Document:

Exhibit
10.6

 

TERMINATION
OF CONSULTING AGREEMENT

 

(Odyssey
Enterprises, LLC vs. International Western Petroleum)

 

THIS
TERMINATION AGREEMENT (the “Agreement”) is made and entered into as of the 28th day of July 2017, by and between
Odyssey Enterprises, LLC (hereinafter referred to as “Consultant”) who had executed the consulting agreement
with International Western Petroleum, Inc., a Nevada corporation (the “Company”) on July 21, 2016.

 

W
I T N E S S E T H:

 

WHEREAS,
the Consultant owns 2,300,000 shares of common stock (the “Common Stock”) of the Company; and

 

WHEREAS,
the Consultant and the Company desire to terminate their agreement to remove its non-dilutable clause in Section 5 (the Compensation
section), and the Consultant remains its ownership of 2,300,000 shares of Common Stock (the “Shares”);

 

WHEREFORE,
the parties hereto hereby agree as follows:

 

1.
          Consulting Services. The Consultant has fulfilled
its consulting service obligation with the Company and will consider assisting the Company in its corporate development effort
in the future without any obligation. The parties hereto agree that the consulting agreement under which the services had been
provided is hereby terminated.

 

2.
          Release. The Consultant hereby releases the Company
from any and all claims, whether known or unknown, that the Consultant has or may have against the Company (except for all Terms
and Conditions outlined in the separate Marshall Walden Joint Venture Agreement executed between the Company and Consultant) as
of the date hereof. Additionally, for clarity, the anti-dilution (non-dilutable clause in Section 5 of the consulting agreement)
and additional share provisions of any agreements between the Company and the Consultant are hereby terminated.

 

3.
          Consideration. As consideration for the release
herein set forth, the Company will issue to the Consultant or its designees 200,000 shares of common stock, which shares shall
be restricted stock and bear an appropriate legend to that effect.

 

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

 

	 	INTERNATIONAL
    WESTERN PETROLEUM, INC.
	 	 	 
	 	By:	       
	 	Name:
    	Benjamin
    Tran, Chairman

 

	 	ODYSSEY
    ENTERPRISES, LLC
	 	 	 
	 	By:
    	      
	 	Printed
    Name: JOSEPH ROGERS, President
	 	Address:
    235 Apollo Beach, #248
	 	Apollo
    Beach, FL 33572Exhibit
10.7

 

SECURED
PROMISSORY NOTE AS AMENDED AND RESTATED

 

Loan
Amount: $750,000

 

Date:
August 3, 2017 (Second Funding Date)

 

1.
Loan Modification. On April 11, 2017, JBB Partners, Inc. (the Holder, as defined below), funded from funds
held in escrow for Norris International Services LLC the sum of $200,000 under a Secured Promissory Note executed by International
Western Petroleum, Inc. ( the Borrower, as defined below) executed and delivered to the Holder on or about April 10, 2017.
The Holder and Borrower wish to modify the Original Note (as defined below) and Agreement (as defined below), and amend and restated
the same to increase the loan principle to an aggregate of $750,000, including the advance made on April 11, 2017, and modify
and add certain other provisions as stated herein, including elimination of collateral that secures the Loan. As to the pledged
shares which provide certain security for the repayment of the Loan, by execution of this Secured Promissory Note As Amended and
Restated, the shares are hereby released and the Stock Pledge Agreements of Messrs. Tran and Ramsey are hereby terminated in all
respects.

 

2.
Promise to Pay. For value received, INTERNATIONAL WESTERN PETROLEUM, INC., a Nevada corporation (the “Borrower”)
promises to pay to JBB Partners, Inc. (the “Holder”), at c/o 409 Terrell Court, New Iberia, La. 70563,
or at such other place as the Holder may designate in writing (the “Payment Office”), in lawful money of the
United States of America, the principal sum of SEVEN Hundred FIFTY Thousand Dollars
($750,000), or if different, the amount then due and owing to the Holder pursuant to the terms hereof, along with interest
from the Effective Date (defined below) until maturity or repayment at the rates per annum as set forth below and such other unpaid
Obligations (defined below) owing from time to time.

 

3.
(a) Certain Defined Terms. The following terms as used in this promissory note (this “Note”)
shall have the respective meanings set forth opposite such terms below, such meanings to be applicable equally to both the singular
and plural forms of such terms:

 

“Affiliate”
means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries, controls,
is controlled by, or is under common control with, such Person. 

 

“Applicable
Rate” means a rate per annum equal to 3.00%.

 

“Change
of Control” means after the Second Funding Date the consummation of a transaction whereby either (i) the board of directors
of the Borrower shall cease to consist of a majority of Continuing Directors, (ii) any “person” or “group”
(as such terms are used for purposes of Sections 13(d) and 14(d) of the Securities and Exchange Act of 1934, as amended) is or
becomes the “beneficial owner” (as such term is used in Rule 13d−3 under the Securities and Exchange Act of
1934, as amended, except that a person will be deemed to have “beneficial ownership” of all shares that any such person
has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly,
of more than 35% of the voting and/or economic interest in the capital stock of the Borrower, or (iii) the Borrower shall enter
into an agreement or consummate an agreement for the sale of all or substantially all its assets. Specifically, excluded is any
change of control event where affiliates of the Holder acquire securities of the Borrower.

 

    	 

    	 		 

    

 

“Collateral”
means the rights, title and interest in the real and personal property and fixtures of the Borrower.

 

“Continuing
Directors” means the directors of the Borrower on the Second Funding Date of this Note, other than directors after the
Second Funding Date that are Affiliates of the Holder or appointed or proposed by the Holder or its Affiliates.

 

“Effective
Date” means April 11, 2017 as to $200,000 of principle and means the Second Funding Date as to $550,000 of principle.

 

“Lien”
means any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
otherwise), charge against or interest in property of the Company to secure payment of a debt or performance of an obligation
or other priority or preferential arrangement of any kind or nature whatsoever.

 

“Loan
Parties” means collectively, the Borrower and the Holder.

 

“Maturity
Date” means the date this matures pursuant to Section 3.

 

“Permitted
Liens” means (i) the Liens in existence on the Second Funding Date of this Note and set forth on Schedule II, Part
A hereto and any Liens granted or arising in substitution or replacement thereof, (ii) Liens of the Holder securing the Obligations,
(iii) Liens for taxes, assessments and governmental charges the payment of which is not required under Section 6(f), (iv)
Liens imposed by law, such as carriers’, warehousemen’s, mechanics’, materialmen’s and other similar Liens
arising in the ordinary course of business and securing obligations (other than indebtedness for borrowed money) that are not
overdue by more than 30 days or are being contested in good faith and by appropriate proceedings promptly initiated and diligently
conducted, and a reserve or other appropriate provision shall have been made therefor, (v) bankers Liens on deposits and deposit
accounts maintained by it, and (vi) pledges or deposits in connection with workers compensation.

 

“Person”
means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated
association, joint venture, governmental authority or other entity of whatever nature.

 

“Second
Funding Date” means the date that $550,000 of principle hereunder is actually advanced and paid to the Borrower.

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company, limited partnership or other entity of which securities
or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing
similar functions are at the time directly or indirectly owned by such Person.

 

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(b)
Other Defined Terms. Certain other terms defined in the other parts of this Note are indicated below:

 

	 	“Borrower”	Section
    2	 
	 	“Common
    Stock”	Section
    11	 
	 	“Conversion
    Rate”	Section
    11(a)	 
	 	“Conversion
    Time”	Section
    11	 
	 	“Costs”	Section
    13(d)	 
	 	“Collateral”	Section
    6	 
	 	“Event
    of Default”	Section
    7	 
	 	“Exempted
    Securities”	Section
    11(f)	 
	 	“Holder”	Section
    2	 
	 	“Indebtedness”	Section
    9	 
	 	“Indemnified
    Liabilities”	Section
    13(d)	 
	 	“Indemnified
    Persons”	Section
    13(d)	 
	 	“Loan
    Documents”	Section
    9	 
	 	“Maturity
    Date”	Section
    4	 
	 	“Note”	Section
    3	 
	 	“Obligations”	Section
    6	 
	 	“Payment
    Office”	Section
    2	 
	 	“Second
    Funding Date”	Section
    2	 

 

(c)
UCC Terms. Any capitalized term used herein and not defined shall have the meaning assigned to it in the Uniform
Commercial Code as in effect in the State of New York from time to time (the “UCC”).

 

4.
Maturity Date.

 

(a)
Unless otherwise extended pursuant to Section 3(b) below, this Note has a maturity date of July 28, 2018, the one year
anniversary of the Effective Date.

 

5.
Payments of Principal, Interest and Late Charges.

 

(a)
By this Note, the Holder is making a loan of $750,000 to the Borrower. Borrower agrees to pay the principle due hereon on the
Maturity Date.

 

(b)
The unpaid principle and any other unpaid Obligations shall accrue interest at the Applicable Rate from the date of funding. Interest
shall be calculated on the basis of a 360-day year based on the actual number of days during the period for which such interest
is payable. Accrued and unpaid interest shall be payable in cash: (i) on the Maturity Date, and (ii) on the date of any payment
or prepayment of principal, whether by prepayment, acceleration or otherwise, with respect to the principal so repaid or Obligation
when paid. If any payment on this Note becomes due and payable on a Saturday, Sunday or other day on which commercial banks in
the City of New York are authorized or required by law to close, the due date thereof shall be extended to the next succeeding
day which is not a Saturday, Sunday or other day on which the commercial banks in the City of New York are authorized or required
by law to close.

 

(c)
Each payment made hereunder will be applied, first, to the payment of any Costs and Indemnified Liabilities, second, to the payment
of accrued and unpaid interest, and the balance, if any, to the unpaid principal balance of this Note and, third, to any other
outstanding Obligations.

 

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(d)
This Note may be prepaid in whole or in part, at any time or from time to time, without premium or penalty. Upon prepayment of
part of the principal amount of this Note, Borrower may require Holder to present this Note for notation on Schedule I
hereto of such adjustment and payment. If this Note is prepaid in full, Borrower may require the holder to surrender this Note.

 

(e)
Payments and prepayments of principal, interest and Obligation due on this Note shall be made to Holder at the Payment Office
or such other place or places as may be specified by the Holder in a written notice to Borrower and to the order of Holder.

 

(f)
To the extent permitted by law, upon the occurrence and during the continuance of an Event of Default, the principle, interest
then due and Obligations then due shall bear interest from the date such Event of Default occurred until cured or waived, at the
rate per annum equal to the Applicable Rate plus 12% per annum. Any interest accruing pursuant to this paragraph (f) shall
be payable on demand.

 

6.
Security. (a) As collateral security for all indebtedness, obligations and other liabilities of the Borrower evidenced
by this Note, including principle, interest and those amounts arising pursuant to Section 12(d) hereof, whether now existing
or hereafter arising (collectively, the “Obligations”), the Borrower hereby pledges and assigns to the Holder,
and grants to the Holder a continuing security interest in, all real and personal property and fixtures of the Borrower, wherever
located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind and description, tangible
or intangible (the “Collateral”), including, without limitation, the following:

 

(i)
all Goods (including, without limitation, all Equipment, Fixtures and Inventory);

 

(ii)
As Extracted Collateral;

 

(iii)
all Commercial Tort Claims;

 

(iv)
all Accounts;

 

(v)
all Chattel Paper (whether tangible or electronic);

 

(vi)
all Instruments (including, without limitation, the equity interest of each of its Subsidiaries);

 

(vii)
all Investment Property;

 

(viii)
all Documents (as defined in the UCC);

 

(ix)
all Deposit Accounts, all cash, and all other property from time to time deposited therein or otherwise credited thereto and the
monies and property in the possession or under the control of the Holder or any affiliate, representative, agent or correspondent
of the Holder;

 

(x)
all Letter-of-Credit Rights;

 

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(xi)
all General Intangibles (including, without limitation, all payment intangibles, intellectual property and licenses);

 

(xii)
all Supporting Obligations;

 

(xiii)
all real property of the Borrower;

 

(xiv)
all other tangible and intangible real property and personal property and fixtures of the Borrower (whether or not subject to
the UCC), including, without limitation, all securities accounts, bank accounts and all cash and all investments therein, proceeds,
products, offspring, accessions, rents, profits, income, benefits, substitutions and replacements of and to any of the property
of the Borrower described in the preceding clauses of this Section (including, without limitation, any proceeds of insurance thereon
and all causes of action, claims and warranties now or hereafter held by the Borrower in respect of any of the items listed above),
and all books, correspondence, credit files, records, invoices and other papers, including, without limitation, all tapes, cards,
software, data, computer runs and other papers and documents in the possession or under the control of the Borrower or any service
company from time to time acting for the Borrower; and

 

(xv)
all Proceeds and products of any and all of the foregoing Collateral;

 

in
each case howsoever the Borrower’s interest therein may arise or appear (whether by ownership, security interest, claim
or otherwise).

 

(b)
The Borrower hereby irrevocably constitutes and appoints the Holder as the Borrower’s true and lawful attorney, with full
power of substitution, at the sole cost and expense of the Borrower but for the sole benefit of the Holder, to take any action
and to execute any instrument which the Holder may deem necessary or advisable to accomplish the purposes of this Note, including,
without limitation, to create and maintain the security interest granted hereby, to receive, indorse and collect all instruments
made payable to the Borrower representing any dividend or other distribution in respect of any of the Collateral and to give full
discharge for the same; to convert the Collateral into cash, including, without limitation, completing the manufacture or processing
of work in process, and the sale (either public or private) of all or any portion of the Collateral; to enforce collection of
the Collateral, either in its own name or in the name of the Borrower, including, without limitation, executing releases, compromising
or settling with any debtors and prosecuting, defending, compromising or releasing any action relating to the Collateral; to receive,
open and dispose of all mail addressed to the Borrower and to take therefrom any remittances or proceeds of Collateral in which
the Holder has a security interest; to notify post office authorities to change the address for delivery of mail addressed to
the Borrower to such address as the Holder shall designate; to endorse the name of the Borrower in favor of the Holder upon any
and all checks, drafts, money orders, notes, acceptances or other instruments of the same or different nature; to sign and endorse
the name of the Borrower on and to receive as secured party any of the Collateral, any invoices, schedules of Collateral, freight
or express receipts, or bills of lading, storage receipts, warehouse receipts, or other documents of title of the same or different
nature relating to the Collateral; to sign the name of the Borrower on any notice to any debtor with respect to accounts or on
verification of the Collateral; and to sign and file or record on behalf of the Borrower any financing or other statement in order
to perfect or protect the Holder’s security interest. The Holder shall not be obliged to do any of the acts or exercise
any of the powers hereinabove authorized, but if the Holder elects to do any such act or exercise any such power, it shall not
be accountable for more than it actually receives as a result of such exercise of power, and it shall not be responsible to the
Borrower except for its gross negligence or willful misconduct. All powers conferred upon the Holder by this Note, being coupled
with an interest, shall be irrevocable so long as any Obligation of the Borrower to the Holder shall remain unpaid.

 

    	5

    	 		 

    

 

(c)
After the occurrence of an Event of Default, the Holder may exercise in respect of the Collateral, in addition to other rights
and remedies provided for herein or otherwise available to it, all of the rights and remedies of a secured party on default under
the UCC, and also may (i) take absolute control of the Collateral, including, without limitation, transfer into the Holder’s
name or into the name of its nominee or nominees (to the extent the Holder has not theretofore done so) and thereafter receive
all payments made thereon, give all consents, waivers and ratifications in respect thereof and otherwise act with respect thereto
as though it were the outright owner thereof, (ii) require the Borrower to, and the Borrower hereby agrees that it will at its
expense and upon request of the Holder forthwith, assemble all or part of the Collateral as directed by the Holder and make it
available to the Holder at a place or places to be designated by the Holder that is reasonably convenient to both parties, and
the Holder may enter into and occupy any premises owned or leased by the Borrower where the Collateral or any part thereof is
located or assembled for a reasonable period in order to effectuate the Holder’s rights and remedies hereunder or under
law, without obligation to the Borrower in respect of such occupation, and (iii) without notice except as specified below and
without any obligation to prepare or process the Collateral for sale, (A) sell the Collateral or any part thereof in one or more
parcels at public or private sale, at any of the Holder’s offices or elsewhere, for cash, on credit or for future delivery,
and at such price or prices and upon such other terms as the Holder may deem commercially reasonable and/or (B) lease, license
or dispose of the Collateral or any part thereof upon such terms as the Holder may deem commercially reasonable. The Borrower
agrees that, to the extent notice of sale shall be required by law, at least 10 days’ notice to the Borrower of the time
and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.
The Borrower hereby waives any claims against the Holder arising by reason of the fact that the price at which the Collateral
may have been sold at a private sale was less than the price which might have been obtained at a public sale or was less than
the aggregate amount of the Obligations, even if the Holder accepts the first offer received and does not offer the Collateral
to more than one offeree, and waives all rights that the Borrower may have to require that all or any part of the Collateral be
marshaled upon any sale (public or private) thereof.

 

In
the event that the proceeds of any such sale, collection, disposition or realization are insufficient to pay all amounts to which
the Holder is legally entitled, the Borrower shall be liable for the deficiency, together with interest thereon at the highest
rate specified herein for interest on overdue principal thereof or such other rate as shall be fixed by applicable law, together
with the costs of collection and the fees, costs, expenses and other client charges of any attorneys employed by the Holder to
collect such deficiency.

 

The
Borrower hereby acknowledges that if the Holder complies with any applicable state, provincial or federal law requirements affecting
any disposition of the Collateral, such compliance will not adversely affect the commercial reasonableness of any sale or other
disposition of the Collateral.

 

    	6

    	 		 

    

 

(d)
All certificates currently representing any Collateral shall be delivered to the Holder on or prior to the execution and delivery
of this Note. All other certificates and instruments constituting Collateral from time to time shall be delivered to the Holder
promptly upon the receipt thereof by or on behalf of the Borrower. All such certificates and instruments shall be held by or on
behalf of the Holder pursuant hereto and shall be delivered in suitable form for transfer by delivery or shall be accompanied
by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Holder. The Borrower
further agrees to execute such other documents and to take such other actions as the Holder deems reasonably necessary or desirable
to create and perfect the security interests intended to be created hereunder, to effect the foregoing and to permit the Holder
to exercise any of its rights and remedies hereunder (including, without limitation to notify the Holder if it establishes a Deposit
Account and to cause such bank to execute and deliver a control agreement with respect to any such Deposit Account in form and
substance reasonably satisfactory to the Holder and/or entering into Mortgages with respect to any real property owned by the
Borrower). If the Borrower shall receive, by virtue of its being or having been an owner of any Collateral, any (i) stock certificate
(including, without limitation, any certificate representing a stock dividend or distribution in connection with any increase
or reduction of capital, reclassification, merger, consolidation, sale of assets, combination of shares, stock split, spinoff
or split-off), promissory note or other instrument, (ii) option or right, whether as an addition to, substitution for, or in exchange
for, any Collateral, or otherwise, (iii) dividends payable in cash or in securities or other property or (iv) dividends or other
distributions in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital
surplus or paid-in surplus, the Borrower shall receive such stock certificate, promissory note, instrument, option, right, payment
or distribution in trust for the benefit of the Holder, shall segregate it from the Borrower’s other property and shall
deliver it forthwith to the Holder in the exact form received, with any necessary endorsement and/or appropriate stock powers
duly executed in blank, to be held by the Holder as Collateral and as further collateral security for the Obligations.

 

7.
Representations and Warranties. The Borrower represents and warrants as follows: (a) the Borrower is duly organized,
validly existing and in good standing under the laws of State of Nevada; (b) the execution, delivery and performance by the Borrower
of this Note have been duly authorized by all necessary corporate action, and do not contravene (i) its organizational documents,
or (ii) any law or regulation or any contractual restriction binding on or affecting the Borrower or its property; (c) no authorization
or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for
the due execution, delivery and performance by the Borrower of this Note; (d) this Note constitutes the legal, valid and binding
obligation of the Borrower thereto, enforceable against the Borrower in accordance with its terms, except to the extent enforceability
is limited by bankruptcy, insolvency, fraudulent conveyance, moratorium and other laws for the protection of creditors generally;
(e) there is no pending or threatened action or proceeding affecting the Borrower before any governmental agency or arbitrator
with respect to the transactions contemplated by this Note or which may materially adversely affect the operations, business,
property, assets, prospects or condition (financial or otherwise) of the Borrower; (f) except as disclosed to the Holder in writing
prior to the date hereof, (i) no Event of Default has occurred and is continuing and (ii) all federal, state and local tax returns
and other reports required by applicable law to be filed by the Borrower have been filed, and all taxes, assessments and other
governmental charges imposed upon the Borrower or any of its properties which have become due and payable on or prior to the date
hereof have been paid (except to the extent contested in good faith by proper proceedings which stay the imposition of any penalty,
fine or Lien resulting from the non-payment thereof and with respect to which adequate reserves have been set aside for the payment
thereof); (g) except as is set forth on Schedule II, Part B, the Borrower has no any Indebtedness on the date hereof and
except as set forth on Schedule II, Part A, there are no liens or encumbrances on the Collateral; and (h) the Borrower
has disclosed to the Holder all agreements, instruments and corporate or other restrictions to which it is subject, and all other
matters known to it, that individually or in the aggregate could materially adversely affect the operations, business, property,
assets, prospects or condition of the Borrower.

 

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8.
Covenants.

 

(a)
On or prior to the Second Funding Date, the Holder or its designated persons or it Affiliates will have received all the agreements
and shares and documents as provided under the terms of that certain Stock Purchase Agreement by and among Borrower and Holder
and the separate Stock Purchase Agreements by and among, as the case may be, the Holder and its designees and Affiliates and individually
Messrs. Benjamin Tran and Ross Henry Ramsey. Until all such deliveries have been made, and the shares being issued and transferred
thereunder have been issued in the Holders (or its designees and Affiliates) names, the Holder is not obligated to fund the additional
principle of $550,000 hereunder.

 

(b)
As soon as available, and in any event within 3 business days after the filing date, the Borrower shall provide to the Holder
copies of all reports, schedules and other instruments filed with the Securities and Exchange Commission. If requested, the Borrower
will provide to Holder such other business, results of operation and financial condition information and data of the Borrower
as reasonably requested by the Holder provided that the Holder covenants, to the extent such information comprises confidential
information, to maintain such confidentiality (unless the Borrower is compelled in a judicial or administrative proceeding or
otherwise required by law to disclose such information).

 

9.
Events of Default. It shall constitute an event of default (“Event of Default”) if any one or
more of the following shall occur for any reason:

 

(a)
any failure to pay any installment of principal and interest on this Note pursuant to Section 5 (including any default
interest as prescribed by Section 5(f), and any failure to pay when due any other Obligation after the same shall become
due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise); or

 

(b)
any representation or warranty made by the Borrower in this Note or any instrument, certificate or agreement delivered to the
Holder by the Borrower (collectively, as the “Loan Documents”) shall have been incorrect in any material respect
when made; or

 

(c)
the Borrower shall fail to perform or observe any term, covenant or agreement contained in any Loan Document; or

 

(d)
The Borrower shall fail to pay any debt for borrowed money or other similar obligation or liability (“Indebtedness”)
in an aggregate principal amount in excess of $250,000 (excluding Indebtedness evidenced by this Note and any other Loan Document),
or any interest or premium thereon, when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise)
and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to
such Indebtedness, or any other default under any agreement or instrument relating to any such Indebtedness, or any other event,
shall occur and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect
of such default or event is to accelerate, or to permit the acceleration of, the maturity of such Indebtedness; or any such Indebtedness
of the Borrower shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required
prepayment), prior to the stated maturity thereof, or the Borrower shall default in any other obligation owed to the Holder; or

 

    	8

    	 		 

    

 

(e)
the Borrower shall incur any Indebtedness after the date of this Note, without the prior written consent of the Holder; or

 

(f)
the Borrower creates, incurs, assumes or suffers to exist any Lien upon any of the Collateral, other than a Permitted Lien; or

 

(g)
this Note or any other security document, after delivery thereof pursuant hereto, shall for any reason fail or cease to create
a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien in favor of the
Holder on any portion of the Collateral, as applicable.

 

(h)
one or more judgments or orders for the payment of money exceeding any applicable insurance coverage by $250,000 shall be rendered
against the Borrower, and either (i) enforcement proceedings shall have been commenced by any creditor upon any such judgment
or order, or (ii) there shall be any period of 30 consecutive days during which a stay of enforcement of any such judgment or
order, by reason of a pending appeal or otherwise, shall not be in effect; or

 

(i)
any provision of this Note or any other Document shall at any time for any reason be declared to be null and void by a court of
competent jurisdiction, or the validity or enforceability thereof shall be contested by the Borrower or any other Person, or a
proceeding shall be commenced by the Borrower or any other Person seeking to establish the invalidity or unenforceability thereof,
or the Borrower shall deny that it has any liability or obligation hereunder or thereunder; or

 

(j)
the Borrower shall (i) become insolvent or shall fail generally to pay its debts as they mature or shall apply for, shall consent
to, or shall acquiesce in the appointment of a custodian, trustee or receiver for itself or for a substantial part of its property
or assets; or, in the absence of such application, consent or acquiescence, a custodian, trustee or receiver shall be appointed
for the Borrower or for a substantial part of the Borrower’s property or assets, or the Borrower shall make an assignment
for the benefit of creditors; or (ii) be the subject of any bankruptcy, reorganization, debt arrangement or other proceedings
under any bankruptcy or insolvency act or law, state, federal or foreign, now or hereafter existing, which shall not have been
dismissed within 30 days or an order for relief shall have been entered against the Borrower Party, as applicable; or

 

(k)
the Borrower shall dispose of any Collateral, excluding: (i) the sale of Inventory and As Extracted Minerals in the ordinary course
of business, (ii) the disposition of obsolete or worn-out equipment in the ordinary course of business, and (iii) the sale or
disposition of other property or assets of the Borrower (excluding any equity interests owned by it) for cash in an aggregate
amount not less than the fair market value of such property or assets, provided that the Net Cash Proceeds of such dispositions
(A) in the case of clauses (ii) and (iii) above, do not exceed $250,000 in the aggregate and (B) in all cases, are applied to
the repayment of the outstanding Obligations in accordance with Section 5(d); or

 

(l)
a Change of Control shall have occurred; or

 

    	9

    	 		 

    

 

(m)
an event or development occurs which could reasonably be expected to have a material adverse effect on the operations, business,
assets, property, condition (financial or otherwise) or prospects of the Borrower or the assets, property and financial condition
of the Borrower.

 

10.
Remedies. Upon the occurrence of an Event of Default, the Holder shall have the right to, without notice to or demand
on the Borrower, to declare the outstanding principal and all accrued and unpaid interest hereunder immediately due and payable,
provided, that, upon the occurrence of an Event of Default specified in Section 9(j), all amounts owing under this
Note and the other Loan Documents shall immediately become due and payable. In addition to the right of acceleration, upon the
occurrence of an Event of Default, the Holder shall have any and all of the rights and remedies contained in Section 6
of this Note and any other Document or that are available at law or in equity.

 

11.
Conversion. The total amount of the principle due under this Note will automatically convert on the creation of
the Series A Preferred Stock, in the form as attached hereto as Exhibit A, into 1,000,000 shares of that preferred class, with
no adjustment for the amount of the principle then outstanding, and the shares into which the principle is converted will be issued
to the Holder or its designees, as soon as possible after the date of the automatic conversion by the Borrower. Any interest and
other Obligations due to the Holder (or holders if more than one), at the time of conversion into the Series A Preferred Stock,
will be paid in cash or as otherwise indicated in the terms of this Agreement upon the automatic conversion. If the principle
due on this Note is not converted on or before December 30, 2017, by the creation of the Series A Preferred Stock, then the Holder
shall have the right at its option, and not the requirement, from time to time, to convert all or some of the principle, interest
and other Obligations due under this Note into shares of common stock of the Borrower as provided herein.

 

(a)
Conversion Rate for Common Stock. Each $0.005 (the “Conversion Rate”) of the Obligations due under this
Note may be converted into one share of fully paid and non-assessable common stock of the Borrower (the “Common Stock”).
The conversion rate at which the Obligations may be converted into shares of Common Stock, shall be subject to adjustment as provided
below.

 

(b)
Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of any of the Obligations. In lieu
of any fractional shares to which the Holder would otherwise be entitled, the Borrower shall pay cash equal to such fraction multiplied
by the fair market value of a share of Common Stock as determined in good faith by the Board of Directors of the Borrower. Whether
or not fractional shares would be issuable upon such conversion shall be determined on the basis of the total number of shares
issuable to the Holder is at the time converting the Obligations into Common Stock and the aggregate number of shares of Common
Stock issuable upon such conversion.

 

(c)
Mechanics of Conversion. To voluntarily convert the Obligations into shares of Common Stock, Holder shall (a) provide written
notice to the Borrower at the principal office of the Borrower of its election to convert all or a portion of the Obligations
into Common Stock and (b), if requested, surrender this Note for notation or reissue (or, if Holder alleges that the Note has
been lost, stolen or destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Borrower to indemnify
the Borrower against any claim that may be made against the Borrower on account of the alleged loss, theft or destruction of such
certificate). The notice shall state the names in which the Holder wishes the shares of Common Stock to be issued. The close of
business on the date of receipt by the Borrower of the notice shall be the time of conversion (the “Conversion Time”),
and the shares of Common Stock issuable upon conversion shall be deemed to be outstanding of record as of such date. The Borrower
shall, as soon as practicable after the Conversion Time (i) issue and deliver the share certificate or notice of issuance of uncertificated
shares to the designated recipients, and (ii) pay in cash such amount as provided in Section 11(b) in lieu of any fraction
of a share of Common Stock otherwise issuable upon such conversion.

 

    	10

    	 		 

    

 

(d)
Reservation of Shares. The Borrower shall at all times while this Note is outstanding, reserve and keep available out of
its authorized but unissued capital stock, for the purpose of effecting the conversion of the Obligations, such number of its
duly authorized shares of Common Stock as shall from time to time be sufficient to effect the conversion of all the Obligations
hereunder; and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the
conversion of all the then outstanding Obligations, the Borrower shall take all corporate action as may be necessary to increase
its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for the purpose of conversion,
including, without limitation, engaging in best efforts to obtain the requisite stockholder approval of any necessary amendment
to the Certificate of Incorporation.

 

(e)
Taxes. The Borrower shall pay any and all issue and other similar taxes that may be payable in respect of any issuance
or delivery of shares of Common Stock upon conversion of the Obligations. The Borrower shall not, however, be required to pay
any tax which may be payable in respect of any transfer involved in the issuance and delivery of shares of Common Stock in a name
other than that of the Holder.

 

(f)
Adjustments to Conversion Price for Diluting Issues.

 

(xvi)
Special Definitions. For purposes of this Section 11, the following definitions shall apply:

 

(a)
“Option” shall mean rights, options or warrants to subscribe for, purchase or otherwise acquire Common Stock or Convertible
Securities.

 

(b)
“Convertible Securities” shall mean any evidences of indebtedness, shares or other securities directly or indirectly
convertible into or exchangeable for Common Stock, but excluding Options and this Note.

 

(c)
“Additional Shares of Common Stock” shall mean all shares of Common Stock issued (or, pursuant to Section 11(h)
below, deemed to be issued) by the Borrower after the Second Funding Date, other than (1) the following shares of Common Stock
and (2) shares of Common Stock deemed issued pursuant to the following Options and Convertible Securities (clauses (a) and (n),
collectively, “Exempted Securities”):

 

(i)
shares of Common Stock, Options or Convertible Securities issued by reason of a dividend, stock split, split-up or other distribution
on shares of Common Stock that is covered by Sections 11(l), (m), (n) or (o);

 

(ii)
shares of Common Stock or Options issued to employees or directors of, or consultants or advisors to, the Borrower or any of its
subsidiaries pursuant to a plan, agreement or arrangement approved by the Board of Directors of the Borrower;

 

    	11

    	 		 

    

 

(iii)
shares of Common Stock or Convertible Securities actually issued upon the exercise of Options or shares of Common Stock actually
issued upon the conversion or exchange of Convertible Securities, in each case provided the issuance is pursuant to the terms
of such Option or Convertible Security;

 

(iv)
shares of Common Stock, Options or Convertible Securities issued to banks, equipment lessors or other financial institutions,
or to real property lessors, pursuant to a debt financing, equipment leasing or real property leasing transaction approved by
the Board of Directors of the Borrower;

 

(v)
shares of Common Stock, Options or Convertible Securities issued to suppliers or third party service providers in connection with
the provision of goods or services pursuant to transactions approved by the Board of Directors of the Borrower; or

 

(vi)
shares of Common Stock, Options or Convertible Securities issued in connection with sponsored research, collaboration, technology
license, development, OEM, marketing or other similar agreements or strategic partnerships approved by the Board of Directors
of the Borrower.

 

(g)
No Adjustment to Conversion Price upon Consent. No adjustment in the Conversion Price shall be made as the result of the
issuance or deemed issuance of Additional Shares of Common Stock if the Borrower receives written notice from the Holders of at
least a majority of the then outstanding principle amount due under the Note agreeing that no such adjustment shall be made as
the result of the issuance or deemed issuance of such Additional Shares of Common Stock.

 

(h)
Deemed Issue of Additional Shares of Common Stock.

 

(xvii)
If the Borrower at any time or from time to time after the Second Funding Date shall issue any Options or Convertible Securities
(excluding Options or Convertible Securities which are themselves Exempted Securities) or shall fix a record date for the determination
of holders of any class of securities entitled to receive any such Options or Convertible Securities, then the maximum number
of shares of Common Stock (as set forth in the instrument relating thereto, assuming the satisfaction of any conditions to exercisability,
convertibility or exchangeability but without regard to any provision contained therein for a subsequent adjustment of such number)
issuable upon the exercise of such Options or, in the case of Convertible Securities and Options therefor, the conversion or exchange
of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue or,
in case such a record date shall have been fixed, as of the close of business on such record date.

 

    	12

    	 		 

    

 

(xviii)
If the terms of any Option or Convertible Security, the issuance of which resulted in an adjustment to the Conversion Rate pursuant
to the terms of Section 11(i), are revised as a result of an amendment to such terms or any other adjustment pursuant to
the provisions of such Option or Convertible Security (but excluding automatic adjustments to such terms pursuant to anti-dilution
or similar provisions of such Option or Convertible Security) to provide for either (1) any increase or decrease in the number
of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any such Option or Convertible Security, or
(2) any increase or decrease in the consideration payable to the Borrower upon such exercise, conversion and/or exchange, then,
effective upon such increase or decrease becoming effective, the Conversion Rate computed upon the original issue of such Option
or Convertible Security (or upon the occurrence of a record date with respect thereto) shall be readjusted to such Conversion
Rate as would have obtained had such revised terms been in effect upon the original date of issuance of such Option or Convertible
Security. Notwithstanding the foregoing, no readjustment pursuant to this clause (b) shall have the effect of increasing the Conversion
Rate to an amount which exceeds the lower of (i) the Conversion Rate in effect immediately prior to the original adjustment made
as a result of the issuance of such Option or Convertible Security, or (ii) the Conversion Rate that would have resulted from
any issuances of Additional Shares of Common Stock (other than deemed issuances of Additional Shares of Common Stock as a result
of the issuance of such Option or Convertible Security) between the original adjustment date and such readjustment date.

 

(xix)
If the terms of any Option or Convertible Security (excluding Options or Convertible Securities which are themselves Exempted
Securities), the issuance of which did not result in an adjustment to the Conversion Rate pursuant to the terms of Section
11(i) (either because the consideration per share (determined pursuant to Section 11(j)) of the Additional Shares of
Common Stock subject thereto was equal to or greater than the Conversion Rate then in effect, or because such Option or Convertible
Security was issued before the Second Funding Date), are revised after the Second Funding Date as a result of an amendment to
such terms or any other adjustment pursuant to the provisions of such Option or Convertible Security (but excluding automatic
adjustments to such terms pursuant to anti-dilution or similar provisions of such Option or Convertible Security) to provide for
either (1) any increase in the number of shares of Common Stock issuable upon the exercise, conversion or exchange of any such
Option or Convertible Security or (2) any decrease in the consideration payable to the Borrower upon such exercise, conversion
or exchange, then such Option or Convertible Security, as so amended or adjusted, and the Additional Shares of Common Stock subject
thereto (determined in the manner provided in Section 11(h)(i) shall be deemed to have been issued effective upon such
increase or decrease becoming effective.

 

(xx)
Upon the expiration or termination of any unexercised Option or unconverted or unexchanged Convertible Security (or portion thereof)
which resulted (either upon its original issuance or upon a revision of its terms) in an adjustment to the Conversion Rate pursuant
to the terms of Section 11(i), the Conversion Rate shall be readjusted to such Conversion Rate as would have obtained had
such Option or Convertible Security (or portion thereof) never been issued.

 

(xxi)
If the number of shares of Common Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security,
or the consideration payable to the Borrower upon such exercise, conversion and/or exchange, is calculable at the time such Option
or Convertible Security is issued or amended but is subject to adjustment based upon subsequent events, any adjustment to the
Conversion Rate provided for in this Section 11(h) shall be effected at the time of such issuance or amendment based on
such number of shares or amount of consideration without regard to any provisions for subsequent adjustments (and any subsequent
adjustments shall be treated as provided in clauses (ii) and (iii) of this Section 11(h)). If the number of shares of Common
Stock issuable upon the exercise, conversion and/or exchange of any Option or Convertible Security, or the consideration payable
to the Borrower upon such exercise, conversion and/or exchange, cannot be calculated at all at the time such Option or Convertible
Security is issued or amended, any adjustment to the Conversion Rate that would result under the terms of this Section 11(h)
at the time of such issuance or amendment shall instead be effected at the time such number of shares and/or amount of consideration
is first calculable (even if subject to subsequent adjustments), assuming for purposes of calculating such adjustment to the Conversion
Rate that such issuance or amendment took place at the time such calculation can first be made.

 

    	13

    	 		 

    

 

(i)
Adjustment of Conversion Rate Upon Issuance of Additional Shares of Common Stock. In the event the Borrower shall at any
time after the Second Funding Date issue Additional Shares of Common Stock (including Additional Shares of Common Stock deemed
to be issued pursuant to Section 11(h)), without consideration or for a consideration per share less than the Conversion
Rate in effect immediately prior to such issue, then the Conversion Rate shall be reduced, concurrently with such issue, to a
price (calculated to the nearest one-hundredth of a cent) determined in accordance with the following formula:

 

	 	 	 	 
	 	X =	((A)(Y) + ((B)(Z))	 
	 	 	Y + Z	 

 

For
purposes of the foregoing formula, the following definitions shall apply:

 

“X”
shall mean the Conversion Rate in effect immediately after such issue of Additional Shares of Common Stock;

 

“A”
shall mean the Conversion Rate in effect immediately prior to such issue of Additional Shares of Common Stock;

 

“Y”
shall mean the number of shares of Common Stock outstanding immediately prior to such issue of Additional Shares of Common Stock
(treating for this purpose as outstanding all shares of Common Stock issuable upon exercise of Options outstanding immediately
prior to such issue or upon conversion or exchange of Convertible Securities outstanding (assuming exercise of any outstanding
Options therefor) immediately prior to such issue);

 

“B”
shall mean the consideration received by the Borrower for the issue of the Additional Shares of Common Stock per share; and

 

“Z”
shall mean the number of Additional Shares of Common Stock issued.

 

(j)
Determination of Consideration. For purposes of Section 11(h), the consideration received by the Borrower for the
issue of any Additional Shares of Common Stock shall be computed as follows:

 

(xxii)
Cash and Property: Such consideration shall:

 

(a)
insofar as it consists of cash, be computed at the aggregate amount of cash received by the Borrower, excluding amounts paid or
payable for accrued interest;

 

(b)
insofar as it consists of property other than cash, be computed at the fair market value thereof at the time of such issue, as
determined in good faith by the Board of Directors of the Borrower; and

 

(c)
in the event Additional Shares of Common Stock are issued together with other shares or securities or other assets of the Borrower
for consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses (i)
and (ii) above, as determined in good faith by the Board of Directors of the Borrower.

 

    	14

    	 		 

    

 

(xxiii)
Options and Convertible Securities. The consideration per share received by the Borrower for Additional Shares of Common
Stock deemed to have been issued pursuant to Section 11(h), relating to Options and Convertible Securities, shall be determined
by dividing:

 

(a)
The total amount, if any, received or receivable by the Borrower as consideration for the issue of such Options or Convertible
Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without
regard to any provision contained therein for a subsequent adjustment of such consideration) payable to the Borrower upon the
exercise of such Options or the conversion or exchange of such Convertible Securities, or in the case of Options for Convertible
Securities, the exercise of such Options for Convertible Securities and the conversion or exchange of such Convertible Securities,
by

 

(b)
the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without regard to any provision
contained therein for a subsequent adjustment of such number) issuable upon the exercise of such Options or the conversion or
exchange of such Convertible Securities, or in the case of Options for Convertible Securities, the exercise of such Options for
Convertible Securities and the conversion or exchange of such Convertible Securities.

 

(k)
Multiple Closing Dates. In the event the Borrower shall issue on more than one date Additional Shares of Common Stock that
are a part of one transaction or a series of related transactions and that would result in an adjustment to the Conversion Rate
pursuant to the terms of Section 11(i), then, upon the final such issuance, the Conversion Rate shall be readjusted to
give effect to all such issuances as if they occurred on the date of the first such issuance (and without giving effect to any
additional adjustments as a result of any such subsequent issuances within such period).

 

(l)
Adjustment for Stock Splits and Combinations. If the Borrower shall at any time or from time to time after the Second Funding
Date effect a subdivision of the outstanding Common Stock, then the Conversion Rate in effect immediately before that subdivision
shall be proportionately decreased so that the number of shares of Common Stock issuable on conversion of the Obligations shall
be increased in proportion to such increase in the aggregate number of shares of Common Stock outstanding. If the Borrower shall
at any time or from time to time after the Second Funding Date combine the outstanding shares of Common Stock, then the Conversion
Rate in effect immediately before the combination shall be proportionately increased so that the number of shares of Common Stock
issuable on conversion of the Obligations shall be decreased in proportion to such decrease in the aggregate number of shares
of Common Stock outstanding. Any adjustment under this subsection shall become effective at the close of business on the date
the subdivision or combination becomes effective.

 

(m)
Adjustment for Certain Dividends and Distributions. In the event the Borrower at any time or from time to time after the
Second Funding Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive,
a dividend or other distribution payable on the Common Stock in additional shares of Common Stock, then and in each such event
the Conversion Rate in effect immediately before such event shall be decreased as of the time of such issuance or, in the event
such a record date shall have been fixed, as of the close of business on such record date, by multiplying the Conversion Rate
then in effect by a fraction:

 

    	15

    	 		 

    

 

(a)
the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time
of such issuance or the close of business on such record date, and

 

(b)
the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time
of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of
such dividend or distribution.

 

Notwithstanding
the foregoing, if the record date shall have been fixed and the dividend is not fully paid or if the distribution is not fully
made on the date fixed therefor, the Conversion Rate shall be recomputed accordingly as of the close of business on such record
date and thereafter the Conversion Rate shall be adjusted pursuant to this subsection as of the time of actual payment of such
dividends or distributions.

 

(n)
Adjustment for Merger or Reorganization, etc. If there shall occur any reorganization, recapitalization, reclassification,
consolidation or merger involving the Borrower in which the Common Stock is converted into or exchanged for securities, cash or
other property (other than a transaction covered by Sections 11(c), (l) or (m), then, following any such reorganization,
recapitalization, reclassification, consolidation or merger, the Obligations shall thereafter be convertible in lieu of the Common
Stock into which it was convertible prior to such event, into the kind and amount of securities, cash or other property the Common
Stock is to be converted upon such reorganization, recapitalization, reclassification, consolidation or merger; and, in such case,
appropriate adjustment (as determined in good faith by the Board of Directors of the Borrower) shall be made in the application
of the provisions in this Section 11 so that the provisions set forth in this Section 11 shall as nearly as reasonably
may be, equal to the securities or other property thereafter deliverable upon the conversion of the Obligations.

 

(o)
Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Rate pursuant to
this Section 11, the Borrower at its expense shall, as promptly as reasonably practicable but in any event not later than
ten (10) days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder
of the Obligations a certificate setting forth such adjustment or readjustment (including the kind and amount of securities, cash
or other property into which the Obligations are convertible) and showing in detail the facts upon which such adjustment or readjustment
is based. The Borrower shall, as promptly as reasonably practicable after the written request at any time of any Holder of the
Obligations (but in any event not later than ten (10) days thereafter), furnish or cause to be furnished to such holder a certificate
setting forth (i) the Conversion Rate then in effect, and (ii) the number of shares of Common Stock and the amount, if any, of
other securities, cash or property which then would be received upon the conversion of Obligations of the Note.

 

(p)
Notice of Record Date. In the event:

 

(i)
the Borrower shall take a record of the holders of its Common Stock (or other capital stock or securities at the time issuable
upon conversion of the Obligations) for the purpose of entitling or enabling them to receive any dividend or other distribution,
or to receive any right to subscribe for or purchase any shares of capital stock of any class or any other securities, or to receive
any other security; or

 

(ii)
of any capital reorganization of the Borrower, any reclassification of the Common Stock of the Borrower; or

 

    	16

    	 		 

    

 

(c)
of the voluntary or involuntary dissolution, liquidation or winding-up of the Borrower,

 

then,
and in each such case, the Borrower will send or cause to be sent to the Holder(s) of the Obligations a notice specifying, as
the case may be, (i) the record date for such dividend, distribution or right, and the amount and character of such dividend,
distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer,
dissolution, liquidation or winding-up is proposed to take place, and the time, if any is to be fixed, as of which the holders
of record of Common Stock (or such other capital stock or securities at the time issuable upon the conversion of the Obligations)
shall be entitled to exchange their shares of Common Stock (or such other capital stock or securities) for securities or other
property deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or
winding-up, and the amount per share and character of such exchange applicable to the Common Stock. Such notice shall be sent
at least ten (10) days prior to the record date or effective date for the event specified in such notice.

 

12.
Choice of Law; Venue; Jurisdiction; Waiver of Jury Trial. This Note shall be governed and controlled as to validity,
enforcement, interpretation, construction, effect and in all other respects, including, but not limited to, the legality of the
interest charged hereunder, by the statutes, laws and decisions of the State of New York without giving effect to such State’s
conflicts of laws principles. The Borrower hereby irrevocably consents to the exclusive venue and jurisdiction of the federal
and state courts located in Texas with respect to any proceeding which may be brought in connection with the Note. The Borrower
hereby expressly and irrevocably waives the right to a trial by jury in any action or proceeding arising out of this Note.

 

13.
Miscellaneous Provisions.

 

(a)
This Note may not be amended or modified, and revision hereto shall not be effective, except by an instrument in writing executed
by each of the Borrower and the Holder.

 

(b)
(i) Any notice or communication by the Borrower, on the one hand, or the Holder on the other hand, to the other is duly given
if in writing and delivered in Person or mailed by first class mail (registered or certified, return receipt requested), telecopier
or overnight air courier guaranteeing next day delivery, to the others’ address:

 

	If
                                         to the Borrower:

         

        International
        Western Petroleum, Inc.

        

        5525
        N. MacArthur Blvd, Suite 280

        

        Irving,
        TX 75038

	 
	Attention:
    President

 

	If
                                         to the Holder:

         

        JBB
        Partners, Inc.

	409
    Terrell Court
	New
    Iberia, LA 70563
	Attention:
    Mr. Patrick Norris

 

    	17

    	 		 

    

 

In
the case of the Holder, not constituting any form of notice, with copies to:

 

Golenbock
Eiseman Assor Bell & Peskoe LLP

711
Third Avenue, 17th Floor

New
York, NY 10017

Facsimile:
(212) 754-0330

Attention:
Andrew Hudders, Esq.

 

(ii)
Either Holder or Borrower by notice to the other party may designate additional or different addresses for subsequent notices
or communications.

 

(iii)
All notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered;
three business days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied or
emailed; and the next business day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day
delivery.

 

(c)
Every provision of this Note is intended to be severable. In the event any term or provision hereof is declared by a court of
competent jurisdiction to be illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the
balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable.

 

(d)
(i) The Borrower shall have paid to the Holder, on demand, all costs of enforcement and collection (including without limitation,
any fees, disbursements and other charges of primary and special counsel to the Holder), whether or not any action or proceeding
is brought to enforce the provisions hereof (collectively, “Costs”); and

 

(ii)
The Borrower shall pay, indemnify, defend, and hold the Holder, each of its assigns and participants and each of their respective
affiliates (each, an “Indemnified Person”) harmless (to the fullest extent permitted by law) from and against
any and all claims, demands, suits, actions, investigations, proceedings, liabilities, fines, costs, penalties, and damages, and
all reasonable fees and disbursements of attorneys, experts, or consultants and all other costs and expenses actually incurred
in connection therewith or in connection with the enforcement of this indemnification (as and when they are incurred and irrespective
of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of them (A) in connection with or
as a result of or related to the execution, delivery, enforcement, performance, or administration of this Note, any of the other
Loan Documents, or the transactions contemplated hereby or thereby or the monitoring of Borrower’s compliance with the terms
of the Loan Documents, and (b) with respect to any investigation, litigation, or proceeding related to this Note, any other Loan
Document, or the use of the proceeds of the credit provided hereunder (irrespective of whether any Indemnified Person is a party
thereto), or any act, omission, event, or circumstance in any manner related thereto (each and all of the foregoing, the “Indemnified
Liabilities”). The foregoing to the contrary notwithstanding, Borrowers shall have no obligation to any Indemnified
Person under this Section 12(d) with respect to any Indemnified Liability that a court of competent jurisdiction finally
determines to have resulted from the gross negligence or willful misconduct of such Indemnified Person.

 

    	18

    	 		 

    

 

(iii)
This Section shall survive the termination of this Note and the repayment of the Obligations. If any Indemnified Person makes
any payment to any other Indemnified Person with respect to an Indemnified Liability as to which Borrower was required to indemnify
the Indemnified Person receiving such payment, the Indemnified Person making such payment is entitled to be indemnified and reimbursed
by Borrower with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT
TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED
PERSON OR OF ANY OTHER PERSON.

 

(e)
No failure on the part of the Holder to exercise, and no delay in exercising, any right, power, privilege or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise thereof by the Holder preclude any other or further
exercise thereof or the exercise of any other right, power, privilege or remedy of the Holder.

 

(f)
Headings at the beginning of each numbered Section of this Note are intended solely for convenience of reference and are not to
be deemed or construed to be a part of this Note.

 

(g)
This Note may not be sold, transferred or otherwise hypothecated, in whole or in part by the Borrower. Any attempted sale, transfer
or hypothecation of this Note in violation of this provision shall be null and void.

 

(h)
The Obligations of the Borrower shall be automatically reinstated if and to the extent that for any reason any payment by or on
behalf of the Borrower in respect of the Obligations is rescinded or must be otherwise restored by the Holder, whether as a result
of any proceedings in bankruptcy or reorganization or otherwise, and the Borrower agrees that it will indemnify the Holder on
demand for all reasonable costs and expenses (including, without limitation, reasonable fees of counsel) incurred by the Holder
in connection with any such rescission or restoration, including any such costs and expenses incurred in defending against any
claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency
or similar law. The provisions of this paragraph (h) shall survive the termination of this Note.

 

[Remainder
of Page Intentionally Left Blank]

 

    	19

    	 		 

    

 

IN
WITNESS WHEREOF, the Borrower has executed this Note as of the Effective Date set forth above.

 

	 	INTERNATIONAL
    WESTERN PETROLEUM, INC.
	 	 	 
	 	By:
    	                      
	 	Name:	 
	 	Title:	 

 

    	 

    	 		 

    

 

Schedule
I

 

	Date
    of Payment	 	Principal
    Paid or Prepaid	 	Aggregate
    Principal Balance	 	Notation
    Made By
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 

    	 		 

    

 

Schedule
II

 

Part
A: Permitted Liens

 

None.

 

Part
B: Existing Indebtedness

 

$50,000
loan from Jeff Jennings, a shareholder of International Western Petroleum, Inc.

 

    	 

    	 		 

    

 

Exhibit
A

 

Form
of Series A Preferred Stock

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00273-of-00352.parquet"}]]