Document:

fgp_Ex10_31

		
			Exhibit 10.31
		

		
			 
		

		
			FIRST AMENDMENT TO
		

		
			FINANCING AGREEMENT
		

		
			 
		

		
			FIRST AMENDMENT TO FINANCING AGREEMENT, dated as of June 6, 2019 (this "Amendment"), is by and among the Lenders executing this Amendment, TPG SPECIALTY LENDING, INC., a Delaware corporation ("TSL"), as collateral agent for the Lenders (in such capacity, "Collateral Agent"), Ferrellgas, L.P., a Delaware limited partnership ("Company"), Ferrellgas, Inc., a Delaware corporation ("General Partner"), and certain Subsidiaries of Company, as Guarantors.
		

		
			WHEREAS, the Company, the General Partner, the Guarantors, TSL, as administrative agent and lead arranger, the Collateral Agent, and certain lenders are party to the Financing Agreement, dated as of May 4, 2018 (the "Financing Agreement").
		

		
			WHEREAS, the Company, the Collateral Agent and the Required Lenders hereby agree to modify the Financing Agreement on and subject to the terms set forth herein.
		

		
			NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the parties hereto hereby agree as follows:
		

		
			 
		

		
			1.         Definitions.  Any capitalized term used herein and not defined shall have the meaning assigned to it in the Financing Agreement.
		

		
			2.         Amendments to Definitions.  In Section 1.1 of the Financing Agreement, the definition of "Fixed Charge Coverage Ratio" is amended and restated in its entirety to read as follows:
		

		
			""Fixed Charge Coverage Ratio" means the ratio as of the last day of each Measurement Period beginning with the last day of the first Fiscal Quarter ending after the Closing Date of (a) Consolidated EBITDA for such Measurement Period minus Consolidated Non-Acquisition Capital Expenditures for such Measurement Period to (b) Consolidated Fixed Charges for such Measurement Period.  In calculating the Fixed Charge Coverage Ratio, Consolidated Non-Acquisition Capital Expenditures shall exclude the amount paid by the Company in Fiscal Year 2019 (the "Initial Period") for vehicles purchased for the Loan Parties core business activities (the amount of such types of purchases, the "Discretionary Capital Expenditure Amount") in an amount not to exceed $35,000,000, provided that the Required Lenders, in their sole discretion and in direction by writing to the Company, may elect to exclude some or all of the Discretionary Capital Expenditure Amount made beyond the Initial Period in the calculation of Consolidated Non-Acquisition Capital Expenditures.  For the avoidance of doubt, the foregoing amendment to the definition of “Fixed Charge Coverage Ratio” shall apply to the Measurement Period ended April 30, 2019 for all purposes of this Agreement notwithstanding that the first amendment to this Agreement is entered into and effective after April 30, 2019."
		

		
			 
		

		
			2.         Asset Sales.  Section 2.13(a) of the Financing Agreement is hereby amended by adding the following additional sentence at the end thereof to read as follows:
		

		
			
		

		
			

		 

		

		
			 
		

		
			"The Company acknowledges that the Net Proceeds from (i) the Bridger Transport and Environmental disposition dated July 31, 2018, (ii) the Swan Ranch disposition dated July 31, 2019, and (iii) the Blue Rhino Global Sourcing disposition dated July 27, 2019, in each case, have been reinvested in assets in accordance with this Section 2.13(a)."
		

		
			 
		

		
			3.  Conditions to Effectiveness.  The effectiveness of this Amendment is subject to the fulfillment, in a manner reasonably satisfactory to the Required Lenders, of each of the following conditions precedent (the date such conditions are fulfilled or waived by the Required Lenders is hereinafter referred to as the "First Amendment Effective Date"):
		

		
			(a)        Representations and Warranties; No Event of Default.  The representations and warranties contained herein, in the Financing Agreement and in each other Loan Document, certificate or other writing delivered to any Agent or any Lender pursuant hereto or thereto on or prior to the date hereof shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to "materiality" or "Material Adverse Effect" in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to "materiality" or "Material Adverse Effect" in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date.  No Event of Default or Default shall have occurred and be continuing or would result from the consummation of this Amendment.
		

		
			(b)        Delivery of Amendment.  Agent shall have received this Amendment, duly executed by the Loan Parties, the Collateral Agent and the Required Lenders.
		

		
			4.         Representations and Warranties.  Each Loan Party represents and warrants as follows:
		

		
			(a)        The execution, delivery and performance by each Loan Party of this Amendment (including, without limitation, Section 5) and the performance by each Loan Party of the Financing Agreement, as amended hereby, has been duly authorized by all necessary action, and each Loan Party has all requisite power, authority and legal right to execute, deliver and perform this Amendment (including, without limitation, Section 5) and to perform the Financing Agreement, as amended hereby.
		

		
			(b)        This Amendment and the Financing Agreement, as amended hereby, is a legal, valid and binding obligation of each Loan Party, enforceable against each Loan Party in accordance with the terms thereof, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors' rights generally.
		

		
			5.         Release.  The Loan Parties may have certain Claims against the Released Parties, as those terms are defined below, regarding or relating to the Financing Agreement or
		

		
			
		

		
			

		 

		

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			the other Loan Documents.  The Agents,  the Lead Arranger, the Lenders and the Loan Parties desire to resolve each and every one of such Claims in conjunction with the execution of this Amendment and thus each Loan Party makes the releases contained in this Section 5.  In consideration of the Agents, the Lead Arranger and the Lenders entering into this Amendment and agreeing to substantial concessions as set forth herein, each Loan Party hereby fully and unconditionally releases and forever discharges each of the Agents, the Lead Arranger and the Lenders, and their respective directors, officers, employees, subsidiaries, branches, affiliates, attorneys, agents, representatives, successors and assigns and all persons, firms, corporations and organizations acting on any of their behalves (collectively, the "Released Parties"), of and from any and all claims, allegations, causes of action, costs or demands and liabilities, of whatever kind or nature, from the beginning of the world to the date on which this Amendment is executed, whether known or unknown, liquidated or unliquidated, fixed or contingent, asserted or unasserted, foreseen or unforeseen, matured or unmatured, suspected or unsuspected, anticipated or unanticipated, which any Loan Party has, had, claims to have had or hereafter claims to have against the Released Parties by reason of any act or omission on the part of the Released Parties, or any of them, occurring prior to the date on which this Amendment is executed, including all such loss or damage of any kind heretofore sustained or that may arise as a consequence of the dealings among the parties up to and including the date on which this Amendment is executed, including the administration or enforcement of the Revolving Loans, the Term Loans, the Obligations, the Financing Agreement or any of the Loan Documents, in each case, regarding or relating to the Financing Agreement and the other Loan Documents (collectively, all of the foregoing, the "Claims").  Each Loan Party represents and warrants that it has no knowledge of any claim by it against the Released Parties or of any facts or acts of omissions of the Released Parties which on the date hereof would be the basis of a claim by any Loan Party against the Released Parties which is not released hereby, in each case, regarding or relating to the Financing Agreement and the other Loan Documents.  Each Loan Party represents and warrants that the foregoing constitutes a full and complete release of all such Claims.
		

		
			6.         Vehicles.  On or before June 21, 2019 (or such later date as agreed to by the Collateral Agent in its sole discretion), the Company shall have delivered evidence to the Collateral Agent, in form and substance reasonably satisfactory to the Collateral Agent, that all lien applications with respect to the certificates of title for all vehicles purchased by the Loan Parties since the Closing Date have been submitted to the applicable department of motor vehicles to have such certificates of title notated with the name of the Collateral Agent as a lienholder.  The Loan Parties acknowledge and agree that failure to comply with the requirements of this Section 6 shall constitute an Event of Default.
		

		
			7.         Miscellaneous.
		

		
			(a)        Continued Effectiveness of the Financing Agreement.  Except as otherwise expressly provided herein, the Financing Agreement and the other Loan Documents are, and shall continue to be, in full force and effect and are hereby ratified and confirmed in all respects, except that on and after the First Amendment Effective Date (i) all references in the Financing Agreement to "this Agreement",  "hereto",  "hereof",  "hereunder" or words of like import referring to the Financing Agreement shall mean the Financing Agreement as amended by this Amendment, and (ii) all references in the other Loan Documents to the "Financing Agreement",  "thereto",  "thereof",  "thereunder" or words of like import referring to the Financing
		

		
			
		

		
			

		 

		

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			Agreement shall mean the Financing Agreement as amended by this Amendment.  To the extent that the Financing Agreement or any other Loan Document purports to pledge to Agent, or to grant to Agent, a security interest or lien, such pledge or grant is hereby ratified and confirmed in all respects.  Except as expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as an amendment of any right, power or remedy of the Agents, the Lead Arranger and the Lenders under the Financing Agreement or any other Loan Document, nor constitute a waiver or an amendment of any provision of the Financing Agreement or any other Loan Document.
		

		
			(b)        Reaffirmation.  Each of Loan Party hereby reaffirms its obligations under each Loan Document to which it is a party.  Each Loan Party hereby further ratifies and reaffirms the validity and enforceability of all of the liens and security interests heretofore granted, pursuant to and in connection with the Pledge and Security Agreement or any other Loan Document, to Agent, as collateral security for the obligations under the Loan Documents in accordance with their respective terms, and acknowledges that all of such Liens and security interests, and all Collateral heretofore pledged as security for such obligations, continue to be and remain collateral for such obligations from and after the date hereof.
		

		
			(c)        Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Amendment by telefacsimile or electronic mail shall be equally as effective as delivery of an original executed counterpart of this Amendment.
		

		
			(d)        Headings.  Section headings herein are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
		

		
			(e)        Costs and Expenses.  The Loan Parties agree to pay on demand all reasonable fees, costs and expenses of the Agents  and the Lenders executing this Amendment in connection with the preparation, execution and delivery of this Amendment.
		

		
			(f)        First Amendment as Loan Document.  Each Loan Party hereby acknowledges and agrees that this Amendment constitutes a "Loan Document" under the Financing Agreement.  Accordingly, it shall be an Event of Default under the Financing Agreement if (i) any representation or warranty made by any Loan Party under or in connection with this Amendment shall have been untrue, false or misleading in any material respect when made, or (ii) any Loan Party shall fail to perform or observe any term, covenant or agreement contained in this Amendment.
		

		
			(g)        Governing Law.  This Amendment shall be governed by the laws of the State of New York.
		

		
			(h)        Waiver of Jury Trial.  THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AMENDMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN,
		

		
			
		

		
			

		 

		

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			INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.
		

		
			 
		

		
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			IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date first above written.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						COMPANY:

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						FERRELLGAS, L.P.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By: Ferrellgas, Inc., as its general partner

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Name: Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Title: Interim CEO

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						GENERAL PARTNER:

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						FERRELLGAS, INC.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Name: Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Title: Interim CEO

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						GUARANTOR SUBSIDIARIES:

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BLUE RHINO GLOBAL SOURCING, INC.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Name: Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Title:

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BRIDGER LOGISTICS, LLC 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: Ferrellgas, L.P., its sole member

				
	
					
						 

					
					
						By: Ferrellgas, Inc., its general partner

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Name: Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Title:

				

		
			 
		

		
			
		

		
			

		 

		

		
			 
		

			
					
						:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BRIDGER LAKE, LLC

				
	
					
						 

					
					
						BRIDGER MARINE, LLC

				
	
					
						 

					
					
						BRIDGER ADMINISTRATIVE SERVICES II, LLC

				
	
					
						 

					
					
						BRIDGER REAL PROPERTY, LLC

				
	
					
						 

					
					
						BRIDGER TRANSPORTATION, LLC

				
	
					
						 

					
					
						BRIDGER LEASING, LLC

				
	
					
						 

					
					
						BRIDGER STORAGE, LLC

				
	
					
						 

					
					
						BRIDGER RAIL SHIPPING, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  Bridger Logistics, LLC, its sole member

				
	
					
						 

					
					
						By:  Ferrellgas, L.P., its sole member

				
	
					
						 

					
					
						By:  Ferrellgas, Inc., its general partner

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Name: Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Title:

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						J.J. ADDISON PARTNERS, LLC

				
	
					
						 

					
					
						J.J. KARNACK PARTNERS, LLC

				
	
					
						 

					
					
						J.J. LIBERTY, LLC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  Bridger Real Property, LLC, its sole member

				
	
					
						 

					
					
						By:  Bridger Logistics, LLC, its sole member

				
	
					
						 

					
					
						By:  Ferrellgas, L.P., its sole member

				
	
					
						 

					
					
						By:  Ferrellgas, Inc., its general partner

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Name: Bill Ruisinger

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						BRIDGER TERMINALS, LLC

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						SOUTH C&C TRUCKING, LLC

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  Bridger Logistics, LLC, its sole member

				
	
					
						 

					
					
						By:  Ferrellgas, L.P., its sole member

				
	
					
						 

					
					
						By:  Ferrellgas, Inc., its general partner

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Bill Ruisinger

				
	
					
						 

					
					
						 

					
					
						Name: Bill Ruisinger

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						TPG SPECIALTY LENDING, INC.,

				
	
					
						 

					
					
						as Collateral Agent and a Lender

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Joshua Easterly

				
	
					
						 

					
					
						 

					
					
						Name: Joshua Easterly

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title: Director & Chief Executive Officer

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						PNC BANK, NATIONAL ASSOCIATION,

				
	
					
						 

					
					
						as a Lender

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Steve Roberts

				
	
					
						 

					
					
						 

					
					
						Name: Steve Roberts

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title: Senior Vice President

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						TAO TALENTS, LLC,

				
	
					
						 

					
					
						as a Lender

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Joshua Easterly

				
	
					
						 

					
					
						 

					
					
						Name: Joshua Easterly

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title: Vice President

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

		
			 
		

			
					
						 

					
					
						BTC HOLDINGS FUND , LLC,

				
	
					
						 

					
					
						as a Lender

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:  Blue Torch Credit Opportunities Fund I LP, its sole member

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						BY:  Blue Torch Credit Opportunities GP LLC, its general partner

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Kevin Genda

				
	
					
						 

					
					
						 

					
					
						Name: Kevin Genda

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Title: CEOExhibit 4.1

 

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

 

US $100,000.00

 

MYDX, INC

12% CONVERTIBLE REDEEMABLE NOTE

DUE MAY 7, 2020

 

FOR VALUE RECEIVED,
MyDx, Inc. (the “Company”) promises to pay to the order of ODYSSEY CAPITAL FUNDING, LLC and its authorized successors
and Permitted Assigns, defined below, (“Holder”), the aggregate principal face amount of One Hundred Thousand
Dollars exactly (U.S. $100,000.00) on May 7, 2020 (“Maturity Date”) and to pay interest on the principal amount
outstanding hereunder at the rate of 12% per annum commencing on May 7, 2019. The interest will be paid to the Holder in whose
name this Note is registered on the records of the Company regarding registration and transfers of this Note. The principal of,
and interest on, this Note are payable at 1218 Union Street, Suite #2, Brooklyn, NY 11225, initially, and if changed, last appearing
on the records of the Company as designated in writing by the Holder hereof from time to time. The Company will pay each interest
payment and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be
deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing
on the records of the Company. The forwarding of such check or wire transfer shall constitute a payment of outstanding principal
hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such
check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein. Permitted
Assigns means any Holder assignment, transfer or sale of all or a portion of this Note accompanied by an Opinion of Counsel as
provided for in Section 2(f) of the Securities Purchase Agreement.

 

	
        

        _MyDx_

        Initials
	 	 

     

     

    

 

This Note is subject to
the following additional provisions:

 

1. This Note is
exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder
surrendering the same. No service charge will be made for such registration or transfer or exchange, except that Holder shall pay
any tax or other governmental charges payable in connection therewith. To the extent that Holder subsequently transfers, assigns,
sells or exchanges any of the multiple lesser denomination notes, Holder acknowledges that it will provide the Company with Opinions
of Counsel as provided for in Section 2(f) of the Securities Purchase Agreement.

 

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

 

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

 

4. (a) The Holder of
this Note is entitled, at its option, at any time after the 6 month anniversary of this Note (the “Conversion Date”),
to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company’s common
stock (the “Common Stock”) at a price (“Conversion Price”) for each share of Common Stock
equal to 60% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau
OTC Marketplace exchange upon which the Company’s shares are traded or any exchange upon which the Common Stock may be traded
in the future (“Exchange”) for the twenty prior trading days including the day upon which
a Notice of Conversion is received by the Company or its transfer agent (provided such Notice of Conversion is delivered by fax
or other electronic method of communication to the Company or its transfer agent after 4 P.M. Eastern Standard or Daylight Savings
Time if the Holder wishes to include the same day closing price). If the shares have not been delivered within 3 business days,
the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering the shares of Common
Stock to the Holder within 3 business days of receipt by the Company of the Notice of Conversion. Accrued but unpaid interest shall
be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued on conversion, but the
number of shares issuable shall be rounded to the nearest whole share. In the event the Company experiences a DTC “Chill”
on its shares, the Conversion Price shall be decreased to 50% instead of 60% while that “Chill” is in effect. In
no event shall the Holder be allowed to effect a conversion if such conversion, along with all other shares of Company Common Stock
beneficially owned by the Holder and its affiliates would exceed 4.99% of the outstanding shares of the Common Stock of the Company.

 

    	_MyDx_
 Initials	2	 

     

    

 

 

If there has been no
payment or conversion of this Note as of the Maturity Date or if an Event of Default has occurred and is continuing pursuant to
Sections 8(a), 8(j) or 8(l), the principal face amount of this Note, along with any accrued interest, shall be converted into shares
of the Company’s Common Stock at the Conversion Price.

 

(b) Interest on any unpaid
principal balance of this Note shall be paid at the rate of 12% per annum. Except in connection with a prepayment pursuant to Section
4(c) below, interest shall be paid by the Company in Common Stock (“Interest Shares”). Holder may, on or after the
Conversion Date, send in a Notice of Conversion to the Company for Interest Shares based on the formula provided in Section 4(a)
above. The dollar amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the unpaid
principal balance of this Note to the date of such notice.

 

(c) The then outstanding
principal balance of this Note may be prepaid at the following prices:

 

	PREPAY DATE	 	PREPAY AMOUNT
	≤ 60 days	 	125% of principal plus accrued interest
	61-120 days	 	135 of principal plus accrued interest
	121-180 days	 	145% of principal plus accrued interest

 

This Note may not be prepaid after the
180th day. Such redemption must be closed and funded within 3 days of giving notice of redemption of the right to redeem
shall be null and void.

 

(d) Upon (i) a transfer
of all or substantially all of the assets of the Company to any person in a single transaction or series of related transactions,
(ii) a reclassification, capital reorganization (excluding an increase in authorized capital) or other change or exchange of outstanding
shares of the Common Stock, other than a forward or reverse stock split or stock dividend, or (iii) any consolidation or merger
of the Company with or into another person or entity in which the Company is not the surviving entity (other than a merger which
is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or
exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred
to as a “Sale Event”), then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash
for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the election of the Holder,
such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into
shares of Common Stock immediately prior to such Sale Event at the Conversion Price.

 

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

 

    	_MyDx_
 Initials	3	 

     

    

 

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

 

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

 

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

 

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

 

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

 

(b) Any of the representations
or warranties made by the Company herein or in any agreement entered into by the Company in connection with the execution and delivery
of this Note, shall be false or misleading in any respect; or

 

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

 

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

 

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

 

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

 

    	_MyDx_
 Initials	4	 

     

    

 

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

 

(h) Defaulted on or breached
any term of any other note of similar debt instrument in excess of $50,000 into which the Company has entered and failed to cure
such default within the appropriate grace period; or

 

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

 

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

 

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

 

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

 

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

 

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

 

Then, or at any time thereafter, unless
cured within 10 days (except for 8(k)), and in each and every such case, unless such Event of Default shall have been waived in
writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and
in the Holder’s sole discretion, the Holder may consider this Note immediately due and payable, without presentment, demand,
protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly waived, anything
herein or in any note or other instruments contained to the contrary notwithstanding, and, subject to Section 4(a), the Holder
may immediately, and without expiration of any period of grace, enforce any and all of the Holder’s rights and remedies provided
herein or any other rights or remedies afforded by law. Upon an Event of Default, interest shall accrue at a default interest rate
of 24% per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by
law. The penalty for a breach of Section 8(n) shall be an increase of the outstanding principal amounts by 20%. Further, if a breach
of Section 8(m) occurs or is continuing after the 6 month anniversary of the Note, then the Holder shall be entitled to use the
lowest closing bid price during the delinquency period as a base price for the conversion. For example, if the lowest closing bid
price during the delinquency period is $0.01 per share and the conversion discount is 50% the Holder may elect to convert future
conversions at $0.005 per share.

 

    	_MyDx_
 Initials	5	 

     

    

 

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

 

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

 

Failure to Deliver Loss = [(High trade
price within 20 trading days or after the day of exercise) x (Number of conversion shares)]

 

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

 

All rights with respect to this Note shall
terminate upon the effective conversion of the entire principal amount of this Note as provided in Section 4(a). Notwithstanding
the foregoing, Holder agrees to surrender this Note to the Company as soon as practicable after conversion.

 

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

 

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

 

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

 

    	_MyDx_
 Initials	6	 

     

    

 

12. The Company shall
issue irrevocable transfer agent instructions reserving 416,667,000 shares of its Common Stock for conversions under this Note
(the “Share Reserve”), which amount shall be adjusted accordingly in the event of a stock split or reverse stock split.
Upon full conversion of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all transfer
agent costs associated with issuing and delivering the share certificates to Holder. If such amounts are to be paid by the Holder,
it may deduct such amounts from the Conversion Price. The Company should at all times reserve a minimum of four times the amount
of shares required if the note would be fully converted. The Holder may reasonably request increases from time to time to reserve
such amounts. The Company will instruct its transfer agent to provide the outstanding share information to the Holder in connection
with its conversions.

 

13. The Company will
give the Holder direct notice of any corporate actions, including but not limited to name changes, stock splits, recapitalizations
etc. This notice shall be given to the Holder as soon as possible under law.

 

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

 

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

 

    	_MyDx_
 Initials	7	 

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed by an officer thereunto duly authorized.

 

	Dated:	5-8-19	 

 

	 	MYDX, INC.
	 	 
	 	By:	/s/ Matthew Bucciero
	 	Title:	CEO

 

    	_MyDx_
 Initials	8	 

     

    

 

EXHIBIT A

 

NOTICE OF CONVERSION

 

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

 

The undersigned hereby
irrevocably elects to convert $____________ of the above Note into __________ Shares of Common Stock of MyDx, Inc. (“Shares”)
according to the condi-tions set forth in such Note, as of the date written below.

 

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

 

Date of Conversion: _____________________________________________________________

Applicable Conversion Price: _____________________________________________________________

Signature: _____________________________________________________________

                                                        [Print
Name of Holder and Title of Signer]

Address: _____________________________________________________________

 

_____________________________________________________________

 

SSN or EIN: ________________________________

Shares are to be registered in the following
name: ______________________________

 

Name: _____________________________________________________________

Address: _____________________________________________________________

Tel: _____________________________

Fax: _____________________________

SSN or EIN: _____________________________

 

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

 

Account Name: _____________________________________________________________

Address: _____________________________________________________________

 

	_MyDx_ 

Initials	9

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