Document:

SECURITIES
PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT ("Agreement")
is made as
of the 24th
day of October,
2014 by and
between Alkame Holdings Inc.,
(the "Company"), and WHC Capital, LLC
(the "Investor").

 

Recitals

 

A.The
Investor wishes to
purchase from the
Company, and the
Company wishes to sell
and issue to
the Investor, upon the
terms and conditions stated
in this Agreement, $55,000.00 of
principal amount of
convertible securities, in the
form attached hereto
as Exhibit A (the "Note").

 

In
consideration of the mutual
promises made herein
and for other
good and valuable consideration,
the receipt and sufficiency of
which are hereby acknowledged, the
parties hereto agree as follows:

 

1.                   
Definitions. In
addition to those
terms defined above
and elsewhere in
this Agreement, for the purposes
of this Agreement, the
following terms shall have the meanings
set forth below:

 

"Affiliate"
means, with respect
to any Person,
any other Person which
directly or indirectly through
one or more
intermediaries Controls, is
controlled by, or is under common control with, such Person.

 

"Business
Day" means a
day, other than
a Saturday or Sunday,
on which banks
in New York City
are open for
the general transaction
of business.

 

"Common
Stock Equivalents" means any securities
of  the Company or the
Subsidiaries which would
entitle the holder
thereof to acquire
at any time
Common Stock, including without
limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time
convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

"Company's
Knowledge" means the
actual knowledge of
the executive officers (as
defined in Rule
405 under the 1933
Act) of the Company, after
due inquiry.

 

"Confidential
Information" means trade secrets,
confidential information and know-how
(including but not
limited to ideas,
formulae, compositions, processes,
procedures and techniques, research
and development information, computer program code, performance specifications, support
documentation, drawings, specifications, designs, business
and marketing plans, and customer and
supplier lists and related information).

 

"Control"
(including the terms
"controlling", "controlled
by" or "under
common control with")
means the possession
, direct or indirect, of the power
to direct or cause the direction of the management
and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

"Intellectual
Property" means all
of the following:
(i) patents, patent
applications, patent disclosures and
inventions (whether or
not patentable and whether or not reduced to practice); (ii)
trademarks, service marks, trade dress,
trade names, corporate names, 
logos, slogans and Internet domain names, together
with all goodwill associated with each of the foregoing; (iii)
copyrights and copyrightable works; (iv) registrations,
applications and renewals for any of the foregoing; and (v) proprietary computer software
(including but not limited to data, data bases and
documentation).

 

"Material
Adverse Effect" means a material adverse effect on
(i) the assets, liabilities,
results of operations,
condition (financial or otherwise), business,
or prospects of
the Company and its Subsidiaries taken
as a whole, or (ii) the ability of the Company
to perform its obligations under the Transaction Documents.

 

"Person"
means an individual,
corporation, partnership, Limited
Liability Company, trust,
business trust, association,
joint stock company,
joint venture, sole
proprietorship, unincorporated organization, governmental authority or any other
form of entity not specifically listed
herein.

 

"Purchase
Price" means
Fifty Thousand ($50,000)
representing a Five
thousand dollar ($5,000)
original issuance discount ("OID")
on the Note.

    	 

    	 

    

 

"SEC"
means the United
States Securities and
Exchange Commission. "Securities"
means the Notes,
the Incentive Shares and the Shares.

 

"Shares"
means the shares
of Common Stock
issuable upon conversion
of the Note.

 

"Subsidiary"
of any Person
means another Person,
an amount of
the voting securities,
other voting ownership
or voting partnership interests of
which is sufficient to
elect at least a majority of its
Board of Directors or other governing body (or,
if there are no such voting interests,
50% or more of the equity interests of
which) is owned directly or indirectly by such first Person.

 

"Transaction
Documents" means this
Agreement, the Note,
the Company Representation Letter
and the Irrevocable
Transfer Agent Instructions.

 

"1933
Act"
means the Securities
Act of 1933,
as amended, or
any successor statute, and the rules
and regulations promulgated thereunder.

 

"1934
Act" means the
Securities Exchange Act
of 1934, as
amended, or any successor
statute, and the
rules and regulations promulgated thereunder.

 

2.                   
Purchase and
Sale of the
Note. Subject to
the terms and
conditions of this Agreement,
the Company shall
sell and issue
to the Investor
(i) Convertible Note(s) in the principal amount of $55,000.

 

3.                   
Closing. Upon
confirmation that the
other conditions to
closing specified herein have
been satisfied or
duly waived by
the Investor, the
Company shall deliver
to the Investor,
a Note registered the name
of the Investor, and the
Investor shall cause a wire transfer
in same day funds to be sent to
the account of the Company as instructed in writing
by the Company, in an amount representing
the Purchase Price for the Note (the "Closing Date").

 

4.                   
Representations and Warranties of the Company.
The Company hereby
represents and warrants
to the Investor
that, except as
set forth in
the schedules delivered herewith (collectively,
the "Disclosure Schedules"):

 

4.1                
Organization. Good Standing and Qualification. Each
of the  Company
and its Subsidiaries
is a corporation duly
organized,
validly existing and
in good standing under the laws
of the jurisdiction of its incorporation  and has 
all requisite corporate power and authority
to carry on its business as now conducted and to
own its properties. Each of the Company and
its Subsidiaries is duly qualified to do business as a foreign corporation and is in
good standing in each jurisdiction in which
the conduct of its business
or its ownership or leasing of property
makes such qualification or leasing
necessary unless the failure to so qualify
has not and could not reasonably be
expected to have a Material Adverse Effect. The
Company's Subsidiaries are listed
on the Company's public disclosures filed with
the SEC.

 

4.2                
Authorization. The Company
has full power
and authority and,
bas taken all requisite
action on the
part of the
Company, its officers,
directors and stockholders
necessary for (i) the
authorization, execution and delivery of
the Transaction Documents, (ii) authorization
of the performance of all obligations of the Company hereunder or thereunder, and (iii) the authorization, issuance (or reservation
for issuance) and delivery of the Securities.
The Transaction Documents constitute the legal, valid and binding obligations of the Company,
enforceable against the Company in accordance
with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability, relating to or affecting
creditors' rights generally.

    	2

    	 

    

 

4.3                
Capitalization. Schedule
4.3
sets forth (a)
the authorized capital
stock of the Company
on the date
hereof; (b) the
number of shares
of capital stock issued and outstanding;
(c) the number of shares of capital stock
issuable pursuant to the Company's
stock plans; and (d) the
number of shares
of capital stock issuable
and reserved for issuance pursuant
to securities (other than the Securities) exercisable for,
or convertible into or exchangeable for
any shares of capital stock of the Company. All of the
issued and outstanding shares of the Company's capital stock have been
duly authorized and validly issued and are fully paid,
nonassessable and free of pre-emptive rights. Except as
described on Schedule 4.3, all of
the issued and outstanding shares
of capital stock of each Subsidiary have been
duly authorized and validly issued and are
fully paid, nonassessable and free of pre-emptive rights, were issued in full compliance with applicable
state and federal securities law and any
rights of third parties and are owned by the Company, beneficially and of
record, subject to no lien, encumbrance or other adverse claim. Except as described on
Schedule 4.3, no Person is entitled to pre-emptive or similar statutory or contractual rights
with respect to any securities of
the Company. Except as described on Schedule
4.3, there are no
outstanding warrants, options, convertible securities or other rights,
agreements or arrangements of any
character under which the Company or any of its Subsidiaries is or may be obligated
to issue any equity securities of any kind and except as contemplated by this Agreement,
neither the Company nor any of its
Subsidiaries is currently in negotiations
for the issuance of any equity securities of any kind.

 

Except
as described on
Schedule 4.3, the
issuance and sale of
the Securities hereunder will not
obligate the Company
to issue shares of
Common Stock or other securities to
any other Person (other than the Investor)
and will not result in
the adjustment of the exercise, conversion, exchange or reset price of any outstanding
security.

 

Except
as described on
Schedule 4.3, the
Company does not
have outstanding stockholder purchase
rights or "poison
pill" or any similar
arrangement in effect giving
any Person the right to purchase any equity interest in the Company upon the
occurrence of certain events.

 

4.4                
Valid Issuance. The
Note has been
duly and validly
authorized and, when issued
and paid for
pursuant to this
Agreement, shall be free and clear
of all encumbrances and restrictions
(other than those
created by the Investor), except for restrictions on transfer set forth in the
Transaction Documents or imposed by applicable securities laws.
Upon the due conversion of the
Note, the Shares will be
validly issued, fully
paid and non-assessable free and clear of all encumbrances and restrictions, except for restrictions on transfer set forth
in the Transaction Documents or imposed
by applicable securities laws and except
for those created by the Investor. The
Company has reserved a sufficient
number of shares of Common Stock for issuance upon the exercise of the Note, free and
clear of all encumbrances and restrictions, except for restrictions on transfer set
forth in the Transaction Documents or imposed by applicable
securities laws and except for those
created by the Investor.

 

4.5                
Consents. The
execution, delivery and
performance by the
Company of the Transaction
Documents, and the offer,
issuance and sale of the
Securities require no consent of, action by or in respect
of, or filing
with, any Person, governmental body, agency, or official other than filings
that have been made pursuant to applicable state securities laws, and post-sale
filings pursuant to applicable state and federal securities laws which the Company undertakes
to file within the applicable time periods. Subject to the accuracy of the representations
and warranties of the Investor set forth in Section 5 hereof, the Company has
taken all action necessary to exempt (i) the issuance
and sale of the Securities, (ii) the
issuance of the Shares upon due
conversion of the Note, and (iii) the other transactions contemplated by the Transaction
Documents from the provisions of any shareholder rights plan
or other "poison pill" arrangement, any anti-takeover, business combination
or control share law or statute binding
on the Company or to which the Company or
any of its assets and properties may be subject and
any provision of the Company's Articles of Incorporation
or By-laws that is or could
reasonably be expected to become applicable to the Investor as a result of the transactions contemplated hereby,
including without limitation, the issuance
of the Securities and the
ownership, disposition or
voting of the Securities by the Investor or the
exercise of any right
granted to the Investor pursuant
to this Agreement or the other Transaction Documents.

 

4.6                
Delivery of
SEC Filings; Business.
The Company has
made available to the
Investor through the
EDGAR system,
true and complete copies of the
Company's most recent Annual Report on Form 10-K for its last
fiscal year (the "10-K"), and
all other reports filed by
the Company pursuant to the 1934 Act since
the filing of the 10-K and prior to the
date hereof (collectively, the "SEC Filings"). The SEC Filings are
the only filings required of the Company pursuant to the 1934 Act for
such period. The Company and its
Subsidiaries are engaged in
all material respects only in the business described in the SEC Filings and
the SEC Filings contain a complete and accurate description in all material respects
of the business of the Company and its Subsidiaries, taken as a whole.

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4.7                
Use of
Proceeds. The net
proceeds of the
sale of the
Note hereunder shall be
used by the
Company for working
capital and general corporate purposes.

 

4.8                
No Conflict.
Breach. Violation or
Default. The execution,
delivery and performance of
the Transaction Documents
by the Company
and the issuance
and sale of
the Securities will not conflict with or result in a breach or violation of any of the terms and
provisions of, or constitute a
default under (i) the Company's Articles of Incorporation
or the Company's Bylaws, both as in effect on the date hereof (true and complete
copies of which have been made available to
the Investor through the EDGAR system),
or (ii)(a) any
statute, rule, regulation or order of any
governmental agency or body or any court, domestic or foreign, having jurisdiction over
the Company, any Subsidiary or any of their respective assets or
properties, or (b) any agreement or
instrument to which the Company or any
Subsidiary is a party or by
which the Company or a
Subsidiary is bound or to
which any of their
respective assets or properties is subject.

 

4.9                
Brokers and
Finders. No Person
will have,
as a result of
the transactions contemplated
by the Transaction
Documents, any valid right, interest
or claim against or upon the Company, any
Subsidiary or an Investor for any
commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of the Company.

 

4.10             
No Directed
Selling Efforts or General
Solicitation. Neither the
Company nor any Person acting
on its behalf
has conducted any
general solicitation or general
advertising (as those terms are used in Regulation D) in connection with the
offer or sale of any of the Securities.

 

4.11             
No Integrated Offering.
Neither the Company
nor any of
its Affiliates, nor any
Person acting on
its or
their behalf has, directly or indirectly,
made any offers
or sales of
any Company security or solicited any offers to buy any security, under circumstances that would adversely
affect reliance by
the Company on Section 4(2)
for the exemption from registration for the transactions contemplated hereby
or would require registration of the Securities
under the 1933 Act.

 

4.12             
Private Placement.
The offer and
sale of the
Securities to the
Investor as contemplated hereby
is exempt from
the registration requirements
of the 1933 Act.

 

5.                   
Representations and Warranties
of the Investor. The Investor hereby
represents and warrants
to the Company
that:

 

5.1               
Organization and
Existence. Such
Investor is a
validly  ex1stmg corporation,
limited partnership or
limited liability company
and has all requisite corporate, partnership or
limited liability company power and
authority to invest in the Securities pursuant to this
Agreement.

 

5.2               
Authorization. The
execution, delivery
and performance by
such Investor of
the Transaction Documents
to which such
Investor is a party have been
duly authorized and will each
constitute the valid and legally binding obligation of
such Investor, enforceable against such
Investor in accordance with their respective
terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability,
relating to or affecting creditors' rights generally.

 

5.3               
Purchase Entirely for Own Account. The
Securities to be
received by such
Investor hereunder will be acquired
for such Investor's 
own account, not
as nominee or agent, and not with
a view to the resale or distribution of any part thereof
in violation of the 1933 Act, and
such Investor has no present intention of selling, granting any participation in, or otherwise distributing the same in violation
of the 1933 Act without prejudice, however, to such Investor's right at all times to
sell or otherwise dispose of all or any part
of such Securities in compliance with applicable
federal and state securities laws. Nothing contained herein shall be deemed
a representation or warranty by such Investor to
hold the Securities for any period of time.
Such Investor is not a broker-dealer registered with the SEC under the 1934 Act or
an entity engaged in a
business that would require it to be so registered.

 

5.4               
Investment Experience.
Such Investor acknowledges
that it can
bear the economic risk
and complete loss
of its investment
in the Securities
and has such knowledge and experience
in financial or business matters that
it is capable of evaluating
the merits and risks of the investment
contemplated hereby.

 

5.5               
Disclosure of Information. Such Investor has had an opportunity to receive all information
related to the Company requested by it and to ask questions of and receive answers from the Company regarding the Company, its
business and the terms and conditions of the offering of the Securities. Such Investor acknowledges receipt of copies of the SEC
Filings. Neither such inquiries nor any other due diligence investigation conducted by such Investor shall modify, amend or affect
such Investor's right to rely on the Company's representations and warranties contained in this Agreement.

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5.6               
Restricted Securities.
Such Investor understands
that the Securities
are characterized as "restricted
securities" under the
U.S. federal securities
laws inasmuch as
they are being acquired from the Company
in a transaction not
involving a public offering and
that under such laws and applicable
regulations such securities may be resold
without registration under the 1933 Act only in certain limited circumstances.

 

5.7               
Legends. It
is understood that,
except as provided
below, certificates evidencing the
Securities may bear
the following or
any similar legend:

 

(a)                 
"The
securities represented hereby
may not be
transferred unless (i) such
securities have been
registered for sale pursuant to the
Securities Act of 1933, as amended, (ii) such securities may be sold pursuant to Rule 144(i), or (iii)
the Company has received an opinion of counsel reasonably satisfactory to it
that such transfer may lawfully be made
without registration under the Securities Act of 1933 or qualification under applicable state securities laws."

 

(b)                 
If required
by the authorities
of any state
in connection with
the issuance of sale
of the Securities,
the legend required by such state
authority.

 

5.7                
Accredited Investor.
Such Investor is
an accredited investor
as defined in Rule
501(a) of Regulation
D, as amended,
under the 1933 Act.

 

5.8                
No General
Solicitation. Such Investor
did not learn of
the investment in the
Securities as a
result of any
public advertising or
general solicitation.

 

5.9                
Brokers and
Finders. No Person
will have, as
a result of
the transactions contemplated by
the Transaction Documents,
any valid right, interest or claim
against or upon the Company, any Subsidiary or an Investor for any commission,
fee or other compensation pursuant to any
agreement, arrangement or understanding entered into by or
on behalf of such Investor.

 

6.                   
Conditions to
Closing.

 

6.1               
Conditions to the
Investor's Obligations. The
obligation of the Investor
to purchase the Note
at Closing is
subject to the
fulfillment to such
Investor's satisfaction, on
or prior to the Closing Date, of the following conditions, any of which may
be waived by the Investor:

 

(a)                 
The representations
and warranties made
by the Company
in Section 4 hereof
qualified as to
materiality shall be
true and correct
at all times
prior to and
on the Closing Date, except to the extent
any such representation or warranty expressly speaks as of an earlier date,
in which case such representation or warranty
shall be true and correct as of such
earlier date, and, the representations and
warranties made by the Company in Section 4 hereof not qualified as to materiality
shall be true and correct in all material respects
at all times prior to and on
the Closing Date, except to the extent any such
representation or warranty expressly speaks as of an
earlier date, in which case such representation
or warranty shall be true and correct in
all material respects as of such earlier
date. The Company shall have performed in all material respects all obligations and
conditions herein required to be performed or observed by
it on or prior to
the Closing Date.

 

(b)                 
The Company
shall have obtained
any and all
consents, permits, approvals, registrations
and waivers necessary
or appropriate for
consummation of the
purchase and sale of
the Securities, and
the consummation of the
other transactions contemplated by
the Transaction Documents, all of which shall be
in full force and effect.

    	5

    	 

    

 

(c)                  
No judgment, writ,
order, injunction, award
or decree of
or by any court,
or judge, justice
or magistrate, including
any bankruptcy court
or judge, or
any order of or by any governmental
authority, shall have been issued, and no action or
proceeding shall have been instituted by any governmental authority, enjoining
or preventing the consummation of the
transactions contemplated hereby or in the other
Transaction Documents.

 

(d)                 
The Company
shall have executed
and delivered the Convertible note
and supporting documentation.

 

(e)                  
The Company
shall have executed
and delivered the
Irrevocable Transfer Agent Instructions.

 

(f)                  
No stop order
or suspension of
trading shall have
been imposed by the
public markets on
which the Company's
common stock is
traded or quoted, the SEC or
any other governmental or regulatory
body with respect to public trading in the Common Stock.

 

6.2               
Conditions to Obligations of
the Company. The
Company's  obligation  to
sell and issue
the Note at
Closing is subject
to the fulfillment
to the satisfaction of
the Company on or prior to
the Closing Date of
the following conditions, any of which may be
waived by the Company:

 

(a)                
The representations
and warranties made
by the Investor
in Section 5 hereof, other
than the representations
and warranties contained in Sections
5.3, 5.4, 5.5, 5.6, 5.7, 5.8 and 5.9 (the "Investment Representations"), shall
be true and correct in all material respects when made, and shall
be true and correct in all material respects
on the Closing Date with the
same force and effect as if they had
been made on and as of said date.
The Investment Representations shall be true
and correct in all
respects when made, and
shall be true and correct in all
respects on the Closing Date
with the same force and effect as if they
had been made on and as of said date. The Investor shall have
performed in all material respects all obligations and conditions herein required
to be performed or observed by
them on or prior to the Closing Date.

 

(b)                
The Investor
shall have delivered
the Purchase Price to
the Company in accordance
with the schedule
outlined herein.

 

6.3               
Termination of
Obligations to Effect
Closing: Effects.

 

(a)                
The obligations
of the Company,
on the one
hand, and the
Investor, on the other
hand, to effect
the Closing shall
terminate as follows:

 

(i)                  
Upon the mutual
written consent of the
Company and the Investor;

 

(ii)                
By the Company
if any of
the conditions set
forth in Section 6.2
shall have become
incapable of fulfillment,
and shall not
have been waived
by the Company;

 

(iii)               
By the Investor
if any of
the conditions set
forth in Section 6.1
shall have become incapable
of fulfillment, and
shall not have been waived by the
Investor; or provided, however, that, except in the case of
clause (i) above, the party seeking
to terminate its obligation to effect the Closing
shall not then be in breach of any
of its representations, warranties, covenants or agreements contained in this
Agreement or the other Transaction Documents if
such breach has resulted in the
circumstances giving rise to such
party's seeking to terminate its obligation to effect the
Closing.

 

7.                  
Survival and
Indemnification.

 

7.1               
Survival. The
representations, warranties, covenants
and agreements contained in this
Agreement shall survive
the Closing of
the transactions contemplated
by this Agreement.

    	6

    	 

    

 

7.2               
Indemnification. The
Company agrees to
indemnify and hold
harmless each Investor and
its Affiliates and
their respective directors,
officers, employees and agents from and against any
and all losses, claims, damages, liabilities
and expenses (including without limitation
reasonable attorney fees and disbursements and
other expenses incurred in connection
with investigating, preparing or defending any action, claim or proceeding, pending
or threatened and the costs of enforcement thereof) (collectively, "Losses")
to which such Person may become subject as a result of any breach of
representation, warranty, covenant or agreement made
by or to be performed on the
part of the Company under the Transaction
Documents, and will reimburse any such
Person for all such amounts
as they are incurred by such Person.

 

7.3               
Conduct of
Indemnification Proceedings. Promptly after receipt
by any Person
(the "Indemnified Person") of notice of any demand, claim or circumstances
which would or
might give rise to a claim or the commencement of
any action, proceeding or investigation
in respect of which indemnity may be sought pursuant to Section 7.2, such Indemnified
Person shall promptly notify the Company
in writing and the Company shall assume the defense thereof, including the employment
of counsel reasonably satisfactory to such Indemnified Person, and shall assume the
payment of all fees and expenses; provided, however,
that the failure of any
Indemnified Person so to notify the Company shall
not relieve the
Company of its obligations hereunder except to the extent that the Company is
materially prejudiced by such failure to
notify. In any such proceeding, any Indemnified
Person shall have the right to retain its
own counsel, but the fees and expenses
of such counsel shall be at the expense of such Indemnified
Person unless: (i) the Company and
the Indemnified Person shall have mutually agreed to the retention of such counsel;
or (ii) in the reasonable judgment of counsel
to such Indemnified Person representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between
them. The Company shall not be liable for any settlement of any proceeding effected without its written consent, which consent
shall not be unreasonably withheld, but if settled with
such consent, or if there be a final judgment for the plaintiff, the Company
shall indemnify and hold harmless such Indemnified
Person from and against any loss or liability (to
the extent stated above) by reason of such settlement or judgment. Without the
prior written consent of the Indemnified Person,
which consent shall not be unreasonably withheld,
the Company shall not affect any settlement of any pending or
threatened proceeding in respect of
which any Indemnified Person is or could
have been a party and indemnity could have
been sought hereunder by
such Indemnified Party, unless such settlement includes
an unconditional release of
such Indemnified Person from all liability arising out of such proceeding.

 

8.                  
Miscellaneous.

 

8.1                
Successors and Assigns.
This Agreement may
not be assigned
by a party hereto
without the prior
written consent of
the Company or the Investor,
as applicable, provided, however, that an Investor may
assign its rights and delegate its
duties hereunder in whole or in part
to an Affiliate or to a third party acquiring
some or all of its Securities in
a private transaction without the prior written consent of the Company, after notice duly given
by such Investor to the Company:
The provisions of this Agreement shall inure to
the benefit of and be binding upon the respective permitted successors and assigns
of the parties. Nothing in this Agreement, express or implied, is intended
to confer upon any party
other than the parties hereto or
their respective successors and assigns
any rights, remedies, obligations, or
liabilities under or by reason of this Agreement,
except as expressly provided in
this Agreement.

 

8.2                
Counterparts; This
Agreement may be
executed in two
or more counterparts, each
of which shall
be deemed an original,
but all of which together shall
constitute one and the same instrument. This Agreement may
also be executed via facsimile, which shall be deemed an original.

 

8.3                
Titles and Subtitles. The titles
and subtitles used
in this Agreement are
used for convenience
only and are not to
be considered in construing or
interpreting this Agreement.

 

8.4                
Notices. Unless
otherwise provided, any notice
required or permitted under
this Agreement shall
be given in
writing and shall
be deemed effectively given as hereinafter described (i) if given by
personal delivery, then such notice shall be deemed given upon such delivery, (ii) if given
by fax, then such notice shall be
deemed given upon receipt of confirmation of complete transmittal, (iii) if given by mail, then such notice shall be deemed given
upon the earlier of (A) receipt of such notice by the
recipient or (B) three days after such notice is deposited
in first class mail, postage prepaid, and (iv) if given by an internationally recognized overnight air
courier, then such notice shall be deemed given one business day after delivery
to such carrier. All notices shall be addressed to
the party to be notified at
the address as follows, or at such other address as such party may designate
by ten days' advance written notice to the other party:

    	7

    	 

    

 

If to
the Company:

 

Alkame
Holdings, Inc.

 

If to
the Investor:

 

WHC
Capital, LLC

200
Stonehinge Lane

Suite
3

Carle
Place, NY 11514

718.530.0182

 

8.5                
Expenses. The
parties hereto shall
pay their own
costs and expenses
in connection herewith. In
the event that
legal proceedings are
commenced by any party to this Agreement
against another party to
this Agreement in connection with
this Agreement or the other Transaction
Documents, the party or parties which do not prevail in such proceedings shall severally, but
not jointly, pay their pro rata share of
the reasonable attorneys' fees and other
reasonable out-of-pocket costs and expenses incurred by the prevailing party in such proceedings.

 

8.6                
Amendments and
Waivers. Any term
of this Agreement
may be amended and
the observance of
any term of
this Agreement may be waived (either generally or
in a particular instance and either
retroactively or prospectively), only with the
written consent of the Company and the Investor.
Any amendment or waiver effected in accordance with this paragraph shall be binding upon
each holder of any Securities purchased
under this Agreement at the time outstanding, each
future holder of all such Securities,
and the Company.

 

8.7                
Severability. Any
provision of this
Agreement that is
prohibited or unenforceable in
any jurisdiction shall,
as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability
without invalidating the remaining provisions
hereof but shall be interpreted as if
it were written so as to be enforceable to the
maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the
extent permitted by applicable law, the parties
hereby waive any provision of law which
renders any provision hereof prohibited or
unenforceable in any respect.

 

8.8                
Entire Agreement.
This Agreement, including
the Exhibits and
the Disclosure Schedules, and
the other Transaction
Documents constitute the entire
agreement among the parties hereof with respect to the subject matter hereof and thereof and supersede
all prior agreements and understandings,
both oral and written, between the parties with respect to the subject matter hereof
and thereof.

 

8.9                
Further Assurances.
The parties shall
execute and deliver
all such further instruments
and documents and
take all such other actions as may
reasonably be required to carry out the transactions contemplated hereby and to evidence
the fulfillment of the
agreements herein contained.

 

8.10             
Governing Law; Consent to Jurisdiction; Waiver
of Jury Trial. This Agreement shall
be governed by,
and construed in
accordance with, the
internal laws of the
State of New
York, without regard to principles of conflicts of law. THE COMPANY AND
INVESTOR WAIVE ANY RIGHT TO A WRY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THIS NOTEOR
ANY  TRANSACTION CONTEMPLATED HEREIN,
INCLUDING CLAIMS BASED ON CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER COMMON LAW OR
STATUTORY BASIS. Each party hereby submits to the
exclusive jurisdiction of the state and
federal courts located in the County of New York, State of New York.
If the jury waiver set forth in this Section is not enforceable, then any dispute,
controversy or claim arising out of or relating to
this Agreement or any of
the transactions contemplated herein will be
finally settled by binding arbitration in New York, New York
in accordance with the then current Commercial Arbitration Rules of the American
Arbitration Association by one arbitrator appointed
in accordance with said rules. The
arbitrator shall apply New York law to the
resolution of any dispute, without reference to rules
of conflicts of law or rules of statutory arbitration. Judgment on the award rendered by the arbitrator may be entered in
any court having jurisdiction thereof. Notwithstanding the foregoing,
the parties may apply to any court
of competent jurisdiction for preliminary or interim
equitable relief, or to compel arbitration in accordance
with this paragraph.
The expenses of the arbitration, including the arbitrator's fees and expert witness fees, incurred by the
parties to the arbitration,
may be awarded to the prevailing party, in the discretion of the arbitrator,
or may be apportioned between the parties in
any manner deemed appropriate by
the arbitrator. Unless and until the arbitrator
decides that one party is to pay for all (or a share) of such expenses, both parties
shall share equally in the payment of the arbitrator's fees as and when billed
by the arbitrator.

 

[signature
page follows]

    	8

    	 

    

 

IN
WITNESS WHEREOF, the parties
have executed this
Agreement or caused their
duly authorized officers
to execute this
Agreement as of the date
first above written.

 

 

	The Company:	Alkame Holdings, Inc.
		
		By: /s/ Robert Eakle
		Name: Robert Eakle
		Title: CEO
		
	The Investor:	WHC CAPITAL, LLC,
		
		By: /s/ Authorized Signatory
		Authorized Signatory
		

 

    	9

    	 

    

 

Disclosure
Schedules

    	10NEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS NOTE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING,
THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.

 

Principal Amount: $55,000 

Date: October 24, 2014

 

CONVERTIBLE PROMISSORY NOTE

 

Alkame Holdings, Inc., (hereinafter called
the "Company" or "ALKM"), hereby promises to pay to the order of WHC Capital, LLC, a Delaware Limited Liability
Company, or its registered assigns (the "Holder") the sum of $55,000, together with any interest as set forth herein,
on October 24, 2015 (the "Maturity Date"), and to pay interest on the unpaid principal balance hereof at the rate of
Twelve percent (12%) (the "Interest Rate") per annum from the date hereof (the "Issue Date") until the same
becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. There exists a Five thousand dollar
($5,000) Issuance Discount ("OID") on this Note.

 

This Note may not be prepaid in whole or in
part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due
shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid ("Default
Interest"). Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of
a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock)
shall be made in lawful money of the United States of America.

 

All payments shall be made at such address
as the Holder shall hereafter give to the Company by written notice made 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, 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. As used in this Note, the term "business day" shall mean any day other than
a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or executive
order to remain closed.

Each capitalized term used herein, and not
otherwise defined, shall have the meaning ascribed thereto in the supporting documents of same date (attached hereto).

 

This Note is free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

The following terms shall
apply to this Note:

 

ARTICLE I. CONVERSION RIGHTS

 

1.                  
Conversion Right. The Holder shall have the right and at any time during the period
beginning on the date of this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into
fully paid and non- assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital
stock or other securities of the Company into which such Common Stock shall hereafter be changed or reclassified at the conversion
price (the "Conversion Price") determined as provided herein (a "Conversion"); provided, however, that in no
event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of
which the sum of the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of
Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised
or unconverted portion of any other security of the Company subject to a limitation on conversion or exercise analogous to the
limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this
Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder
and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately
preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of
such proviso, provided, further, however, that the limitations on conversion may be waived by the Holder upon, at the election
of the Holder, not less than 61 days' prior notice to the Company, and the provisions of the conversion limitation shall continue
to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver). The
number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion
Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion,
(the "Notice of Conversion "), delivered to the Company by the Holder in accordance with the Sections below; provided
that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result
in, notice) to the Company before 6:00 p.m., New York, New York time on such conversion date (the "Conversion Date").

 

The term "Conversion Amount" means,
with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion
plus (2) at the Company's option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided
in this Note to the Conversion Date, plus (3) at the Company's option, Default Interest, if any, on the amounts referred to in
the immediately preceding clauses (1) and/or (2) plus (4) at the Holder's option, any amounts owed to the Holder.

 

    	 

    	 

    

 

1.2               
Conversion Price.

 

(a)                 
Calculation of Conversion Price. Holder, at its discretion, shall have the right to
convert this Note in its entirety or in part(s) into common stock of the Company valued at a Forty percent (40%) discount off the
lowest intra-day trading price for the Company's common stock during the Twenty (20) trading days immediately preceding a conversion
date, as reported by Quotestream.

 

(b)                 
Conversion Price During Major Announcements. Notwithstanding anything contained in
the preceding section to the contrary, in the event the Company (i) makes a public announcement that it intends to consolidate
or merge with any other corporation (other than a merger in which the Company is the surviving or continuing corporation and its
capital stock is unchanged) or sell or transfer all or substantially all of the assets of the Company or (ii) any person, group
or entity (including the Company) publicly announces a tender offer to purchase 50% or more of the Company's Common Stock (or any
other takeover scheme) (the date of the announcement referred to in clause (i) or (ii) is hereinafter referred to as the "Announcement
Date"), then the Conversion Price shall, effective upon the Announcement Date and continuing through the Adjusted Conversion
Price Termination Date (as defined below), be equal to the lower of (x) the Conversion Price which would have been applicable for
a Conversion occurring on the Announcement Date and (y) the Conversion Price that would otherwise be in effect. From and after
the Adjusted Conversion Price Termination Date, the Conversion Price shall be determined as set forth in this Section. For purposes
hereof, "Adjusted Conversion Price Termination Date" shall mean, with respect to any proposed transaction or tender offer
(or takeover scheme) for which a public announcement as contemplated by this Section has been made, the date upon which the Company
(in the case of clause (i) above) or the person, group or entity (in the case of clause (ii) above) consummates or publicly announces
the termination or abandonment of the proposed transaction or tender offer (or takeover scheme) which caused this Section l .2(b)
to become operative.

 

1.3               
Authorized Shares. The Company covenants that during the period the conversion right exists
the Company will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights,
to provide for the issuance of Common Stock upon the full conversion of this Note. The Company is required at all times to have
authorized and reserved five times the number of shares that is actually issuable upon full conversion of the Note (based on the
Conversion Price of the Notes in effect from time to time)(the "Reserved Amount"). The Reserved Amount shall be increased
from time to time in accordance with the Company's obligations.

 

The Company represents that
upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Company shall issue
any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the
Notes shall be convertible at the then current Conversion Price, the Company shall at the same time make proper provision so that
thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for
conversion of the outstanding Notes.

 

The Company (i) acknowledges
that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion
of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are
charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock
in accordance with the terms and conditions of this Note.

 

If, at any time the Company
does not maintain the Reserved Amount it will be considered an Event of Default as defined in this Note.

 

1.4               
Method of Conversion.

 

(a)                
Mechanics of Conversion. This Note may be converted by the Holder in whole or in part
at any time from time to time after the Issue Date, by (A) submitting to the Company a Notice of Conversion (by facsimile, e-mail
or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time).

 

(b)                
Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth
herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender
this Note to the Company unless the entire unpaid principal amount of this Note is so converted. The Holder and the Company shall
maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably
satisfactory to the Holder and the Company, so as not to require physical surrender of this Note upon each such conversion. In
the event of any dispute or discrepancy, such records of the Company shall, prima facie, 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 represented by this Note may be less than the amount stated on the face hereof.

 

(c)                
Payment of Taxes. The Company shall not be required to pay any tax which may be payable
in respect of any transfer involved in the issue and delivery of shares of Common Stock or other securities or property on conversion
of this Note in a name other than that of the Holder (or in street name), and the Company shall not be required to issue or deliver
any such shares or other securities or property unless and until the person or persons (other than the Holder or the custodian
in whose street name such shares are to be held for the Holder's account) requesting the issuance thereof shall have paid to the
Company the amount of any such tax or shall have established to the satisfaction of the Company that such tax has been paid.

 

    	2

    	 

    

 

(d)                
Delivery of Common Stock Upon Conversion. Upon receipt by the Company from the Holder
of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements
for conversion as provided in this Section, the Company shall issue and deliver or cause to be issued and delivered to or upon
the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such
receipt (the "Deadline") (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender
of this Note) in accordance with the terms hereof and the Purchase Agreement.

 

Within Five (5) business
days of having received certificate(s) for common stock pursuant to a Notice of Conversion, Holder may elect to rescind the Notice
of Conversion and return the shares, at Holder's expense, to the Company's Transfer Agent. In the event of such rescission, the
principal amount outstanding under this Note shall be adjusted to include the Conversion Amount which was deducted from the Note
as part of the rescinded Notice of Conversion.

 

(e)                
Obligation of Company to Deliver Common Stock. Upon receipt by the Company of a Notice
of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding
principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless
the Company defaults on its obligations under this Article I, all rights with respect to the portion of this Note being so converted
shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided,
on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Company's obligation to issue
and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by
the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against
any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Company to
the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the
Holder of any obligation to the Company, and irrespective of any other circumstance which might otherwise limit such obligation
of the Company to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall
be the Conversion Date so long as the Notice of Conversion is received by the Company before 6:00 p.m., New York, New York time,
on such date.

 

(f)                 
Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates
representing the Common Stock issuable upon conversion, provided the Company is participating in the Depository Trust Company ("DTC")
Fast Automated Securities Transfer ("FAST") program, upon request of the Holder and its compliance with the provisions
contained in Section 1.1 and in this Section 1.4, the Company shall use its best efforts to cause its transfer agent to electronically
transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder's Broker with DTC through its
Deposit Withdrawal Agent Commission ("DWAC") system.

 

(g)                
Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the
Holder's right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of
the Common Stock issuable upon conversion of this Note is not delivered by the Deadline the Company shall pay to the Holder $2,000
per day in cash, for each day beyond the Deadline that the Company fails to deliver such Common Stock. Such cash amount shall be
paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written
notice to the Company by the first day of the month following the month in which it has accrued), shall be added to the principal
amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional
principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Company agrees that the
right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with
such conversion right are difficult if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages
provision contained in this Section are justified. Any delay or failure of performance by the Company hereunder shall be excused
if and to the extent caused by Force Majeure. For purposes of this agreement, Force Majeure shall mean a cause or event that is
not reasonably foreseeable and/or caused by the Company, including acts of God, fires, floods, explosions, riots wars, hurricanes,
etc.

 

1.5                
Concerning the Shares. The shares of Common Stock issuable upon conversion of this
Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under the Act
or (ii) the Company or its transfer agent shall have been furnished with an opinion of counsel (which opinion shall be in form,
substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred
may be sold or transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant
to Rule 144 under the Act (or a successor rule) ("Rule 144") or (iv) such shares are transferred to an "affiliate"
(as defined in Rule 144) of the Company who agrees to sell or otherwise transfer the shares only in accordance with this Section
1.5 and who is an Accredited Investor. Except as otherwise provided herein (and subject to the removal provisions set forth below),
until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise
may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be
immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included
in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption
that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

"NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES."

 

    	3

    	 

    

 

The legend set forth above
shall be removed and the Company shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Company
or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel
in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made without registration
under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected or (ii) in the case of the
Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration
statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities
as of a particular date that can then be immediately sold. In the event that the Company does not accept the opinion of counsel
provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or
Regulation S, at the Deadline, it will be considered an Event of Default pursuant to this note.

 

1.6                
Effect of Certain Events.

 

(a)                 
Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance
or disposition of all or substantially all of the assets of the Company, the effectuation by the Company of a transaction or series
of related transactions in which more than50% of the voting power of the Company is disposed of, or the consolidation, merger or
other business combination of the Company with or into any other Person (as defined below) or Persons when the Company is not the
survivor shall either: (i) be deemed to be an Event of Default (as defined in Article ill) pursuant to which the Company shall
be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default
Amount (as defined in Article IID or (ii) be treated pursuant to Section 1.6(b) hereof. "Person" shall mean any individual,
corporation, limited liability company, partnership, association, trust or other entity or organization.

 

(b)                 
Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued
and outstanding and prior to conversion of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization,
reorganization, or other similar event, as a result of which shares of Common Stock of the Company shall be changed into the same
or a different number of shares of another class or classes of stock or securities of the Company or another entity, or in case
of any sale or conveyance of all or substantially all of the assets of the Company other than in connection with a plan of complete
liquidation of the Company, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note,
upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore
issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction
had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set
forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder
of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion
Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable
in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Company shall not affect any transaction
described in this Section l.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but
in any event at least fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve,
or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization
or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting
successor or acquiring entity (if not the Company) assumes by written instrument the obligations of this Section 1.6(b). The above
provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

(c)                  
Adjustment Due to Distribution. If the Company shall declare or make any distribution
of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of
capital or otherwise (including any dividend or distribution to the Company's shareholders in cash or shares (or rights to acquire
shares) of capital stock of a subsidiary (i.e., a spin-off)) (a "Distribution"), then the Holder of this Note shall be
entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution,
to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable
upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of
shareholders entitled to such Distribution.

 

(d)                 
Adjustment Due to Dilutive Issuance. If, at any time when any Notes are issued and
outstanding, the Company issues or sells, or in accordance with this Section hereof is deemed to have issued or sold, any shares
of Common Stock for no consideration or for a consideration per share (before deduction of reasonable expenses or commissions or
underwriting discounts or allowances in connection therewith) less than the Conversion Price in effect on the date of such issuance
(or deemed issuance) of such shares of Common Stock (a "Dilutive Issuance"), then immediately upon the Dilutive Issuance,
the Conversion Price will be reduced to the amount of the consideration per share received by the Company in such Dilutive Issuance.

 

The Company shall be deemed
to have issued or sold shares of Common Stock if the Company in any manner issues or grants any warrants, rights or options (not
including employee stock option plans), whether or not immediately exercisable, to subscribe for or to purchase Common Stock or
other securities convertible into or exchangeable for Common Stock ("Convertible Securities") (such warrants, rights
and options to purchase Common Stock or Convertible Securities are hereinafter referred to as "Options") and the price
per share for which Common Stock is issuable upon the exercise of such Options is less than the Conversion Price then in effect,
then the Conversion Price shall be equal to such price per share. For purposes of the preceding sentence, the "price per share
for which Common Stock is issuable upon the exercise of such Options" is determined by dividing (i) the total amount, if any,
received or receivable by the Company as consideration for the issuance or granting of all such Options, plus the minimum aggregate
amount of additional consideration, if any, payable to the Company upon the exercise of all such Options, plus, in the case of
Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of additional consideration payable
upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii)
the maximum total number of shares of Common Stock issuable upon the exercise of all such Options (assuming full conversion of
Convertible Securities, if applicable).

 

Additionally, the Company
shall be deemed to have issued or sold shares of Common Stock if the Company in any manner issues, sells or converts any Convertible
Securities (whether or not the security's issuance preceded this Note) , whether or not immediately convertible (other than where
the same are issuable upon the exercise of Options), and the price per share for which Common Stock is issuable upon such conversion
or exchange is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share.
For the purposes of the preceding sentence, the "price per share for which Common Stock is issuable upon such conversion or
exchange" is determined by dividing (i) the total amount, if any, received or receivable by the Company as consideration for
the issuance or sale of all such Convertible Securities, plus the minimum aggregate amount of additional consideration, if any,
payable to the Company upon the conversion or exchange thereof at the time such Convertible Securities first become convertible
or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the conversion or exchange of all such
Convertible Securities.

 

    	4

    	 

    

 

(e)                  
Purchase Rights. If, at any time when any Notes are issued and outstanding, the Company
issues any convertible securities or rights to purchase stock, warrants, securities or other property (the "Purchase Rights")
pro rata to the record holders of any class of Common Stock, then the Holder of this Note will be entitled to acquire, upon the
terms applicable to such Purchase Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had
held the number of shares of Common Stock acquirable upon complete conversion of this Note (without regard to any limitations on
conversion contained herein) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase
Rights or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the grant,
issue or sale of such Purchase Rights.

 

(f)                  
Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the
Conversion Price as a result of the events described in this Section 1.6, the Company, at its expense, shall promptly compute such
adjustment or readjustment and prepare and furnish to the Holder of a certificate setting forth such adjustment or readjustment
and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon the written request
at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the
Conversion Price at the time in effect and (iii) the number of shares of Common Stock and the amount, if any, of other securities
or property which at the time would be received upon conversion of the Note.

 

1.7                
Trading Market Limitations. Unless permitted by the applicable rules and regulations
of the principal securities market on which the Common Stock is then listed or traded, in no event shall the Company issue upon
conversion of or otherwise pursuant to this Note and the other Notes issued pursuant to the Purchase Agreement more than the maximum
number of shares of Common Stock that the Company can issue pursuant to any rule of the principal United States securities market
on which the Common Stock is then traded (the "Maximum Share Amount"), which shall be 4.99% of the total shares outstanding
on the Closing Date (as defined in the Purchase Agreement), subject to equitable adjustment from time to time for stock splits,
stock dividends, combinations, capital reorganizations and similar events relating to the Common Stock occurring after the date
hereof. Once the Maximum Share Amount has been issued, if the Company fails to eliminate any prohibitions under applicable law
or the rules or regulations of any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction
over the Company or any of its securities on the Company's ability to issue shares of Common Stock in excess of the Maximum Share
Amount, in lieu of any further right to convert this Note, this will be considered an Event of Default under Section 3.3 of the
Note.

 

1.8                
Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the
shares covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such Holder's
allocated portion of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii)
the Holder's rights as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive
certificates for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to
such Holder because of a failure by the Company to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder
has not received certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the
Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain
its status as a holder of Common Stock by so notifying the Company) the Holder shall regain the rights of a Holder of this Note
with respect to such unconverted portions of this Note and the Company shall, as soon as practicable , return such unconverted
Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not
been converted. In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right
to receive Conversion Default Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any
subsequent Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined
in accordance with Section 1.3) for the Company's failure to convert this Note.

 

1.9                
Prepayment. Maker may prepay this Note, in accordance with the following schedule:
If within 180 calendar days of the execution of this Note, $135% of all outstanding principal and interest due on each outstanding
Note in one payment; After 180 calendar days of this Note being executed, any prepayments must be approved by both parties in writing
..

 

ARTICLE II. CERTAIN COVENANTS

 

2.1                
Distributions on Capital Stock. So long as the Company shall have any obligation under
this Note, the Company shall not without the Holder's written consent (a) pay, declare or set apart for such payment, any dividend
or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends on shares
of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary
make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders' rights
plan which is approved by a majority of the Company's disinterested directors.

 

2.2                
Restriction on Stock Repurchases. So long as the Company shall have any obligation
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 or otherwise) in any one transaction or series of related transactions any
shares of capital stock of the Company or any warrants, rights or options to purchase or acquire any such shares.

 

2.3                
Borrowings. So long as the Company shall have any obligation under this Note, the Company
shall not, without the Holder's written consent, create, incur, assume guarantee, endorse, contingently agree to purchase or otherwise
become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the endorsement of
negotiable instruments for deposit or collection, or suffer to exist any liability for borrowed money, except (a) borrowings in
existence or committed on the date hereof and of which the Company has informed Holder in writing prior to the date hereof, (b)
indebtedness to trade creditors or financial institutions incurred in the ordinary course of business or (c) borrowings, the proceeds
of which shall be used to repay this Note.

 

2.4                
Sale of Assets. So long as the Company shall have any obligation under this Note, the
Company shall not, without the Holder's written consent, sell, lease or otherwise dispose of any significant portion of its assets
outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned on a specified use of
the proceeds of disposition.

 

    	5

    	 

    

 

2.5                
Advances and Loans. So long as the Company shall have any obligation under this Note,
the Company shall not, without the Holder's written consent, lend money, give credit or make advances to any person, firm, joint
venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Company,
except loans, credits or advances (a) in existence or committed on the date hereof and which the Company has informed Holder in
writing prior to the date hereof, (b) made in the ordinary course of business or (c) not in excess of $100,000.

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each,
an "Event of Default") shall occur:

 

3.1                
Failure to Pay Principal or Interest. The Company fails to pay the principal hereof
or interest thereon when due on this Note, whether at maturity, upon acceleration or otherwise.

 

3.2                
Conversion and the Shares. The Company fails to issue shares of Common Stock to the
Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the
conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer
(issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion
of or otherwise pursuant to this Note as and when required by this Note, the Company directs its transfer agent not to transfer
or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any
certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and
when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders
its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on
any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and
when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations
described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not
to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a
Notice of Conversion. It is an obligation of the Company to remain current in its obligations to its transfer agent. It shall be
an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the
Company to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Company's transfer agent in
order to process a conversion, such advanced funds shall be paid by the Company to the Holder within forty eight (48) hours of
a demand from the Holder.

 

3.3                
Breach of Covenants. The Company breaches any material covenant or other material term
or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach
continues for a period of ten (10) days after written notice thereof to the Company from the Holder.

 

3.4                
Breach of Representations and Warranties. Any representation or warranty of the Company
made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including,
without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which
has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or
the Purchase Agreement.

 

3.5                
Receiver or Trustee. The Company or any subsidiary of the Company shall make an assignment
for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part
of its property or business, or such a receiver or trustee shall otherwise be appointed.

 

3.6                
Judgments. Any money judgment, writ or similar process shall be entered or filed against
the Company or any subsidiary of the Company or any of its property or other assets for more than $50,000, and shall remain unvacated,
unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably
withheld.

 

3.7                
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other
proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted
by or against the Company or any subsidiary of the Company.

 

3.8                
Delisting of Common Stock. The Company shall fail to maintain the listing of the Common
Stock on at least one of the OTC tiers or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market,
the New York Stock Exchange, or the American Stock Exchange.

 

3.9                
Failure to Comply with the Exchange Act. The Company shall fail to comply with the
reporting requirements of the Exchange Act; and/or the Company shall cease to be subject to the reporting requirements of the Exchange
Act.

 

3.10             
Liquidation. Any dissolution, liquidation, or winding up of Company or any substantial
portion of its business.

 

3.11             
Cessation of Operations. Any cessation of operations by Company or Company admits it
is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Company's
ability to continue as a "going concern" shall not be an admission that the Company cannot pay its debts as they become
due.

 

    	6

    	 

    

 

3.12             
Maintenance of Assets. The failure by Company to maintain any material intellectual
property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).

 

3.13             
Financial Statement Restatement. The restatement of any financial statements filed
by the Company with the SEC for any date or period from two years prior to the Issue Date of this Note and until this Note is no
longer outstanding, if the result of such restatement would, by comparison to the original financial statement, have constituted
a material adverse effect on the rights of the Holder with respect to this Note or supporting documents.

 

3.14             
Reverse Splits. The Company effectuates a reverse split of its Common Stock without
at least twenty (20) days prior written notice to the Holder.

 

3.15             
Replacement of Transfer Agent. In the event that the Company proposes to replace its
transfer agent, the Company fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer
Agent fustructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision
to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Company and the
Company.

 

3.16             
Cross-Default. Notwithstanding anything to the contrary contained in this Note or the
other related or companion documents, a breach or default by the Company of any covenant or other term or condition contained in
any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the
Company, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in
no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason
of a default under said Other Agreement or hereunder. "Other Agreements" means, collectively, all agreements and instruments
between, among or by: (1) the Company, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without
limitation, promissory notes; provided, however, the term "Other Agreements" shall not include the related or companion
documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other
existing and future debt of Company to the Holder.

 

Upon the occurrence and
during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof
or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Company shall pay
to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON
THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY
DUE AND PAYABLE AND THE COMPANY SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO:
(Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event
of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on
this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11,
3.12, 3.13, 3.14, and/or 3. 15 exercisable through the delivery of written notice to the Company by such Holders (the "Default
Notice"), and upon the occurrence of an Event of Default specified the remaining sections of Articles ill (other than failure
to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately
due and payable and the Company shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to
the greater of (i) 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest
on the unpaid principal amount of this Note to the date of payment (the "Mandatory Prepayment Date") plus (y) Default
Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections
1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in
clauses (x), (y) and (z) shall collectively be known as the "Default Sum") or (ii) the "parity value" of the
Default Sum to be prepaid, where parity value means (a) the highest number of shares of Common Stock issuable upon conversion of
or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately preceding the Mandatory
Prepayment Date as the "Conversion Date" for purposes of determining the lowest applicable Conversion Price, unless the
Default Event arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion Date shall
be the Conversion Date), multiplied by (b) the highest Closing Price for the Common Stock during the period beginning on the date
of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the "Default Amount")
and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all
of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection,
and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.

 

If the Company fails to
pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall
have the right at any time, so long as the Company remains in default (and so long and to the extent that there are sufficient
authorized shares), to require the Company, upon written notice, to immediately issue, in lieu of the Default Amount, the number
of shares of Common Stock of the Company equal to the Default Amount divided by the Conversion Price then in effect.

 

    	7

    	 

    

 

ARTICLE IV. MISCELLANEOUS

 

4.1                
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in
the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All
rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

4.2                
Notices. All notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii)
deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier
service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to
such other address as such party shall have specified most recently by written notice. Any notice or other communication required
or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation
generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

 

If to the Company, to:

 

 

 

If to the Holder:

 

WHC Capital, LLC.

200 Stonehinge Lane

Suite 3

Carle Place, NY 11514

Facsimile: 212.574.3326

 

4.3                
Amendments. This Note and any provision hereof may only be amended by an instrument
in writing signed by the Company and the Holder. The term "Note" and all reference thereto, as used throughout this instrument,
shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later
amended or supplemented, then as so amended or supplemented.

 

4.4                
Assignability. This Note shall be binding upon the Company and its successors and assigns,
and shall inure to be the benefit of the Holder and its successors and assigns. Notwithstanding anything in this Note to the contrary,
this Note may be pledged as collateral in connection with a bona fide margm account or other lending arrangement.

 

4.5                
Cost of Collection. If default is made in the payment of this Note, the Company shall
pay the Holder hereof costs of collection, including reasonable attorneys' fees.

 

4.6                
Governing Law. This Note shall be governed by and construed in accordance with the
laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against the
other concerning the transactions contemplated by this Note shall be brought only in the state courts of New York or in the federal
courts located in the state and county of Nassau. The parties to this Note hereby irrevocably waive any objection to jurisdiction
and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon
forum non conveniens. The Company and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other
party its reasonable attorney's fees and costs. In the event that any provision of this Note or any other agreement delivered in
connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.
Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any
other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being
served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document 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 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 other manner permitted
by law.

 

    	8

    	 

    

 

4.7                
Certain Amounts. Whenever pursuant to this Note the Company is required to pay an amount
in excess of the outstanding principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid
interest plus Default Interest on such interest, the Company and the Holder agree that the actual damages to the Holder from the
receipt of cash payment on this Note may be difficult to determine and the amount to be so paid by the Company represents stipulated
damages and not a penalty and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and
to earn a return from the sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price
paid for such shares pursuant to this Note. The Company and the Holder hereby agree that such amount of stipulated damages is not
plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert
this Note into shares of Common Stock.

 

4.8                
Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by
the applicable terms of the Securities Purchase Agreement and supporting documents of same date.

 

4.9                
Notice of Corporate Events. Except as otherwise provided below, the Holder of this
Note shall have no rights as a Holder of Common Stock unless and only to the extent that it converts this Note into Common Stock.
The Company shall provide the Holder with prior notification of any meeting of the Company's shareholders (and copies of proxy
materials and other information sent to shareholders). In the event of any taking by the Company of a record of its shareholders
for the purpose of determining shareholders who are entitled to receive payment of any dividend or other distribution, any right
to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization)
any share of any class or any other securities or property, or to receive any other right, or for the purpose of determining shareholders
who are entitled to vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of
the Company or any proposed liquidation, dissolution or winding up of the Company, the Company shall mail a notice to the Holder,
at least twenty (20) days prior to the record date specified therein (or thirty (30) days prior to the consummation of the transaction
or event, whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution,
right or other event, and a brief statement regarding the amount and character of such dividend, distribution, right or other event
to the extent known at such time. The Company shall make a public announcement of any event requiring notification to the Holder
hereunder substantially simultaneously with the notification to the Holder in accordance with the terms of this Section 4.9.

 

4.10             
Remedies. The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly,
the Company acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees,
in the event of a breach or threatened breach by the Company of the provisions of this Note, that the Holder shall be entitled,
in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction
or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof,
without the necessity of showing economic loss and without any bond or other security being required.

 

IN WITNESS WHEREOF, Company
has caused this Note to be signed in its name by its duly authorized officer:

 

 

Alkame Holdings, Inc.

 

By: /s/ Robert Eakle

Print: Robert Eakle

Title/Date: CEO 10/27/14

 

    	9

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