Document:

EXHIBIT 10.1

 

Exclusive Distribution Agreement

 

 

THIS AGREEMENT, effective September 15, 2014 ("Effective Date"), is entered into between Montagne Jeunesse International Limited ("Supplier") and the distributor whose details are set out below ("Distributor") and consists of the particulars set out below and the attached Terms and Conditions. 

 

		
	
Distributor
	
Neoteric Cosmetics, Inc.

 

	
Products
	
Branded Products: Montagne Jeunesse; EarthKiss; Renew You; Face Food

	
Territory
	
United States of America

	
Supplier's notice address and contact details
	
The Green Barn, Astral Court, Central Ave, Baglan Energy Park,

Port Talbot, Wales. SA12 7AX

Contact: Keith Rockhill

Email:keith.rockhill@montagnejeunesse.com

Tel: + 44 1639 861561

	
Distributor's notice address and contact details
	
4880 Havana Street, Suite 400

P.O. Box 39-S

Denver, Colorado 80239

Contact: Mark Goldstein

Email: MGoldstein@slginc.com

Tel: 303-373-4860

 

This Agreement has been entered into effective as of the Effective Date.

 

 

			
	
Signed for and on behalf of
THE SUPPLIER by:

 

/s/ Keith Rockhill

(signature)

Keith Rockhill
(print name)

 

Sales Director
(position)
	
)
)
)
	
Signed for and on behalf of
THE DISTRIBUTOR by:

 

/s/ Mark Goldstein
(signature)

Mark Goldstein
(print name)

 

President/CEO
(position)

 

Terms and Conditions

 

 

1.Scope of appointment

1.1The Supplier appoints the Distributor to be its exclusive distributor for the sale of the Products in the Territory during the Term (as defined in Section 2 below) of this Agreement.

1.2The Distributor shall obtain the Products for re-sale only from the Supplier or a designated supplier of the Supplier, the details of which have been notified in writing to the Distributor by the Supplier.

1.3The Distributor shall not act as the agent of the Supplier. The Distributor shall not describe itself or hold itself out as being a subsidiary or agent of the Supplier or otherwise associated with the Supplier except as a holder of this exclusive distributorship. The Distributor shall not make any warranty or representation or do any other acts in the name of or on behalf of the Supplier and shall not in any way pledge the credit of the Supplier.

1.4The Distributor shall not make, seek to be made or procure to be made any Active Sales of the Products outside of the Territory.

(a)"Active Sales" means: (i) actively approaching or engaging with specific actual or potential customers in that territory by, for instance, email, direct mail, telephone conversations or visits; (ii) actively approaching or engaging with actual or potential customers in that territory through advertisement in media or other promotions specifically targeted at any customers in that territory, including, without limitation, through social media or website activities; or (iii) establishing a warehouse or distribution outlet in that territory.

1.5The Supplier shall not make, seek to be made or procure to be made any Active Sales of the Products, or of any Competing Goods (as defined below) within the Territory.  For purposes of this Section 1.5 only, Competing Goods shall not include the Supplier’s 7th Heaven products sold solely in the natural products market in the Territory.  Notwithstanding the foregoing, the Supplier: (i) may with the prior written approval of the Distributor actively approach or engage with specific actual or potential customers in the Territory by, for instance, email, direct mail, telephone conversations or visits, which approval by Distributor will not be unreasonably withheld or delayed; (ii) may with the prior written approval of the Distributor actively approach or engage with actual or potential customers in the Territory through advertisement in media or other promotions specifically targeted at any customers in that territory, including, without limitation, through social media or website activities, which approval by Distributor will not be unreasonably withheld or delayed; (iii)  may establish a warehouse or distribution outlet in the Territory; and (iv) shall use its commercially reasonable efforts (including, without limitation, use of contractual restrictions to the extent permitted by law) to prohibit any third party from purchasing Products outside the Territory for shipment into the Territory; provided, however, if such sales do occur, Supplier shall use its commercially reasonable efforts to determine the Products shipped into the Territory and the Supplier and Distributor shall mutually agree on a commission payable promptly by Supplier to Distributor

 

based on the sales price received by Supplier for such sales.  “Competing Goods” means products in the single use face masque sachet category. 

1.6The Supplier may at any time, upon giving to the Distributor no less than six months’ prior written notice, cease manufacture of any of the Products. Except as set forth in this Section 1.6, the Supplier may not, unless required by applicable law or regulation, remove any of the Products from its range of Products for sale in the Territory during the Term without the prior written agreement of the Distributor. 

2.Term

2.1This Agreement shall be for an initial period of three years, commencing on the Effective Date ("Initial Period"), unless sooner terminated in accordance with its terms.  It may be terminated at the end of the Initial Period by either party giving to the other not less than six months' written notice of termination prior to expiration of the Initial Period.

2.2In the event of such notice not being given, this Agreement shall automatically renew and continue for further successive periods of two years (each a “Renewal Period”) unless and until (a) either party gives to the other not less than six months' written notice of termination, prior to the end of the then current Renewal Period or (b) this Agreement is sooner terminated in accordance with its terms.  The Initial Period and any Renewal Period(s) are hereafter referred to as the “Term”. If the Term of this Agreement is not renewed pursuant to Section 2.1 or this Section 2.1, then during the six month period prior to termination of this Agreement, Supplier may ship Products into the Territory to establish, directly or indirectly with a third party, a warehouse or distribution outlet in the Territory, but Supplier, directly or indirectly with a third party, shall not make, seek to be made or procure to be made any Active Sales of the Products in the Territory during this six month period.

3.Competition

3.1The Distributor shall not, during the Term, directly or indirectly, whether as distributor or otherwise, manufacture or distribute in the Territory any Competing Goods, unless prior approval is granted in writing by the Supplier.  

	
4.
	
Confidentiality  

Each party shall maintain and preserve all confidential and commercially sensitive information concerning the other, its business and the Products (including the contents of this Agreement) (collectively, “Confidential Information”), howsoever disclosed to or obtained by the receiving party (and whether before or after the Effective Date), whether orally or in writing and whether or not expressly stated to be confidential or marked as such, and shall not use any such Confidential Information other than for the proper performance of its obligations under this Agreement.  Other than to the extent required by applicable law or regulation, neither party may disclose the Confidential Information of the other to any third party, without the prior written agreement of the other.  Notwithstanding any provision herein to the 

1

 

contrary each party may disclose Confidential Information (including the contents of this Agreement) to its directors, employees, attorneys, accountants, advisors, financing sources and lending institutions, so long as such disclosure is subject to confidentiality obligations which are no less restrictive than those set forth herein. The term “Confidential Information” does not include information that: (a) is or becomes generally available to the public other than as a result of disclosure by the receiving party in breach of this Section 4; (b) was rightfully in the receiving party’s possession on a non‐confidential basis prior to its disclosure to the receiving party by the disclosing party; or (c) is independently developed by the receiving party.  

5.Duties of the Distributor; Marketing Materials

During the term of this Agreement the Distributor shall use its commercially reasonable endeavours to promote the sales of the Products throughout the Territory taking into account the unique facts, circumstances and opportunities of each of the Products and will at all times exhibit positive conduct in all aspects of the marketing of the Products throughout the Territory.  Without limiting the generality of the foregoing the Distributor shall at its own expense and at all times:

(a)employ a sufficient number of suitably qualified personnel to ensure the proper fulfilment of the Distributor’s obligations under this Agreement;

(b)subject to Supplier’s timely fulfilment of orders for Products placed by Distributor, maintain an adequate stock of the full range of items comprised in the Products, so that customers may inspect and order from the full range and orders are fulfilled promptly;

(c)devise and maintain an adequate system of stock control and stock rotation;

(d)subject to Supplier’s timely fulfilment of its obligations associated therewith, maintain a satisfactory level of advertising, marketing and promotion of the Products in the Territory, and spend for each calendar year during the Term not less than 10% (pro-rated in the case of any part calendar year during the Term) of the actual price paid by Distributor for Products ordered and sold by the Distributor from the Supplier during such calendar year (or part thereof). 

(e)subject to Supplier’s timely fulfilment of orders for Products placed by Distributor, promptly fulfil all orders for the Products placed by customers;

(f)sell the Products in the same good condition as they are received by the Distributor and not tamper with or alter such Products (including removing, altering or obscuring any of the labels, instructions, warnings or markings on the Products or their packaging) and only use such advertising and promotional literature, product information, technical data, point of sale and other material as are supplied or approved in writing by the Supplier, which approval shall not be unreasonably withheld or delayed; 

(g)not sell expired stock and destroy and dispose of it at its own cost; 

(h)promptly submit to the Supplier full written details of any significant complaints relating to the Products which are received by Distributor, together with all relevant information; 

(i)comply with all applicable legal and regulatory requirements in the Territory; and

(j)inform the Supplier promptly of any Material Change in Control of the Distributor (as defined in Section 12.1(c) below) and of any material change in its organisation or material method of doing business that may affect the performance of the Distributor’s duties in this Agreement.

Shelf talkers, stand header cards, showcards and shelf display racks when supplied by the Supplier shall be invoiced at cost to the Distributor.  Any extra promotional material produced from time to time by the Distributor, solely for the Distributor’s use, including leaflets on the Products in the language of the Territory, shall be solely for the Distributor’s account.  It is acknowledged by the Distributor that the use of such material must be approved beforehand by the Supplier, which approval shall not be unreasonably withheld or delayed.

6.Reports and meetings

6.1The Distributor shall: 

(a)keep the Supplier regularly and fully informed of the progress and development of the market for the Products in the Territory;

(b)provide the Supplier, within 28 days of the end of each calendar quarter, with a report specifying in relation to such calendar quarter the total number of customers of the Distributor who have purchased the Products and the quantity of the Products purchased by each such customer; and 

(c)if deemed necessary, permit an independent auditor nominated by the Supplier to examine, at all reasonable times, and at the Supplier's cost, the accounts and records of the Distributor so far as may be necessary to ascertain or confirm the accuracy of any reports, which examination shall take place on a reasonable (but no less than 5 business days’) written notice during regular business hours and no more than once per calendar year.

6.2The parties will meet regularly at the office of the Distributor or as otherwise mutually agreed, to share information gained by each of them in relation to sales, trading conditions, competitive products and any other information relevant to the performance of the parties' respective obligations under this Agreement including complaints, new Products, changes and improvements to existing Products, as well as to discuss the performance of their respective obligations under this Agreement, and any potential joint efforts to increase demand for the Products.

6.3The Distributor may from time to time invite the Supplier to attend meetings which the Distributor arranges with significant wholesale and retail customers (whether current or prospective).  The Supplier may attend such meetings, in its discretion, for purposes of offering ad hoc advice and support. 

7.Order projection and supply of Products

7.1The Distributor shall provide the Supplier with a quarterly projection of orders for each Product required for delivery during each month of that period, such projection to be updated on a monthly basis.  Unless otherwise agreed in respect of urgent or special orders the Distributor will, 

2

 

 

each month, submit orders to the Supplier for delivery. 

7.2The price payable by the Distributor for the Products (the “Price”) shall be no more than the price paid by Distributor for such Products in the 12 month period immediately preceding the Effective Date.  Any change to the Price shall be effective only if mutually agreed between the parties, each acting in good faith, no less than 6 months in advance. Unless otherwise expressly agreed between the parties in writing as set forth in Section 7.4 below, Supplier may invoice Distributor for Products ordered upon collection of such Products by Distributor or its authorized agent from Supplier’s collection point in Edinburgh, Texas, and Distributor shall pay Supplier’s undisputed invoices within 60 days of the date of invoice.  Notwithstanding any provision herein to the contrary, all prices and payments for the Products shall be in US dollars. 

7.3Orders for Products placed by Distributor shall be deemed accepted by Supplier if Supplier does not provide written notice of rejection within 7 days of receipt of such order.  Unless otherwise expressly agreed between the parties in writing as set forth in Section 7.4 below, orders for Products accepted by Supplier shall be available for collection by Distributor or its authorized agent at Supplier’s collection point in Edinburgh, Texas to enable Distributor to receive the Products by the due date set forth in the applicable purchase order.    For the avoidance of doubt, unless otherwise expressly agreed between the parties in writing as set forth in Section 7.4 below, Supplier shall be responsible for all shipping costs for Products ordered hereunder from point of origin  to the point of collection at Edinburgh, Texas, and all customs duties, insurance and other costs associated therewith.   

7.4Notwithstanding the provisions set forth in Section 7.3 above, the parties may from time to time agree in writing that Products ordered by Distributor shall be shipped directly to Distributor’s address (as specified by Distributor to Supplier), and in such case the Price may be exclusive of, and Distributor may be responsible for, all costs of shipping from Supplier’s premises in the United Kingdom to Distributor’s specified address and all customs duties, insurance and other costs associated therewith.  Orders for Products placed by Distributor pursuant to this Section 7.4 shall be delivered to the carrier at the port of export to enable Distributor to receive the Products by the due date set forth in the applicable purchase order. Supplier may invoice Distributor for Products ordered pursuant to this Section 7.4 upon delivery of the Products to the carrier at the port of export, and Distributor shall pay Supplier’s undisputed invoices within 90 days of the date of invoice.

7.5Supplier shall use its commercially reasonable efforts to ensure that Products, and any associated packaging and/or display materials are delivered to Distributor intact and in a merchantable condition.  In the event that any Products or associated packaging or display materials are not delivered to Distributor in a merchantable condition (“Damaged Products or Packaging”), Distributor shall promptly notify Supplier of the same, and Supplier shall, as directed by Distributor, in its sole discretion, promptly replace such Damaged Products or Packaging at Supplier’s sole cost and expense, grant appropriate credit for such Damaged Products or Packaging or reimburse Distributor for all 

 

costs incurred to repair and/or reclaim the Damaged Products or Packaging.

	
8.
	
Title; Supplier’s Obligations

8.1Title, together with risk of damage to or loss, to the Products will pass to the Distributor on delivery to, or collection by, the Distributor or its agent; provided however that if Products are shipped directly to Distributor and the Distributor pays the costs of shipping as set forth in Section 7.4 above, title, together with risk of damage to or loss, to the Products will pass to the Distributor at the point at which the Products are loaded onto the carrier at the port of export. Pursuant to English law, Supplier will automatically have a lien over the Products until they are paid for by Distributor.

   

8.2In addition to its other obligations hereunder, Supplier shall:

	
(a)
	
use its commercially reasonable efforts to produce and maintain a sufficient inventory of the Products in order to fulfil its commitments to Distributor under this Agreement;

	
(b)
	
provide such information and support as Distributor may reasonably request in order to enable Distributor to discharge its duties hereunder and maximise sales of the Products in the Territory; 

	
(c)
	
provide Distributor with such information regarding Supplier’s own advertising and promotion of the Products outside of the Territory as the Distributor may reasonably require; and 

	
(d)
	
subject to, and without  limiting, its other obligations as set forth in this Agreement (including, without limitation, Section 1.5 above), coordinate and provide Distributor with prior notice of any marketing and/or promotional activities for the Products in the Territory, including, without limitation, through social media and website activities, such notice to be provided in writing and prior to Supplier entering into any binding agreement to run such marketing or promotional activities. 

9.Intellectual property

9.1The Supplier hereby authorises the Distributor, during the term of this Agreement, to use the trade names, trade marks and logos used on and/or in connection with any of the Products (collectively "Brands") subject to the terms and conditions set out in this Agreement.

9.2The Distributor agrees only to use the Brands in an unaltered form, and solely for the purposes of identifying the Supplier as the source of the Products and/or promoting the Products, and not for any other use. The Distributor shall not, and shall not permit any third party to:  

(a)use or seek to register as a trade mark or as a corporate or business name or a domain name, any name or mark which is the same as or which may is confusingly similar to any Brand or any other name or mark owned or used by the Supplier in connection with the Products;

(b)seek to register itself as a licensee of any trade mark owned or used by the Supplier in connection with the Products;

(c)distribute or publish any advertising, marketing or promotional material containing any Brand or relating to the Products without the Supplier's prior written consent, which consent shall not be unreasonably withheld or delayed;

(d)use any Brand in any way which might prejudice its distinctiveness or validity or the goodwill of the Supplier therein; or

(e)other than expressly set forth herein, remove, deface or alter the Brands affixed to any of the Products or affix any other name or mark to any of the Products.

9.3As between the parties, all intellectual property rights owned by the Supplier are and shall remain the sole and exclusive property of the Supplier.  This Agreement does not constitute any assignment of those rights. If requested by the Supplier, the Distributor will assign to the Supplier all goodwill accruing to the Distributor through its use of any of the Brands.

 

10.Warranties, Indemnification and Insurance.

	
10.1
	
The Supplier warrants and represents that the Products will comply with their specifications and shall be free from defect and reasonably fit for the purpose for which they are intended.  The Supplier further warrants and represents that the Products shall be covered by any warranty provided by the Supplier to customers generally from time to time.  The foregoing warranties and representations may be passed through to Distributor’s customers and end users of the Products, and Supplier shall honour such warranties and representations to such customers and end users. Furthermore, the Supplier warrants and represents that (i) the Products comply with applicable labeling, branding, packaging, or weights and measures laws and regulations in the Territory in effect as of the date of manufacture; (ii) the Products  comply with applicable health, safety, environmental, consumer protections laws and regulations in the Territory either in effect as of the date of manufacture or thereafter enacted, and legally applicable to the Products; (iii) the Supplier complies with applicable laws and regulations in the Territory regarding slavery and human trafficking in any country or countries where Supplier manufactures, distributes, sells or purchases its products (e.g., The California Transparency in Supply Chains Act of 2010); and (iv) that the Products do not infringe the patent, trademark, copyright, trade secret or other intellectual property or proprietary right of any third party.

	
10.2
	
The Supplier shall defend, indemnify and hold the Distributor harmless from and against, and pay for any costs, damages or losses incurred by the Distributor (including without limitation reasonable attorney’s fees) resulting from (i) any third party claims or allegations that the 

 

		
Products and/or Brand, as used, sold or distributed hereunder, infringe the patent, trademark, copyright, trade secret or other intellectual property or proprietary right of any third party, (ii) any breach by Supplier of its warranty obligations as set forth in Section 10.1 above, (iii) any recall of the Products made by the Supplier or any applicable regulator or government agency, (iv) any third party claims or allegations relating to any alleged fault or defect in the Products, or (v) any act or omission of any Supplier employees, agents or representatives which results in any bodily injury, death, injury or destruction to property or violation of any applicable law or regulation.

	
10.3
	
If Distributor becomes aware of any matter which may give rise to a claim under Section 10.2 above (an “Indemnity Claim”), Distributor shall promptly give written notice to Supplier of the matter giving rise to such Indemnity Claim (stating in reasonable detail the nature of the matter and, so far as practicable, the amount claimed) and shall consult with Supplier with respect to such matter.  If the matter has become the subject of any legal proceedings the Distributor shall deliver the notice within sufficient time to enable the Supplier to contest the proceedings before any final judgement.  The Distributor shall provide to the Supplier, at the Supplier’s cost, reasonable assistance in connection with Supplier’s investigation of such matter and/ or defence of any such Indemnity Claim.  Supplier may not settle any claim or action on a basis that would impose an unindemnified monetary obligation on Distributor, or require an admission of fault, wrongdoing, or liability by Distributor, without Distributor’s express prior written consent. 

	
10.4
	
Each of the parties shall procure and maintain, during the Term, insurance underwritten by a reputable insurer with a security rating from A.M Best of not less than A-VII and on terms and conditions consistent with prudent risk management practice, but in no event less than those specified below:

		
	
TYPE OF INSURANCE
	
COVERAGE

	
Comprehensive General Liability or Public Liability 
	
Distributor - limits of liability of no less than USD1,000,000 for each claim and in the aggregate.

Supplier – limits of liability of no less than GBP10,000,000 for each claim and in the aggregate.

 

 

 

11.Online Orders; Supplier Personnel. 

	
11.1
	
To the extent any customer places an order for Products, through Supplier’s online site currently located at www.montagnejeunesseus.com (the “Site”), to be delivered in the Territory (an “Online Order”) Supplier shall promptly notify Distributor and Distributor shall be responsible for fulfilment of any such Online Order that is accepted by the Site.  Supplier shall ensure that payment information, and payment, for any such Online Order is directed to Distributor’s nominated payment processor using the simple integrated method.  

	
11.2
	
Supplier acknowledges and agrees that Supplier is responsible for ensuring that any taxes and shipping costs charged to customers for Online Orders, and all prices for Online Orders, are accurate, up-to-date and calculated correctly, based on the information provided by the Distributor, and Supplier shall indemnify Distributor for any liabilities, costs or losses incurred by Distributor to the extent arising out of Supplier’s failure to comply with its obligations as set forth in this Section 11.2.

	
11.3
	
Supplier acknowledges and agrees that, to the extent any Supplier personnel are based at, or work from, Distributor’s premises, such personnel are not employees, agents or representatives of Distributor; such employees, agents or representatives shall be solely the employees or agents of Supplier and shall be under the sole and exclusive direction and control of Supplier.  As between the parties, Supplier has and retains full control over the employment, supervision, compensation, hiring, training and discharge of all such personnel.  Supplier further acknowledges and agrees that Supplier’s personnel are not eligible for any compensation or other employee benefits from Distributor.  Supplier is solely responsible for all matters relating to payment of its employees and shall indemnify and hold harmless Distributor for any failure to make said payments.

 

12.Termination

12.1Either party may, on written notice to the other party, terminate this Agreement if the other party:

(a)materially breaches any term of this Agreement and fails to remedy such breach (if capable of remedy) within 30 days of receipt of written notice specifying the breach; or

(b)becomes insolvent, makes composition with its creditors or an order is made or an effective resolution is passed for its, administration, receivership, liquidation, winding-up or other similar process, or has any distress, execution or other process levied or enforced against the whole or a major part of its assets (which is not discharged, paid out, withdrawn or removed within 28 days), or is subject to any proceedings which are equivalent or substantially similar to any of the foregoing under any applicable jurisdiction, or ceases to trade or threatens to do so (each, an “Insolvency Event”); or

 

(c)there is a Material Change of Control of the Distributor.  For purposes of this Agreement, “Material Change of Control” means the sale of more than 50% of Distributor’s equity or shares, calculated as of the Effective Date.  

12.2The Supplier may, on 90 days prior written notice to Distributor, terminate this Agreement if Distributor shall sell to its customers during any calendar year (pro-rated in the case of any part calendar year during the Term) less than 4.5 million US dollars of Products.

12.3The expiration or termination of this Agreement for any reason will not affect any accrued rights or liabilities or entitlement to remedies of either party as at the date of expiration or termination and will not affect the coming into force or the continuation in force of any of its provisions that expressly are intended to come into force or continue in force on or after the expiration or termination. Without prejudice to the generality of the foregoing, the following clauses shall survive expiration or termination of this Agreement for any reason: clauses:  4, 9.3, 10.1 – 10.3, 12.2 – 12.4 and 14.

12.4Upon expiration or termination of this Agreement for any reason:

(a)the Distributor shall, subject to its rights as set forth in Section 12.4(b) below, immediately discontinue all use of the Brands and of any samples, advertising and promotional literature, product information, technical data, point of sale and other material supplied or approved by the Supplier and of all other confidential and commercially sensitive information obtained by it under or as a result of this Agreement and shall promptly, at the Supplier's direction, destroy or return the same to the Supplier;

(b)the Distributor may dispose of any Products in the ordinary course of business in the three month period following termination of this Agreement (the “Transition Period”). Upon expiration of this Agreement or at the end of the Transition Period, as applicable, the Supplier shall re-purchase from the Distributor, at the price  paid by the Distributor for such Products, all Products supplied to the Distributor under this Agreement which are not subject to orders from customers and are in good and saleable condition; and

 

(c)unless this Agreement is terminated by the Distributor pursuant to Section 12.1(a), the Distributor shall have no claim against the Supplier, by reason of the expiration or termination of this Agreement, for compensation including, without limitation, for loss of distribution rights, loss of goodwill or any similar loss.

13.Force majeure

Neither party shall be liable for any failure to perform any of its obligations under this Agreement if the performance of such obligations has been materially interfered with, hindered, delayed or prevented by any circumstances which are not reasonably within the control of that party, provided, upon discovery, the affected party promptly notifies the other party of such circumstances and uses commercially reasonable efforts to address and mitigate the cause and effect of such event. 

 

14.General

14.1The Distributor may not sub-license or assign, sub-contract or delegate any or all of its rights or obligations under this Agreement without the prior written consent of the Supplier, which consent shall not be unreasonably withheld or delayed.

14.2Any notice required by this Agreement to be given by one party to the other shall be in writing and shall be served by sending the same by certified mail to the other party at the address of such party set out at the beginning of this Agreement or such other address as has been notified in writing from time to time by such party, with a copy of the same to be sent, by email, to the applicable contact set forth below.  Any such notice or communication shall be deemed to have been duly received when sent by pre-paid certified mail at 9:00 a.m. on the fifth business day after posting.  Email notices sent to (i) the Distributor shall be sent to MGoldstein@slginc.com and BLevine@slginc.com, and (ii) the Supplier shall be sent to keith.rockhill@montagnejeunesse.com, mark.pearson@montagnejeunesse.com and neal.gossage@montagnejeunesse.com.

14.3No omission, forbearance or delay on the part of either of the parties to enforce fully any provision of this Agreement or any other right, power, privilege or remedy otherwise available to it shall be construed as a waiver of such provision, right, power, privilege or remedy or of a right thereafter to enforce the same or any other provision, right, power, privilege or remedy.

14.4If at any time any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction then such provision shall be treated in such jurisdiction as severed from the remaining provisions and neither the validity, legality or enforceability of the remaining provisions nor the validity legality or enforceability of such provision under the law of any other jurisdiction shall in any way be affected or impaired.

14.5No variation to this Agreement shall be effective unless it is in writing and signed by an authorized officer of each of the parties. 

14.6No term of this Agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement.

 

14.7This Agreement contains the entire agreement and understanding of the parties with respect to its subject matter and supersedes all prior agreements written or oral and each of the parties acknowledges that it has not been induced to enter into this Agreement by reason of any representation made by or on behalf of the other party. Nothing in this clause 14.7 will operate to limit or exclude any liability for fraud or fraudulent misrepresentation.

14.8Provided always that nothing in this Agreement shall prevent either party, in cases in which interim, injunctive or declaratory relief is required, from commencing proceedings and pursuing claims before a court of competent jurisdiction, any dispute or difference between the parties arising out of or in connection with this Agreement or its subject matter shall be referred to and finally resolved by arbitration under the rules of the 

 

London Court of International Arbitration ("LCIA"), which rules are deemed to be incorporated by reference into this Agreement. The number of arbitrators shall be one, unless the LCIA determines that, in view of all the circumstances of the case, a three-member tribunal is appropriate. The place and seat of arbitration shall be London, England. The language to be used in the arbitration proceedings shall be English. The decision of the arbitrator shall be final and binding upon the parties. Any reference under this clause 14.8 shall be deemed to be a reference to arbitration within the meaning of the Arbitration Act 1996.

14.9This Agreement is governed by English law. Subject to clause 14.8, both parties submit to the exclusive jurisdiction of the English courts in relation to any dispute arising out of or in connection with this Agreement or its subject matter, but the Supplier is also entitled to apply to any court worldwide for injunctive or other remedies in order to protect or enforce its intellectual property rights and/or confidential information and the Distributor is also entitled to apply to any court worldwide for injunctive or other remedies in order to protect or enforce its confidential information.

3NEITHER THIS NOTE NOR THE SECURITIES THAT MAY
BE ISSUED BY THE BORROWER UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”) HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES
NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED: (I) IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE SECURITIES LAWS; OR (II) IN THE ABSENCE OF AN
OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT OR; (III) UNLESS SOLD,
TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

 

12% CONVERTIBLE NOTE

 

MATURITY DATE OF MAY 6, 2015

 

$55,000 NOVEMBER 6, 2014 *THE “ISSUANCE
DATE”

 

FOR VALUE RECEIVED, Rich Pharmaceuticals,
Inc., a Nevada Corporation (the “Company”) doing business in Beverly Hills, CA hereby promises to pay to the
order of JSJ Investments Inc., an accredited investor and Texas Corporation, or its assigns (the “Holder”) the
principal amount of Fifty-Five Thousand Dollars ($55,000), on demand of the Holder at any time on or after May 6, 2015 (the “Maturity
Date”), and to pay interest on the unpaid principal balance hereof at the rate of Twelve Percent (12%) per annum (the
“Interest Rate”) from the date hereof (the “Issuance Date”) until the same becomes due and
payable, whether at maturity or upon acceleration or by prepayment or otherwise; provided, that any amount of principal or interest
on this Note which is not paid when due shall bear interest at such rate on the unpaid principal balance hereof plus Default Interest
from the due date thereof until the same is paid in full. Interest shall commence accruing on the Issuance Date, shall be computed
on the basis of a 365-day year and the actual number of days elapsed and shall accrue daily and, after the Maturity Date, compound
quarterly.

 

		1.	Payments of Principal and Interest.

 

a.                   
Payment of Principal. Until the One Hundred and Twentieth (120th) day after the Issuance Date the Company
may pay the principal at a cash redemption premium of 140% without the Holder’s consent; from the 120th day to the One Hundred
and Fiftieth (150th) day after the Issuance Date, the Company may pay the principal at a cash redemption premium of 150% without
the Holder’s consent. After the 150th day, up to and upon the Maturity Date, this note has a cash redemption premium of 150%
of the principal amount only upon approval and acceptance by JSJ Investments Inc. This provision may only be exercised if the consent
of the Holder is obtained. The principal balance of this Note shall be paid to the Holder hereof on demand.

 

b.                   
Default Interest. Any amount of principal on this Note which is not paid when due shall bear Twelve Percent
(12%) interest per annum from the date thereof until the same is paid (“Default Interest”) and the Holder, at
the Holder’s sole discretion, may include any accrued but unpaid Default Interest in the Conversion Amount.

 

c.                   
General Payment Provisions. This Note shall be made in lawful money of the United States of America by check
to such account as the Holder may from time to time designate by written notice to the Company in accordance with the provisions
of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a Business Day (as
defined below), the same shall instead be due on the next succeeding day which is a Business Day and, in the case of any interest
payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken
into account for purposes of determining the amount of interest due on such date. For purposes of this Note, “Business Day”
shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the State of Texas are authorized or required
by law or executive order to remain closed.

 

		2.	Conversion of Note. At any time prior to the Maturity Date, or after the Maturity Date,
the Conversion Amount of this Note shall be convertible into shares of the Company’s common stock, share (the “Common
Stock”), on the terms and conditions set forth in this Paragraph 2.

 

a.                   
Certain Defined Terms. For purposes of this Note, the following terms shall have the following meanings:

 

		i.	“Conversion Amount” means the sum of (A) the principal amount of this Note to
be converted with respect to which this determination is being made, (B) Interest; and (C) Default Interest, if any, on unpaid
interest and principal, if so included at the Holder’s sole discretion.

 

		ii.	“Conversion Price” means 47.5% discount to the lowest daily VWAP price for the
previous twenty (20) trading days to the date of Conversion.

 

		iii.	“Person” means an individual, a limited liability company, a partnership, a
joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.

 

		iv.	“Shares” means the Shares of the Company into which any balance on this Note
may be converted upon submission of a Conversion Notice.

 

b.                   
Holder’s Conversion Rights. At any time or times on or after the Issuance Date, the Holder shall be
entitled to convert all of the outstanding and unpaid principal amount of this Note into fully paid and non- assessable shares
of Common Stock in accordance with the stated Conversion Price.

 

    	 

    	 

    

 

c.                   
Fractional Shares. The Company shall not issue any fraction of a share of Common Stock upon any conversion;
if such issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of
a share of Common Stock up to the nearest whole share.

 

d.                   
Conversion Amount. The Conversion Amount shall be converted pursuant to Rule 144(b)(1)(ii) and Rule 144(d)(1)(ii)
as promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended, into free trading shares
at the Conversion Price.

 

e.                   
Mechanics of Conversion. The conversion of this Note shall be conducted in the following manner:

 

		i.	Holder’s Conversion Requirements. To convert this Note into shares of Common Stock
on any date set forth in the Conversion Notice by the Holder (the “Conversion Date”), the Holder hereof shall transmit
by email, facsimile or otherwise deliver, for receipt on or prior to 11:59 p.m., Eastern Time on such date or on the next business
day, a copy of a fully executed notice of conversion in the form attached hereto as Exhibit 1 (the “Conversion Date”)
to the Company.

 

		ii.	Company’s Response. Upon receipt by the Company of a copy of a Conversion Notice,
the Company shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion Notice,
send, via email, facsimile or overnight courier, a confirmation of receipt of such Conversion Notice to such Holder indicating
that the Company will process such Conversion Notice in accordance with the terms herein. Within two (2) Business Days after the
date of the Conversion Confirmation, the Company shall have issued and electronically transferred the shares to the Broker indicated
in the Conversion Notice; should the Company be unable to transfer the shares electronically, it shall, within two (2) Business
Days after the date of the Conversion Confirmation, have surrendered to FedEx for delivery the next day to the address as specified
in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which
the Holder shall be entitled.

 

		iii.	Record Holder. The person or persons entitled to receive the shares of Common Stock issuable
upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock
on the Conversion Date.

 

		iv.	Timely Response by Company. Upon receipt by Company of a Conversion Notice, Company shall
respond in a timely manner to Holder by provision within two business days of the Shares requested in the Conversion Notice.

 

		v.	Penalty for Delinquent Response. If Company fails to deliver for whatever reason (including
any neglect or failure by, e.g., the Company, its counsel or the transfer agent) to Holder the Shares as requested in a Conversion
Notice and within three business days of the receipt thereof, there shall accrue a penalty of Additional Shares due to Holder equal
to 25% of the number stated in the Conversion Notice beginning on the Fourth business day after the date of the Notice. The Additional
Shares shall be issued and the amount of the Note retired will not be reduced beyond that stated in the Conversion Notice. Each
additional 5 business days beyond the Fourth business day after the date of this Notice shall accrue an additional 25% penalty
for delinquency, without any corresponding reduction in the amount due under the Note, for so long as Company fails to provide
the Shares so demanded.

 

		vi.	Conversion Right Unconditional. If the Holder shall provide a Notice of Conversion as provided
herein, the Company’s obligations to deliver Common Stock shall be absolute and unconditional, irrespective of any claim
of setoff, counterclaim, recoupment, or alleged breach by the Holder of any obligation to the Company.

 

		vii.	Transfer Agent Fees and Legal Fees. The issuance of the certificates shall be without charge
or expense to the Holder. The Company shall pay any and all Transfer Agent fees, legal fees, and advisory fees required for execution
of this Convertible Note and processing of any Notice of Conversion, including but not limited to the cost of obtaining a legal
opinion with regard to the conversion. The Holder will deduct legal fees in the amount of $2,000 from the principal payment of
the Convertible Note.

 

    	2

    	 

    

 

		3.	Other Rights of Holders: Reorganization, Reclassification, Consolidation, Merger or Sale.
Any recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially all of the Company’s
assets to another Person or other transaction which is effected in such a way that holders of Common Stock are entitled to receive
(either directly or upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common Stock is
referred to herein as “Organic Change.” Prior to the consummation of any (i) Organic Change or (ii) other Organic Change
following which the Company is not a surviving entity, the Company will secure from the Person purchasing such assets or the successor
resulting from such Organic Change (in each case, the “Acquiring Entity”) a written agreement (in form and substance
reasonably satisfactory to the Holder) to deliver to Holder in exchange for this Note, a security of the Acquiring Entity evidenced
by a written instrument substantially similar in form and substance to this Note, and reasonably satisfactory to the Holder. Prior
to the consummation of any other Organic Change, the Company shall make appropriate provision (in form and substance reasonably
satisfactory to the Holders of a majority of the Conversion Amount of the Notes then outstanding) to ensure that each of the Holders
will thereafter have the right to acquire and receive in lieu of or in addition to (as the case may be) the shares of Common Stock
immediately theretofore acquirable and receivable upon the conversion of such Holder’s Note, such shares of stock, securities
or assets that would have been issued or payable in such Organic Change with respect to or in exchange for the number of shares
of Common Stock which would have been acquirable and receivable upon the conversion of such Holder’s Note as of the date
of such Organic Change (without taking into account any limitations or restrictions on the convertibility of the Note). All provisions
of this Note must be included to the satisfaction of Holder in any new Note created pursuant to this section.

 

		4.	Representations and Warranties of the Company. In connection with the transactions provided
for herein, the Company hereby represents and warrants to the Holders the following.

 

		a.	Organization, Good Standing and Qualification. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the state of its incorporation and has all requisite corporate power and
authority to carry on its business as now conducted. The Company is duly qualified to transact business and is in good standing
in each jurisdiction in which the failure to so qualify would have a material adverse effect on its business or properties.

 

		b.	Authorization. All corporate action has been taken on the part of the Company, its officers,
directors and stockholders necessary for the authorization, execution and delivery of this Agreement. The Company has taken all
corporate action required to make all of the obligations of the Company reflected in the provisions of this Agreement, valid and
enforceable obligations. The shares of capital stock issuable upon conversion of the Notes have been authorized or will be authorized
prior to the issuance of such shares.

 

		c.	Fiduciary Obligations. The Company hereby represents that it intends to use the proceeds
of the Notes primarily for the operations of its business and not for any personal, family, or household purpose. The Company hereby
represents that its board of directors, in the exercise of its fiduciary duty, has approved the execution of this Agreement based
upon a reasonable belief that the loan provided for herein is appropriate for the Company after reasonable inquiry concerning its
financial objectives and financial situation.

 

		5.	Covenants of the Company. So long as the Company shall have any obligations under this Note,
the Company shall not without the Holder’s written consent pay, declare or set apart for such payment any dividend or other
distribution (whether in cash, property, or other securities) on share of capital stock solely in the form of additional shares
of Common Stock.

 

		a.	So long as the Company shall have any obligations under this Note, the Company shall not without
the Holder’s written consent redeem, repurchase, or otherwise acquire (whether for cash or in exchange for property or other
securities) in any one transaction or series of transactions any shares of capital stock of the Company or any warrants, rights,
or options to acquire any such shares.

 

		b.	So long as the Company shall have any obligations under this Note, the Company shall not without
the Holder’s written consent sell, lease, or otherwise dispose of a significant portion of its assets outside the ordinary
course of business. Any consent to the disposition of any assets may be conditioned upon a specified use of the proceeds thereof.

 

		6.	Reservation of Shares. The Company shall at all times, so long as any principal amount of
the Note is outstanding, reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of
effecting the conversion of the Note, such number of shares of Common Stock as shall at all times be sufficient to effect the conversion
of all of the principal amount of the Note then outstanding. The initial number of shares of Common Stock reserved for conversions
of the Notes shall be calculated as four times the number of shares necessary to convert the entire value of the Note on the day
it was executed, and each increase in the number of shares so reserved shall be allocated pro rata among the Holders of the Note
based on the principal and interest amount of the Notes held by each Holder at the time of issuance of the Notes or increase in
the number of reserved shares, as the case may be. In the event a Holder shall sell or otherwise transfer any of such Holder’s
Note, each transferee shall be allocated a pro rata portion of the number of reserved shares of Common Stock reserved for such
transferor. Any shares of Common Stock reserved and allocated to any Person which ceases to hold any Note shall be allocated to
the remaining Holders, pro rata based on the principal amount of the Note then held by such Holders.

 

    	3

    	 

    

 

		7.	Voting Rights. Holders of this Note shall have no voting rights, except as required by law.

 

		8.	Reissuance of Note. In the event of a conversion or redemption pursuant to this Note of
less than all of the Conversion Amount represented by this Note, the Company shall promptly cause to be issued and delivered to
the Holder, upon tender by the Holder of the Note converted or redeemed, a new note of like tenor representing the remaining principal
amount of this Note which has not been so converted or redeemed and which is in substantially the same form as this Note, as set
forth above.

 

		9.	Default and Remedies.

 

		a.	Event of Default. An “Event of Default” is: (i) default for ten (10) days in
payment of interest or Default Interest on this Note; (ii) default in payment of the principal amount of this Note when due; (iii)
failure by the Company for thirty (30) days after notice to it to comply with any other material provision of this Note; (iv) breach
of any covenants, warranties, or representations by the Company herein; (v) cessation of operations by the Company or a material
subsidiary; (vi) if the Company pursuant to or within the meaning of any Bankruptcy Law; (A) commences a voluntary case; (B) consents
to the entry of an order for relief against it in an involuntary case; (C) consents to the appointment of a Custodian of it or
for all or substantially all of its property; (D) makes a general assignment for the benefit of its creditors; or (E) admits in
writing that it is generally unable to pay its debts as the same become due; or (vi) a court of competent jurisdiction enters an
order or decree under any Bankruptcy Law that: (I) is for relief against the Company in an involuntary case; (2) appoints a Custodian
of the Company or for all or substantially all of its property; or (3) orders the liquidation of the Company or any subsidiary,
and the order or decree remains unstayed and in effect for thirty (30) days. The Term “Bankruptcy Law” means Title
11, U.S. Code, or any similar Federal or State Law for the relief of debtors. The term “Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

		b.	Remedies. If an Event of Default occurs and is continuing, the Holder of this Note may declare
all of this Note, including any interest and Default Interest and other amounts due, to be due and payable immediately.

  

		10.	Vote to Change the Terms of this Note. This Note and any provision hereof may only be amended by an instrument in writing
signed by the Company and holders of a majority of the aggregate Conversion Amount of the Notes then outstanding.

 

		11.	Lost or Stolen Note. Upon receipt by the Company of evidence satisfactory to the Company
of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of an indemnification
undertaking by the Holder to the Company in a form reasonably acceptable to the Company and, in the case of mutilation, upon surrender
and cancellation of the Notes, the Company shall execute and deliver a new Note of like tenor and date and in substantially the
same form as this Note; provided, however, the Company shall not be obligated to re-issue a Note if the Holder contemporaneously
requests the Company to convert such remaining principal amount into Common Stock.

 

		12.	Payment of Collection, Enforcement and Other Costs. If: (i) this Note is placed in the hands
of an attorney for collection or enforcement or is collected or enforced through any legal proceeding; or (ii) an attorney is retained
to represent the Holder of this Note in any bankruptcy, reorganization, receivership or other proceedings affecting creditors’
rights and involving a claim under this Note, then the Company shall pay to the Holder all reasonable attorneys’ fees, costs
and expenses incurred in connection therewith, in addition to all other amounts due hereunder.

 

		13.	Cancellation. After all principal and accrued interest at any time owed on this Note has
been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall
not be reissued.

 

		14.	Waiver of Notice. To the extent permitted by law, the Company hereby waives demand, notice,
protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this
Note.

 

		15.	Governing Law. This Note shall be construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Note shall be governed by, the laws of the State
of Texas, without giving effect to provisions thereof regarding conflict of laws. Each party hereby irrevocably submits to the
non-exclusive jurisdiction of the state and federal courts sitting in Texas for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed herein, 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,
that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit,
action or proceeding by sending by certified mail or overnight courier a copy thereof to such party at the address for such notices
to it under this Agreement 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
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER
OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	4

    	 

    

 

		16.	Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies
provided in this Note shall be cumulative and in addition to all other remedies available under this Note, at law or in equity
(including a decree of specific performance and/or other injunctive relief), and no remedy contained herein shall be deemed a waiver
of compliance with the provisions giving rise to such remedy and nothing herein shall limit a Holder’s right to pursue actual
damages for any failure by the Company to comply with the terms of this Note. The Company covenants to each Holder of Notes that
there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided
for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received
by the Holder thereof and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or
the performance thereof).

  

		17.	Specific Shall Not Limit General; Construction. No specific provision contained in this
Note shall limit or modify any more general provision contained herein. This Note shall be deemed to be jointly drafted by the
Company and all Holders and shall not be construed against any person as the drafter hereof.

 

		18.	Failure or Indulgence Not Waiver. No failure or delay on the part of this Note in the exercise
of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such
power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.

 

		19.	Partial Payment. In the event of partial payment by the Holder, the principal sum due to
the Holder shall be prorated based on the consideration actually paid by lender such that the company is only required to repay
the amount funded and the company is not required to repay any unfunded portion of this note.

 

		20.	Entire Agreement. This Agreement constitutes the full and entire understanding and agreement
between the parties with regard to the subjects herein. None of the terms of this Agreement can be waived or modified, except by
an express agreement signed by the Parties.

 

		21.	Representations and Warranties. The Company expressly acknowledges that the Holder, including
but not limited to its officer, directors, employees, agents, and affiliates, have not made any representation or warranty to it
outside the terms of this Agreement. The Company further acknowledges that there have been no representations or warranties about
future financing or subsequent transactions between the parties.

 

		22.	Notices. All notices and other communications given or made to the Company pursuant hereto
shall be in writing (including facsimile or similar electronic transmissions) and shall be deemed effectively given: (i) upon personal
delivery, (ii) when sent by electronic mail or facsimile, as deemed received by the close of business on the date sent,five (5)
days after having been sent by registered or certified mail, return receipt requested, postage prepaid or (iii) one (1) day after
deposit with a nationally recognized overnight courier, specifying next day delivery. All communications shall be sent either by
email, or fax, or to the address specified on the signature page. The physical address, email address, and phone number provided
on the signature page shall be considered valid pursuant to the above stipulations; should the Company’s contact information
change from that listed on the signature page, it is incumbent on the Company to inform the Holder.

 

		23.	Severability. If one or more provisions of this Agreement are held to be unenforceable under
applicable law, such provision shall be excluded from this Agreement and the rest of the Agreement shall be enforceable in accordance
with its terms.

 

		24.	Usury. If it shall be found that any interest or other amount deemed interest due hereunder
violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal
the maximum rate of 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.

 

		25.	Successors and Assigns. This Agreement shall be binding upon successors and assigns.

 

 

— SIGNATURE PAGE TO FOLLOW —

 

    	5

    	 

    

 

IN WITNESS WHEREOF, the Company has caused
this Note to be signed by its CEO, on and as of the Issuance Date.

 

COMPANY:

 

	Signature:	/s/ Ben Chang
	By:	Ben Chang
	Title:	CEO
	Address:	9595 Wilshire Blvd., Ste. 900
	 	Beverly Hills, CA 90212
	Email:	bchang@richpharmceuticals.com
	Phone:	424-230-7001 ext. 105

 

 

HOLDER:

 

	Signature:	/s/Sameer
    Hirji

 

Sameer Hirji, President JSJ Investments Inc.

2665 Villa Creek Drive, Suite 214

Dallas TX 75234

888-503-2599

    	6

    	 

    

 

Exhibit 1

Conversion Notice

 

Reference is made to the Convertible Note issued
by Rich Pharmaceuticals, Inc. (the "Note"), dated November 6, 2014 in the principal amount of $55,000 with 12% interest.
This note currently holds a principal balance of $55,000 and accrued interest in the amount of $_____. The features of conversion
stipulate a Conversion Price equal to a 47.5% discount to the lowest daily VWAP price for the previous twenty (20) trading days
to the date of Conversion, pursuant to the provisions of Section 2(a)(2) in the Note.

 

 

In accordance with and pursuant to the Note,
the undersigned hereby elects to convert $_____ of the PRINCIPAL/INTEREST balance of the Note, indicated below into shares of Common
Stock (the "Common Stock"), of the Company, by tendering the Note specified as of the date specified below.

  

Date of Conversion:

 

Please confirm the following information: Conversion
Amount: $_____

 

Conversion Price: $_____ (____% discount
from $____)

 

Number of Common Stock to be issued:________

 

Current Issued/Outstanding:________

 

PLEASE ISSUE THE COMMON STOCK INTO WHICH
THE NOTE IS BEING CONVERTED IN THE NAME OF THE HOLDER OF THE NOTE AND TRANSFER THE SHARES ELECTRONICALLY TO:

 

[BROKER INFORMATION]

 

HOLDER AUTHORIZATION: JSJ INVESTMENTS INC.

2665 VILLA CREEK DRIVE, SUITE 214

DALLAS, TX 75234

888-503-2599

 

 

Tax ID: 20-2122354

 

 

Sameer Hirji, President

 

Date:

 

[Continued on Next Page]

 

    	7

    	 

    

 

PLEASE BE ADVISED, pursuant to Section
2(e)(2) of the Note, “Upon receipt by the Company of a copy of the Conversion Notice, the Company shall as soon as practicable,
but in no event later than one (1) Business Day after receipt of such Conversion Notice, SEND, VIA EMAIL, FACSIMILE OR OVERNIGHT
COURIER, A CONFIRMATION OF RECEIPT OF SUCH CONVERSION NOTICE TO SUCH HOLDER INDICATING THAT THE COMPANY WILL PROCESS SUCH CONVERSION
NOTICE in accordance with the terms herein. Within two (2) Business Days after the date of the Conversion Confirmation, the
Company shall have issued and electronically transferred the shares to the Broker indicated in the Conversion Notice; should the
Company be unable to transfer the shares electronically, they shall, within two (2) Business Days after the date of the Conversion
Confirmation, have surrendered to FedEx for delivery the next day to the address as specified in the Conversion Notice, a certificate,
registered in the name of the Holder, for the number of shares of Common Stock to which the Holder shall be entitled.”

 

 

Signature:

 

/s/ Ben Chang

Ben Chang

CEO

Rich Pharmaceuticals, Inc.

 

    	8

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