Fastfunds Financial 8-K Entry into a Material Definitive Agreement

Exhibit 10.1

NEITHERTHEISSUANCEANDSALEOFTHESECURITIESREPRESENTEDBYTHISCERTIFICATENORTHESECURITIESINTOWHICHTHESESECURITIESARECONVERTIBLEHAVEBEENREGISTEREDUNDERTHESECURITIESACTOF1933,ASAMENDED,ORAPPLICABLESTATESECURITIESLAWS.THESECURITIESMAY NOT BEOFFEREDFOR SALE, SOLD,TRANSFERRED ORASSIGNED (I) IN THEABSENCE OF(A) ANEFFECTIVEREGISTRATIONSTATEMENTFOR THESECURITIESUNDER THESECURITIESACT OF1933, ASAMENDED, OR (B) ANOPINION OF COUNSEL (WHICHCOUNSEL SHALLBESELECTEDBYTHEHOLDER),INAGENERALLYACCEPTABLEFORM,THATREGISTRATION IS NOTREQUIREDUNDER SAIDACT OR (II)UNLESS SOLDPURSUANTTORULE144ORRULE144AUNDERSAIDACT.NOTWITHSTANDING THEFOREGOING, THESECURITIES MAY BEPLEDGED INCONNECTIONWITHABONAFIDEMARGINACCOUNTOROTHERLOANORFINANCINGARRANGEMENTSECURED BY THESECURITIES.

Principal Amount: $224,318.00	Issue Date: June 30, 2016
Purchase Price: $195,059.00
Original Issue Discount: $29,259.00

SENIOR SECUREDCONVERTIBLEPROMISSORYNOTE

FOR VALUERECEIVED,FastFunds FinancialCorporationaNevadacorporation (hereinaftercalledthe“Borrower”),andtheBorrower’smajorityownedsubsidiary, BrawnstoneSecurity,LLC,anOhiolimitedliabilitycompany,hereby promise to pay to theorderofCAREBOURN CAPITAL,L.P.,a Delaware limitedpartnership, orregistered assigns (the“Holder”)the sum of$224,318.00together with anyinterestasset forthherein, onNovember 30, 2017(the“MaturityDate”),andtopayinterestontheunpaidprincipalbalancehereofattherateof12%(The“Interest Rate”)perannumfrom thedatehereof(the“Issue Date”)until thesame becomes dueandpayable, whetherat maturityor uponaccelerationor byprepaymentorotherwise.This Note maynot beprepaid in whole or inpartexceptas otherwise explicitly setforthherein.Anyamount ofprincipalorinterest onthisNote whichis notpaidwhendueshallbearinterest at therateof twenty twopercent (22%)perannum from the duedatethereofuntil thesameispaid (“DefaultInterest”). Interest shallcommence accruing onthedatethattheNote is fully paidand shall becomputedonthebasis of a365-dayyearandtheactualnumber ofdayselapsed.Allpayments due hereunder (to theextent notconverted into commonstock, $0.001parvalue per share (the “CommonStock”) inaccordancewith thetermshereof)shallbe made inlawful moneyof the UnitedStates ofAmerica. Allpayments shall bemadeatsuch addressastheHoldershall hereaftergiveto theBorrowerbywrittennoticemadeinaccordancewith the provisionsof thisNote. Whenever anyamountexpressed tobeduebythetermsof thisNoteis due on any daywhichis not abusinessday, the sameshallinstead be due on the nextsucceedingday which is abusiness day and, in thecase of any interestpaymentdate which is not thedate onwhichthis Note ispaid in full, theextensionof the duedatethereofshallnot betaken intoaccount for purposes ofdetermining theamountofinterest due onsuch date. Asused in thisNote,the term“businessday”shallmean anyday other than aSaturday, Sunday or a day onwhichcommercialbanksinthecity ofNewYork,NewYorkareauthorizedorrequiredbylaw orexecutiveordertoremainclosed.Each capitalizedtermusedherein, and nototherwise defined,shallhavethemeaning ascribedthereto in thatcertain SecuritiesPurchase Agreementdated thedate hereof,pursuant towhich this Notewasoriginallyissued (the“Purchase Agreement”).

ThisNotecarriesanoriginalissuediscountof$29,259.00(the“OID”).Inaddition,theBorrowershallauthorizetheHolder,pursuanttoadisbursementmemorandumdatedonoraroundtheIssueDate,topay$5,000.00(the“Transactional ExpenseAmount”) to theHolderor theHolder’sdesignee, tocover theHolder’s accountingfees, due diligencefees, monitoring(including but not limitedto ACH monitoring costs),and/or othertransactionalcostsincurred inconnection with thepurchaseandsale of the Note,aswellas$500.00(the“LegalFee”) toHolder’sattorney,tocoverHolder’slegalreviewfees inconnectionwiththepurchaseandsale of theNote,all of which areincluded in theinitialprincipal balance of thisNote. Thus, thepurchasepriceofthisNoteshall be$195,059.00,computedasfollows:$224,318.00initialprincipalbalance less theOID.Accordingly, thenetamount to be received by the Companyshall be$189,559.00, computedas follows: thepurchasepriceof$195,059.00, less theTransactional ExpenseAmountand LegalFee.

ThisNoteisfreefromalltaxes,liens,claimsandencumbranceswithrespecttotheissuethereofandshallnotbesubjecttopreemptiverightsorothersimilarrightsofshareholdersoftheBorrowerand will not impose personal liabilityupon theholderthereof.

ThisNoteisasecured,seniorobligationoftheBorrower,withpriorityoverallexistingandfutureIndebtedness(asdefinedbelow)oftheBorrowerasprovidedforherein.Theobligationsof theBorrowerunder thisNote aresecuredbyallof theoutstandingsharesof theBorrower’sSeriesCPreferredstock,pursuanttothepledgeagreementattachedasExhibit“E”hereto. Until this Note issatisfied in full,pursuant to theterms ofthisNote,neither theBorrowernorHenry Fongshalleffectuate any sale,transfer,disposition,orchangesintherightsanddesignations ofany of the Borrower’sSeries CPreferredstock.

TheobligationsoftheBorrowerunderthisNoteshallrankseniorwithrespecttoallexistingIndebtednessoftheBorrowerasofthedatehereofandtoanyandallIndebtednessincurredas of orfollowingtheIssue Date.

SolongastheBorrowershall have anyobligation underthisNote,theBorrowershallnot(directlyorindirectlythroughanySubsidiaryoraffiliate)incur orsuffer toexist or guaranteeanyIndebtednessthatisseniortoorparipassuwith(inpriorityofpaymentandperformance)theBorrower’s obligationshereunder. Asused herein, theterm“Indebtedness” means(a)all indebtedness of theBorrower for borrowed moneyor for the deferredpurchasepriceof property orservices,including any type ofletters of credit, (b)allobligationsof theBorrowerevidencedbynotes, bonds, debentures orothersimilarinstruments,(c)purchasemoney indebtednesshereafterincurredby theBorrowerto financethepurchaseoffixed orcapitalassets,including allcapitallease obligations of theBorrowerwhichdo notexceed thepurchasepriceof theassetsfunded, (d)all guaranteeobligations of theBorrowerinrespect ofobligations of the kindreferred to inclauses (a)through (c) above that theBorrower would not bepermitted to incur orenter into,and (e)allobligationsof the kindreferred to inclauses (a)through (d) above that theBorrower is not permitted to incur orenter into that are securedand/or unsecuredby (or forwhich the holderofsuchobligation hasanexistingright, contingentorotherwise, to be securedand/or unsecuredby) anylienorencumbrance on property (includingaccounts andcontract rights) ownedby theBorrower, whetheror not theBorrowerhas assumed orbecomeliable for thepayment ofsuchobligation.

Thefollowingterms shallalso applyto thisNote:

ARTICLEI.CONVERSIONRIGHTS

1.1ConversionRight.TheHoldershallhavetherightfromtimetotime,andatanytimefollowingNinety(90)daysafterthedateofthisNoteandendingonthelaterof:(i)theMaturityDateand (ii)thedateofpayment of theDefault Amount(asdefinedinArticle III)pursuant toSection 1.6(a) orArticle III,each inrespect of the remainingoutstandingprincipalamountofthisNotetoconvertalloranypartoftheoutstandingandunpaidprincipalamountof this Note into fullypaidand non- assessable shares of Common Stock,assuch Common Stock exists on the IssueDate, oranysharesofcapital stock or other securities of theBorrower intowhichsuch CommonStockshallhereafter bechanged orreclassifiedat theconversionprice (the“ConversionPrice”)determinedasprovidedherein (a“Conversion”);provided,however, thatin noeventshall theHolderbeentitledto convertanyportion ofthis Noteinexcess ofthat portion ofthis Note uponconversionofwhichthesum of(1) thenumberofshares ofCommon Stock beneficiallyownedby theHolderand itsaffiliates(other thanshares of Common Stockwhichmaybe deemed beneficiallyowned through theownershipof theunconverted portion of theNotes or the unexercised orunconverted portion of any other security of theBorrowersubject to alimitation onconversion orexerciseanalogous to thelimitationscontained herein)and(2)thenumberofsharesofCommonStockissuableupontheconversionofthe portionof this Notewithrespect towhich thedetermination ofthis proviso isbeingmade, wouldresult inbeneficial ownershipby theHolderand itsaffiliates of more than4.99% of theoutstandingshares of Common Stock.For purposesof the proviso to the immediately precedingsentence,beneficial ownershipshall bedetermined inaccordance withSection13(d) of theSecuritiesExchangeAct of 1934,asamended(the “ExchangeAct”),and Regulations 13D-Gthereunder,exceptasotherwiseprovidedinclause (1) ofsuchproviso,provided,further,however,thatthe limitations onconversion maybewaivedbytheHolder upon,at theelection of theHolder, notlessthan61days’ priornoticetotheBorrower,andtheprovisionsoftheconversionlimitationshallcontinue to apply untilsuch 61st day (or suchlater date,as determinedby theHolder,as maybe specified insuchnoticeofwaiver).The number ofsharesof Common Stock to be issued uponeachconversionof thisNoteshallbedeterminedby dividing theConversionAmount(asdefinedbelow)by theapplicableConversionPrice then ineffect on thedatespecified in thenotice ofconversion, in theformattachedheretoas Exhibit A (the“Notice ofConversion”),deliveredtotheBorrowerbytheHolderinaccordancewithSection1.4below;providedthatthe Notice ofConversion is submittedbyfacsimile or e-mail (orby othermeansresulting in, or reasonably expected toresultin,notice) totheBorrowerbefore 6:00p.m.,NewYork,NewYork timeonsuchconversiondate(the“ConversionDate”). Theterm“ConversionAmount”means, withrespect toanyconversion ofthisNote, the sum of(1) theprincipal amount ofthis Noteto beconvertedinsuchconversionplus(2)attheHolder’soption,accruedandunpaidinterest,ifany,onsuchprincipalamountattheinterestratesprovidedinthisNotetotheConversionDate, plus (3)at theHolder’s option,DefaultInterest, ifany, onthe amountsreferred to in the immediatelyprecedingclauses (1)and/or(2)plus (4)at theHolder’s option,anyamountsowed to the Holderpursuant toSections 1.3and1.4(g)hereof.

1.2ConversionPrice.

CalculationofConversionPrice.Theconversionprice(the“ConversionPrice”) shall equaltheVariableConversionPrice(asdefinedherein)(subjecttoequitableadjustmentsforstocksplits,stockdividendsorrightsofferingsbytheBorrowerrelating totheBorrower’s securities or the securities ofanysubsidiaryof theBorrower, combinations,recapitalization, reclassifications,extraordinary distributionsand similarevents). The"Variable ConversionPrice"shallmean 50%multipliedbytheMarketPrice(asdefinedherein) (representing adiscountrateof50%). In the case that shares of theBorrower’s common stockarenotdeliverable via DWAC following the conversion of anyamount hereunder,anadditionalFive Percent (5%) discountshall beaddedto the amountbeingconvertedatsuch time. In theeventthat theBorrower’s shares ofcommon stock arechilledfordepositinto the DTC systemandonlyeligible forXclearing deposit,anadditionalTen percent(10%) discountshall beadded to theamount beingconverted atsuch time .“MarketPrice”means thelowest one(1) TradingPrices(as defined below) for the Common Stock during the twenty(20) TradingDayperiod endingonthelatestcomplete TradingDayprior to the ConversionDate.“Trading Price” means, for anysecurityasofany date, thelowestpriceon theOTCMarketsOTCQB Marketplace, orapplicable trading market (the“OTCQB”) asreportedby areliablereportingservice (“ReportingService”) designatedby theHolder (i.e.Bloomberg)or,ifthe OTCQBisnottheprincipaltrading market forsuchsecurity, the closing bid price of such security on theprincipal securitiesexchangeor tradingmarketwheresuchsecurityis listed ortradedor, ifnoclosing bid price ofsuch security isavailable inany of theforegoingmanners, theaverageof theclosingbidprices ofanymarketmakers forsuch security that are listed in the“pinksheets” by theNationalQuotation Bureau,Inc. If theTradingPricecannot becalculated forsuch security onsuchdate in themanner providedabove, the Trading Priceshallbe the fairmarketvalueasmutuallydetermined bytheBorrower and the holdersof a majorityininterest of theNotes beingconvertedforwhich thecalculation of the TradingPrice isrequired in order todetermine theConversion PriceofsuchNotes.“Trading Day”shallmeananydayonwhichtheCommon StockistradableforanyperiodontheOTCQB,orontheprincipalsecurities exchange orothersecuritiesmarketon which theCommon Stock is thenbeingtraded.

1.3AuthorizedShares.TheBorrowercovenantsthatduringtheperiodtheconversionrightexists,theBorrowerwillreservefromitsauthorizedandunissuedCommonStockasufficientnumberofshares, freefrompreemptiverights,toprovidefortheissuanceofCommon Stock upon thefullconversion ofthis Note issuedpursuantto thePurchaseAgreement.TheBorrowerisrequiredatalltimestohaveauthorizedand reserved fivetimesthenumberofshares that isactuallyissuableupon full conversion of the Note(basedontheConversionPriceof theNotes ineffect from time totime)(the“ReservedAmount”).TheReserved Amountshall beincreased from time to time inaccordancewith the Borrower’s obligationspursuanttoSection 4(g)ofthePurchaseAgreement. TheBorrowerrepresentsthatuponissuance, suchshareswill bedulyand validly issued, fullypaidand non-assessable. Inaddition,iftheBorrower shall issue any securities or makeanychangeto itscapitalstructure which wouldchange the numberofsharesof Common Stock intowhich theNotes shall beconvertibleat the thencurrentConversionPrice,theBorrowershall atthesametimemakeproperprovisionsothatthereafterthereshallbeasufficient number ofsharesofCommonStockauthorized andreserved,freefrompreemptiverights, for conversion of theoutstandingNotes. TheBorrower(i)acknowledges that ithas irrevocablyinstructed itstransferagent to issuecertificates for theCommon Stockissuableuponconversion of thisNote,and (ii)agrees that itsissuanceof thisNoteshallconstitutefull authority to itsofficers andagentswho arecharged with the duty of executing stockcertificatestoexecuteand issuethe necessarycertificatesforsharesof CommonStockinaccordance with thetermsandconditions of this Note.

If,atanytimetheBorrowerdoesnotmaintaintheReservedAmountitwillbeconsideredanEventofDefaultunderSection3.2oftheNote.However,uponreceiptofwrittennoticefromtheHolderofBorrower’sfailuretomaintaintheReservedAmount,theBorrowershallhavethree (3)days tocureanydeficienciesin theReserved Amount.

1.4Method ofConversion.

(a)MechanicsofConversion.SubjecttoSection1.1,thisNotemaybeconvertedbytheHolderinwholeorinpartatanytimefromtimetotimeafterOneHundredEightyDays following theIssueDate,by (A)submitting totheBorrowera Notice ofConversion(byfacsimile,e-mail or otherreasonablemeans ofcommunication dispatched on theConversionDate prior to 6:00 p.m.,NewYork, New York time)and (B) subject toSection1.4(b),surrenderingthis Noteat the principalofficeof theBorrower.

(b)SurrenderofNoteUponConversion.Notwithstandinganythingtothecontrarysetforthherein,uponconversionofthisNoteinaccordancewiththetermshereof,theHoldershallnotberequiredtophysicallysurrenderthisNotetotheBorrowerunlesstheentireunpaidprincipalamountof this Note issoconverted. The Holder and theBorrowershall maintainrecords showing theprincipalamount soconvertedand thedates ofsuch conversions orshall usesuchother method, reasonablysatisfactory to theHolderandtheBorrower,soas not torequirephysical surrender of this Note uponeachsuch conversion. In theevent of any disputeordiscrepancy,suchrecords of theBorrowershall,primafacie,becontrollinganddeterminative in theabsence ofmanifesterror. Notwithstanding theforegoing, ifany portion of this Note isconvertedasaforesaid,theHoldermaynottransferthisNote unlesstheHolderfirstphysicallysurrenders this Note totheBorrower,whereupon theBorrower willforthwith issueanddeliver upon theorderoftheHolderanewNoteofliketenor,registeredas theHolder(uponpaymentby theHolderofanyapplicable transfer taxes) mayrequest,representing in theaggregate theremainingunpaidprincipalamount ofthisNote. The Holderandanyassignee, byacceptance of thisNote,acknowledgeandagreethat,byreasonoftheprovisionsofthisparagraph,followingconversionofaportionofthisNote,theunpaidandunconvertedprincipalamountofthisNoterepresented by this Notemaybeless than theamountstated on the face hereof.

(c)PaymentofTaxes.TheBorrowershallnotberequiredtopayanytaxwhichmaybepayableinrespectofanytransferinvolvedintheissueanddeliveryofsharesofCommonStockorothersecuritiesorpropertyonconversion ofthis Notein anameotherthan thatoftheHolder(orinstreetname),andtheBorrowershallnotberequiredtoissueordeliver anysuchsharesor othersecurities or property unlessand until the personorpersons(other than theHolder or thecustodian in whosestreetnamesuchshares are to beheld for theHolder’saccount)requestingthe issuancethereofshallhavepaid to theBorrower theamountof any such taxorshallhave established to the satisfaction oftheBorrower that such taxhasbeenpaid.

(d)DeliveryofCommonStockUponConversion.UponreceiptbytheBorrowerfromtheHolderofafacsimiletransmissionore-mail(orotherreasonablemeansofcommunication)ofaNoticeofConversion meeting therequirementsforconversionasprovided in thisSection 1.4, the Borrower shall issue and deliver orcause tobe issued and delivered toor upon the orderof 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.

(e)ObligationofBorrowertoDeliverCommonStock.UponreceiptbytheBorrowerofaNoticeofConversion,theHoldershallbedeemedtobetheholder ofrecordoftheCommonStockissuableuponsuchconversion,theoutstandingprincipalamountandtheamount ofaccruedand unpaidinterest on thisNoteshall bereduced toreflectsuchconversion,and, unless theBorrowerdefaults on itsobligationsunder thisArticle I,allrights withrespect to the portion of this Notebeing soconverted shallforthwithterminate except theright toreceivethe Common Stock or othersecurities,cash or otherassets,ashereinprovided, onsuchconversion.If the Holdershall havegiven a Notice of Conversion asprovidedherein, theBorrower’sobligation to issueand deliver thecertificates for Common Stockshall beabsoluteandunconditional,irrespective of theabsence ofany actionby theHolder toenforce the same, anywaiver orconsent withrespect toany provisionthereof, the recovery ofanyjudgmentagainstany personor any action toenforce the same,anyfailure or delay in theenforcement of any otherobligationoftheBorrowertotheholder ofrecord,or anysetoff,counterclaim,recoupment,limitation ortermination,or anybreachorallegedbreachbytheHolder ofanyobligationto theBorrower, andirrespective ofany othercircumstance whichmightotherwise limitsuchobligationof theBorrower to the Holder inconnectionwith suchconversion. TheConversionDatespecified in the Notice ofConversionshall be theConversionDate so longas the Notice of Conversion isreceivedby theBorrowerbefore 6:00 p.m.,NewYork, NewYork time, onsuchdate.

(f)DeliveryofCommonStockbyElectronicTransfer.InlieuofdeliveringphysicalcertificatesrepresentingtheCommonStockissuableuponconversion,providedtheBorrower isparticipating intheDepositoryTrust Company(“DTC”)FastAutomatedSecuritiesTransfer(“FAST”)program, uponrequest of theHolderand itscompliancewiththeprovisionscontainedinSection1.1andinthisSection1.4,theBorrowershall use itsbesteffortstocause itstransfer agenttoelectronically transmit theCommonStockissuableuponconversionto theHolderbycrediting theaccount ofHolder’sPrimeBroker withDTCthrough itsDepositWithdrawalAgent Commission(“DWAC”)system.

(g)FailuretoDeliverCommonStockPriortoDeadline.WithoutinanywaylimitingtheHolder’srightto pursueotherremedies,includingactualdamagesand/orequitablerelief,thepartiesagreethatifdeliveryoftheCommonStockissuableuponconversion of thisNote is notdeliveredby the Deadline (other than afailure due tothecircumstancesdescribedinSection 1.3above, which failure shall begoverned bysuch Section) theBorrowershallpayto the Holder $2,000perdayin cash, foreachdaybeyond theDeadline that theBorrowerfailstodeliversuchCommonStock.Such cashamountshallbepaidtoHolderbythefifthdayofthemonth following themonth inwhich ithasaccruedor,at theoption oftheHolder(bywrittennoticeto theBorrower bythefirstdayof the month following themonth inwhich ithasaccrued),shall be addedtotheprincipal amountofthisNote,inwhichevent interest shallaccruethereon inaccordance with theterms of this Noteandsuchadditional principalamountshall beconvertibleinto CommonStockin accordancewith theterms ofthisNote.TheBorroweragrees that therightto convert is a valuableright to theHolder.Thedamages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly the parties acknowledgethat the liquidated damages provision contained in this Section 1.4(g)are justified.

1.5ConcerningtheShares.ThesharesofCommonStockissuableuponconversionofthisNotemaynotbesoldortransferredunless(i)suchsharesare soldpursuanttoaneffectiveregistrationstatementundertheActor(ii)theBorroweroritstransferagentshallhave beenfurnished withan opinion ofcounsel (which opinionshall be inform,substanceandscope customaryfor opinions ofcounsel incomparabletransactions) to theeffect that theshares to besold ortransferredmaybesold ortransferredpursuant toanexemptionfromsuchregistration or (iii)suchshares are sold ortransferred pursuant to Rule144under theAct (or asuccessor rule)(“Rule 144”) or (iv)suchsharesaretransferred toan “affiliate”(asdefined in Rule144)oftheBorrowerwhoagrees tosell orotherwisetransfertheshares onlyinaccordance with thisSection 1.5andwho isanAccreditedInvestor(asdefined in thePurchaseAgreement).Exceptasotherwiseprovided in thePurchaseAgreement(andsubject to theremoval provisionssetforthbelow),untilsuchtimeasthesharesofCommonStockissuableuponconversionofthis Notehavebeenregisteredunder theActor otherwisemaybe sold pursuant to Rule 144 without anyrestrictionas to thenumber ofsecuritiesas of aparticulardate that can then beimmediately sold,eachcertificateforsharesofCommonStockissuableuponconversionofthis Notethathas notbeen soincluded inaneffectiveregistrationstatement or thathas notbeen soldpursuant toaneffectiveregistrationstatementoranexemption thatpermitsremoval ofthelegend,shall beara legend substantially in thefollowing form,asappropriate:

“NEITHERTHEISSUANCEANDSALEOFTHESECURITIESREPRESENTEDBYTHISCERTIFICATENORTHESECURITIESINTOWHICHTHESESECURITIESAREEXERCISABLEHAVEBEENREGISTEREDUNDERTHESECURITIESACTOF1933,ASAMENDED, ORAPPLICABLESTATESECURITIESLAWS. THESECURITIESMAYNOT BE OFFEREDFOR SALE, SOLD,TRANSFERRED ORASSIGNED (I) IN THEABSENCE OF(A) ANEFFECTIVEREGISTRATIONSTATEMENTFOR THESECURITIESUNDER THESECURITIESACTOF1933,ASAMENDED, OR(B) AN OPINIONOFCOUNSEL (WHICH COUNSEL SHALL BE SELECTEDBY THEHOLDER),INAGENERALLYACCEPTABLE FORM, THATREGISTRATION IS NOTREQUIREDUNDERSAIDACT OR (II)UNLESSSOLDPURSUANTTORULE144 ORRULE144AUNDERSAIDACT.NOTWITHSTANDINGTHEFOREGOING, THESECURITIESMAY BEPLEDGED IN CONNECTION WITHA BONAFIDEMARGINACCOUNTOR OTHER LOAN ORFINANCING ARRANGEMENTSECURED BY THESECURITIES.”

ThelegendsetforthaboveshallberemovedandtheBorrowershallissuetotheHolderanewcertificatethereforefreeofanytransferlegendif(i)theBorroweroritstransfer agentshallhavereceivedanopinionofcounsel,inform,substance andscope customary for opinions ofcounselincomparable transactions, to theeffectthat a public sale ortransferofsuch Common Stock may be made withoutregistration under theAct,which opinionshall be acceptedbytheCompany sothatthesaleortransfer iseffectedor(ii)inthecaseof theCommonStockissuableupon conversion of thisNote, such securityisregistered forsalebythe Holder underan effective registration statement filed under the Act or otherwisemaybesold pursuant to Rule 144 withoutanyrestriction as to the number of securities as of a particular date that can then be immediately sold. In the event that the Company does not accept the opinion of counsel provided by theBuyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an EventofDefault pursuant to Section 3.2 of the Note.

1.6EffectofCertain Events.

(a)EffectofMerger,Consolidation,Etc.AttheoptionoftheHolder,thesale,conveyanceordispositionofallorsubstantiallyalloftheassetsoftheBorrower,theeffectuationbytheBorrower of atransaction or series ofrelated transactions inwhich more than 50% of the voting power of theBorrower is disposed of, or theconsolidation,merger or otherbusinesscombination of theBorrower with orinto anyotherPerson(asdefined below) orPersonswhen theBorrower is not the survivorshalleither: (i) be deemed to bean Event ofDefault(asdefined inArticleIII)pursuant towhich theBorrowershall berequired to pay to theHolderupon theconsummation ofandas acondition tosuchtransaction anamountequal to theDefault Amount(asdefined inArticle III) or (ii) betreatedpursuant toSection 1.6(b)hereof.“Person”shallmean any individual,corporation, limitedliabilitycompany,partnership,association, trust orother entity ororganization.

(b)AdjustmentDuetoMerger,Consolidation,Etc.If,atanytimewhenthisNoteisissued andoutstandingandpriortoconversionofalloftheNotes,there shallbeanymerger,consolidation, oran exchange ofshares,recapitalizationor reorganizationpursuant to amergerorconsolidation, orothersimilarevent, as aresult ofwhich shares ofCommonStockof theBorrowershall bechangedinto thesame or adifferent number of shares ofanotherclass orclasses ofstockorsecuritiesoftheBorroweroranotherentity,orincaseofany sale orconveyanceofall or substantiallyall of the assets or more than 50%of thetotaloutstandingshares of theBorrowerother than inconnection with a plan ofcompleteliquidation of theBorrower,then theHolderofthisNoteshallthereafterhavetherighttoreceiveuponconversion of thisNote, upon thebasisandupon thetermsandconditionsspecified hereinand inlieuof thesharesof Common Stock immediatelytheretofore issuable upon conversion,such stock,securitiesorassetswhichtheHolderwouldhavebeenentitledtoreceiveinsuch transactionhad this Notebeenconverted in full immediately prior tosuchtransaction(withoutregard toany limitations onconversionsetforthherein), andin anysuchcaseappropriateprovisionsshallbe made withrespecttotherightsand interests of theHolderofthisNote totheend thatthe provisionshereof(including, without limitation, provisions foradjustment of theConversion Priceand of the number ofsharesissuable uponconversion of theNote) shallthereafter beapplicable,as nearlyas maybepracticable inrelation toany securities orassetsthereafterdeliverableupontheconversionhereof. TheBorrowershallnotaffectanytransaction described in thisSection 1.6(b)unless(a) itfirst gives,to the extentpracticable, thirty (30)days priorwrittennotice(but inany eventatleast fifteen (15)days priorwrittennotice) of therecord date ofthespecial meeting ofshareholdersto approve, orifthere is nosuchrecorddate, theconsummation of, suchmerger,consolidation,exchangeofshares,recapitalization,reorganization or other similareventorsale of assets(during which time theHoldershall beentitledtoconvert thisNote)and(b) the resultingsuccessor or acquiring entity (if not theBorrower) assumes bywritteninstrumentthe obligations of thisSection1.6(b).The above provisionsshallsimilarlyapply tosuccessive consolidations,mergers,sales,transfers or shareexchanges.

(c)AdjustmentDue toDistribution.IftheBorrowershalldeclareormakeanydistributionofitsassets(orrightstoacquireitsassets)toholdersofCommonStockasadividend,stockrepurchase,bywayofreturnofcapital orotherwise(includinganydividendor distribution to theBorrower’s shareholders incash orshares (or rights toacquireshares) ofcapital stock of a subsidiary(i.e., a spin-off)) (a“Distribution”), then theHolder of this Noteshall beentitled, upon any conversion of this Noteafter the date ofrecord for determiningshareholdersentitled to such Distribution, to receivethe amountofsuchassetswhich would havebeenpayable to theHolder withrespect to theshares of CommonStockissuable uponsuchconversionhadsuchHolderbeentheholderofsuchshares ofCommonStockontherecorddate forthedetermination of shareholdersentitled tosuch Distribution.

(d)NoticeofAdjustments.UpontheoccurrenceofeachadjustmentorreadjustmentoftheConversionPriceasaresultoftheeventsdescribedinthisSection1.6,theBorrower,atitsexpense,shallpromptlycomputesuchadjustmentorreadjustmentandprepareandfurnish to theHolder of acertificate settingforthsuchadjustment orreadjustmentand showing indetail the facts uponwhich such adjustment orreadjustment isbased.TheBorrowershall, upon thewrittenrequestat any time of theHolder,furnish tosuch Holder a likecertificatesettingforth(i)suchadjustmentorreadjustment,(ii)theConversionPriceatthetimeineffectand (iii) the numberofshares of Common Stockand theamount, ifany, of othersecurities or propertywhichat thetimewould bereceived uponconversion oftheNote.

1.7TradingMarketLimitations.UnlesspermittedbytheapplicablerulesandregulationsoftheprincipalsecuritiesmarketonwhichtheCommonStockisthenlistedortraded,in no eventshall theBorrower issueuponconversion oforotherwisepursuant to this Noteand the other Notesissuedpursuant to thePurchaseAgreement more than the maximum number ofshares of Common Stock that theBorrowercanissue pursuant to any rule of theprincipal UnitedStatessecuritiesmarket onwhichtheCommon Stockis thentraded (the “MaximumShareAmount”),whichshall be9.99%ofthetotalsharesoutstanding on theClosingDate(asdefined in thePurchaseAgreement), subject toequitableadjustmentfrom timeto timefor stocksplits,stockdividends,combinations,capitalreorganizationsand similareventsrelating to the Common Stockoccurringafter thedatehereof.Once the MaximumShare Amounthasbeenissued,if theBorrowerfailstoeliminateanyprohibitionsunderapplicablelawortherules orregulations ofany stockexchange,interdealer quotationsystemorother self-regulatoryorganization withjurisdictionovertheBorrower or anyofits securities on theBorrower’sabilityto issueshares of Common Stock inexcessof the MaximumShare Amount, inlieu ofanyfurtherright toconvert thisNote, thiswill beconsideredanEvent ofDefaultunderSection 3.3 of theNote.

1.8StatusasShareholder.UponsubmissionofaNoticeofConversionbyaHolder,(i)theshares coveredthereby(otherthantheshares,ifany,whichcannotbeissuedbecausetheirissuancewouldexceedsuchHolder’sallocatedportionoftheReservedAmountor MaximumShare Amount)shall bedeemedconverted intosharesofCommon Stockand (ii) theHolder’srights asaHolderofsuchconvertedportionofthis Noteshallcease andterminate,exceptingonly therighttoreceivecertificatesforsuch sharesofCommonStockandtoanyremediesprovidedherein orotherwiseavailableat law or in equityto suchHolder because of afailurebytheBorrower to comply with thetermsof thisNote. Notwithstanding theforegoing, if a Holder has not received certificates forall shares of Common Stock prior to the tenth (10th) business day after the expirationof the Deadline with respect to a conversion of any portionof this Note for any reason,then (unless the Holder otherwise elects to retainits status as a holder of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note with respect tosuch unconverted portions of this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted. In all cases,the Holder shall retain all of its rights andremedies (including, without limitation, (i) theright to receive ConversionDefault Payments pursuant to Section1.3to theextent required thereby for such ConversionDefault and any subsequentConversion Default and (ii) the rightto have the Conversion Price with respect to subsequent conversions determined in accordance with Section 1.3) for the Borrower’s failure to convert this Note.

1.9Prepayment.NotwithstandinganythingtothecontrarycontainedinthisNote,theBorrowermayprepaytheamountsoutstandinghereunderpursuanttothefollowingterms andconditions, andsubject to theHolder’sacceptanceinHolder’s solediscretion:

(a)AtanytimeduringtheperiodbeginningontheIssue Dateandendingonthedatewhichisonehundred andeighty(180)daysfollowingtheIssueDate,theBorrowershallhavetheright,exercisableonnot lessthan twenty (20) TradingDays priorwritten notice to theHolder of the Note toprepaytheoutstanding Note(principalandaccrued interest), in fullby making apayment to theHolder ofanamountincashequal to 130%,multipliedbythe sum of:(w)the thenoutstanding principalamountof this Note plus (x)accruedandunpaidinterest on theunpaidprincipalamount of this Note plus (y)DefaultInterest.

(b)Atanytimeduringtheperiodbeginningthedaywhichisonehundredandeightyone(181) days followingtheIssueDateand endingonthelastbusinessdayimmediately prior to the MaturityDate,theBorrower shall have theright,exercisable on not less thantwenty(20)TradingDays prior written noticetotheHolder of the Note toprepay the outstanding Note(principalandaccruedinterest), in fullbymaking apayment to theHolder ofanamount incashequal to150%,multipliedbythesum of:(w) the thenoutstandingprincipal amount of this Note plus (x)accrued andunpaidinterest on theunpaidprincipalamount of this Noteplus(y)DefaultInterest.

(c)OnoraftertheMaturityDate,theBorrowershallhavenorightofprepayment.

Anynoticeofprepaymenthereunder(an“OptionalPrepaymentNotice”)shallbedeliveredtotheHolderoftheNoteatitsregisteredaddresses andshallstate:(1)thattheBorrowerisexercisingitsrighttoprepaytheNote,and(2)thedateofprepaymentwhichshallbenotmore than twenty (20)TradingDaysfromthedateof theOptionalPrepayment Notice.On thedate fixed forprepayment(the“OptionalPrepaymentDate”),theBorrower shall makepayment of theapplicableprepayment amount to or upon theorder ofthe HolderasspecifiedbytheHolderinwritingtotheBorrower atleastone(1)businessdayprior tothe OptionalPrepaymentDate.If theBorrowerdelivers an OptionalPrepayment Noticeandfails to pay theapplicableprepayment amount due to theHolderofthe Notewithin two (2)business daysfollowing theOptionalPrepayment Date, theBorrower shallforeverforfeit itsright toprepaythe Note pursuant tothisSection1.9. Notwithstandinganythingto the contrary inthisNote,theBorrower’srightto prepay theamounts outstanding under thisNote,inaccordance with thetermsandconditions of thisNote,isexpresslyconditionalupontheHolder’swritten acceptance,inHolder’s solediscretion, ofsuchapplicable prepayment during the timethat theBorrowerisexercising their right to prepay thisNote.

ARTICLEII.CERTAINCOVENANTS

2.1DistributionsonCapitalStock.SolongastheBorrowershallhaveanyobligationunderthisNote,theBorrowershallnotwithouttheHolder’swrittenconsent(a)pay,declareorsetapartforsuchpayment,anydividendorotherdistribution(whether incash, property orother securities) onsharesofcapitalstock other thandividends onsharesof Common Stock solely intheformofadditionalshares ofCommon Stock or (b) directly or indirectly orthroughany subsidiarymakeany otherpayment or distribution inrespect of itscapitalstockexcept fordistributionspursuant toany shareholders’rightsplanwhich isapproved by amajorityof theBorrower’sdisinteresteddirectors.

2.3SaleofAssets.SolongastheBorrowershallhaveanyobligationunderthisNote,theBorrowershallnot,withouttheHolder’swrittenconsent,sell,lease,exchange(includingbutnotlimitedtoanexchangeforassetsofequalorgreatervalue) orotherwise disposeofanysignificantportionofitsassets outsidetheordinary course ofbusiness. Anyconsent to thedisposition of anyassetsmaybe conditioned on aspecified use of theproceeds of disposition.

2.4Advancesand Loans.SolongastheBorrowershallhaveanyobligation underthisNote,theBorrowershallnot,withouttheHolder’swrittenconsent,lendmoney, givecreditormakeadvancestoanyperson,firm,jointventure orcorporation,including,without limitation,officers,directors,employees,subsidiaries andaffiliatesof theBorrower,except loans,credits oradvances(a)inexistenceor committed on thedatehereofand which theBorrower hasinformedHolder inwriting prior to thedate hereof, (b) made in the ordinarycourseofbusiness, (c)madeto apendingmergingpartnerpursuanttoanagreementofmergeror(c)not inexcess of $100,000.

ARTICLEIII.EVENTSOFDEFAULT

Ifanyof the following events ofdefault(each,an “EventofDefault”) shalloccur:

3.1FailuretoPayPrincipalorInterest.TheBorrowerfailstopaytheprincipalhereoforinterestthereonwhendueonthisNote,whetheratmaturity,uponacceleration orotherwise, followingafive(5)daycureperiod.

3.2ConversionandtheShares.TheBorrowerfailstoissuesharesofCommonStocktotheHolder(orannouncesorthreatensinwritingthatitwillnothonoritsobligationtodoso)uponexercisebytheHolderoftheconversionrightsoftheHolderinaccordance with the terms of thisNote,fails totransferorcause itstransferagent totransfer (issue) (electronically or in certificated form)anycertificate for shares of Common Stock issued to theHolderupon conversion oforotherwisepursuant to this Noteas andwhenrequired 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)anycertificate for shares ofCommon Stockto be issued to theHolder upon conversion of orotherwise pursuant to this Note as and when required by this Note,orfails to remove (or directs its transferagent not to removeor impairs, delays, and/or hinders its transfer agent from removing)any restrictive legend (orto withdrawanystop transferinstructions in respect thereof)onanycertificate forany shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Noteas and when requiredby this Note(or makes any written announcement, statement orthreat that it does not intend to honor the obligations described in this paragraph) andany such failure shall continueuncured (orany writtenannouncement, statementorthreat not to honorits 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 advancesany funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paidbythe Borrower to the Holder within forty eight (48) hours ofa demand from the Holder.

3.3BreachofCovenants.TheBorrowerbreachesanymaterialcovenantorothermaterialtermorconditioncontainedinthisNoteandanycollateraldocumentsincludingbutnotlimitedtothePurchase Agreementandsuchbreachcontinuesfor aperiodof ten(10)daysafterwritten noticethereof to theBorrowerfrom the Holder.

3.4BreachofRepresentationsandWarranties.AnyrepresentationorwarrantyoftheBorrowermadehereinorinanyagreement,statementorcertificategiveninwritingpursuantheretoor inconnectionherewith(including,without limitation,thePurchaseAgreement),shall be false ormisleading inanymaterial respectwhen madeand thebreach ofwhichhas (or with thepassage of time will have) amaterial adverseeffect on therights of theHolderwithrespect to this Noteor thePurchase Agreement.

3.5ReceiverorTrustee. TheBorroweroranysubsidiaryoftheBorrowershallmakeanassignmentforthebenefitofcreditors,orapplyfororconsenttotheappointmentof areceiverortrustee for it orfora substantial part ofits property or business, orsuch areceiver ortrusteeshall otherwisebe appointed.

3.6Judgments.Anymoneyjudgment,writorsimilarprocessshallbeenteredorfiledagainsttheBorroweroranysubsidiaryoftheBorroweroranyofitspropertyorotherassets for more than $50,000,andshallremainunvacated, unbonded or unstayed for a period of twenty (20)days unlessotherwiseconsentedtoby theHolder,whichconsent will not be unreasonably withheld.

3.7Bankruptcy. Bankruptcy,insolvency,reorganizationorliquidationproceedingsorotherproceedings,voluntaryorinvoluntary,forreliefunderanybankruptcylaworanylawfor thereliefofdebtorsshall be institutedby oragainst theBorrowerorany subsidiary of the Borrower.

3.8DelistingofCommonStock.TheBorrowershallfailtomaintainthelistingoftheCommonStockonatleastoneoftheOTCQBoranequivalentreplacementexchange,theNasdaqNationalMarket,theNasdaqSmallCapMarket,theNewYorkStockExchange, or the American StockExchange.

3.9FailuretoComplywiththeExchangeAct. TheBorrowershallfailtocomplywiththereportingrequirementsoftheExchangeAct(includingbutnotlimitedtobecoming delinquentinitsfilings);and/or theBorrower shallcease tobe subjecttothe reportingrequirements of the Exchange Act.

3.10Liquidation.Anydissolution,liquidation,orwindingupofBorroweroranysubstantial portion ofitsbusiness.

3.11CessationofOperations.AnycessationofoperationsbyBorrower orBorroweradmitsitisotherwisegenerallyunabletopayitsdebtsassuchdebtsbecomedue,provided,however,thatanydisclosureof theBorrower’sabilityto continue as a“goingconcern”shall not bean admissionthat the Borrowercannotpayitsdebts astheybecomedue.

3.12MaintenanceofAssets.ThefailurebyBorrowertomaintainanymaterialintellectualpropertyrights,personal,realpropertyorotherassetswhicharenecessarytoconductits business(whethernow orin thefuture).

3.13FinancialStatementRestatement.TherestatementofanyfinancialstatementsfiledbytheBorrowerwiththeSECforanydateorperiodfromtwoyearspriortotheIssueDateofthisNoteanduntilthisNoteisnolongeroutstanding,iftheresultofsuchrestatementwould,bycomparisontotheunrestatedfinancialstatement,haveconstitutedamaterial adverseeffect on therights of theHolder withrespect to this Note or thePurchaseAgreement.

3.14ReverseSplits.TheBorrowereffectuatesareversesplitofitsCommonStockwithout twenty(20)days priorwrittennoticeto the Holder.

3.15Replacement ofTransferAgent.In theeventthatthe Borrowerproposes toreplaceitstransferagent,theBorrowerfailstoprovide,priortotheeffectivedateofsuchreplacement,afullyexecutedIrrevocableTransferAgentInstructionsinaformasinitiallydelivered pursuant to thePurchaseAgreement (including but not limited to the provision to irrevocably reserveshares of Common Stock intheReserved Amount)signedby thesuccessortransferagent toBorrowerand theBorrower.

3.16Cross-Default.NotwithstandinganythingtothecontrarycontainedinthisNoteorotherrelatedorcompaniondocuments,abreachordefaultbytheBorrowerofanycovenantorothertermorconditioncontained anyotherfinancial instrument,includingbutnot limitedtoallconvertiblepromissory notes,alreadyissued, orissued in thefuture, by theBorrower, to the Holder oranyother 3rdparty,after the passage ofallapplicablenoticeand cure orgrace periods, shall,at theoption oftheHolder, be considered a defaultunder this Note.

3.17ACHAccountChange.TheBorrowerchangesitbankaccounttoanaccountthatdiffersfromthebank accountspecifiedonExhibitBattachedhereto,without(i) priorsignedwrittenconsentoftheHolderand(ii)Borrower’sexecutionofasigned authorizationagreementforpreauthorizedpaymentsthatisexactly the sameastheformattachedheretoas Exhibit B(except for thenewbank accountinformation) withrespect to thenewbankaccount.

3.18ACHPaymentDefault. TheBorrowerblocks,rejects,orotherwiserestrictsanyactiontakenbyHolderpursuanttoHolder’srightsunderthisNotewithrespecttotheBorrower’sbankaccount,includingbutnotlimitedtoHolder’swithdrawaloftheSpecific DailyRepaymentAmount(asdefined inExhibitBattachedhereto)pursuanttoanACHdebittransactionorotherwisefrom theBorrower’sbankaccount,ortheHolder’swithdrawal oftheSpecific DailyRepayment Amountfrom theBorrower’sbankaccount pursuant toan ACHdebittransaction or otherwiseisrejectedforanyreason.

3.19EventofDefault.UpontheoccurrenceandduringthecontinuationofanyEventofDefaultspecifiedinSection3.1(solelywithrespecttofailuretopaytheprincipalhereof orinterest thereonwhen dueat the MaturityDate), the Noteshallbecomeimmediately dueandpayableandtheBorrowershall pay to the Holder, in fullsatisfaction of itsobligations hereunder,anamount equal to theDefault Sum(as definedherein). UPONTHEOCCURRENCE ANDDURINGTHECONTINUATIONOFANY EVENT OFDEFAULTSPECIFIED INSECTION 3.2, 3.17, and/or 3.18,THENOTESHALLBECOMEIMMEDIATELYDUEAND PAYABLEANDTHEBORROWERSHALL PAY TOTHEHOLDER,INFULLSATISFACTIONOF ITSOBLIGATIONSHEREUNDER, ANAMOUNT EQUAL TO:(Y)THE DEFAULT SUM(ASDEFINED HEREIN);MULTIPLIEDBY (Z) TWO(2).UpontheoccurrenceandduringthecontinuationofanyEvent ofDefaultspecifiedinSections 3.1 (solely withrespectto failure topay theprincipalhereoforinterest thereon when due onthisNote upona TradingMarketPrepayment EventpursuanttoSection1.7oruponacceleration),3.3,3.4,3.6,3.8,3.9,3.11,3.12,3.13,3.14,3.15,and/or3.16,exercisablethroughthedeliveryofwrittennoticeto theBorrowerbysuchHolders(the“DefaultNotice”),andupon theoccurrenceofanEvent ofDefaultspecifiedtheremaining sections ofArticlesIII(other thanfailure to pay theprincipal hereoforinterestthereonat theMaturity Datespecified inSection 3,1hereof),the Noteshall become immediately dueand payableand theBorrowershallpay to theHolder, infullsatisfactionof itsobligationshereunder,anamountequaltothegreater of (i) 150% times the sum of(w) the thenoutstandingprincipalamount of this Note plus (x)accruedand unpaidinterest ontheunpaidprincipalamount of thisNote tothedateofpayment(the “MandatoryPrepaymentDate”)plus(y)DefaultInterest,ifany, on theamountsreferredto inclauses(w)and/or(x) plus (z)anyamounts owed to theHolder pursuant toSections 1.3and1.4(g)hereof(thethenoutstandingprincipalamount ofthis Noteto thedateofpaymentplus theamountsreferredto inclauses (x),(y)and(z)shallcollectively beknownas the“Default Sum”) or (ii) the “parity value” of theDefaultSum to beprepaid,where parityvaluemeans(a)thehighestnumberofsharesof Common Stock issuableupon conversion of orotherwise pursuant tosuchDefaultSum inaccordance withArticle I,treatingtheTradingDayimmediatelyprecedingthe Mandatory PrepaymentDateasthe “ConversionDate” forpurposes of determining thelowestapplicableConversionPrice, unlesstheDefault Event arisesas aresult of abreach inrespect of aspecificConversionDate inwhichcase such ConversionDateshall be theConversionDate), multipliedby (b)thehighest ClosingPricefortheCommonStockduringtheperiod beginning on the date offirstoccurrenceof theEvent ofDefault andending oneday prior to the MandatoryPrepayment Date (the“DefaultAmount”)andall otheramountspayablehereundershallimmediatelybecomedueand payable,all withoutdemand,presentment ornotice, all ofwhichherebyare expresslywaived,together withallcosts,including,withoutlimitation,legalfeesand expenses, ofcollection,and theHolder shall beentitled toexercise all otherrights andremediesavailableatlawor inequity.

IftheBorrowerfailstopaytheDefaultAmountwithinfive(5)businessdaysofwrittennoticethatsuchamountisdueandpayable,thentheHoldershallhavetherightatanytime,solongas theBorrowerremains indefault(andso longandto the extent that there aresufficientauthorizedshares),to require theBorrower, uponwrittennotice,toimmediatelyissue,inlieuof theDefault Amount,the number ofsharesof CommonStock of theBorrowerequaltotheDefaultAmountdivided by the ConversionPricethen ineffect.

ARTICLEIV.MISCELLANEOUS

4.1FailureorIndulgenceNotWaiver.NofailureordelayonthepartoftheHolderintheexerciseofanypower,rightorprivilegehereundershalloperateas awaiverthereof, norshall anysingle orpartial exercise ofanysuchpower, right or privilege preclude other orfurther exercisethereof or ofanyotherright, power orprivileges.Allrightsandremediesexistinghereunderarecumulativeto,andnotexclusiveof, anyrightsorremediesotherwise available.

4.2Notices.Allnotices,demands, requests,consents,approvals, andothercommunications requiredorpermitted hereundershallbeinwriting and,unlessotherwise specifiedherein,shallbe(i)personallyserved,(ii)depositedinthemail,registeredorcertified,returnreceiptrequested, postageprepaid, (iii)deliveredbyreputable aircourierservicewithchargesprepaid,or(iv)transmittedbyhand delivery,telegram, or facsimile,addressed as setforthbelowortosuchotheraddressassuchparty shallhave specified mostrecentlybywrittennotice.Anynotice orothercommunication requiredor permittedtobegivenhereundershallbedeemedeffective(a) uponhand deliveryor delivery byfacsimile, withaccurateconfirmation generatedbythe transmitting facsimilemachine,at theaddressor numberdesignated below (ifdeliveredon a businessday duringnormalbusiness hours wheresuch noticeis to bereceived),orthefirstbusinessdayfollowing such delivery(ifdeliveredother than on abusinessdayduringnormalbusinesshourswheresuch notice is to bereceived) or (b) on thesecondbusinessday following thedate of mailingbyexpresscourier service, fully prepaid,addressed tosuch address,or uponactualreceiptofsuchmailing,whichever shallfirst occur. Theaddresses forsuchcommunications shall be:

Ifto the Borrower, to:

FastFunds FinancialCorporation

319Clematis Street,Suite400

West PalmBeach,Florida 33401

Attention:HenryFong/ CEO

Email:HenryFong1@gmail.com

Ifto the Holder:

CAREBOURN CAPITAL,L.P.

8700 Black OaksLaneN

Maple Grove,Minnesota 55311

Attn:ChipRice,ManagingMember

Email: info@carebourncapital.com

4.3Amendments.ThisNoteandanyprovisionhereofmayonlybeamendedbyaninstrumentinwritingsignedbytheBorrowerandtheHolder. Theterm“Note”andallreferencethereto,asusedthroughoutthisinstrument,shallmeanthisinstrument(andthe otherNotes issuedpursuant to thePurchaseAgreement)as originallyexecuted,oriflateramendedorsupplemented, thenas soamended or supplemented.

4.4Assignability.ThisNoteshallbebindingupontheBorroweranditssuccessorsandassigns,andshallinuretobethebenefitoftheHolderanditssuccessorsandassigns.Eachtransfereeof this Note mustbean“accredited investor” (asdefined in Rule 501(a) of the 1933 Act). Notwithstandinganything in this Note to thecontrary, this Note may bepledgedascollateral inconnection with a bona fidemargin account or otherlendingarrangement.

4.5CostofCollection.IfdefaultismadeinthepaymentofthisNote,theBorrower shallpaythe Holderhereofcosts ofcollection, includingreasonableattorneys’fees.

4.6GoverningLaw.ThisNoteshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofFloridawithoutregardtoprinciplesofconflictsoflaws.Anyactionbroughtbyeitherparty againsttheotherconcerningthetransactionscontemplatedby thisNoteshallbebroughtonly inthestatecourtsofFlorida orinthefederalcourtslocatedinthe state ofFlorida. The partiestothisNote hereby irrevocablywaiveany objectiontojurisdictionandvenue ofanyaction institutedhereunderandshall notassert anydefensebased onlackofjurisdictionorvenue orbaseduponforumnonconveniens.TheBorrowerandHolderwaivetrialbyjury. Theprevailing partyshall beentitled torecoverfrom the other party itsreasonableattorney'sfeesandcosts. In theevent thatany provision of this Noteorany otheragreementdelivered inconnectionherewith is invalid orunenforceable underanyapplicable statute or rule oflaw, thensuchprovisionshall bedeemedinoperative to the extent that it mayconflicttherewithand shallbedeemedmodifiedtoconformwithsuchstatuteorruleoflaw. Anysuch provision whichmay proveinvalid orunenforceableunder any lawshall notaffect thevalidity orenforceabilityofany otherprovisionofany agreement.Eachparty hereby irrevocably waivespersonalserviceofprocess andconsents to process beingserved inany suit,actionorproceeding inconnectionwiththisAgreementor anyotherTransactionDocument bymailingacopythereof viaregistered orcertified mail orovernight delivery(withevidence ofdelivery) tosuch partyat theaddress ineffect fornoticesto itunder thisAgreementandagrees thatsuchserviceshallconstitutegoodand sufficientserviceofprocessandnotice thereof. Nothingcontainedhereinshall bedeemed to limitin anywayanyright toserveprocess in anyothermannerpermittedbylaw.

4.7CertainAmounts.WheneverpursuanttothisNotetheBorrowerisrequiredtopayanamountinexcessoftheoutstanding principalamount(ortheportionthereofrequiredtobepaid atthattime)plusaccruedandunpaidinterestplusDefault Interestonsuch interest,theBorrowerand theHolderagreethat theactualdamages to theHolderfromthereceipt of cashpayment on this Note may bedifficult todetermine andtheamount to be sopaid by theBorrowerrepresents stipulateddamagesandnota penaltyandisintendedtocompensate theHolder inpartforloss oftheopportunityto convertthisNote andto earn areturnfromthe sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant to this Note.The Borrower and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of Common Stock.

4.8PurchaseAgreement.ByitsacceptanceofthisNote,eachpartyagreestobeboundbythe applicableterms ofthePurchaseAgreement.

4.9NoticeofCorporateEvents.Exceptasotherwiseprovidedbelow,theHolderofthisNoteshallhavenorightsasaHolderofCommonStockunlessandonlytotheextent that itconverts this Noteinto Common Stock.TheBorrower shall providetheHolderwithpriornotification ofanymeeting oftheBorrower’sshareholders (and copies ofproxymaterialsand otherinformation sent toshareholders).In theevent ofanytakingbytheBorrower of arecord of itsshareholders for thepurpose ofdeterminingshareholders whoareentitled toreceivepaymentofanydividend orotherdistribution,anyright tosubscribefor,purchaseorotherwiseacquire (including by wayofmerger,consolidation,reclassification orrecapitalization) any share ofanyclass or any othersecurities orproperty, ortoreceive any otherright, orfor thepurposeofdeterminingshareholders whoareentitled to vote inconnection withany proposed sale, leaseorconveyanceofall orsubstantiallyall oftheassets oftheBorroweroranyproposed liquidation, dissolution or winding up of theBorrower, theBorrowershall mail anotice to theHolder,atleast twenty (20) days priorto therecorddatespecifiedtherein (or thirty (30)days prior to theconsummationofthetransactionorevent,whichever isearlier), ofthedateonwhichanysuchrecordistobetakenforthepurposeofsuchdividend,distribution,rightorotherevent,andabrief statement regarding theamountandcharacter ofsuchdividend, distribution,right or otherevent to the extent knownatsuch time. TheBorrowershall make a publicannouncementofanyevent requiringnotification to theHolderhereundersubstantially simultaneously with thenotification to the Holderinaccordancewith the terms of thisSection 4.9.

4.10Remedies.TheBorroweracknowledgesthatabreachbyitofitsobligationshereunderwillcauseirreparableharmtotheHolder,byvitiatingtheintentandpurpose of the transactioncontemplatedhereby.Accordingly, theBorroweracknowledges that theremedyatlawfor abreachofitsobligationsunderthisNotewill beinadequateandagrees,in theeventof a breach orthreatenedbreach by theBorrower of the provisions of this Note,that theHoldershallbeentitled,inadditiontoallotheravailableremediesatlaworinequity,andinaddition to thepenaltiesassessableherein, toaninjunction orinjunctionsrestraining,preventing orcuringanybreach of this Noteand to enforce specifically theterms andprovisionsthereof, withoutthenecessityofshowing economic lossandwithoutanybondorothersecuritybeingrequired.

4.11ReverseSplitPenalty.IfatanytimewhilethisNoteisoutstanding,theBorrowereffectuatesareversesplitwithrespecttotheCommonStock,thenaliquidateddamageschargeof15%oftheoutstanding balanceofthisNoteatthattime,willbeassessedand willbecomeimmediately dueandpayable to theHolderat itselection in theform ofcashpayment oraddition to thebalanceof this Note.

4.12RightofFirstRefusal.IfatanytimewhilethisNoteisoutstanding,theBorrowerhasabonafideofferofcapitalorfinancing from any3rdparty,theBorrowermustfirstoffer such opportunity to theHolder to provide suchcapital or financing to theBorrower on thesametermsaseachrespective3rdparty’s terms. Should theHolder be unwilling or unable to providesuchcapital or financing to the Borrowerwithin 15days from receipt ofwrittennoticeof theoffer (the“OfferNotice”)from theBorrower, then theBorrowermayobtainsuchcapital orfinancingfrom thatrespective 3rdpartyupon thesametermsand conditionsofferedbytheBorrowertotheHolder,whichtransactionmustbecompletedwithin30daysafterthedateoftheOfferNotice.If theBorrower does notcompletesuch transaction withinsuch timeperiod, then theBorrower mustagainoffer thecapital or financing opportunity to theHolder on thesameterms, and the process detailedabove shall berepeated.

4.13MaintenanceofReserve.IntheeventthattheBorrowerfailstomaintaintheReservedAmountasofthe115thdayfollowingtheissuedateofthisNote,theBorrowershall issue anew note(identical interms to theNote)which contains a principalvalue equal to 25%multipliedby theaggregatedtotal principal andaccruedinterestowedunderthe Noteasof that 115thday (thePenaltyNote”),to theHolder,as apenalty. TheissuanceofthePenalty Noteshall bein addition to allotherapplicablepenaltiescontainedherein.

4.14ACHPaymentAuthorization.BorrowerirrevocablyauthorizesHolder’sright to withdraw(throughan ACH debitorotherwise)$750.00(the“Specific DailyRepaymentAmount”)(subjecttoadjustmentasprovidedherein)fromtheBorrower’sbankaccount(initially, thebank accountidentified onExhibit Battached hereto, butalso including anysubsequentbankaccount of theBorrower ifsuchaccount is changed) (the“BankAccount”), oneachbusinessday,until thisNote issatisfiedin full.Borrowershallprovide Holder withallrequiredaccesscodes toeffectuate anyandall ACHdebittransactionsas provided forin thisNote.Borrower understands that it isresponsible for ensuring thatat least theSpecific DailyRepaymentAmountremainsinitsBankAccountoneachbusiness day untilthisNoteissatisfied in full,and that theBorrowershall beresponsible for anychargesincurredby theHolder resultingfrom arejected ACHattempt,insufficientfunds intheBankAccount,and/orallrelated bank charges.Such charges shall be immediatelyaddedto theoutstandingbalanceof theNote. The Specific DailyRepayment Amountshall automatically adjust tosuchproratedhigheramountbasedupontheadditionofcharges totheoutstandingbalance ofNote,aswellas toreflectany penaltiesincurredoreventsofdefaultstriggeredunder thetermsof theNote(to becalculatedasfollows: thetotaloutstandingamountunder the Note(includingbutnotlimited to allprincipal,interest,charges,penalties,andadditions dueto anyeventofdefault) dividedby the number ofbusinessdaysremainingprior tothe Maturity Date).Holdershall notberesponsible foranyoverdrafts orrejectedtransactions thatresultfromHolder’s ACHdebiting of the Specific DailyRepayment Amountas provided in this Noteand the exhibitshereto.Holder maydebit the SpecificDailyRepayment Amounteachbusinessday.

TheHoldershallbepermittedtoaggregatethe SpecificDailyRepaymentAmountofallconvertiblepromissorynotesthenissuedbytheBorrowertotheHolder,andwithdrawsuchaggregatedamountfromtheBorrower’sbankaccount,intheinterestofreducingoverallfeesassociated with theACHdebittransactions.

TheHoldermay,fromtimetotime,provideascheduletotheBorrowerviaelectronicmail(eacha“Schedule”)toHenryFong1@gmail.com,showingtheoutstandingbalance of theNoteas wellasall ACHdebits,conversionamounts,and/orall otheradjustmentsasprovided in the Note (the“Schedule”). If theBorrowerdoes not respond to theHolder, viaelectronic mail toInfo@CarebournCapital.com, statingthat therespectiveSchedule isaccurate or disputing theamountscontainedtherein (withobjective documentation unequivocallysupportingsuch dispute), within two (2)businessdays ofreceipt of therespectiveSchedule,thentheBorrowershall bedeemedtohaveirrevocablyapprovedtheamountscontainedinsuchrespectiveSchedule.

[SIGNATUREPAGEFOLLOWS]

INWITNESSWHEREOF, BorrowerhascausedthisNotetobesignedinitsnamebyitsdulyauthorizedofficer thisJune30, 2016.

FastFundsFinancialCorporation

By: _________________________

Name:HenryFong

Title:CEO

BrawnstoneSecurity,LLC

By: _________________________

Name: _______________________

Title: ________________________

EXHIBIT A:NOTICE OF CONVERSION

Theundersignedherebyelectstoconvert $_______________principalamountoftheNote(definedbelow)intothatnumberofsharesofCommonStocktobeissued pursuanttotheconversionoftheNote(“Common Stock”)as setforth below,ofFastFunds FinancialCorporation,aNevadacorporation(the“Borrower”) accordingto theconditions of theconvertiblenote oftheBorrowerdatedas ofJune 30, 2016 (the“Note”),as of the date writtenbelow. Nofeewill be charged to theHolderfor any conversion,except fortransfer taxes, ifany.

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:

CAREBOURN CAPITAL, L.P.
8700 Black Oaks Lane N
Maple Grove, Minnesota 55311
Attention: Certificate Delivery
612.889.4671
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:	_____________
CAREBOURN CAPITAL, L.P.
By: _________________________
Name: Chip Rice
Title: Managing Member
8700 Black Oaks Lane N
Maple Grove, Minnesota 55311

EXHIBIT B

(see attached)

AUTHORIZATIONAGREEMENTFORPREAUTHORIZEDPAYMENTS

FastFundsFinancialCorporation,aNevadacorporation,andBrawnstoneSecurity,LLC,anOhiolimitedliabilitycompany(collectivelythe“Company”),herebyirrevocablyauthorizeCarebournCapital,L.P. (the“Holder”),toinitiatedebitandcreditentries to itscheckingaccountindicatedbelow (the “Account”)and the depository namedbelow (the“Depository”), todebit orcredit thesame tosuchAccount.The Companyfurtherauthorizes theHolder todebitsaidAccount forsuchtotaloutstandingamount of theconvertible promissory noteissued by the Company toHolderonJune30,2016(the“Note”),uponanEventofDefault(asdefinedintheNote). The Company herebyrepresentsandcertifies that theAccountisused forcommercialand/or businesspurposesonly.

DepositoryName:USBank

Name ofBankAccount:Brawnstone Security,LLC

BankAddress: _________________________________

  _________________________________

Routing/ABA Number:041202582

Account Number:130120873562

A copyof avoided check fortheAccount isattachedheretoas Exhibit“C”. Thisauthorityis toremain in fullforce andeffect until theHolderconfirms in a signed writingthattheNotehas been satisfied in full,and in amanneras toafford theDepositorya reasonableopportunitytoact on it.

FastFundsFinancialCorporation

By: _________________________

Name:HenryFong

Title:CEO

Contact #: ____________________

BrawnstoneSecurity,LLC

By: _________________________

Name: _______________________

Title: ________________________

EXHIBIT C

(see attached)

EXHIBIT D

(see attached)

Representationsand WarrantiesRegardingAnti-MoneyLaundering;OFAC.

1.1.	The Borrower should check the Office of Foreign Assets Control (“OFAC”) website at http://www.treas.gov/ofac before making the following representations.
1.2.	The Borrower represents that the cash amounts to be paid to Carebourn Capital, L.P. (the “Holder”) under the convertible promissory note dated June 30, 2016 (the “Note”), by the Borrower, were not and are not directly or indirectly derived from activities that contravene U.S. federal or state or international laws and regulations, including anti-money laundering laws and regulations. U.S. federal regulations and executive orders administered by OFAC prohibit, among other things, the engagement in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals. The lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at http://www.treas.gov/ofac. In addition, the programs administered by OFAC (the “OFAC Programs”) prohibit dealing with individuals1 or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists.
1.3.	To the best of the Borrower’s knowledge, none of: (1) the Borrower; (2) any person controlling or controlled by the Borrower; (3) if the Borrower is a privately-held entity, any person having a beneficial interest in the Borrower; or (4) any person for whom the Borrower is acting as agent or nominee is a country, territory, individual or entity named on an OFAC list, or a person or entity prohibited under the OFAC Programs.
1.4.	To the best of the Borrower’s knowledge, none of: (1) the Borrower; (2) any person controlling or controlled by the Borrower; (3) if the Borrower is a privately-held entity, any person having a beneficial interest in the Borrower; or (4) any person for whom the Borrower is acting as agent or nominee is a senior foreign political figure2, or any immediate family3 member or close associate4 of a senior foreign political figure, as such terms are defined in the footnotes below.

1.5.	Borrower hereby represents and warrants that the cash payments under the Note are to be made on its own behalf or, if applicable, and such cash payments do not directly or indirectly contravene United States federal, state, local or international laws or regulations applicable to Borrower, including anti-money laundering laws.
1.6.	If the Borrower is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Borrower receives deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Borrower represents and warrants to the Holder that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does not have a physical presence in any country and that is not a regulated affiliate.
1.7.	Upon the written request from the Holder, Borrower agrees to provide all information to the Holder to enable the Holder to comply with all applicable anti-money laundering statutes, rules, regulations and policies. Borrower understands and agrees that the Holder may release confidential information about Borrower and, if applicable, any of its affiliates, directors, officers, trustees, beneficiaries and grantors related thereto, to any person if the Holder, in its sole discretion, determines that such disclosure is necessary to comply with applicable statutes, rules, regulations and policies.

INWITNESSWHEREOF,Borrowerhascausedthisrepresentationlettertobesignedinitsname byits dulyauthorizedofficer thisJune30, 2016.

FastFunds FinancialCorporation

By: _________________________

Name:HenryFong

Title:CEO

BrawnstoneSecurity,LLC

By: _________________________

Name: _______________________

Title: ________________________

_______________________
	1	These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs.
	2	A “senior foreign political figure” is defined as a senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition, a “senior foreign political figure” includes any corporation, business or other entity that has been formed by, or for the benefit of, a senior foreign political figure.
	3	“Immediate family” of a senior foreign political figure typically includes the figure’s parents, siblings, spouse, children and in-laws.
	4	A “close associate” of a senior foreign political figure is a person who is widely and publicly known to maintain an unusually close relationship with the senior foreign political figure, and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the senior foreign political figure.