Document:

Exhibit 10.2

 

Transition Agreement and Release of All Claims

 

THIS TRANSITION AGREEMENT
AND RELEASE OF ALL CLAIMS (this “Agreement”) is made by and between Donald F. Adam (“Executive”)
and Benchmark Electronics, Inc., a Texas corporation (“Company”). The Company and Executive are collectively
referred to herein as the “Parties.”

 

WHEREAS, Executive is employed
by the Company as its Vice President, Chief Financial Officer pursuant to an Employment Agreement dated March 10, 2009 (the “Employment
Agreement”);

 

WHEREAS, Executive has
agreed to relinquish his title of Vice President, Chief Financial Officer effective December 31, 2017 but continue his employment,
in a transitional role, through March 9, 2018;

 

WHEREAS, the termination
of Executive’s employment on March 9, 2018 shall constitute a voluntary termination by Executive “without Good Reason”
pursuant to Section 6(e) of the Employment Agreement;

 

WHEREAS, Executive will
not be entitled to receive severance benefits pursuant to the Employment Agreement;

 

WHEREAS, in partial exchange
for Executive’s continued employment through March 9, 2018, Executive and the Company are entering into this Agreement to
resolve amicably, fully and finally, all matters between them, including, but not limited to, those matters relating to Executive’s
employment and the termination of Executive’s employment relationship with the Company; and

 

WHEREAS, unless specifically
defined in this Agreement, capitalized terms used in this Agreement shall have the meanings ascribed to them in the Employment
Agreement.

 

NOW, THEREFORE, in consideration
of the payments and benefits set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Executive agrees as follows:

 

1.           Transition
Period and Termination of Employment.

 

(a)           The
Company and Executive agree that it is in both the Company’s and Executive’s best interests for Executive to resign
his position as Vice President, Chief Financial Officer and all other position, titles, authorities or responsibilities with the
Company and any of its subsidiaries or affiliates he holds by virtue of his role as Vice President, Chief Financial Officer, without
any further action on Executive’s part, effective as of December 31, 2017 (“Transition Date”). After the
Transition Date and through March 9, 2018 (“Termination Date”) (with the period beginning on the Transition
Date and ending on the Termination Date referred to herein as the “Transition Period”), Executive shall remain
an “at will” employee of the Company and shall fully and diligently perform the duties assigned to him by the Chief
Executive Officer and/or the Vice President of Worldwide Human Resources. Such duties will differ from the duties currently assigned
to Executive, and shall include cooperation and assistance in the transition of Executive’s responsibilities to others and
cooperating with the Company’s efforts in connection with the orientation of Executive’s successor. During the Transition
Period, Executive will not be required to be in the office on a daily basis, but he will make himself available at the Company’s
request. While Executive may engage in other business activities during the Transition Period with the advance written consent
of the Chief Executive Officer, such other activities may not violate the provisions of Section 11, below, or unduly interfere
with the duties assigned to Executive during the Transition Period.

 

     

     

    

  

(b)           On
the Termination Date, Executive’s will voluntarily resign his “at will” employment with the Company and its subsidiaries
and affiliates “without Good Reason” pursuant to Section 6(e) of the Employment Agreement. Except for the compensation
and benefits described below, Executive shall cease to actively participate in any plans, programs, policies or arrangements of
the Company or any of its subsidiaries or affiliates as of the Termination Date and none of the payments or benefits paid to Executive
after the Termination Date shall be contributed to any employee benefit plan, nor will any contribution (matching or otherwise)
be made by the Company or any of its subsidiaries or affiliates to any employee benefit plan of the Company. Although it is anticipated
that Executive’s “at will” employment will continue until the Termination Date, Executive acknowledges and agrees
that the Company reserves the right to terminate his employment “for Cause” prior to the Termination Date, in which
case, he would not be entitled to receive the Transition Period consideration described in Section 3, below (and in which
case, the term “Termination Date” shall mean the effective date of Executive’s termination “for Cause”).

 

(c)           Executive
agrees to execute on or following the date hereof any and all supplemental documentation provided to him by the Company in furtherance
of the transition of his role from Vice President, Chief Financial Officer and Secretary as described in this Section 1.

 

2.           Accrued
Obligations. Regardless of whether Executive signs this Agreement, following the Termination Date, the Company shall pay Executive
an amount in cash equal to: (a) his earned, due and unpaid wages and salary and earned but unused vacation time through the Termination
Date, payable within 10 days following the Termination Date; and (b) all unreimbursed documented business expenses incurred
prior to the Termination Date, payable in accordance with the Company’s expense reimbursement policy.

 

3.           Consideration
during Transition Period. Provided that Executive signs (and does not revoke) this Agreement and the Supplemental Release described
in Section 7, below, and complies with all of the other provisions of this Agreement, in consideration for Executive’s
satisfactory performance of the duties assigned to him during the Transition Period, Executive shall be entitled to receive the
following:

 

(a)           A
reduced annualized base salary of $104,000 and, subject to the provisions, rules, and regulations of the Company’s benefit
plan documents, the employee benefits (but not incentive compensation) he was entitled to receive immediately prior to the Transition
Date.

 

     

     

    

  

(b)           The
restricted stock unit awards and nonqualified stock option awards awarded to Executive pursuant to the Company’s 2010 Omnibus
Incentive Compensation Plan that vest solely based on the passage of time shall continue to vest through the Termination Date.
For the avoidance of doubt, Executive shall not be entitled to receive any long-term incentive compensation awards pursuant to
the Company’s 2010 Omnibus Incentive Compensation Plan or any successor plan in 2018 or at any time in the future and any
long-term incentive compensation awards that are unvested and outstanding as of the Termination Date shall be forfeited and cancelled
for no consideration as of the Termination Date.

 

(c)           For
the 2017 calendar year, the bonus amount Executive would be entitled to receive under the Executive Bonus Plan had he not entered
into this Agreement, with the amount due, if any, calculated in accordance with the provisions of the applicable Executive Bonus
Plan document and paid at the same time and in the same manner other executive officers of the Company receive their 2017 bonus.
For the avoidance of doubt, Executive shall not be entitled to participate in the Executive Bonus Plan or any successor plan in
2018 or at any time in the future.

 

4.           Release
and Waiver. Executive, on behalf of himself and his agents, heirs, executors, administrators, successors and assigns, hereby
RELEASES AND FOREVER DISCHARGES the Company, its subsidiaries and its affiliates, as well as its or their respective past or present
officers, directors, agents, employees, partners, shareholders, attorneys, insurers, predecessors, successors, and assigns (collectively
the “Released Parties”) from any and all claims, damages, complaints, grievances, causes of action, suits, liabilities,
demands and expenses (including attorneys’ fees) of any nature whatsoever, both at law and in equity (except those expressly
reserved herein), whether known or unknown, now existing or which may result from the existing state of things, which Executive
now has or ever had against the Released Parties from the beginning of time to the date of execution of this Agreement. In particular,
without limitation of the foregoing, the Released Parties are specifically released from and held harmless from any and all claims
arising out of or related to Executive’s employment relationship with Company, including, without limitation, Executive’s
termination of employment, the Employment Agreement, or Executive’s status as a shareholder of the Company. It is Executive’s
intention that this Agreement constitute a full and final general release of all such claims and that this release be as broad
as possible. Without limiting the foregoing in any way and to the fullest extent allowed by law, this release includes, but is
not limited to, any rights or claims Executive may have under: the Age Discrimination in Employment Act of 1967 (29 U.S.C. § 621,
et seq.) (“ADEA”); Title VII of the Civil Rights Acts of 1964; 42 U.S.C. § 1981;
the Family and Medical Leave Act; the Fair Labor Standards Act; the Equal Pay Act; the Rehabilitation Act of 1973 and the Americans
with Disabilities Act; the Employee Retirement Income Security Act; the Worker Adjustment and Retraining Notification Act; the
Older Workers Benefit Protection Act (“OWBPA”); the National Labor Relations Act; the Unfair Business Practices
Act; the Consolidated Omnibus Budget Reform Act; Uniformed Services Employment and Reemployment Rights Act; Fair Credit Reporting
Act; False Claims Act; Family Medical Leave Act; Fair Labor Standards Act; the False Claims Act; the Genetic Information Non-Discrimination
Act; the Lilly Ledbetter Fair Pay Act; the Texas Commission on Human Rights Act; the Texas Labor Code; and any other federal, state
or local laws or regulations concerning employment or prohibiting employment discrimination, harassment or retaliation, or any
claims arising from any applicable local, state, or federal law, common law claims, and wage or benefit claims, including, without,
limitation, claims for salary, bonuses, commissions, equity awards, vesting acceleration, vacation pay, fringe benefits, severance
pay or any other form of compensation. This release also includes any claims against the Company and/or the Released Parties based
on promissory estoppel, restitution, misrepresentation, invasion of privacy, claims for defamation, libel, invasion of privacy,
intentional or negligent infliction of emotional distress, wrongful termination, constructive discharge, breach of contract, breach
of the covenant of good faith and fair dealing, breach of fiduciary duty, and fraud. Executive agrees that he shall never file
a lawsuit or other complaint challenging the validity or enforceability of this release. By signing this Agreement, Executive does
not relinquish: (a) any right to any vested benefits under any benefit plans or arrangements maintained by the Company or
its subsidiaries or affiliates; (b) any right to indemnification under any applicable directors and officers liability insurance
policy, indemnity agreement, applicable state and federal law and Company’s articles of incorporation and bylaws; or (c) Executive’s
right to receive the compensation and benefits described in this Agreement. Executive acknowledges that this Agreement does not
apply to claims and rights that arise after the date of his execution of this Agreement.

 

     

     

    

  

5.           No
Lawsuits, Complaints or Claims. To the fullest extent allowed by law, Executive waives his right to file any charge or complaint
against the Company and/or any of the Released Parties arising out of his employment, termination from employment, the Employment
Agreement or any facts occurring prior to his execution of this Agreement before any federal, state or local court or any federal,
state or local administrative agency, except where such waivers are prohibited by law. By signing this Agreement, Executive represents
that he has not filed any such claims, causes of action or complaints. Notwithstanding the foregoing, Executive does not waive
or release any claim that cannot be validly waived or released by private agreement. Specifically, nothing in this Agreement shall
prevent Executive from filing a charge or complaint with, or from participating in, an investigation or proceeding conducted by
the SEC, EEOC or any other federal, state or local agency charged with the enforcement of any employment laws. However, Executive
understands that by signing this Agreement, Executive waives the right to recover any damages or to receive other relief in any
claim or suit brought by or through the EEOC or any other state or local deferral agency on his behalf to the fullest extent permitted
by law, but expressly excluding any award or other relief available from the SEC. This Agreement is not intended to, and shall
not be interpreted in any manner that limits or restricts Executive from, exercising any legally protected whistleblower rights
(including pursuant to Rule 21F under the U.S. Securities and Exchange Act of 1934) or receiving an award for information provided
to any government agency under any legally protected whistleblower rights. Executive acknowledges and agrees that he has been paid
all wages owed to him, including, but not limited to, all salary, bonuses, commissions, and pay for earned but unused vacation,
and that he has not been denied any legally-protected leave. Other than as set forth in this Agreement, Executive acknowledges
and agrees that he is not entitled to any severance or other payment under the Employment Agreement or any other plan, program,
or agreement previously entered into with the Company. Executive further acknowledges that he has no pending workers’ compensation
claims and that this Agreement is not related in any way to any claim for workers’ compensation benefits, and that he has
no basis for such a claim.

 

     

     

    

  

6.           Consultation;
Review; Revocation. In accordance with the ADEA, as amended by OWBPA, Executive is advised to consult with an attorney before
signing this Agreement. Executive is given a period of 21 days in which to consider whether to enter into this Agreement.
Executive does not have to utilize the entire 21 day period before signing this Agreement, and may waive this right. Changes
to this Agreement, whether material or immaterial, do not restart the running of the 21 day consideration period. If Executive
does enter into this Agreement, he may revoke the Agreement within 7 days after his execution of the Agreement. Any revocation
must be in writing, sent via certified mail or email, and must be received by the Vice President of Worldwide Human Resources of
the Company no later than midnight of the 7th day after execution by Executive (and postmarked on or before midnight of the 7th
day after Executive’s execution of this Agreement). In the event Executive revokes this Agreement, Executive understands
that this Agreement will be null and void, and he will not be entitled to receive the severance payments and benefits described
in the Employment Agreement or Sections 3 or 4, above. If Executive does not revoke this Agreement, the Agreement
will become effective, irrevocable, binding and enforceable on the 8th day after Executive signs the Agreement. For the avoidance
of doubt, nothing in this Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of
the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless
specifically authorized by federal law.

 

7.           Supplemental
Release. As a condition to receive the severance payments and benefits described in Section 3 and the additional consideration
described in Section 4, on the Termination Date, Executive shall sign and deliver to the Vice President of Worldwide Human
Resources of the Company, the Supplemental Release Agreement attached hereto as Attachment A.

 

8.           Dispute
Resolution. The Parties agree that any dispute or controversy arising from or related to this Agreement shall be decided by
the arbitration procedures set forth in Section 10 of the Employment Agreement.

 

9.           General.

 

(a)           All
payments required to be made by the Company under this Agreement shall be subject to the withholding of such amounts, if any, relating
to federal, state and local taxes as may be required by law. Executive acknowledges and affirms his consent to, and understanding
of, the tax and Code Section 409A related provisions set forth in the Employment Agreement and the application of such provisions
to the payments described in Section 3, above.

 

     

     

    

  

(b)           Executive
specifically acknowledges and agrees that a breach of Section 11, below, will result in the immediate discontinuance of
any payments or benefits due pursuant to this Agreement. The Parties acknowledge and agree that upon any breach by Executive of
his obligations under Section 11, the Company will have no adequate remedy at law, and accordingly will be entitled to specific
performance and other appropriate injunctive and equitable relief. Executive shall not, and Executive waives and releases any rights
or claims to, contest or challenge the reasonableness, validity or enforceability of the obligations described in Section 11.

 

(c)           Executive
acknowledges that the amounts paid to him, including the amounts paid pursuant to this Agreement, may be subject to recoupment
or clawback pursuant to the any applicable policy adopted by the Company or by applicable law, and Executive agrees to comply with
any such policy or law and to repay such amounts to the extent required thereunder.

 

(d)           If
any provision of this Agreement is held to be illegal, invalid or unenforceable, such provision will be fully severable and this
Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision never comprised a part hereof,
and the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid
or unenforceable provision. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there will be added automatically
as part of this Agreement a provision as similar in its terms to such illegal, invalid, or unenforceable provision as may be possible
and be legal, valid and enforceable.

 

(e)           No
delay or omission by either Party in exercising any right, power or privilege under this Agreement will impair such right, power
or privilege, nor will any single or partial exercise of any such right, power or privilege preclude any further exercise of any
other right, power or privilege.

 

(f)           The
Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise)
to all or substantially all of the business or assets of the Company to expressly assume and agree to perform this Agreement in
the same manner and to the same extent the Company would be required to perform if no such succession had taken place. This Agreement
shall be binding upon and inure to the benefit of the Company and any successor to the Company, including without limitation any
persons acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase,
merger, consolidation, reorganization, or otherwise (and such successor shall thereafter be deemed the “Company” for
the purposes of this Agreement).

 

(g)           This
Agreement and the Employment Agreement contain the entire understanding of the Parties relating to the subject matter described
in this Agreement. This Agreement may not be amended or modified except by a written instrument hereafter signed by the Parties,
and may not be waived except by a written instrument signed by the Party granting such waiver.

 

     

     

    

 

(h)           This
Agreement and the performance of this Agreement shall be governed and construed in all respects, including but not limited to as
to validity, interpretation and effect, by the laws of the State of Texas, without regard to the principles or rules of conflict
thereof.

 

10.         Consult
an Attorney; No Representations. Executive acknowledges that the Company has advised him to consult an attorney, at his expense,
concerning his rights and the terms of this Agreement, and that Executive had sufficient time to do so and did so or voluntarily
chose not to do so. Executive’s waivers are knowing, conscious and with full appreciation that at no time in the future may
he pursue any of the rights that he waived in this Agreement. Executive has not relied upon any representations or statements made
by the Company in deciding whether to execute this Release.

 

11.         Restrictive
Covenants. Executive acknowledges and hereby affirms his obligations under Section 8 and Section 9 of the Employment Agreement
and hereby acknowledges that nothing in this Agreement or the Supplemental Release Agreement shall release Executive from his obligations
pursuant to Section 8 and Section 9 of the Employment Agreement including, without limitation, his obligations regarding confidentiality,
non-competition, non-solicitation, and non-disparagement.

 

     

     

    

  

By signing this Agreement
before the 21 day period described in Section 7 expires, Executive waives Executive’s right under the ADEA and the
OWBPA to 21 days to consider the terms of this Agreement. In any case, however, Executive retains the right to revoke this Agreement
within 7 days, as described in Section 7, above.

 

 

	DONALD F. ADAM	 	BENCHMARK ELECTRONICS, INC.
	 	 	 	 
	/s/ Donald F. Adam	 	By:	/s/ Kevin O’Connor
	 	 	 	 
	Date:	12-18-2017	 	Its:	Vice President Human Resources

 

	 	 	Date:	12-18-2017

 

 

     

     

    

 

Exhibit 10.2 

 

ATTACHMENT A

 

SUPPLEMENTAL RELEASE OF ALL CLAIMS

 

On December 8, 2017, I
signed a TRANSITION AGREEMENT AND RELEASE OF ALL CLAIMS (the “Agreement”). As required by Section 8 of the Agreement,
by signing this Supplemental Release of All Claims ("Supplemental Release"), I hereby renew and reaffirm my release and
waiver of all potential claims against the Released Parties as defined in the Agreement through the date of my execution of this
Supplemental Release.

 

In accordance with the
ADEA as defined in the Agreement, I acknowledge and agree that I have been fully advised of my rights under the ADEA with respect
to the Agreement and this Supplemental Release. My agreements and understandings regarding the ADEA are hereby incorporated by
reference and such understandings include, but are not limited to, that I have been advised to consult with an attorney before
signing this Supplemental Release and have been given a period of 21 days in which to consider whether to enter into this Supplemental
Release. I understand that I do not have to use the entire 21-day period before signing this Supplemental Release, and may waive
this right. If I enter into this Supplemental Release, I understand that I may revoke the Supplemental Release and that any such
revocation must be in writing, sent via certified mail or email to the Vice President of Worldwide Human Resources of the Company,
and postmarked on or before the end of the 7th day after my timely execution of this Supplemental Release. If I revoke this Supplemental
Release, I understand that this Supplemental Release will be null and void, and that I will not be entitled to receive the payments
described in Section 3 and 4 of the Agreement. If I do not revoke this Supplemental Release, it will become effective, irrevocable,
binding and enforceable on the 8th day after I execute it.

 

I understand that my
entitlement to the consideration described in the Agreement is conditioned upon me signing, not revoking, and abiding by the terms
of the Agreement and this Supplemental Release.

 

If I sign this Supplemental
Release, I understand that I must sign and return it to the Vice President of Worldwide Human Resources within 21 days after the
Termination Date as defined in the Agreement, but not before the day after the Termination Date.

 

	 	 	Date:	 
	Donald F. AdamEXHIBIT
10.59

 

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

 

	Principal
    Amount: $51,500.00	Issue
    Date: November 8, 2017
	Purchase
    Price: $51,500.00	 

 

CONVERTIBLE
PROMISSORY NOTE

 

FOR
VALUE RECEIVED, PROGREEN US, INC., a Delaware corporation (hereinafter called the “Borrower”), hereby promises
to pay to the order of POWER UP LENDING GROUP LTD., a Virginia corporation, or registered assigns (the “Holder”)
the sum of $51,500.00 together with any interest as set forth herein, on August 15, 2018 (the “Maturity Date”), and
to pay interest on the unpaid principal balance hereof at the rate of twelve percent (12%) (the “Interest Rate”) per
annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon
acceleration or by prepayment or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set
forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty
two percent (22%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall
be computed on the basis of a 365 day year and the actual number of days elapsed. Interest shall commence accruing on the Issue
Date but shall not be payable until the Note becomes payable (whether at Maturity Date or upon acceleration or by prepayment).
All payments due hereunder (to the extent not converted into common stock, $0.0001 par value per share (the “Common Stock”)
in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made
at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of
this Note. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain
Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”).

 

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

 

    	1

    	 

    

 

The
following terms shall apply to this Note:

 

1.
CONVERSION RIGHTS

 

	 	 	a.	Conversion
    Right. The Holder shall have the right from time to time, and at any time during the period beginning on the date which
    is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date and (ii)
    the date of payment of the Default Amount (as defined in Article III), each in respect of the remaining outstanding principal
    amount of this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid
    and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or
    other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion
    price (the “Conversion Price”) determined as provided herein (a “Conversion”); provided, however,
    that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon
    conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates
    (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion
    of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion
    or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the
    conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result
    in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For
    purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with
    Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder,
    except as otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth
    in the section may NOT be waived by the Holder. The number of shares of Common Stock to be issued upon each conversion
    of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then
    in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of
    Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice
    of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice)
    to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”); however,
    if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business day.
    The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal
    amount of this Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid interest,
    if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the
    Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or
    (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

    	2

    	 

    

 

	 	 	b.	Conversion
    Price. The conversion price (the “Conversion Price”) shall equal the Variable Conversion Price (as defined
    herein) (subject to equitable adjustments by the Borrower relating to the Borrower’s securities or the securities of
    any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar
    events). The “Variable Conversion Price” shall mean 58% multiplied by the Market Price (as defined herein) (representing
    a discount rate of 42%). “Market Price” means the average of the lowest two (2) Trading Prices (as defined below)
    for the Common Stock during the fifteen (15) Trading Day period ending on the latest complete Trading Day prior to the Conversion
    Date. “Trading Price” means, for any security as of any date, the closing bid price on the OTCQB, OTCQX, Pink
    Sheets electronic quotation system or applicable trading market (the “OTC”) as reported by a reliable reporting
    service (“Reporting Service”) designated by the Holder (i.e. Bloomberg) or, if the OTC is not the principal trading
    market for such security, the closing bid price of such security on the principal securities exchange or trading market where
    such security is listed or traded or, if no closing bid price of such security is available in any of the foregoing manners,
    the average of the closing bid prices of any market makers for such security that are listed in the “pink sheets”.
    If the Trading Price cannot be calculated for such security on such date in the manner provided above, the Trading Price shall
    be the fair market value as reasonably determined by the Borrower. “Trading Day” shall mean any day on which the
    Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on
    which the Common Stock is then being traded. 
	 	 	 	 
	 	 	c.	Authorized
    Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its
    authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
    of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required
    at all times to have authorized and reserved eight times the number of shares that would be issuable upon full conversion
    of the Note (assuming that the 4.99% limitation set forth in Section 1.1 is not in effect)(based on the respective Conversion
    Price of the Note (as defined in Section 1.2) in effect from time to time, initially 82,598,235)(the “Reserved Amount”).
    The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from time to time in accordance
    with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares will be duly and
    validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change
    to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible
    at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall
    be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the
    outstanding Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates
    for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute
    full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue
    the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note.

 

If,
at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of
the Note.

 

    	3

    	 

    

 

	 	 	d.	Method
    of Conversion.

 

	 	 	i.	Mechanics
    of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time during the period beginning on the
    date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date
    and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time
    from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or
    other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and
    (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any
    amounts owed hereunder). 
	 	 	 	 
	 	 	ii.	Surrender
    of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance
    with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire
    unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal
    amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder
    and the Borrower, so as not to require physical surrender of this Note upon each such conversion. 
	 	 	 	 
	 	 	iii.	Delivery
    of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or
    other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in
    this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder
    certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”)
    (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance
    with the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall
    be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and
    the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower
    defaults on its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith
    terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such
    conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue
    and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action
    by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment
    against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the
    Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
    breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit
    such obligation of the Borrower to the Holder in connection with such conversion. 

 

    	4

    	 

    

 

	 	 	iv.	Delivery
    of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable
    upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated
    Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth
    herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable
    upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal
    Agent Commission (“DWAC”) system.

 

 

	 	 	v.	Failure
    to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies,
    including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion
    of this Note is not delivered by the Deadline due to action and/or inaction of the Borrower, the Borrower shall pay to the
    Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the
    “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result
    of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts
    of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the
    month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the
    first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note,
    in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount
    shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert
    is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion
    right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision
    contained in this Section 1.4(e) are justified.

 

	 	 	e.	 Concerning
    the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i)
    such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent
    shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions
    of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred
    pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (iii)
    such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise
    transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase
    Agreement). 

 

Any
restrictive legend on certificates representing shares of Common Stock issuable upon conversion of this Note shall be removed
and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if the Borrower or its transfer
agent shall have received an opinion of counsel from Holder’s counsel, in form, substance and scope customary for opinions
of counsel in comparable transactions, to the effect that (i) a public sale or transfer of such Common Stock may be made without
registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected; or (ii) in
the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an
effective registration statement filed under the Act; or otherwise may be sold pursuant to an exemption from registration. In
the event that the Company does not reasonably accept the opinion of counsel provided by the Holder with respect to the transfer
of Securities pursuant to an exemption from registration (such as Rule 144), at the Deadline, it will be considered an Event of
Default pursuant to Section 3.2 of the Note.

 

    	5

    	 

    

 

	 	 	f.	Effect
    of Certain Events.

 

	 	 	i.	Effect
    of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially
    all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in
    which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination
    of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be
    deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the
    Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in
    Article III). “Person” shall mean any individual, corporation, limited liability company, partnership, association,
    trust or other entity or organization.

 

	 	 	ii.	Adjustment
    Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of
    all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other
    similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number
    of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or
    conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation
    of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon
    the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore
    issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction
    had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion
    set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the
    Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the
    Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly
    as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower
    shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten
    (10) days prior written notice (but in any event at least five (5) days prior written notice) of the record date of the special
    meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange
    of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be
    entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written
    instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations, mergers,
    sales, transfers or share exchanges.

 

    	6

    	 

    

 

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

 

	 	 	g.	Prepayment.
    Notwithstanding anything to the contrary contained in this Note, at any time during the period beginning on the date of funding
    of this Note and ending on the date which is 180 days thereafter (the “Prepayment Periods”), the Borrower shall
    have the right, exercisable on not more than three (3) Trading Days prior written notice to the Holder of the Note to prepay
    the outstanding Note (principal and accrued interest), in full, in accordance with this Section 1.7. Any notice of prepayment
    hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note at its registered addresses
    and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall
    be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment
    (the “Optional Prepayment Date”), the Borrower shall make payment of the Optional Prepayment Amount (as defined
    below) to Holder, or upon the direction of the Holder as specified by the Holder in a writing to the Borrower (which direction
    shall to be sent to Borrower by the Holder at least one (1) business day prior to the Optional Prepayment Date). If the Borrower
    exercises its right to prepay the Note, the Borrower shall make payment to the Holder of an amount in cash equal to 125% (“Prepayment
    Percentage”) multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued
    and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y) Default Interest,
    if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant to Section
    1.4 hereof (the “Optional Prepayment Amount”). If the Borrower delivers an Optional Prepayment Notice and fails
    to pay the Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the Optional Prepayment
    Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this Section 1.7.

 

After
the expiration of one hundred eighty (180) days following the Issue Date, the Borrower shall have no right of prepayment.

 

    	7

    	 

    

 

2.
CERTAIN COVENANTS

 

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

 

3.
EVENTS OF DEFAULT

 

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

 

	 	a.	Failure
    to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note,
    whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from
    the Holder.
	 	 	 
	 	b.	Conversion
    and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing
    that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance
    with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated
    form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note
    as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders
    its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common
    Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note,
    or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from
    removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for
    any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required
    by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described
    in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor
    its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice
    of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be
    an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by
    the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s
    transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty-eight
    (48) hours of a demand from the Holder.
	 	 	 
	 	c.	Breach
    of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and
    any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty
    (20) days after written notice thereof to the Borrower from the Holder.

 

    	8

    	 

    

 

	 	d.	Breach
    of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement
    or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement),
    shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will
    have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.
	 	 	 
	 	e.	Receiver
    or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply
    for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or
    such a receiver or trustee shall otherwise be appointed.
	 	 	 
	 	f.	Bankruptcy.
    Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief
    under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary
    of the Borrower.
	 	 	 
	 	g.	Delisting
    of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which
    specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange,
    the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.
	 	 	 
	 	h.	Failure
    to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act;
    and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.
	 	 	 
	 	i.	Liquidation.
    Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.
	 	 	 
	 	j.	Cessation
    of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its
    debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going
    concern” shall not be an admission that the Borrower cannot pay its debts as they become due.
	 	 	 
	 	k.
     	Financial
    Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC at any time after
    180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement
    would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the
    Holder with respect to this Note or the Purchase Agreement.
	 	 	 
	 	l.	Replacement
of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior
to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered
pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in
the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

 

    	9

    	 

    

 

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

 

Upon
the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to
pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable
and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum
(as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE
SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER,
AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation
of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon
when due on this Note or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery
of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default
specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity
Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder,
in full satisfaction of its obligations hereunder, an amount equal to the greater of (i) 150% times the sum of (w)
the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount
of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on
the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Section 1.4(e) hereof
(the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x),
(y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately
become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all
costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all
other rights and remedies available at law or in equity.

 

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

 

    	10

    	 

    

 

4.
MISCELLANEOUS

 

	 	a.	Failure
    or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege
    hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
    preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder
    are cumulative to, and not exclusive of, any rights or remedies otherwise available.
	 	 	 
	 	b.	Notices.
    All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in
    writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or
    certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
    or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such
    party shall have specified most recently by written notice. Any notice or other communication required or permitted to be
    given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated
    by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal
    business hours where such notice is to be received), or the first business day following such delivery (if delivered other
    than on a business day during normal business hours where such notice is to be received) or (b) on the second business day
    following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt
    of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If
to the Borrower, to:

 

	 	PROGREEN
    US, INC.
	 	2667
    Camino del Rio South, Suite 312
	 	San
    Diego, CA 92108-3763
	 	Attn:
    Jan Telander, Chief Executive Officer
	 	Fax:
	 	Email:
    jan.telander@progreenproperties.com

 

If
to the Holder:

 

	 	POWER
    UP LENDING GROUP LTD.
	 	111
    Great Neck Road, Suite 214
	 	Great
    Neck, NY 11021
	 	Attn:
    Curt Kramer, Chief Executive Officer 
	 	e-mail:
    info@poweruplending.com

 

    	11

    	 

    

 

With
a copy by fax only to (which copy shall not constitute notice):

 

	 	Naidich
    Wurman LLP
	 	111
    Great Neck Road, Suite 216
	 	Great
    Neck, NY 11021
	 	Attn:
    Allison Naidich
	 	facsimile:
    516-466-3555
	 	e-mail:
    allison@nwlaw.com

 

	 	c.	Amendments.
    This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder.
    The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and
    the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then
    as so amended or supplemented.
	 	 	 
	 	d.	Assignability.
    This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder
    and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule
    501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be
    pledged as collateral in connection with a bona fide margin account or other lending arrangement; and may be
    assigned by the Holder without the consent of the Borrower. 
	 	 	 
	 	e.	Cost
    of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection,
    including reasonable attorneys’ fees.
	 	 	 
	 	f.	Governing
    Law. This Note shall be governed by and construed in accordance with the laws of the State of Virginia without regard
    to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
    by this Note shall be brought only in the state courts of New York or in the federal courts located in the state and county
    of Nassau. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted
    hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens.
    The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable
    attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection
    herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative
    to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any
    such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any
    other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process
    being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered
    in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
    of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute
    good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any
    right to serve process in any other manner permitted by law.

 

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

 

    	12

    	 

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this on November 8, 2017

 

	PROGREEN
    US, INC.	 
	 	 	 
	By:
    	/s/ Jan Telander	 
	 	Jan
    Telander	 
	 	Chief
    Executive Officer	 

 

    	13

    	 

    

 

EXHIBIT
A — NOTICE OF CONVERSION

 

The
undersigned hereby elects to convert $_________________ principal amount of the Note (defined below) into that number
of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth
below, of PROGREEN US, INC., a Delaware corporation (the “Borrower”) according to the conditions of the convertible
note of the Borrower dated as of November 8, 2017 (the “Note”), as of the date written below. No fee will be charged
to the Holder for any conversion, except for transfer taxes, if any.

 

Box
Checked as to applicable instructions:

 

	 	[  ]
    	The
    Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the
    undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).
	 	 	 
	 	 	Name
    of DTC Prime Broker: 
	 	 	Account
    Number: 
	 	 	 
	 	[  ]
    	The
    undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock
    set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately
    below or, if additional space is necessary, on an attachment hereto:

 

POWER
UP LENDING GROUP LTD.

111
Great Neck Road, Suite 214

Great
Neck, NY 11021

Attention:
Certificate Delivery

e-mail:
info@poweruplendinggroup.com

 

	 	Date
    of conversion: 	 ____________
	 	Applicable
    Conversion Price: 	$____________
	 	Number
    of shares of common stock to be issued pursuant to conversion of the Notes:	 ______________
	 	Amount
    of Principal Balance due remaining under the Note after this conversion:	 ______________

 

	POWER
    UP LENDING GROUP LTD.	 
	 	 
	By:		 
	Name:	Curt
    Kramer	 
	Title:	Chief
    Executive Officer	 
	Date:		 

 

    	14

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