Document:

Exhibit

SEPARATION AGREEMENT
AND GENERAL RELEASE OF ALL CLAIMS

This Separation Agreement and General Release of All Claims (“Agreement”) is made by and between Illumina, Inc. (“Illumina” or “the Company”) and Christian Henry (“Executive”) collectively (“the Parties”), with respect to the following facts:
A.Executive is employed by the Company as an Executive Vice President and Chief Commercial Officer. 
B.Executive’s employment will end effective January 31, 2017 (“Separation Date”).
C.The Company wishes to assist Executive in his transition to other employment and has offered to provide Executive with a severance payment as described below. 
THEREFORE, in consideration of the promises and mutual agreements hereinafter set forth, it is agreed by and between the undersigned as follows:
1.     Transition Period & Severance.  
1.1        Transition Period:  Executive is required between October 31, 2016 and the Separation Date to perform professional duties as requested by the Company’s President & CEO or as required to by other Company Executives to support Company’s commercial and business operations during Executive’s transition from the Company. During this period, Executive remains an at-will Executive of the Company which means that he may be terminated with or without cause for any lawful reason. 
1.2    In order to establish the terms of Company’s Severance Offer to Executive and to ensure the enforceability of the General Release of All Claims recited in Section 2 below. Executive has twenty-one (21) days from receipt of this Agreement to sign it, indicating his agreement to its terms. If Executive is employed on the Separation Date, he is also required to sign the “Re-Affirmation” of the Release of Claims attached as Exhibit A as a condition of receiving the Severance described below. The Re-Affirmation may not be signed by Executive until on or after the Separation Date. Executive also has twenty-one days from the Separation Date to sign and return the Re-Affirmation. (See also, paragraphs 7.3, 7.4 and 9.)
1.3     Severance:  The Company agrees to pay Executive a Severance Payment equivalent to eighteen (18) months of his normal wages, in the gross amount of Eight-Hundred, Ten Thousand USD and Zero Cents ($810,000.00), less all appropriate federal and state tax withholdings, to which Executive is not otherwise entitled ("Severance Payment").  Executive acknowledges and agrees that this Severance Payment constitutes adequate legal consideration for the promises and representations made by him in this Agreement.  Subject to the provisions below, the Severance Payment will be made in a lump sum payment within thirty (30) days after all of the following: (1) the Effective Date of this Agreement and the Re-Affirmation (see paragraphs 7.3 & 7.4 and); (2) after signing both this Agreement and the Re-Affirmation, Executive has returned both in a timely manner to Illumina by scanning them to smcgrath@illumina.com or by mailing the original to 5200 Illumina Way, San Diego, CA 92122, Attention:  Sue McGrath on or before the deadline stated in paragraph 9, and; (3) pursuant to paragraph 10, Executive has timely returned to Illumina all Company property in his possession, custody or control.
1.4    The Company also agrees to pay for the cost of continued coverage for Executive’s existing medical benefits through the provisions of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) for a period of eighteen (18) consecutive months following the termination of his benefits on January 31, 2017 or through July 31, 2018.  These sums will be paid directly to Illumina’s carrier provided that the Executive timely and properly completes all required elections to continue coverage under COBRA.  Thereafter, Executive may elect to continue such benefits at his own 

expense under the provisions of COBRA.  For the avoidance of doubt, Illumina is not liable for and will not reimburse Executive for out-of-pocket medical expenses if Executive fails to timely and properly elect continuation of coverage through COBRA.
1.5    Executive will receive twenty-four (24) months of executive physical and services benefits from the LifeWellness Institute or an equivalent vendor contracted by Illumina. 

1.6   The Company agrees to provide Executive career counseling services through Lee Hecht Harrison. Executive must begin his use of such services within six months of the Separation Date or the services offered are waived. 
             1.7    Receipt of Wages & Expenses.  With the sole exception of the severance benefits described in paragraph 1.3 - 1.6, above, Executive acknowledges that he has received all compensation, wages, equity, bonuses and expense reimbursements owed to him through the Effective Date of this Agreement, and that he is not entitled to any future payments of any type.
2.    General Release.
2.1        Executive unconditionally, irrevocably and absolutely releases and discharges the Company, and any parent and subsidiary corporations, divisions and other affiliated entities of the Company, past and present, as well as the Company’s Executives, officers, directors, agents, attorneys, successors and assigns of the Company (collectively, “Released Parties”), from all claims related in any way to the transactions or occurrences between them to date to the fullest extent permitted by law including, but not limited to, Executive’s employment with the Company, the termination of Executive’s employment, and all other losses, liabilities, claims, demands and causes of action, known or unknown, suspected or unsuspected, arising directly or indirectly out of or in any way connected with Executive’s employment with the Company.  This release is intended to have the broadest possible application and includes, but is not limited to, any tort, contract, common law, constitutional or other statutory claims, any claim for unpaid wages, commissions, bonuses or other employment benefits, as well as alleged violations of the California Labor Code or the federal Fair Labor Standards Act, Title VII of the Civil Rights Act of 1964 and the California Fair Employment and Housing Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act of 1967, as amended, and all claims for attorneys’ fees, costs and expenses.  However, this release shall not apply to claims for workers’ compensation benefits, unemployment insurance benefits, or any other claims that cannot lawfully be waived.   
2.2        Executive acknowledges that he may discover facts or law different from, or in addition to, the facts or law that he knows or believes to be true with respect to the claims released in this Agreement and agrees, nonetheless, that this Agreement and the release contained in it shall be and remain effective in all respects notwithstanding such different or additional facts or the discovery of them.
2.3        Executive declares and represents that he intends this Agreement to be final and complete and not subject to any claim of mistake.  Executive executes this release with the full knowledge that this release covers all possible claims against the Released Parties, to the fullest extent permitted by law.
2.4        Executive expressly waives his right to recover any type of personal relief from the Company, including monetary damages or reinstatement, in any administrative action or proceeding, whether state or federal, and whether brought by Executive or on Executive’s behalf by an administrative agency, related in any way to the matters released herein.  Nothing in this paragraph is intended to prevent or discourage the Executive from communicating with any state or federal governmental agency. 

2.5        Executive declares and represents that as of the Effective Date of this Agreement he is not aware of any violations of any applicable rules, regulations and/or laws by Company or any Executive of Company; or that if he is aware of or is concerned about any such violations, he has reported those to Company.

3.    California Civil Code Section 1542 Waiver.  Executive expressly acknowledges and agrees that all rights under Section 1542 of the California Civil Code are expressly waived.  That section provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
Executive understands that he is a “creditor” within the meaning of Section 1542.
4.    Representation Concerning Filing of Legal Actions.  Executive represents that, as of the date of this Agreement, he has not filed any lawsuits, complaints, petitions, claims or other accusatory pleadings against the Company or any of the other Released Parties in any court.  Executive further agrees that, to the fullest extent permitted by law, he will not prosecute in any court, whether state or federal, any claim or demand of any type related to the matters released above, it being the intention of the parties that with the execution of this release, the Released Parties will be absolutely, unconditionally and forever discharged of and from all obligations to or on behalf of Executive related in any way to the matters discharged herein  Nothing in this agreement shall prevent the Executive from complying with a lawfully issued subpoena or from communicating with a state or federal governmental agency.  
5.    No Admissions.  By entering into this Agreement, the Released Parties make no admission that they have engaged, or are now engaging, in any unlawful conduct.  The parties understand and acknowledge that this Agreement is not an admission of liability and shall not be used or construed as such in any legal or administrative proceeding.
6.    Agreement to Cooperate.  Executive agrees that he will, in good faith and with due diligence, assist in, facilitate and cooperate with the Company and provide information as to matters which he was personally involved, or has information on, while he was an Executive of the Company and which become the subject of an action, investigation, proceeding, litigation or otherwise.  Executive shall make himself available, upon reasonable notice, to be interviewed, give sworn testimony and statements, declarations, trial testimony and other such disclosures.  Nothing herein is intended or should be construed as requiring anything other than Executive’s cooperation in providing truthful and accurate information.
7.    Older Workers’ Benefit Protection Act.  This Agreement is intended to satisfy the requirements of the Older Workers’ Benefit Protection Act, 29 U.S.C. sec. 626(f).  The following general provisions, along with the other provisions of this Agreement, are agreed to for this purpose:
7.1        Executive acknowledges and agrees that he has read and understands the terms of this Agreement.
7.2        Executive is advised that he should consult with an attorney before signing this Agreement, and Executive acknowledges that he has obtained and considered any legal advice he deems necessary, such that he is entering into this Agreement freely, knowingly, and voluntarily.

7.3        Executive acknowledges that he has been given at least twenty-one (21) days to consider whether or not to enter into this Agreement.  Executive understands that, at his option, Executive may elect not to use the full 21-day period. Similarly, by signing the Re-Affirmation attached as Exhibit A, Executive acknowledges that he was given at lease twenty-one (21) days to consider whether or not to sign the Re-Affirmation. Executive may elect not to use the full 21- day period.
7.4        Neither this Agreement, nor the Re-Affirmation attached as Exhibit A, becomes effective or enforceable until the eighth day after Executive signs each of the two documents.  In other words, Executive may revoke his acceptance of this Agreement within seven days after the date he signs it.  Thereafter, following the Separation Date, Executive may revoke his acceptance of the Re-Affirmation. For the avoidance of doubt, in order for the severance described in Section 1.3 - 1.6 above to be paid, Executive must sign and not revoke both the Agreement and the Re-Affirmation. Any revocation must be in writing and received by Sue McGrath of Illumina by 5:00 p.m. on the seventh day following signature in order to be effective.  If Executive does not revoke acceptance of either this Agreement or the Re-Affirmation within the applicable seven day period, Executive's acceptance of this Agreement shall become binding and enforceable on the eighth day following the applicable document’s signature. (“Effective Date”).  
7.5        This Agreement does not waive or release any rights or claims that Executive may have under the Age Discrimination in Employment Act that arise after the execution of this Agreement.
8.    Severability.  In the event any provision of this Agreement shall be found unenforceable by a court of competent jurisdiction, the provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the Released Parties shall receive the benefits contemplated herein to the fullest extent permitted by law.  If a deemed modification is not satisfactory in the judgment of such court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.
9.    Deadline For Signature.   In order to receive payment of Severance under this Agreement, Executive must comply with Section 7.4 and must sign and return the Re-Affirmation attached as Exhibit A no later than 21 days from the Separation Date.  
10.    Return of Company Property.  Executive understands and agrees that as a condition of receiving the Severance Payment, all Company property still in Executive’s possession, if any, must be immediately returned to the Company.  By signing this Agreement, Executive represents and warrants that Executive has or will have returned such Company Property no later than Executive’s Separation Date, including any Company issued or provided credit cards, computers, vehicles, tangible property and equipment, keys, entry cards, identification badges, telephones, PDAs, and all documents, files, folders, correspondence, memoranda, notes, notebooks, drawings, books, records, plans, forecasts, reports, proposals, agreements, financial information, computer-recorded information, as well as all copies thereof, electronic or otherwise.  
11.    Nondisclosure and Non-Use of Company Confidential Information.  Executive acknowledges and agrees that, by reason of his high-level, sensitive position with the Company, he has been given access to the Company’s most confidential and proprietary documents, materials and information, including those regarding the Company's products, strategic plans and litigation strategies, research, business affairs, and personnel matters, which he acknowledges and agrees are of a highly sensitive and confidential nature and considered trade secrets and/or proprietary to the Company.  Such information, documents and materials may include, without limitation, trade secrets, inventions, research, plans, proposals, acquisitions or divestitures, marketing and sales programs, litigation strategies, financial projections, cost summaries, pricing formulas and all concepts or ideas, materials or information related to the products, research, business or sales of the Company or the Company's customers or business partners, as well as the Company’s personnel matters, which has not previously been released 

to the public at large by an authorized representative of the Company.  Executive represents that he has held all such information confidential and will continue to do so, and that he will not use such confidential or proprietary information and/or documents for any purpose whatsoever.  Executive understands that this obligation of confidentiality continues even after the Separation Date. Executive also reaffirms his agreement to all of his obligations under the Proprietary Information and Invention Agreement signed by him at or about his date of hire. The Parties expressly incorporate said agreement into this Settlement Agreement.  
11.1.    Executive acknowledges and agrees that disclosure and/or use of any such confidential information would cause irreparable harm to the Company, which could not be adequately or reasonably compensated in damages in an action at law.  Accordingly, in the event of such disclosure or use (whether actual or threatened), Executive agrees that the Company, in addition to exercising any other rights and remedies available to it under this Agreement or otherwise, is entitled to obtain injunctive relief and other equitable relief from a court of competent jurisdiction restraining Executive from such disclosure and use.

12.    Applicable Law.  The validity, interpretation and performance of this Agreement shall be construed and interpreted according to the laws of the United States of America and the State of California.    
13.    Binding on Successors.  The parties agree that this Agreement shall be binding on, and inure to the benefit of his or its successors, heirs and/or assigns.
14.    Full Defense.  This Agreement may be pled as a full and complete defense to, and may be used as a basis for an injunction against, any action, suit or other proceeding that may be prosecuted, instituted or attempted by Executive in breach hereof.  Executive agrees that in the event an action or proceeding is instituted by the Released Parties in order to enforce the terms or provisions of this Agreement, the Released Parties shall be entitled to an award of reasonable costs and attorneys’ fees incurred in connection with enforcing this Agreement. The terms of this paragraph shall not apply to an action by Executive to challenge the enforceability of Executive’s waiver of rights under the Age Discrimination in Employment Act.
15.    Good Faith.  The parties agree to do all things necessary and to execute all further documents necessary and appropriate to carry out and effectuate the terms and purposes of this Agreement.
16.    Entire Agreement; Integration.  This Agreement contains the entire agreement between the Company and the Executive on the subjects addressed in this Agreement and replaces any other prior agreements or representations, whether oral or written, between them; provided, however, that the Proprietary Information and Invention Agreement executed by Executive remains in full force and effect and is not superseded by this Agreement.
17.    Modification.  This Agreement may be amended only by a written instrument executed by all parties hereto.
18.    Counterparts.  This Agreement may be executed in counterparts and shall be binding on all parties when each has signed either an original or copy of this Agreement.  
19.    Confidentiality.  Except where disclosure is required by law, Executive agrees that the terms and conditions of this Agreement shall remain confidential as between the parties and he shall not disclose them to any other person, including but not limited, to any current or former Illumina Executive.  Executive also agrees that he will not respond to, participate in, or contribute to any public discussion or other publicity concerning, or in any way relating to, execution of this Agreement or the events (including 

any negotiations) leading to its execution.  Without limiting the foregoing, the Executive may disclose the terms and conditions of this Agreement to his wife, attorneys and/or financial advisors provided he informs them of this confidentiality provision and they agree to abide by it.  A violation of this section 19 shall be a material breach of this Agreement.  
20.    Non-Disparagement.  Neither Executive, nor anyone subject to his direction or control, will make any negative, derogatory or disparaging statements, publications or comments, regarding his employment with the Company or the business reputation or business practices of the Company and/or the Released Parties to any person or entity.  This section will in no way prevent Executive from testifying truthfully pursuant to an enforceable subpoena.
21. Section 409(A) of the Internal Revenue Code.  Notwithstanding anything herein to the contrary, if Executive is a “Specified Executive,” for purposes of Section 409A of the Internal Revenue Code (“Section 409A”), on the date on which he incurs a Separation from Service, any payment or benefit provided in this Agreement that provides for the “deferral of compensation” within the meaning of Section 409A shall not be paid or provided or commence to be paid or provided on any date prior to the first business day after the date that is six months following Executive’s “Separation from Service” (the “409A Suspension Period”); provided, however, that a payment or benefit delayed pursuant to the preceding clause shall commence earlier in the event of Executive’s death prior to the end of the six-month period.  Within 14 calendar days after the end of the 409A Suspension Period, Executive shall be paid a lump sum payment in cash equal to any payments delayed because of the preceding sentence.  Thereafter, Executive shall receive any remaining benefits as if there had not been an earlier delay.  For purposes of this Agreement, “Separation from Service” shall have the meaning set forth in Section 409A(a)(2)(i)(A) of the Internal Revenue Code and shall be determined in accordance with the default rules under Section 409A.  “Specified Executive” shall have the meaning set forth in Section 409A(a)(2)(B)(1) of the Internal Revenue Code, as determined in accordance with the uniform methodology and procedures adopted by the Company and then in effect.
THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN.  WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW.

Dated: _____________________        By: /s/ Christian Henry                 
Christian Henry
                
                            
Dated: _____________________        By: /s/ Francis deSouza                
Illumina, Inc.                    
Francis deSouza, President & CEO
EXHIBIT A
REAFFIRMATION OF RELEASE OF CLAIMS

		
	1.
	This Reaffirmation of Release of Claims (“Reaffirmation”) is being executed by Christian Henry (“Executive”), pursuant to the Separation Agreement and General Release of All Claims (“Separation Agreement”) previously signed by Executive and Illumina, Inc. (the “Company”).  This Reaffirmation may not be signed by Executive until the Separation Date as defined and referenced in the Separation Agreement.

		
	2.
	In consideration for the benefits and payments specified in the Separation Agreement, all of which he is not otherwise entitled to receive, Executive hereby reaffirms his agreement to all of the terms and conditions of that Separation Agreement, including his agreement to release any and all claims, known or unknown, against Released Parties, as that term is defined therein.  Specifically, Executive unconditionally, irrevocably and absolutely releases and discharges the Company and any parent and subsidiary corporations, divisions and other affiliated entities of the Company, past and present, as well as its respective past and present Executives, officers, directors, agents, attorneys, successors and assigns (collectively, “Released Parties”), from all claims related in any way to the transactions or occurrences between them to date to the fullest extent permitted by law including, but not limited to, any losses, liabilities, claims, demands and causes of action, known or unknown, suspected or unsuspected, arising directly or indirectly out of or in any way connected with Executive’s employment with the Company, or the conclusion of Executive’s employment.  This release is intended to have the broadest possible application and includes, but is not limited to, any tort, contract, common law, constitutional or other statutory claims, as well as alleged violations of the California Labor Code, Title VII of the Civil Rights Act of 1964, the California Fair Employment and Housing Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act of 1967, all as amended, and all claims for attorneys’ fees, costs and expenses.  However, this release shall not apply to claims for workers’ compensation benefits, unemployment insurance benefits, or any other claims that, by statute, cannot lawfully be waived by this Agreement.

3.Executive further represents that, as of the date he signs this Reaffirmation, he is unaware of any unlawful or inappropriate conduct by any Company Executive, and has not filed any lawsuits, complaints, petitions, claims or other accusatory pleadings against the Company or any of the Released Parties in any court of law with any administrative agency, or in any arbitral forum.  He further agrees that, to the fullest extent of the law, he will not prosecute in any court, whether state or federal, or any arbitral forum, any claim or demand of any type related to the matters released, it being the intention of the parties that with the execution of this Reaffirmation, the Released Parties will be absolutely, unconditionally and forever discharged of and from all obligations to or on behalf of Executive related in any way to the matters discharged herein.  Additionally, Executive expressly waives his right to recover any type of personal relief from the Company, including monetary damages or reinstatement, in any administrative action or proceeding, whether state or federal, and whether brought by his or on his behalf by an administrative agency, related in any way to the matters released herein.

4.Executive expressly acknowledges and agrees that all rights under Section 1542 of the California Civil Code are expressly waived.  That section provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.
Executive understands that he is a “creditor” within the meaning of Section 1542
5.This Reaffirmation is also intended to release and discharge any claims of Executive under the Age Discrimination in Employment Act (“ADEA”) based on any transactions or occurrences between the Company and Executive after the execution date of the Separation Agreement.  To satisfy the requirements of the Older Workers’ Benefit Protection Act, 29 U.S.C. section 626(f), the parties agree as follows:

a.    Executive acknowledges that he has read and understands the terms of this Reaffirmation.
b.    Executive is advised to consult with an attorney concerning this Reaffirmation and has received all legal advice he deems necessary concerning this Reaffirmation. 
c.    Executive shall have twenty-one (21) days to consider whether or not to enter into this Reaffirmation, he has taken as much of this time as necessary to consider whether to enter into this Reaffirmation, and has chosen to enter into this Reaffirmation freely, knowingly and voluntarily.
d.    For a seven (7) day period following the execution of this Reaffirmation, Executive may revoke this Agreement by delivering a written revocation to Sue McGrath of Illumina.  This Reaffirmation shall not become effective and enforceable until the revocation period has expired.  The Severance benefits set forth in Paragraphs 1.3 to 1.6 of the Separation Agreement are expressly conditioned upon Executive signing and not revoking this Reaffirmation.  
e.    This Agreement shall not apply to any claims for age discrimination that arise after the Effective Date of this Reaffirmation.
		
	6.
	Executive acknowledges that he has received all compensation and expense reimbursements owed to him by the Company, including, but not limited to, all salary, bonuses, commissions, equity grants and accrued but unused vacation.

BY SIGNING BELOW, Executive certifies that he has read and understands all of this Reaffirmation, has received any advice or counsel she deems necessary regarding this Reaffirmation, and is entering into this Reaffirmation freely and voluntarily, intending to be bound by its terms.

Dated: 2/2/2017_____________________        By: /s/ Christian Henry___________________
Christian HenryExhibit 10.1

 

THIS NOTE HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), NOR UNDER ANY STATE
SECURITIES LAW AND MAY NOT BE SOLD, PLEDGED, OFFERED FOR SALE, ASSIGNED OR TRANSFERRED UNLESS (a) A REGISTRATION STATEMENT
WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT, AND ANY APPLICABLE STATE SECURITIES LAW REQUIREMENTS HAVE BEEN
MET OR (B) EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT AND THE REGISTRATION OR QUALIFICATION
REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS ARE AVAILABLE.

 

CONVERTIBLE PROMISSORY NOTE

 

	$25,000	 	November 8, 2016
	 	 	New York, New York

FOR VALUE RECEIVED, Truli
Media Group, Inc., a Delaware corporation (the “Company”), promises
to pay to the order of [ ] (“Holder”), at the offices of [ ] the principal sum of Twenty-Five Thousand U.S. Dollars
(U.S. $25,000) with interest thereon at the rate of ten percent (10%) per annum. Any amounts that remain unpaid when due shall
thereafter bear interest at the rate of twelve percent (12%) per annum. Interest as aforesaid shall be calculated on the basis
of actual number of days elapsed over a year of 360 days.

 

The principal
amount and all accrued interest of this Note are due on April 8, 2017 (the “Maturity Date”).

 

This Note is subject to the
following additional provisions:

 

Section 1.Definitions.
For the purposes hereof the following terms shall have the following meanings:

 

“Business
Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or
a day on which banking institutions in the State of New York are authorized or required by law or other government action to close.

 

“Common
Stock” means the common stock, par value $0.001 per share, of the Company and stock of any other class into which such
shares may hereafter have been reclassified or changed.

 

“Conversion Date”
shall have the meaning set forth in Section 5(a) hereof.

 

“Conversion Price”
shall have the meaning set forth in Section 5(b).

 

“Conversion
Shares” means the shares of Common Stock issuable upon conversion of this Note or as payment of interest, all in accordance
with the terms hereof.

 

“Event of Default”
shall have the meaning set forth in Section 7.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Fundamental Transaction”
shall have the meaning set forth in Section 3.

 

    

     

    

 

“Original
Issue Date” means the date of the first issuance of this Note regardless of the number of transfers of any Note and regardless
of the number of instruments which may be issued to evidence such Note.

 

“Person”
means a corporation, an association, a partnership, organization, a business, an individual, a government or political subdivision
thereof or a governmental agency.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Subsidiary”
means any Person in which the Company owns more than 50% of the outstanding equity.

 

“Transaction
Documents” means this Note and any related agreements executed contemporaneously herewith.

 

Section 2.Registration
of Transfers and Exchanges.

 

a)                   
Different Denominations. 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
of transfer or exchange.

 

b)                  
Investment Representations. This Note has been issued subject to certain investment representations of the original
Holder set forth herein and may be transferred or exchanged only in compliance with applicable federal and state securities laws
and regulations.

 

c)                   
Reliance on Note Register. Prior to due presentment to the Company 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 Note Register as the owner hereof for
the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither
the Company nor any such agent shall be affected by notice to the contrary.

 

Section 3.Acceleration
of Maturity Date.

 

If, at any
time while this Note is outstanding the Company or any of its Subsidiaries, (A) effects any merger or consolidation of the Company
with or into another Person or (B) acquires assets of a business from any Person (in any such case, a “Fundamental Transaction”),
then, immediately prior to the occurrence of such Fundamental Transaction the principal and accrued but unpaid interest payable
hereunder shall automatically become, at the Holder’s election, immediately due and payable in cash.

 

Section 4.Use of
Proceeds.

 

The Company will use the proceeds
of the loan represented by this Note only for working capital and not for the payment of outstanding liabilities as of September
21, 2016 (excluding two convertible notes) or for liabilities related to the Company’s legacy business (the “Assumed
Liabilities”).

 

    2 

     

    

 

Section 5.Conversion.

 

a)                   
Voluntary Conversion. At all times after the Original Issue Date until this Note is no longer outstanding, the principal
and accrued interest due and payable under this Note shall be convertible into shares of Common Stock at the option of the Holder,
in whole or in part at any time and from time to time, so long and only to the extent that after taking into consideration all
issued and outstanding common stock shares and the maximum number of shares issuable under all issued and outstanding convertible
securities at the time of conversion, there remain enough authorized but unissued shares under the Company’s Certificate
of Incorporation that are not previously reserved for issuance under such convertible securities to effect conversion of this Note.
The Holder shall effect conversions by delivering to the Company the form of Notice of Conversion attached hereto as Annex A (a
“Notice of Conversion”), specifying therein the principal amount of Note to be converted and the date on which
such conversion is to be effected (a “Conversion Date”). If no Conversion Date is specified in a Notice of Conversion,
the Conversion Date shall be the date that such Notice of Conversion is provided hereunder. To effect conversions hereunder, the
Holder shall not be required to physically surrender the Note to the Company unless the entire principal amount of this Note plus
all accrued and unpaid interest thereon has been so converted. Conversions hereunder shall have the effect of lowering the outstanding
principal amount of this Note in an amount equal to the applicable conversion. The Holder and the Company shall maintain records
showing the principal amount converted and the date of such conversions. The Company shall deliver any objection to any Notice
of Conversion within 3 Business Days of receipt of such notice. In the event of any dispute or discrepancy, the records of the
Holder shall be controlling and determinative in the absence of manifest error. The Holder and any assignee, by acceptance of this
Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note,
the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof. However, at the
Company’s request, the Holder shall surrender the Note to the Company within five (5) trading days following such request
so that a new Note reflecting the correct principal amount may be issued to Holder.

 

b)                  
 Conversion Price. The conversion price in effect on any Conversion Date (subject to adjustment herein) shall
initially be equal to $0.02 per share.

 

c)                     Mechanics
of Conversion

 

i.                  
Conversion Shares Issuable Upon Conversion of Principal Amount. The number of shares of Common Stock issuable upon
a conversion hereunder shall be determined by the quotient obtained by dividing (x) the amount of this Note (whether principal
or accrued but unpaid interest) to be converted by (y) the Conversion Price.

 

ii.                
Delivery of Certificate Upon Conversion. Not later than five (5) trading days after any Conversion Date, the Company
will deliver to the Holder at an address in the United States (A) a certificate or certificates representing the Conversion Shares
representing the number of shares of Common Stock being acquired upon the conversion of Notes (including, if so timely elected
by the Company, shares of Common Stock representing the payment of accrued interest and (B) a bank check or wire transfer in the
amount of accrued and unpaid interest (if the Company is required to pay accrued interest in cash).

 

iii.              
Reservation of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep
available out of its authorized and unissued shares of Common Stock solely for the purpose of issuance upon conversion of this
Note (after taking into account all existing issued and outstanding shares of Common Stock and all shares reserved for issuance
under the Company’s issued and outstanding convertible securities), free from preemptive rights or any other actual contingent
purchase rights of persons other than the Holder, not less than such number of shares of the Common Stock as shall be issuable
(taking into account the adjustments and restrictions of Section 6) upon the conversion of the outstanding principal amount and
accrued interest under this Note. The Company covenants that all shares of Common Stock that are issuable upon conversion of this
Note shall, upon issuance, be duly and validly authorized, issued and fully paid and non-assessable.

 

    3 

     

    

 

iv.               
Fractional Shares. Upon a conversion hereunder the Company shall not be required to issue stock certificates representing
fractions of shares of the Common Stock, but may if otherwise permitted, make a cash payment in respect of any final fraction of
a share based on the fair market value of a share at such time. If the Company elects not, or is unable, to make such a cash payment,
the Holder shall be entitled to receive, in lieu of the final fraction of a share, one whole share of Common Stock.

 

v.                 
Transfer Taxes. The issuance of certificates for shares of the Common Stock on conversion of this Note shall be
made without charge to the Holder for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery
of such certificate.

 

d)                     Holder’s Representations.

 

i.                  
Own Account. Holder understands that the Conversion Shares are “restricted securities” and have not been
registered under the Securities Act or any applicable state securities law and upon Conversion will acquire the Conversion Shares
as principal for its own account and not with a view to or for distributing or reselling the Conversion Shares or any part thereof
in violation of the Securities Act or any applicable state securities law, has no present intention of distributing the Conversion
Shares in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings
with any other persons to distribute or regarding the distribution of the Conversion Shares in violation of the Securities Act
or any applicable state securities law (this representation and warranty not limiting Holder’s right to sell the Conversion
Shares otherwise in compliance with applicable federal and state securities laws).

 

ii.                
Holder Status. On the date hereof and on each date on which Holder elects to convert all or a portion of this Note,
it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under
the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act.

 

iii.              
Experience of Holder. Holder, either alone or together with its representatives, has such knowledge, sophistication
and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in this Note and the Conversion Shares, and has so evaluated the merits and risks of such investment. Such Purchaser is able to
bear the economic risk of an investment in this Note and the Conversion Shares and, at the present time, is able to afford a complete
loss of such investment.

 

    4 

     

    

 

Section 6.Certain Adjustments.

 

a)                   
Adjustment Triggers.

 

i.                   
Stock Dividends and Stock Splits. If the Company, at any time after the Original Issue Date while the Note is outstanding:
(A) shall pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity
or equity equivalent securities payable in shares of Common Stock to all stockholders of the Company (which, for avoidance of doubt,
shall not include any shares of Common Stock issued by the Company pursuant to this Note, including as interest thereon), (B) subdivide
outstanding shares of Common Stock into a larger number of shares, or (C) combine (including by way of reverse stock split) outstanding
shares of Common Stock into a smaller number of shares, then the Conversion Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such event and of
which the denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant
to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination
or re-classification.

 

ii.                 
Voluntary Adjustment By Company. The Company may at any time reduce the then current Conversion Price to any amount
and for any period of time deemed appropriate and approved by the Board in accordance with Nevada law, provided that the same voluntary
adjustment shall be made to the then current Conversion Price of all outstanding Notes having substantially the same form as this
Note.

 

b)                  
Calculations. All calculations under this Section 6 shall be made to the nearest cent or the nearest 1/100th of a
share, as the case may be. The number of shares of Common Stock outstanding at any given time shall not include shares of Common
Stock owned or held by or for the account of the Company, and the description of any such shares of Common Stock shall be considered
an issue or sale of Common Stock. For purposes of this Section 6, the number of shares of Common Stock deemed to be issued and
outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued
and outstanding.

 

c)                      Notice
to Holder.

 

i.                   
Adjustment to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any of this Section 6, the
Company shall promptly mail to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth
a brief statement of the facts requiring such adjustment.

 

ii.               
Notice to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution) on
the Common Stock; (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock; (C)
the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any
shares of capital stock of any class or of any rights; (D) the approval of any stockholders of the Company shall be required in
connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale
or transfer of all or substantially all of the assets of the Company, of any compulsory share exchange whereby the Common Stock
is converted into other securities, cash or property; (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company; then, in each case, the Company shall cause to mailed to the Holder at
its last address as it shall appear upon the stock books of the Company, at least 20 calendar days prior to the applicable record
or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined
or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective
or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their
shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange; provided, that the failure to mail such notice or any defect therein or in the mailing thereof
shall not affect the validity of the corporate action required to be specified in such notice. The Holder shall be entitled to
convert this Note during the 20-day period commencing the date of such notice to the effective date of the event triggering such
notice.

 

    5 

     

    

 

 

d)                     Limitation on Beneficial Ownership.

 

i.                   
Except as provided otherwise in this Section 6(d)(i), the number of Conversion Shares that may be acquired by the Holder
shall be limited to the extent necessary to insure that, after giving effect to such conversion (or deemed conversion for voting
purposes), the number of shares of Common Stock then beneficially owned by the Holder and its affiliates and any other persons
or entities whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d)
of the Exchange Act (including shares held by any “group” of which the Holder is a member, but, for avoidance of doubt,
excluding shares of Common Stock issuable upon conversion or exercise of securities or rights to acquire securities that have limitations
on the right to convert, exercise or purchase similar to the limitation set forth herein) does not exceed 4.99% (the “Maximum
Percentage”) of the total number of shares of Common Stock of the Company issued and outstanding immediately after giving
effect to such conversion (or deemed conversion for voting purposes) (the “Beneficial Ownership Cap”). Upon
delivery of a written notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any
other percentage not in excess of 9.99% as specified in such notice; provided that (i) any such increase in the Maximum Percentage
will not be effective until the sixty-first (61st) day after such notice is delivered to the Company and (ii) any such increase
or decrease will apply only to the Holder and its Affiliates and not to any other holder of contemporaneously issued Notes that
is not an Affiliate. For purposes hereof, “group” has the meaning set forth in Section 13(d) of the Exchange Act and
applicable regulations of the Securities and Exchange Commission, and the percentage held by the Holder shall be determined in
a manner consistent with the provisions of Section 13(d) of the Exchange Act. As used herein, the term “Affiliate”
means any person or entity that, directly or indirectly through one or more intermediaries, controls or is controlled by or is
under common control with a person or entity, as such terms are used in and construed under Rule 144 under the Securities Act.
With respect to the Holder, any investment fund or managed account that is managed on a discretionary basis by the same investment
manager as the Holder will be deemed to be an affiliate of the Holder. In the event the Company is prohibited from issuing shares
of Common Stock as a result of any restrictions or prohibitions under applicable law or the rules or regulations of any stock exchange,
interdealer quotation system or other self-regulatory organization, the Company shall as soon as possible seek the approval of
its stockholders and take such other action to authorize the issuance of the full number of shares of Common Stock issuable upon
the full conversion of this Note.

 

ii.                 
For purposes of the foregoing, the number of shares of Common Stock beneficially owned by the Holder and its affiliates
shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which the determination
is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) conversion of the remaining,
non-converted shares under this Note beneficially owned by such Person or any of its affiliates and (B) exercise or conversion
of the unexercised or unconverted portion of any other securities of the Company (including, without limitation, any other notes
or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained in this Section beneficially
owned by Holder or any of its affiliates. Except as set forth in the preceding sentence, for purposes of this Section 6(d), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act. For purposes of this Section 6(d),
in determining the number of outstanding shares of Common Stock, Holder may rely on the number of outstanding shares of Common
Stock as reflected in (1) the Company’s most recent Form 10-K, Form 10-Q, or Form 8-K, as the case may be, (2) a more recent
public announcement by the Company, or (3) any other notice by the Company or the Transfer Agent setting forth the number of shares
of Common Stock outstanding. For any reason at any time, upon the written request of Holder, the Company shall within one (1) Business
Day following the receipt of such notice, confirm orally and in writing to any such Holder the number of shares of Common Stock
then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the
conversion or exercise of securities of the Company, including conversions under this Note (or deemed conversion, as applicable),
by Holder and its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. In the
event that the Company cannot issue any shares of Common Stock to a Holder solely by reason of this Section 6(d) (such shares,
the “Limited Shares”), notwithstanding anything to the contrary contained herein, the Company shall hold any such Limited
Shares in abeyance for such Holder until such time, if ever, that the delivery of such Limited Shares shall not cause the Holder
to exceed the Beneficial Ownership Cap, at which time such Holder shall be delivered such Limited Shares to the extent as if there
had been no such limitation. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in
strict conformity with the terms of this Section 6(d) to correct this paragraph (or any portion hereof) which may be defective
or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary
or desirable to properly give effect to such limitation.

 

    6 

     

    

 

Section 7.Events of Default.

 

a)                   
Event of Default. Wherever used herein, means any one of the following events (whatever the reason and whether it
shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or
any order, rule or regulation of any administrative or governmental body):

 

i.                   
any default in the payment of (A) the principal, or (B) interest on this Note or any other note of the Company held by the
Holder when the same shall become due and payable (whether on the Maturity Date or by acceleration or otherwise) which default
is not cured within ten (10) Business Days after written notice from the Holder;

 

ii.                 
a breach of any of the covenants or agreements made by the Company herein;

 

iii.               
(A) there is commenced against the Company or any Subsidiary thereof a case under any applicable bankruptcy or insolvency
laws as now or hereafter in effect or any successor thereto, or any other proceeding under any reorganization, arrangement, adjustment
of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter
in effect relating to the Company or any Subsidiary thereof which remains undismissed for a period of 60 days; or (B) the Company
or any Subsidiary thereof is adjudicated by a court of competent jurisdiction insolvent or bankrupt; or any order of relief or
other order approving any such case or proceeding is entered; or (C) the Company or any Subsidiary thereof suffers any appointment
of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period
of 60 days; or

 

iv.                
Assumed liabilities as they come due.

 

b)                   
Remedies Upon Event of Default. If any Event of Default occurs, the full principal amount of this Note, together
with interest and any other amounts owing in respect hereof, to the date of acceleration shall become, at the Holder’s election,
immediately due and payable in cash. The Holder need not provide and the Company hereby waives any presentment, demand, protest
or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of
its rights and remedies hereunder and all other remedies available to it under applicable law. Such declaration may be rescinded
and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a Note holder until such
time, if any, as the full payment under this Section shall have been received by it. No such rescission or annulment shall affect
any subsequent Event of Default or impair any right consequent thereon.

 

c)                     
Alternate Conversion Price.

 

i.                   
General. Subject to Section 6(d), at any time at any time after the occurrence of an Event of Default (regardless
of whether such Event of Default has been cured), the Holder may, at the Holder’s option, convert (each, an “Alternate
Conversion”, and the date of such Alternate Conversion, each, an “Alternate Conversion Date”) all,
or any part of, the amounts then outstanding under this Note (such portion of this Note subject to such Alternate Conversion, the
“Alternate Conversion Amount”) into shares of Common Stock at the Alternate Conversion Price.

 

ii.                 
Mechanics of Alternate Conversion. Subject to Section 6(d), on any Alternate Conversion Date, the Holder may voluntarily
convert any Alternate Conversion Amount pursuant to Section 7(c) (with “Alternate Conversion Price” replacing “Conversion
Price” for all purposes hereunder with respect to such Alternate Conversion by designating in the Conversion Notice delivered
pursuant to this Section 5 of this Note that the Holder is electing to use the Alternate Conversion Price for such conversion.
Notwithstanding anything to the contrary in this Section 7(c), but subject to Section 6(d), until the Company delivers shares of
Common Stock representing the applicable Alternate Conversion Amount to the Holder, such Alternate Conversion Amount may be converted
by the Holder into shares of Common Stock pursuant to Section 5 without regard to this Section 7(c).

 

    7 

     

    

 

iii.               
Definitions. For the purpose of this Section 7(c), (A) “Alternate Conversion Price” means, with
respect to any Alternate Conversion that price which shall be the lowest of (x) the applicable Conversion Price as in effect on
the applicable Conversion Date of the applicable Alternate Conversion, and (y) 80% of the price computed as the quotient of (I)
the sum of the VWAP of the Common Stock for each of the three (3) Business Days with the lowest VWAP of the Common Stock during
the twenty (20) consecutive Business Day period ending and including the Business Day immediately preceding the delivery or deemed
delivery of the applicable Conversion Notice, divided by (II) three (3) (such period, the “Alternate Conversion Measuring
Period”). All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination, reclassification
or similar transaction that proportionately decreases or increases the Common Stock during such Alternate Conversion Measuring
Period and (B) “VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security
on the principal securities exchange or securities market on which such security is then traded during the period beginning at
9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg, LP through its “HP”
function (set to weighted average) or, if the foregoing does not apply, the dollar volume-weighted average price of such security
in the over-the-counter market on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m.,
New York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg, LP, or, if no dollar volume-weighted average
price is reported for such security by Bloomberg. LP for such hours, the average of the highest closing bid price and the lowest
closing ask price of any of the market makers for such security as reported in the “pink sheets” by OTC Markets Group
Inc. (formerly Pink Sheets LLC). If the VWAP cannot be calculated for such security on such date on any of the foregoing bases,
the VWAP of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. All
such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination, recapitalization or
other similar transaction during such period.

 

Section 8.Miscellaneous.

 

a)                   
Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder shall be
in writing and delivered personally or sent by a nationally recognized overnight courier service, addressed to the Company at 201
South Laurel, Luling, TX 78648, attention: Chief Executive Officer, or such other address or facsimile number as the Company may
specify for such purposes by notice to the Holder delivered in accordance with this Section. Any and all notices or other communications
or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, sent by a nationally
recognized overnight courier service addressed to the Holder at the facsimile, telephone number or address of such Holder appearing
on the books of the Company, or if no such facsimile telephone number or address appears, at the principal place of business of
the Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i)
the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified
in this Section prior to 5:30 p.m. (New York City time), (ii) the date after the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile telephone number specified in this Section later than 5:30 p.m. (New York City time)
on any date and earlier than 11:59 p.m. (New York City time) on such date, (iii) the second Business Day following the date of
mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice
is required to be given.

 

b)                   
Absolute Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the principal of, interest and other amounts provided for herein (if
any) on, this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation
of the Company.

 

    8 

     

    

 

c)                    
Lost or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and
deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost,
stolen or destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed but only upon
receipt of evidence of such loss, theft or destruction of such Note, and of the ownership hereof; and indemnity, if requested,
all reasonably satisfactory to the Company.

 

d)                    
Additional Issuances of Securities.

 

i.                   
For purposes of this Section 8(d), the following definitions shall apply.

 

		(1)	"Convertible Securities" means any stock or securities (other
than Options) convertible into or exercisable or exchangeable for shares of Common Stock.

 

		(2)	"Options" means any rights, warrants or options to subscribe
for or purchase Common Stock or Convertible Securities.

 

		(3)	"Common Stock Equivalents" means, collectively, Options
and Convertible Securities.

 

ii.                 
From the date hereof until the earlier of (x) the time that this Note is no longer outstanding or (y) such time as all of
the shares underlying this Note may be sold without restriction or limitation pursuant to Rule 144 and without the requirement
to be in compliance with Rule 144(c)(1), the Company shall not, directly or indirectly, file any registration statement with the
SEC, or file any amendment or supplement thereto, or grant any registration rights to any person that can be exercised prior to
the earlier of such time as set forth above, other than any registration statement for the issuance of securities pursuant to an
employee benefit plan or securities award, as registered on Form S-8.

 

iii.               
From the date hereof until the two (2) year anniversary of the issuance of this Note, the Company shall not, (i) directly
or indirectly, offer, sell, grant any option to purchase, or otherwise dispose of (or announce any offer, sale, grant or any option
to purchase or other disposition of) any of its or its Subsidiaries' equity or equity equivalent securities, including without
limitation any debt, preferred stock or other instrument or security that is, at any time during its life and under any circumstances,
convertible into or exchangeable or exercisable for Common Stock or Common Stock Equivalents (any such offer, sale, grant, disposition
or announcement being referred to as a "Subsequent Placement") unless the Company shall have first complied with
this Section 4(n)(iv).d

 

		(1)	The Company shall deliver to the holder of this Note an irrevocable written
notice (the "Offer Notice") of any proposed or intended issuance or sale or exchange (the "Offer") of the securities
being offered (the "Offered Securities") in a Subsequent Placement, which Offer Notice shall (w) identify and describe
the Offered Securities, (x) describe the price and other terms upon which they are to be issued, sold or exchanged, and the number
or amount of the Offered Securities to be issued, sold or exchanged, (y) identify the persons or entities (if known) to which or
with which the Offered Securities are to be offered, issued, sold or exchanged and (z) offer to issue and sell to or exchange with
such holder fifty percent (50%) of the Offered Securities.

 

    9 

     

    

 

		(2)	To accept an Offer, in whole or in part, such holder must deliver a written
notice to the Company prior to the end of the tenth (10th) Business Day after such holder's receipt of the Offer Notice
(the "Offer Period"), setting forth the amount that such holder elects to purchase (the "Notice of Acceptance").
Notwithstanding anything to the contrary contained herein, if the Company desires to modify or amend the terms and conditions of
the Offer prior to the expiration of the Offer Period, the Company may deliver to the holder a new Offer Notice and the Offer Period
shall expire on the tenth (10th) Business Day after the holder's receipt of such new Offer Notice.

 

		(3)	If any holders of other notes similar to this Note and issued on the same
date as this Note have similar rights as those set forth in this Section 8(d) but choose not to exercise such rights in full, then
the holder of this Note shall be given an option to exercise such rights to purchase any remaining Offered Securities based on
an offer period including deadlines at least as long as those contained in this Section 8(d).

 

		(4)	The Company shall have five (5) Business Days from the expiration of the
Offer Period above to offer, issue, sell or exchange all or any part of such Offered Securities as to which a Notice of Acceptance
has not been given by the holder (the "Refused Securities") pursuant to a definitive agreement (the "Subsequent
Placement Agreement") but only to the offerees described in the Offer Notice (if so described therein) and only upon terms
and conditions (including, without limitation, unit prices and interest rates) that are not more favorable to the acquiring person
or persons or less favorable to the Company than those set forth in the Offer Notice and (ii) to publicly announce (a) the execution
of such Subsequent Placement Agreement, and (b) either (x) the consummation of the transactions contemplated by such Subsequent
Placement Agreement or (y) the termination of such Subsequent Placement Agreement, which shall be filed with the SEC on a Current
Report on Form 8-K with such Subsequent Placement Agreement and any documents contemplated therein filed as exhibits thereto.

 

		(5)	In the event the Company shall propose to sell less than all the Refused
Securities (any such sale to be in the manner and on the terms specified in Section 8(d)(iii)(3) above), then the holder of this
Note may, at its sole option and in its sole discretion, reduce the number or amount of the Offered Securities specified in its
Notice of Acceptance to an amount that shall be not less than the number or amount of the Offered Securities that such Holder elected
to purchase pursuant to Section 8(d)(iii)(2) above multiplied by a fraction, (i) the numerator of which shall be the number or
amount of Offered Securities the Company actually proposes to issue, sell or exchange (including Offered Securities to be issued
or sold to holders of other notes pursuant to Section 8(d)(iii)(3) above prior to such reduction) and (ii) the denominator of which
shall be the original amount of the Offered Securities. In the event that the holder of this Note so elects to reduce the number
or amount of Offered Securities specified in its Notice of Acceptance, the Company may not issue, sell or exchange more than the
reduced number or amount of the Offered Securities unless and until such securities have again been offered to the holder in accordance
with Section 8(d)(iii)(1) above.

 

    10 

     

    

 

		(6)	Upon the closing of the issuance, sale or exchange of all or less than all
of the Refused Securities, the holder of this Note shall acquire from the Company, and the Company shall issue to the holder, the
number or amount of Offered Securities specified in the Notices of Acceptance, as reduced pursuant to Section 8(d)(iii)(5) above
if the holder has so elected, upon the terms and conditions specified in the Offer. The purchase by the holder of this Note of
any Offered Securities is subject in all cases to the preparation, execution and delivery by the Company and the holder of a purchase
agreement relating to such Offered Securities reasonably satisfactory in form and substance to the holder and its counsel.

 

		(7)	Any Offered Securities not acquired by the holder of this Note or other persons
in accordance with Section 8(d)(iii)(3) above may not be issued, sold or exchanged until they are again offered to the holder under
the procedures specified in this Note.

 

		(8)	The Company and the holder of this Note agree that if the holder elects to
participate in the Offer, (x) neither the Subsequent Placement Agreement with respect to such Offer nor any other transaction documents
related thereto (collectively, the "Subsequent Placement Documents") shall include any term or provisions whereby the
holder shall be required to agree to any restrictions in trading as to any securities of the Company owned by such holder prior
to such Subsequent Placement, and (y) any registration rights set forth in such Subsequent Placement Documents shall be similar
in all material respects to the registration rights contained in the Registration Rights Agreement.

 

		(9)	Notwithstanding anything to the contrary in this Section 8(d) and unless
otherwise agreed to by the holder of this Note, the Company shall either confirm in writing to the holder that the transaction
with respect to the Subsequent Placement has been abandoned or shall publicly disclose its intention to issue the Offered Securities,
in either case in such a manner such that the holder will not be in possession of material non-public information, by the fifteenth
(15th) Business Day following delivery of the Offer Notice. If by the fifteenth (15th) Business Day following delivery of the Offer
Notice no public disclosure regarding a transaction with respect to the Offered Securities has been made, and no notice regarding
the abandonment of such transaction has been received by the holder, such transaction shall be deemed to have been abandoned and
the holder shall not be deemed to be in possession of any material, non-public information with respect to the Company. Should
the Company decide to pursue such transaction with respect to the Offered Securities, the Company shall provide each holder with
another Offer Notice and each holder will again have the right of participation set forth in this Section 8(d)(iii). The Company
shall not be permitted to deliver more than one such Offer Notice to the holder of this Note in any 60 day period.

 

    11 

     

    

 

e)                   
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note,
and any claim, controversy or dispute arising under or related to this Note, the relationship of the parties, and/or the interpretation
and enforcement of the rights and duties of the parties hereunder shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees
that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by any of the
Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders,
employees or agents) shall be commenced in the state or federal courts sitting in the City of New York, Borough of Manhattan (the
“New York Courts”).

 

Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, or such New York Courts are improper or inconvenient venue for such proceeding.
Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action
or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such
party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient
service of process and notice thereof Nothing contained herein shall be deemed to limit in any way any right to serve process in
any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any
and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated
hereby. If either party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing party
in such action or proceeding shall be reimbursed by the other party for its attorney’s fees and other costs and expenses
incurred with the investigation, preparation and prosecution of such action or proceeding.

 

f)                   
Waiver. Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or
be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure
of the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered
a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note.
Any waiver must be in writing.

 

g)                  
Severability. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall
remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to
all other persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates
applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum
permitted rate of interest. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law
which would prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Note as contemplated
herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture,
and due Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants
that it will not, by resort to any such law, binder, delay or impeded the execution of any power herein granted to the Holder,
but will suffer and permit the execution of every such as though no such law has been enacted.

 

h)                  
Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business
Day, such payment shall be made on the next succeeding Business Day.

 

i)                    
Headings. The headings contained herein are for convenience only, do not constitute a part of this Note and shall
not be deemed to limit or affect any of the provisions hereof.

 

 

[SIGNATURE PAGE TO CONVERTIBLE NOTE FOLLOWS]

 

 

    12 

     

    

 

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

 

	 	TRULI MEDIA GROUP, INC.
	 	 
	 	By: 	
	 	 	Elliot Maza, CEO

 

 

    13 

     

    

 

ANNEX A 

NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert principal under the Convertible Note of Truli Media Group, Inc., a Delaware corporation (the
“Company”), due on April 8, 2017, into shares of common stock, par value $0.001 per share (the “Common Stock”),
of the Company according to the conditions hereof, 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 taxes payable with respect thereto and is delivering herewith
such certificates and opinions as reasonably requested by due Company in accordance therewith. No fee will be charged to the Holder
for any conversion, except for such transfer taxes, if any.

 

The
undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with
any transfer of the aforesaid shares of Common Stock.

 

	Conversion calculations:	 	 
	 	Date to Effect Conversion:	 
	 	 	 
	 	Principal Amount of Note to be Converted:	 
	 	 	 
	 	Payment
of Interest in Common Stock_ yes _no

        If yes, $______ of
Interest Accrued on Account of Conversion at Issue.

	 
	 	 	 
	 	Number of shares of Common
Stock to be issued:

	 
	 	 	 
	 	Signature:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Address:	 

 

 

 

14

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