Document:

THIS
NOTE
MAY NOT
BE SOLD,
TRANSFERRED, ASSIGNED,
PLEDGED, HYPOTHECATED OR
OTHERWISE ALIENATED OR
ENCUMBERED WITHOUT THE
PRIOR WRITTEN CONSENT OF
INVESTOR.

 

 

$50,000.00

State
of Utah
May 29, 2015

 

INVESTOR
NOTE #1

 

FOR
VALUE RECEIVED,
TYPENEX CO-INVESTMENT,
LLC, a
Utah limited
liability company
(“Investor”), hereby
promises to pay
to AVALANCHE
INTERNATIONAL, CORP.,
a Nevada
corporation (“Company”,
and together
with Investor,
the “Parties”),
the principal
sum of $50,000.00
together with all
accrued and unpaid
interest thereon,
fees incurred
or other
amounts owing
hereunder, all as set
forth below in this
Investor Note #1 (this
“Note”). This Note
is issued
pursuant to that
certain Securities Purchase
Agreement of even date herewith,
entered into by
and between Investor
and Company (as the
same may be amended from time
to time, the “Purchase Agreement”),
pursuant to which Company
issued  to  Investor
that  certain 
Secured  Convertible
 Promissory Note
in the  principal
amount  of

$252,500.00
(as the
same may be
amended from
time to time,
the “Company
Note”)
convertible into
shares of
Company’s Common
Stock. All
capitalized terms
used but
not otherwise
defined herein
shall have the meanings
ascribed thereto in
the Purchase Agreement.

 

1.                 
Principal and
Interest.
Interest
shall
accrue
on the unpaid principal
balance and any unpaid
late fees
or other
fees under this
Note at
a rate
of eight
percent (8%)
per annum
until the full
amount of
the principal and
fees has been
paid. Interest shall
be computed
on the
basis of a
365-day year
for the actual
number of days
elapsed. Notwithstanding any
provision to the
contrary herein, in
no event shall
the applicable interest
rate at any time
exceed the maximum
interest rate allowed
under applicable law, as
provided in Section
12 below. The entire
unpaid principal balance
and all accrued
and unpaid interest,
if any, under
this Note, shall
be due and
payable on the
date that is thirteen
(13) months from
the date hereof
(the “Investor
Note Maturity
Date”); provided,
however, that Investor
may elect, in its
sole discretion, to extend
the Investor Note Maturity
Date for up
to thirty (30)
days by delivering
written notice of
such election
to Company
at any
time prior
to the
Investor Note
Maturity Date.

 

2.                 
Payment.
Unless
prepaid,
all
principal and
accrued interest under
this Note is
payable in
one lump
sum on the
Investor Note Maturity
Date. All payments
of interest
and principal shall
be (i)
in lawful
money of
the United
States of
America, and
(ii) in
the form
of immediately
available funds.
All payments shall
be applied first
to costs of collection, if
any, then to accrued and unpaid
interest, and thereafter
to principal.
Payment of
principal and interest
hereunder shall
be delivered
to Company
at the address
furnished to Investor for
that purpose.

 

3.                 
Prepayment
by Investor.
Investor may,
with Company’s consent,
pay, without penalty,
all or any
portion of
the outstanding
balance along
with any
accrued but
unpaid interest
on this
Note at
any time prior
to the Investor Note
Maturity Date.

 

4.                 
Security;
Collateral.
Investor may,
in its
sole discretion, designate
collateral (the “Collateral”)
as it deems
fit, as security
for Investor’s
obligations hereunder, which
Collateral may be,
but is not
required to
be, real
property, a letter
of credit
with a financial
institution determined by Investor
in its sole discretion,
or pledged membership interests,
provided that the net
fair market value of the
Collateral (net of any outstanding
monetary liens)
shall not be less than the principal
balance of this Note as
of the date
of any such designation.
Upon Investor’s
designation of
Collateral, each
of Investor and Company
shall timely execute any and
all documents necessary
or advisable in order to properly
grant a security interest
upon the Collateral
in favor of
Company.

    	1

    	 

    

 

5.                 
Release.
Company
covenants
and
agrees that
in the
event that this
Note is
secured by Collateral,
Company shall timely
execute any and all
documents necessary
or advisable in order
to release such
security interest and
Collateral to Investor,
or Investor’s
designee, upon
the earlier
of (i) the
date this
Note is
paid in full
and (ii)
the date
that is
six (6)
months and three
(3) days
following the
date such
Collateral is given
as security
for this
Note, or
such later
date as
determined in
the sole
discretion of
Investor (the
“Release Date”).
For the avoidance of
doubt, as of the date hereof,
there is
no collateral securing
this Note,
and after
the Release
Date, as
applicable, there
shall be no
collateral securing
this Note.

 

6.                 
Right
of Offset.
Notwithstanding anything
to the contrary
herein or
in any of
the other
Transaction Documents,
in the event
(i) of
the occurrence
of any Event
of Default
(as defined
in the
Company Note)
under the
Company Note or
any other
note issued
by Company
in connection
with the
Purchase Agreement,
(ii) Investor applies
a Default Effect
(as defined
in the Company
Note) under
the Company Note,
(iii) the Outstanding
Balance is automatically increased
to the Mandatory Default Amount
under the Company Note, (iv)
the Company Note is accelerated
for any reason, or (v) of a breach
of any material term,
condition, representation,
warranty, covenant
or obligation of
Company under any Transaction
Document; Investor shall be entitled
to deduct and
offset any amount owing
by Company under the
Company Note from any amount
owed by Investor
under this Note
(the “Investor
Offset Right”),
provided that if any of the foregoing
events occur and Investor
has not yet exercised
the Investor Offset Right,
the Investor Offset
Right shall be automatically
exercised on the date that is
thirty (30) days prior to the
Investor Note Maturity
Date (an “Automatic Offset”).
Other than with respect
to an Automatic Offset, Investor
may only elect to exercise the
Investor Offset Right by
delivering to Company an
offset notice
in a form
substantially similar to
Exhibit D to the Company
Note or another
form of Investor’s choosing.
In the event
that Investor’s exercise
of the Investor
Offset Right under this Section
Error! Reference
source not
found. results
in the
full satisfaction
of Investor’s
obligations under
this Note, then
Company shall return this Note
to Investor for cancellation
or, in the event this Note
has been lost, stolen
or destroyed,
Company shall provide
Investor with
a lost note affidavit in a form
reasonably acceptable to Investor.

 

7.                 
Default.
If any of the
events specified below shall
occur (each,
an “Investor Note
Default”)
Company may
declare the
unpaid principal
balance under
this Note,
together with
all accrued
and unpaid interest
thereon, fees incurred
or other amounts
owing hereunder
immediately due and payable,
by notice in writing
to Investor. If any
default, other than a Payment
Default (as defined below),
is curable, then
the default
may be cured
(and no Investor
Note Default will
have occurred)
if Investor, after receiving
written notice
from Company
demanding cure of
such default,
either (i) cures
the default within
fifteen (15) days of the receipt
of such notice,
or (ii) if the cure requires
more than fifteen (15) days,
immediately initiates steps
that Company deems
in Company’s reasonable
discretion to be sufficient
to cure the default and thereafter
diligently continues and completes
all reasonable and necessary
steps sufficient to produce
compliance as soon as reasonably
practical. Each of the following
events shall
constitute an Investor
Note Default:

 

7.1.           
Failure to
Pay. Investor’s
failure to make
any payment when
due and
payable under
this Note (a
“Payment Default”);

 

7.2.           
Breaches of
Covenants.
Investor’s failure
to observe
or perform any
other covenant, obligation,
condition or agreement
contained in this
Note;

 

7.3.           
Representations and
Warranties. If
any representation,
warranty, certificate,
or other
statement (financial
or otherwise)
made or
furnished by
or on behalf
of Investor
to Company
in writing
in connection
with this
Note or any of the
other Transaction
Documents, or as an inducement
to

    	2

    	 

    

 

Company
to enter
into the Purchase
Agreement, shall
be false
or misleading
in any
material respect
when made
or furnished; and

 

7.4.           
Involuntary Bankruptcy. If
any involuntary petition is filed
under any bankruptcy
or similar
law or
rule against
Investor, and such
petition is
not dismissed
within sixty
(60) days,
or a receiver,
trustee, liquidator, assignee,
custodian, sequestrator
or other similar official is
appointed to
take possession of
any of the assets
or properties of
Investor.

 

8.                 
Binding
Effect;
Assignment.
This Note
shall be
binding on
the Parties
and their
respective heirs,
successors, and
assigns; provided,
however, that
neither Party
shall assign
any of its
rights hereunder without
the prior written
consent of the
other Party, except that
Investor may assign this
Note to any of
its Affiliates without the
prior written consent
of Company and, furthermore,
Company agrees that it shall
not unreasonably withhold, condition
or delay its consent to
any other assignment of this Note by Investor.

 

9.                 
Governing
Law.
This Note shall
be governed
by and interpreted
in accordance
with the
laws of the
State of Utah
for contracts
to be
wholly performed
in such state
and without
giving effect to
the principles thereof
regarding the conflict
of laws.

 

10.             
Purchase
Agreement;
Arbitration
of Disputes.
By acceptance
of this
Note, each
Party agrees
to be bound
by the applicable
terms, conditions
and general
provisions of
the Purchase
Agreement and the
other Transaction
Documents, including
without limitation
the Arbitration
Provisions attached
as an exhibit to the
Purchase Agreement.

 

11.             
Customer
Identification–USA
Patriot
Act
Notice.
Company hereby
notifies Investor
that pursuant
to the requirements
of the USA
Patriot Act
(Title III
of Pub. L. 107-56, signed
into law October 26,
2001) (the
“Act”), and
Company’s policies
and practices, Company
is required
to obtain,
verify and record
certain information and documentation
that identifies Investor, which
information includes the name
and address of
Investor and
such other information that
will allow
Company to identify
Investor in accordance with
the Act.

 

12.             
Lawful
Interest.
It
being the intention
of Company
and Investor
to comply
with all
applicable laws
with regard
to the interest
charged hereunder,
it is
agreed that,
notwithstanding any
provision to
the contrary in
this Note or any of the other
Transaction Documents,
no such provision,
including without limitation
any provision of this Note
providing for the payment of interest
or other charges,
shall require the payment
or permit the collection
of any amount in excess of the
maximum amount
of interest permitted by law
to be charged for
the use or detention, or
the forbearance in the collection,
of all or any portion
of the indebtedness evidenced
by this Note or by
any extension or renewal
hereof (“Excess Interest”).
If any Excess Interest is provided
for, or is adjudicated to be
provided for, in
this Note, then in
such event:

 

12.1.       
the provisions of this
Section 12 shall
govern and control;

 

		12.2.	Investor
                                         shall
                                         not be obligated
                                         to pay any
                                         Excess Interest;

 

12.3.       
any Excess Interest
that Company
may have
received hereunder
shall, at
the option
of Company,
be (i)
applied as
a credit
against the
principal balance
due under
this Note
or the
accrued and
unpaid interest
thereon not to
exceed the
maximum amount permitted
by law, or both, (ii) refunded
to Investor, or (iii) any
combination of the
foregoing;

    	3

    	 

    

 

12.4.       
the applicable
interest rate
or rates
shall be
automatically subject
to reduction
to the
maximum lawful
rate allowed
to be contracted
for in writing
under the
applicable governing
usury laws,
and this
Note and
the Transaction
Documents shall
be deemed
to have
been, and
shall be,
reformed and modified
to reflect such reduction
in such interest rate or
rates; and

 

12.5.       
Investor shall
not have
any action
or remedy
against Company
for any damages
whatsoever or any
defense to
enforcement of
this Note
or arising
out of
the payment
or collection
of any
Excess Interest.

 

13.             
Pronouns.
Regardless
of their
form, all
words used
in this
Note shall
be deemed
singular or plural
and shall
have the
gender as required
by the
text.

 

14.             
Headings.
The various
headings used in
this Note
as headings
for sections
or otherwise
are for
convenience and
reference only
and shall
not be
used in
interpreting the
text of the
section in
which they
appear and
shall not limit
or otherwise
affect the
meanings thereof.

 

15.
Time of Essence.
Time is of the essence
with this Note.

16.             
Severability.
If
any part of
this Note is
construed to be
in violation of
any law,
such part shall
be modified to
achieve the
objective of
the Parties to
the fullest
extent permitted by law
and the
balance of this
Note shall
remain in full
force and effect.

 

17.             
 Attorneys’
Fees . If
any arbitration or action
at law or in
equity is necessary
to enforce this
Note or
to collect
payment under
this Note,
Company shall be
entitled to
recover reasonable
attorneys’ fees directly
related to such
enforcement or
collection actions.

 

18.             
Amendments
and Waivers;
Remedies.
No failure
or delay on
the part of
either Party
hereto in exercising
any right,
power or
remedy hereunder
shall operate
as a waiver
thereof, nor
shall any single
or partial
exercise of any
such right, power or remedy
preclude any other
or further
exercise thereof
or the exercise
of any
other right,
power or
remedy. The
remedies provided
for herein
are cumulative
and are not exclusive of any
remedies that may
be available to either Party
hereto at law, in equity
or otherwise. Any amendment,
supplement or modification of
or to any provision of
this Note, any
waiver of any
provision of this
Note, and any consent
to any departure
by either Party
from the terms of any provision
of this Note, shall
be effective (i) only if it
is made or given in writing
and signed by Investor
and Company and (ii)
only in the specific instance
and for the
specific purpose
for which made or
given.

 

19.             
Notices.
Unless
otherwise
provided
for
herein, all
notices, requests,
demands, claims
and other
communications hereunder
shall be
given in accordance
with the
subsection of
the Purchase
Agreement titled
“Notices.” Either
Party may
change the
address to
which notices,
requests, demands, claims
and other communications
hereunder are
to be delivered
by providing notice thereof
in the manner
set forth
in the Purchase Agreement.

 

20.             
Final
Note.
This Note,
together with
the other
Transaction Documents, contains
the complete
understanding and agreement
of Investor
and Company
and supersedes all
prior representations,
warranties, agreements,
arrangements, understandings,
and negotiations
of Investor
and Company
with respect to the
subject matter of the Transaction
Documents. THIS NOTE,
TOGETHER WITH THE OTHER
TRANSACTION DOCUMENTS, REPRESENTS
THE FINAL AGREEMENT BETWEEN
THE PARTIES AND
MAY NOT BE
CONTRADICTED BY
EVIDENCE OF ANY
ALLEGED PRIOR,
CONTEMPORANEOUS, OR
SUBSEQUENT ORAL
AGREEMENTS OF
THE PARTIES. THERE ARE
NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.

 

 

[Remainder
of
page
intentionally left blank;
signature page follows]

    	4

    	 

    

 

 

IN
WITNESS WHEREOF, the
Parties have executed
this Note as of
the date set
forth above.

 

INVESTOR:

 

TYPENEX
CO-INVESTMENT, LLC

 

By:
Red
Cliffs Investments, Inc., its Manager

 

/s/
John M. Fife

John
M. Fife, President

 

ACKNOWLEDGED,
ACCEPTED AND
AGREED: COMPANY:

AVALANCHE
INTERNATIONAL, CORP.

 

 

By:
 /s/ Phil Mansour

Name:
 Phil Mansour

Title:Ceo

    	5THIS
NOTE
MAY
NOT BE
SOLD, TRANSFERRED, ASSIGNED,
PLEDGED, HYPOTHECATED OR
OTHERWISE ALIENATED
OR ENCUMBERED
WITHOUT THE PRIOR
WRITTEN CONSENT OF INVESTOR.

 

 

$50,000.00

State
of Utah
May 29, 2015

 

INVESTOR
NOTE #2

 

FOR
VALUE RECEIVED,
TYPENEX
CO-INVESTMENT,
LLC, a
Utah limited
liability company
(“Investor”), hereby
promises to pay
to AVALANCHE
INTERNATIONAL, CORP.,
a Nevada
corporation (“Company”,
and together
with Investor,
the “Parties”),
the principal
sum of $50,000.00
together with all
accrued and unpaid
interest thereon,
fees incurred
or other amounts
owing hereunder, all
as set forth
below in this Investor
Note #2 (this
“Note”). This Note
is issued
pursuant to that
certain Securities Purchase
Agreement of even date herewith,
entered into by
and between Investor
and Company (as the
same may be amended from time
to time, the “Purchase Agreement”),
pursuant to which Company
issued  to  Investor
that  certain 
Secured  Convertible
 Promissory Note
in the  principal
amount  of

$252,500.00
(as the
same may be
amended from
time to time,
the “Company
Note”)
convertible into
shares of
Company’s Common
Stock. All
capitalized terms
used but
not otherwise
defined herein
shall have the meanings
ascribed thereto in
the Purchase Agreement.

 

1.                 
Principal and
Interest.
Interest
shall
accrue
on the unpaid principal
balance and any unpaid
late fees
or other
fees under this
Note at
a rate
of eight
percent (8%)
per annum
until the full
amount of
the principal and
fees has been
paid. Interest shall
be computed
on the
basis of a 365-day
year for the actual
number of days
elapsed. Notwithstanding any
provision to the
contrary herein, in
no event shall
the applicable interest
rate at any time
exceed the maximum
interest rate allowed
under applicable law, as
provided in Section
12 below. The entire
unpaid principal balance
and all accrued
and unpaid interest,
if any, under
this Note, shall
be due and
payable on the
date that is thirteen
(13) months from
the date hereof
(the “Investor
Note Maturity
Date”); provided,
however, that Investor
may elect, in its
sole discretion, to extend
the Investor Note Maturity
Date for up
to thirty (30)
days by delivering
written notice of
such election
to Company
at any
time prior
to the
Investor Note
Maturity Date.

 

2.                 
Payment.
Unless
prepaid,
all
principal
and accrued
interest under
this Note
is payable
in one
lump sum
on the Investor
Note Maturity
Date. All
payments of
interest and
principal shall
be (i)
in lawful
money of
the United
States of
America, and
(ii) in
the form
of immediately
available funds. All
payments shall be
applied first to
costs of collection, if any,
then to accrued and unpaid interest,
and thereafter
to principal.
Payment of
principal and interest
hereunder shall
be delivered
to Company
at the address
furnished to Investor for
that purpose.

 

3.                 
Prepayment
by Investor.
Investor may,
with Company’s consent,
pay, without penalty,
all or any
portion of
the outstanding
balance along
with any
accrued but
unpaid interest
on this
Note at
any time prior
to the Investor Note
Maturity Date.

 

4.                 
Security;
Collateral.
Investor may,
in its
sole discretion, designate
collateral (the “Collateral”)
as it deems
fit, as security
for Investor’s
obligations hereunder, which
Collateral may be,
but is not
required to
be, real
property, a letter
of credit
with a financial
institution determined by Investor
in its sole discretion,
or pledged membership interests,
provided that the net
fair market value of the
Collateral (net of any outstanding
monetary liens)
shall not be less than the principal
balance of this Note as
of the date
of any such designation.
Upon Investor’s
designation of
Collateral, each
of Investor and Company
shall timely execute any
and all documents necessary
or advisable in order to properly
grant a security interest
upon the Collateral
in favor of
Company.

    	1

    	 

    

 

5.                 
Release.
Company
covenants
and
agrees
that
in the
event that this
Note is secured
by Collateral, Company
shall timely execute
any and all documents necessary
or advisable in order
to release such security
interest and
Collateral to Investor,
or Investor’s
designee, upon
the earlier
of (i) the
date this Note
is paid
in full
and (ii)
the date
that is
six (6)
months and three
(3) days following
the date
such Collateral
is given
as security
for this
Note, or
such later
date as
determined in
the sole
discretion of
Investor (the
“Release Date”).
For the avoidance of
doubt, as of the date hereof,
there is
no collateral securing this
Note, and
after the
Release Date,
as applicable,
there shall
be no collateral
securing this
Note.

 

6.                 
Right
of Offset.
Notwithstanding anything
to the contrary
herein or
in any of
the other
Transaction Documents,
in the event
(i) of
the occurrence
of any Event
of Default
(as defined
in the
Company Note)
under the
Company Note or
any other
note issued
by Company
in connection
with the
Purchase Agreement, (ii) Investor
applies a Default
Effect (as defined
in the Company Note)
under the
Company Note, (iii)
the Outstanding Balance is automatically
increased to the Mandatory Default
Amount under the Company
Note, (iv) the Company
Note is accelerated for any reason,
or (v) of a breach of any material
term, condition,
representation, warranty,
covenant or obligation
of Company under any
Transaction Document; Investor
shall be entitled to deduct
and offset any amount owing
by Company under the
Company Note from any
amount owed by Investor
under this Note
(the “Investor Offset
Right”), provided
that if any of the foregoing events
occur and Investor
has not yet exercised
the Investor Offset
Right, the Investor
Offset Right shall be automatically
exercised on the date that is
thirty (30) days prior
to the Investor Note Maturity
Date (an “Automatic Offset”).
Other than with respect
to an Automatic Offset,
Investor may only elect to exercise
the Investor Offset Right
by delivering to Company
an offset notice
in a form substantially
similar to Exhibit D
to the Company Note or another
form of Investor’s choosing.
In the event that
Investor’s exercise of the
Investor Offset Right under this
Section Error! Reference
source not found.
results in
the full
satisfaction of Investor’s
obligations under
this Note, then
Company shall return this Note
to Investor for cancellation
or, in the event this Note
has been lost, stolen
or destroyed,
Company shall provide
Investor with
a lost note affidavit in a form
reasonably acceptable to Investor.

 

7.                 
Default.
If any of the
events specified below shall
occur (each,
an “Investor Note
Default”)
Company may
declare the
unpaid principal
balance under
this Note,
together with
all accrued
and unpaid interest
thereon, fees incurred
or other amounts
owing hereunder
immediately due and payable,
by notice in writing
to Investor. If any default, other
than a Payment Default
(as defined below), is
curable, then
the default
may be cured
(and no Investor
Note Default will
have occurred)
if Investor, after receiving
written notice
from Company
demanding cure of
such default,
either (i) cures
the default within
fifteen (15) days of the receipt
of such notice,
or (ii) if the cure requires
more than fifteen (15) days,
immediately initiates steps
that Company deems
in Company’s reasonable
discretion to be sufficient to
cure the default and thereafter
diligently continues and completes
all reasonable and necessary
steps sufficient to produce
compliance as soon as reasonably
practical. Each of the following
events shall
constitute an Investor
Note Default:

 

7.1.           
Failure to
Pay. Investor’s
failure to make
any payment when
due and
payable under
this Note (a
“Payment Default”);

 

7.2.           
Breaches of
Covenants.
Investor’s failure
to observe
or perform any
other covenant, obligation,
condition or agreement
contained in this
Note;

 

7.3.           
Representations and
Warranties. If
any representation,
warranty, certificate,
or other
statement (financial
or otherwise)
made or
furnished by
or on behalf
of Investor
to Company
in writing
in connection
with this
Note or any of the
other Transaction
Documents, or as an inducement
to

    	2

    	 

    

 

Company
to enter
into the Purchase
Agreement, shall
be false
or misleading
in any
material respect
when made
or furnished; and

 

7.4.           
Involuntary Bankruptcy. If
any involuntary petition is filed
under any bankruptcy
or similar
law or
rule against
Investor, and such
petition is
not dismissed
within sixty
(60) days,
or a receiver,
trustee, liquidator, assignee,
custodian, sequestrator
or other similar official
is appointed to
take possession of
any of the assets
or properties of
Investor.

 

8.                 
Binding
Effect;
Assignment.
This Note
shall be
binding on
the Parties
and their
respective heirs,
successors, and
assigns; provided,
however, that
neither Party
shall assign
any of its
rights hereunder without
the prior written
consent of the
other Party, except that
Investor may assign this
Note to any of
its Affiliates without
the prior written
consent of Company and, furthermore,
Company agrees that it shall
not unreasonably withhold, condition
or delay its consent to
any other assignment of this Note by Investor.

 

9.                 
Governing
Law.
This Note
shall be
governed by
and interpreted
in accordance
with the
laws of the
State of Utah
for contracts
to be
wholly performed
in such state
and without
giving effect to
the principles thereof
regarding the conflict
of laws.

 

10.             
Purchase
Agreement;
Arbitration
of Disputes.
By acceptance
of this
Note, each
Party agrees
to be bound
by the applicable
terms, conditions
and general
provisions of
the Purchase
Agreement and the
other Transaction
Documents, including
without limitation
the Arbitration
Provisions attached
as an exhibit
to the Purchase
Agreement.

 

11.             
Customer
Identification–USA
Patriot
Act
Notice.
Company hereby
notifies Investor
that pursuant
to the requirements
of the USA
Patriot Act
(Title III
of Pub. L.
107-56, signed
into law
October 26, 2001)
(the “Act”),
and Company’s
policies and
practices, Company
is required
to obtain,
verify and record certain
information and documentation that
identifies Investor, which
information includes the name
and address of Investor
and such other information
that will allow
Company to identify
Investor in accordance with
the Act.

 

12.             
Lawful
Interest.
It
being the intention
of Company
and Investor
to comply
with all
applicable laws
with regard
to the interest
charged hereunder,
it is
agreed that,
notwithstanding any
provision to
the contrary in
this Note or any of the other
Transaction Documents,
no such provision,
including without limitation
any provision of this Note
providing for the payment of interest
or other charges, shall require
the payment or permit the collection
of any amount in excess of the
maximum amount
of interest permitted by law
to be charged for
the use or detention, or
the forbearance in the collection,
of all or any portion
of the indebtedness evidenced
by this Note or by
any extension or renewal
hereof (“Excess Interest”).
If any Excess Interest is provided
for, or is adjudicated to be
provided for, in
this Note, then in
such event:

 

12.1.       
the provisions of this
Section 12 shall
govern and control;

 

12.2.
Investor shall not be obligated
to pay any Excess Interest;

 

12.3.       
any Excess Interest
that Company
may have
received hereunder
shall, at
the option
of Company,
be (i)
applied as
a credit
against the
principal balance
due under
this Note
or the
accrued and
unpaid interest
thereon not to
exceed the
maximum amount permitted
by law, or both, (ii)
refunded to Investor, or
(iii) any combination of
the foregoing;

    	3

    	 

    

 

 

12.4.       
the applicable
interest rate
or rates
shall be
automatically subject
to reduction
to the
maximum lawful
rate allowed
to be contracted
for in writing
under the
applicable governing
usury laws, and
this Note
and the Transaction
Documents shall
be deemed
to have
been, and
shall be,
reformed and modified
to reflect such reduction
in such interest rate or rates;
and

 

12.5.       
Investor shall
not have
any action
or remedy
against Company
for any damages
whatsoever or any
defense to
enforcement of
this Note
or arising
out of
the payment
or collection
of any
Excess Interest.

 

13.             
Pronouns.
Regardless
of their
form, all
words used
in this
Note shall
be deemed
singular or plural
and shall
have the
gender as required
by the text.

 

14.             
Headings.
The various
headings used in
this Note
as headings
for sections
or otherwise
are for
convenience and
reference only
and shall
not be
used in
interpreting the
text of the
section in
which they
appear and
shall not limit
or otherwise
affect the
meanings thereof.

 

15.
Time of Essence.
Time is of the essence with
this Note.

16.             
Severability.
If
any part of
this Note is
construed to be
in violation of
any law,
such part shall
be modified to
achieve the
objective of
the Parties to
the fullest
extent permitted by law
and the
balance of this
Note shall
remain in full
force and effect.

 

17.             
 Attorneys’
Fees . If
any arbitration or action
at law or in
equity is necessary
to enforce this
Note or
to collect
payment under
this Note,
Company shall be
entitled to
recover reasonable
attorneys’ fees directly
related to such
enforcement or
collection actions.

 

18.             
Amendments
and Waivers;
Remedies.
No failure
or delay on
the part of
either Party
hereto in exercising
any right,
power or
remedy hereunder
shall operate
as a waiver
thereof, nor
shall any
single or partial
exercise of any such right,
power or remedy preclude
any other or
further exercise
thereof or the
exercise of
any other right,
power or
remedy. The
remedies provided
for herein
are cumulative
and are not exclusive
of any remedies that may
be available to either Party
hereto at law, in equity
or otherwise. Any amendment,
supplement or modification of
or to any provision of
this Note, any
waiver of any
provision of this
Note, and any consent
to any departure
by either Party
from the terms of any provision
of this Note, shall
be effective (i) only if it
is made or given in writing
and signed by Investor
and Company and (ii)
only in the specific
instance and for the
specific purpose
for which made
or given.

 

19.             
Notices.
Unless
otherwise
provided
for
herein,
all
notices,
requests,
demands,
claims
and other
communications hereunder
shall be
given in accordance
with the
subsection of
the Purchase
Agreement titled
“Notices.” Either
Party may
change the
address to
which notices,
requests, demands,
claims and
other communications
hereunder are to
be delivered
by providing notice thereof
in the manner
set forth
in the Purchase Agreement.

 

20.             
Final
Note.
This Note,
together with
the other
Transaction Documents,
contains the
complete understanding and
agreement of
Investor and
Company and supersedes all
prior representations,
warranties, agreements,
arrangements, understandings,
and negotiations
of Investor
and Company
with respect to the
subject matter of the Transaction
Documents. THIS NOTE,
TOGETHER WITH THE
OTHER TRANSACTION
DOCUMENTS, REPRESENTS THE FINAL
AGREEMENT BETWEEN THE
PARTIES AND
MAY NOT BE
CONTRADICTED BY
EVIDENCE OF ANY
ALLEGED PRIOR,
CONTEMPORANEOUS, OR
SUBSEQUENT ORAL
AGREEMENTS OF
THE PARTIES. THERE
ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN
THE PARTIES.

 

[Remainder
of
page
intentionally left blank;
signature page follows]

    	4

    	 

    

 

 

IN WITNESS
WHEREOF, the Parties have executed
this Note as of
the date set forth
above.

 

INVESTOR:

 

TYPENEX
CO-INVESTMENT, LLC

 

By:
Red
Cliffs Investments, Inc., its Manager

 

/s/
John M. Fife

John
M. Fife, President 

 

ACKNOWLEDGED,
ACCEPTED AND
AGREED:
COMPANY:

AVALANCHE
INTERNATIONAL, CORP.

 

 

By:
 /s/ Phil Mansour

Name:
Phil Mansour

Title:
 
CEO

    	5

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