warrant, but in lieu of such fractional shares the Company shall make a cash payment therefor on the basis of the Exercise Price then
in effect.

 

9.           Reservation
of Shares. During the period between the Effective Date and the Expiration Date, the Company shall at all times reserve and keep available
out of its authorized but unissued shares of Common Stock or other securities constituting Shares, free of preemptive or similar rights,
solely for the purpose of issuance upon the exercise of this Warrant, the maximum number of Shares issuable upon the full exercise of
this Warrant, and the par value per Share shall at all times be less than or equal to the applicable Exercise Price. If, notwithstanding
this Section 9, and not in limitation thereof, at any time while this Warrant remains outstanding the Company does not have
a sufficient number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve the Required Reserve Amount
(an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the Company’s
authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the required amount for the exercise in full
of this Warrant. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of
an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure, the Company
shall, if required, hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock.

 

    4 

     

    

 

10.           Representations
of the Company. The Company represents that all necessary actions on the part of the Company, its officers, directors and shareholders
for the execution and delivery of this Warrant and the sale and issuance of the Shares have been taken, including actions to obtain listing
approval. The Company will pay all original issue and transfer taxes, if any, with respect to the issue and delivery of the Shares pursuant
hereto and all other fees and expenses necessarily incurred by the Company in connection herewith. The Company represents and warrants
that no Company shareholder approval is required in connection with the issuance of this Warrant or the Shares issuable upon exercise
thereof. This Warrant, when executed and delivered by the Company, shall constitute valid and legally binding obligations of the Company,
enforceable in accordance with its terms, except as enforceability thereof may be limited by bankruptcy, insolvency, moratorium and other
similar laws affecting creditors’ rights generally and by general equitable principles.

 

11.          Representations
and Warranties by the Holder. The holder of this Warrant represents and warrants to the Company as follows:

 

(a)            This
Warrant and the Shares issuable upon exercise thereof are being acquired for its own account, for investment and not with a view to, or
for resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act of 1933, as amended
(the "Act").

 

(b)            The
holder of this Warrant understands that the Warrant and the Shares have not been registered under the Securities Act by reason of their
issuance in a transaction exempt from the registration and prospectus delivery requirements of the Securities Act pursuant to Section 4(a)(2) thereof,
and that they must be held by the holder indefinitely, and that the holder must therefore bear the economic risk of such investment indefinitely,
unless a subsequent disposition thereof is registered under the Securities Act or is exempted from such registration.

 

(c)            The
holder of this Warrant has such knowledge and experience in financial and business matters that it is capable of evaluating the merits
and risks of the purchase of this Warrant and the Shares purchasable pursuant to the terms of this Warrant and of protecting its interests
in connection therewith.

 

(d)            The
holder of this Warrant is aware of the Company’s business affairs and financial condition and has received or has had full access
to all the information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of
this Warrant and its underlying securities. The holder of this Warrant further has had an opportunity to ask questions and receive answers
from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain additional
information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary
to verify any information furnished to the holder of this Warrant or to which such holder has access.

 

(e)            The
holder of this Warrant is able to bear the economic risk of the purchase of the Shares pursuant to the terms of this Warrant.

 

(f)            The
holder of this Warrant is an “accredited investor” as such term is defined in Rule 501 of Regulation D promulgated under
the Securities Act.

 

    5 

     

    

 

12.            Representations
and Warranties of Arch Street. Arch Street is a United States person for U.S. federal income tax purposes and has provided an Internal
Revenue Service Form W-9 to the Company to that effect.

 

13.            Restrictive
Legend.

 

The Warrant and Shares (unless
registered under the Securities Act) shall be stamped or imprinted with a legend in substantially the following form:

 

The
warrant represented by this certificate (the “Warrant”) and the Common Stock issuable upon exercise of the Warrant are
subject to restrictions on Beneficial Ownership and Constructive Ownership and Transfer for the purpose, among others, of the
maintenance of Orion Office REIT Inc. (the “Corporation”) of its status as a Real Estate Investment Trust under the
Internal Revenue Code of 1986, as amended (the “Code”). Subject to certain further restrictions and except as expressly
provided in the Corporation’s Charter, (i) no Person may Beneficially Own or Constructively Own shares of the
Corporation’s Common Stock (including through ownership of the Warrant) in excess of the Common Stock Ownership Limit unless
such Person is an Excepted Holder (in which case the Excepted Holder Limit shall be applicable); (ii) no Person may
Beneficially Own or Constructively Own shares of Capital Stock of the Corporation (including through ownership of the Warrant) in
excess of the Aggregate Stock Ownership Limit, unless such Person is an Excepted Holder (in which case the Excepted Holder Limit
shall be applicable); and (iii) no Person may Beneficially Own or Constructively Own Capital Stock (including through ownership
of the Warrant) that would result in the Corporation being “closely held” under Section 856(h) of the Code or
otherwise cause the Corporation to fail to qualify as a REIT. Any Person who Beneficially Owns or Constructively Owns or attempts or
intends to Beneficially Own or Constructively Own shares of Capital Stock (including through ownership of the Warrant) which causes
or will cause a Person to Beneficially Own or Constructively Own shares of Capital Stock in excess or in violation of the above
limitations must immediately notify the Corporation or, in the case of such a proposed or attempted transaction, give at least 15
days prior written notice. IF ANY OF THE RESTRICTIONS ON TRANSFER OR OWNERSHIP PROVIDED IN (I), (II) OR (III) ABOVE ARE
VIOLATED, THE SHARES OF CAPITAL STOCK IN EXCESS OR IN VIOLATION OF THE ABOVE LIMITATIONS WILL BE AUTOMATICALLY TRANSFERRED TO A
TRUSTEE OF A TRUST FOR THE BENEFIT OF ONE OR MORE CHARITABLE BENEFICIARIES. IN ADDITION, the Corporation may redeem shares upon the
terms and conditions specified by the Board of Directors in its sole and absolute discretion if the Board of Directors determines
that ownership or a Transfer or other event may violate the restrictions described above. Furthermore, IN CERTAIN
CIRCUMSTANCES, if the ownership restrictions provided above would be violated or upon the occurrence of certain events, attempted
Transfers in violation of the restrictions described above may be void ab initio. All capitalized terms in this legend have the
meanings defined in the Charter of the Corporation, as the same may be amended from time to time, a copy of which, including the
restrictions on transfer and ownership, will be furnished to each holder of Warrants on request and without charge. Requests for
such a copy may be directed to the Secretary of the Corporation at its Principal Office.

 

    6 

     

    

 

THE WARRANT REPRESENTED BY THIS CERTIFICATE
and the Common Stock issuable upon exercise of the Warrant HAVE BEEN ACQUIRED FOR INVESTMENT
AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF, AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. SUCH WARRANTS MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER
THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE WARRANTS AND RESTRICTING THEIR
TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY
AT THE PRINCIPAL EXECUTIVE OFFICES OF THE CORPORATION.

 

The Warrant and the Shares shall
not contain any securities act legend: (i) while a registration statement covering the resale of such security is effective under
the Securities Act, (ii) if the Shares are eligible for sale under Rule 144, or (iii) if such securities act legend is
not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the
staff of the Commission). If all or any portion of this Warrant is exercised at a time when there is an effective registration statement
to cover the resale of the Shares, or if such Shares may be sold under Rule 144 or if such securities act legend is not otherwise
required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff
of the Commission) then such Shares shall be issued free of any securities act legend. The Company agrees that following such time as
such securities act legend is no longer required under this Section 13 and upon the request of the holder, the Company will, no later
than three (3) trading days following the delivery by the holder to the Company of Shares issued with a securities act legend deliver
or cause to be delivered to such holder, the Shares free from any securities act legend. The Company will use its best efforts, including
delivering an opinion to the Company’s transfer agent at its own expense, to ensure any securities act legend is removed in accordance
with this section.

 

    7 

     

    

 

14.          Warrants
Non-Transferable.

 

(a)            This
Warrant may not be sold, assigned or otherwise transferred, directly or indirectly (including by operation of law) by the holder hereof,
without the express written consent of the Company, except that, subject to the following sentence, Arch Street may transfer (i) the
Warrant, in whole or in part, to a single affiliate of Arch Street, including, without limitation, OAP Holdings LLC, or (b) Warrants
to purchase up to 300,000 Shares to a single non-affiliate of Arch Street (such transfers in clause (a) and (b), the “Permitted
Transfers”). Any sale, transfer or assignment of this Warrant shall be subject to compliance with the terms and conditions of
Section 14 and applicable federal and state securities laws, and any purported sale, assignment or transfer in violation of
Section 14 shall be null and void.

 

(b)            Any
transfer of this Warrant shall require surrender of this Warrant properly endorsed or accompanied by written instructions of
transfer. With respect to any offer, sale or other disposition of this Warrant or the Shares that is not a Permitted Transfer, the
holder hereof agrees to give written notice to the Company prior thereto, together with evidence, describing briefly the manner
thereof to the effect that such offer, sale or other disposition may be effected without registration or qualification (under the
Securities Act as then in effect or any federal or state securities law then in effect) of this Warrant or the Shares and indicating
whether or not under the Securities Act certificates for this Warrant or the Shares to be sold or otherwise disposed of require any
restrictive legend as to applicable restrictions on transferability in order to ensure compliance with such law. Upon receiving such
written notice and reasonably satisfactory evidence, the Company, as promptly as practicable, shall notify such holder that such
holder may sell or otherwise dispose of this Warrant or the Shares, all in accordance with the terms of the notice delivered to the
Company. If a determination has been made pursuant to this Section 14 that the evidence is not reasonably satisfactory
to the Company, the Company shall so notify the holder promptly with details thereof after such determination has been made.

 

(c)            Each
certificate representing this Warrant or Shares transferred in accordance with this Section 14 shall bear a legend as to the
applicable restrictions on transferability in order to ensure compliance with such laws, unless the evidence provided demonstrates that
such legend is not required in order to ensure compliance with such laws. The Company may issue stop transfer instructions to its transfer
agent in connection with such restrictions.

 

(d)            Notwithstanding
anything to the contrary in this Warrant, no sale, assignment or other transfer, directly or indirectly (including by operation of law)
of all or a portion of this Warrant or the Shares shall be permitted if such sale, assignment or other transfer would violate the restrictions
on ownership and transfer set forth in the Charter, including the limits that provide that no Person (as defined in the Charter) may Beneficially
Own (as defined in the Charter) or Constructively Own (as defined in the Charter) Common Stock or Capital Stock (as defined in the Charter)
of the Company that would cause any Person to own in excess of 9.8% (or such other percentage set forth in the Charter) of the outstanding
Common Stock (by value or number of shares, whichever is more restrictive) or more than 9.8% (or such other percentage set forth in the
Charter) of the value of the Capital Stock or that would otherwise cause the Company to fail to qualify as a REIT for U.S. federal income
tax purposes, in each case, as determined in the sole discretion of the Board.

 

    8 

     

    

 

15.          Registration
Rights. The Company agrees that, prior to six months following the Company’s eligibility to use Form S-3 for the registration
of securities of the Company, it shall file with the Commission a registration statement on Form S-3, or a prospectus supplement
to an existing registration statement on Form S-3 (the “Registration Statement”) for the registration, under the
Securities Act of 1933, as amended (the “Securities Act”), of the shares of Common Stock that remain issuable by Arch
Street upon exercise of this Warrant. The Company shall use its commercially reasonable efforts to cause the Registration Statement to
become effective as soon as practicable thereafter, and shall use its commercially reasonable efforts to maintain the effectiveness of
the Registration Statement, and a current prospectus relating thereto, subject to customary black-out periods as reasonably determined
by the Company, until the earlier of (a) the expiration of this Warrant, or (b) the Shares issuable upon such exercise shall
become freely tradable under United States federal securities laws by anyone who is not an affiliate (as such term is defined in Rule 144
under the Securities Act (or any successor rule)) of the Company. The Holder shall to promptly furnish in writing to the Company such
information regarding the distribution of the Registrable Securities as the Company may from time to time reasonably request and such
other information as may be legally required in connection with such registration, including all such information as may be requested
by the SEC.

 

16.          No
Rights as Shareholder. The holder of this Warrant, as a holder of the Warrant, will not have any voting rights or other rights of
a shareholder of the Company until exercise of this Warrant (at which time, the holder of this Warrant shall only have such rights as
entitled to the Shares held thereby).

 

17.          Expiration
of Warrant. This Warrant shall be exercisable in whole or in part (on the terms and subject to the conditions of this Warrant), at
any time, until (a) for so long as the Arch Street JV (as defined below) remains in full force and effect, the date that is ten years
after the Effective Date and(b) if the Arch Street OEP/VER Venture, LLC (the “Arch Street JV”) is terminated pursuant
to the terms of the limited liability company agreement of the Arch Street JV, dated January 13, 2020, as may be amended, the earlier
of (i) the date that is seven years after the Effective Date, and (ii) the date upon which the Arch Street JV is terminated
(the “Expiration Date”).

 

    9 

     

    

 

18.          Notices.

 

(a)            Any
notice, consent, claim, demand, waiver, or other communication under this Warrant have legal effect only if in writing and addressed to
a party to the address set forth below (or to such other address or such other person that a party may designate for itself from time
to time in accordance with this Section 18). Notices sent in accordance with this Section 17 will be deemed effectively
given: (a) when received, if delivered by hand, with signed confirmation of receipt; (b) when received, if sent by a nationally
recognized overnight courier, signature required; (c) when sent, if by email, (in each case, with confirmation of transmission),
if sent during the addressee's normal business hours, and on the next business day, if sent after the addressee's normal business hours;
and (d) on the third day after the date mailed by certified or registered mail, return receipt requested, postage prepaid.

 

Arch Street:

 

Arch Street Capital Advisors, LLC 

70 West 40th Street, 3rd
Floor 

New York, New York 10018 

Attn: Anup Patel

 

with a copy to Arch Street’s counsel:

 

King & Spalding LLP 

1185 Avenue of the Americas 

New York, New York 100365 

Attn: Andrew Metcalf

 

The Company:

 

Orion Office REIT Inc. 

2325 E. Camelback Road, Floor 8 

Phoenix, AZ 85016 

Attn: Chief Executive Officer

 

with a copy to the Company’s counsel:

 

Latham & Watkins LLP 

600 Town Center Drive, Suite 2000 

Costa Mesa, CA 92626 

Attn: William J. Cernius 

Darren Guttenberg

 

19.            Governing
Law. This Warrant and all actions arising out of or in connection with this Agreement shall be governed by and construed in accordance
with the laws of the State of Maryland, without regard to the conflicts of law provisions of the State of Maryland or of any other state.

 

20.            Amendment
and Waiver. Except as otherwise provided herein, the provisions of this Warrant may be amended or waived and the Company may take
any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written
consent of the holder. No waiver by the Company or the holder of any of the provisions hereof shall be effective unless explicitly set
forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any
failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring
before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Warrant
shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege

 

    10 

     

    

 

21.            Withholding.
The Company shall be entitled to deduct and withhold from any Shares issuable or amounts otherwise payable pursuant to this
Agreement to the holder such amounts as the Company is required to deduct and withhold under the Code, or any tax law, with respect
to such issuance or the making of such payment. To the extent that amounts are so withheld, such withheld amounts shall be treated
for all purposes of this Agreement as having been paid to the person in respect of whom such deduction and withholding was made. The
holder of the Warrant shall deliver such documentation prescribed by applicable law or reasonably requested by the Company as will
enable the Company to determine whether or not such holder is subject to withholding or information reporting
requirements.

 

22.            Rights
and Obligations Survive Exercise of Warrant. Unless otherwise provided herein, the rights and obligations of the Company, of the holder
of this Warrant and of the holder of the Shares issued upon exercise of this Warrant, shall survive the exercise of this Warrant.

 

[Signature page follows]

 

    11 

     

    

 

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

 

	 	ORION OFFICE REIT INC.
	 	 
	 	By:	 
	 	Name: 
	 	Title: 

 

     

     

    

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

	TO:	ORION OFFICE REIT INC.	 
	 	 	 
	 	 	 

 

Attention: Chief Executive Officer

 

1.             The
undersigned hereby elects to purchase                     Shares pursuant to
the terms of the attached Warrant.

 

		2.	Method of Exercise (Please initial the applicable blank):

 

		            	The undersigned elects to exercise the attached Warrant by means of a cash payment, and tenders
                                                                              herewith payment in full for the purchase price of the shares being purchased, together with all applicable transfer taxes, if
                                                                              any.

 

		            	The undersigned elects to exercise the attached Warrant by means of the net exercise provisions of
                                                                            Section 4(a)(iii) of the Warrant.

 

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

 

 

(Name)

 

 

 

 

(Address)

 

4.            The
undersigned hereby represents and warrants that all representations and warranties of the undersigned set forth in Section 11 of
the attached Warrant (including Section 11(f) thereof) are true and correct as of the date hereof.

  

	 	 	(Signature)
	 	 	 
	 	 	(Name)
	 	 	 
	(Date)	 	 (Title)

 

     

     

    

 

EXHIBIT B

 

FORM OF TRANSFER 

(To be signed only upon transfer of Warrant)

 

FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers
unto                                                                                              the
right represented by the attached Warrant to
purchase          shares of Common
Stock of Orion Office REIT Inc. to which the attached Warrant relates, and appoints            
Attorney to transfer such right on the books
of                                ,
with full power of substitution in the premises.

 

	Dated:	 	 	 
	 	 	 	 
	  	 	 	 
	 	 	 	(Signature must conform in all respects to name of Holder as specified on the face of the Warrant)
	 	 	 	 
	 	 	 	Address:	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Signed in the presence of:

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