Document:

Exhibit 10.4

 

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 (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

	Principal Amount: $125,000.00	Issue Date: January 16, 2018

 

10% CONVERTIBLE NOTE

 

FOR
VALUE RECEIVED, NANOFLEX POWER CORP., a Florida corporation (“Borrower” or “Company”), hereby
promises to pay to the order of EMA FINANCIAL, LLC, a Delaware limited liability company, or its registered assigns (the
“Holder”), on January 16, 2019, (subject to extension as set forth below, the “Maturity Date”), the sum
of $125,000.00 as set forth herein, together with interest on the unpaid principal balance hereof at the rate of ten (10%) per
annum (the “Interest Rate”) from the date of issuance hereof until this Note plus any and all amounts due hereunder
are paid in full, and any additional amounts set forth herein, including without limitation any Additional Principal (as defined
herein). Interest shall be computed on the basis of a 365-day year and the actual number of days elapsed. Any amount of principal
or interest on this Note which is not paid when due shall bear interest at the rate of twenty-four (24%) per annum from the due
date thereof until the same is paid (“Default Interest”). All payments due hereunder 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. Whenever any amount expressed to be due by the terms of
this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a business
day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the
due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date. As used in
this Note, the term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks
in the city of New York, New York are authorized or required by law or executive order to remain closed. Each capitalized term
used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement entered
into by and between the Company and Holder dated on or about the date hereof, pursuant to which this Note was originally issued
(the “Purchase Agreement”). The Holder may, by written notice to the Borrower at least five (5) days before the Maturity
Date (as may have been previously extended), extend the Maturity Date to up to one (1) year following the date of the original
Maturity Date hereunder.

 

    	 	  	 

     

    

 

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.

 

The following terms shall apply to this Note:

 

ARTICLE I. CONVERSION RIGHTS

 

1.1. Conversion Right.
The Holder shall have the right, in its sole and absolute discretion, at any time from time to time, to convert all or any part
of the outstanding amount due under 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 4.9% 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 Regulation
13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, further, however,
that the limitations on conversion may be waived by the Holder upon, at the election of the Holder, not less than 61 days’
prior notice to the Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or
such later date, as determined by the Holder, as may be specified in such notice of waiver). The number of shares of Common Stock
to be issued upon each Conversion of this Note (“Conversion Shares”) 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 11:59 p.m., New York, New York time on such
conversion date (the “Conversion Date”). The term “Conversion Amount” means, with respect to any Conversion
of this Note, the sum of (1) the principal amount of this Note to be converted in such Conversion, plus (2) accrued and
unpaid interest, if any, on such principal amount being converted 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) any Additional Principal
for such Conversion, plus (5) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.2(c)
and 1.4(g) hereof.

 

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1.2. Conversion
Price.

 

a)
Calculation of Conversion Price. The conversion price hereunder (the “Conversion Price”) shall be from the date
hereof until 180 days from the Issue Date $0.50, provided that as of the 181st day from the Issue Date and at
all times thereafter the conversion price shall equal the lower of: (i) the closing sale price of the Common Stock on the Principal
Market on the Trading Day immediately preceding the Closing Date, and (ii) 60% of either the lowest sale price for the Common Stock
on the Principal Market during the twenty (20) consecutive Trading Days including and immediately preceding the Conversion Date,
or the closing bid price, whichever is lower, provided, however, if the Company’s share price at any time loses the
bid (ex: 0.0001 on the ask with zero market makers on the bid on level 2), then the Conversion Price may, in the Holder’s
sole and absolute discretion, be reduced to a fixed conversion price of 0.00001 (if lower than the conversion price otherwise),
and provided, that if on the date of delivery of the Conversion Shares to the Holder, or any date thereafter while Conversion
Shares are held by the Holder, the closing bid price per share of Common Stock on the Principal Market on the Trading Day on which
the Common Shares are traded is less than the sale price per share of Common Stock on the Principal Market on the Trading Day used
to calculate the Conversion Price hereunder, then such Conversion Price shall be automatically reduced such that the Conversion
Price shall be recalculated using the new low closing bid price (“Adjusted Conversion Price”) and shall replace the
Conversion Price above, and Holder shall be issued a number of additional shares such that the aggregate number of shares Holder
receives is based upon the Adjusted Conversion Price, and provided, further, that the Conversion Price shall be subject
to Section 1.2(b) below. For the purpose of clarity, any shares required to be issued as a result of an Adjusted Conversion Price
shall be deemed to be “Conversion Shares” under this Note. If an Event of Default under Section 3.9 of the Note has
occurred, Holder, in its sole discretion, may elect to use a Conversion Price which shall equal the lower of: (i) the closing sale
price of the Common Stock on the Principal Market on the Trading Day immediately preceding the Closing Date; (ii) 60% of either
the lowest sale price or the closing bid price, whichever is lower for the Common Stock on the Principal Market during any Trading
Day in which the Event of Default has not been cured. If such Common Stock is not traded on the OTCBB, OTCQB, NASDAQ or NYSE, then
such sale price shall be the sale price of such security on the principal securities exchange or trading market where such security
is listed or traded or, if no sale 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” by the National Quotation Bureau,
Inc. If such sale price cannot be calculated for such security on such date in the manner provided above, such price shall be the
fair market value as mutually determined by the Borrower and the Holder. If the Borrower’s Common stock is chilled for deposit
at DTC, becomes chilled at any point while this Note remains outstanding or deposit or other additional fees are payable due to
a Yield Sign, Stop Sign or other trading restrictions, or if the closing sale price at any time falls below $0.175 (as appropriately
and equitably adjusted for stock splits, stock dividends, stock contributions and similar events), then such 60% figure specified
in clause 1.2(a)(ii) above shall be reduced to 45%. In the event that the shares of the Borrower’s Common Stock are not deliverable
via DWAC following the conversion of any amount hereunder, an additional 5% discount will be attributed to the Conversion Price.
Additionally, the Borrower acknowledges that it will take all reasonable steps necessary or appropriate, including providing a
board of directors resolution authorizing the issuance of common stock to Holder. So long as the requested sale may be made pursuant
to Rule 144, the Company agrees to accept an opinion of counsel to the Holder confirming the rights of the Holder to sell shares
of Common Stock issuable or issued to Holder on conversion of this Note pursuant to Rule 144 as promulgated by the SEC (“Rule 144”), as such Rule 144 may be in effect from time to time,
which opinion will be issued at the Company’s expense and the conversion dollar amount will be reduced by $750.00 to cover
the cost of such legal opinion. “Trading Day” shall mean any day on which the Common Stock is tradable for any period
on the OTCQB, or on the principal securities exchange or other securities market on which the Common Stock is then being traded.
Additionally, if the Company ceases to be a reporting company pursuant to the 1934 Act or if the Note cannot be converted into
free trading shares after 181 days from the issuance date, an additional 15% discount will be attributed to the Conversion Price
for any and all Conversions submitted thereafter.

 

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b) If at any time the
Conversion Price as determined hereunder for any Conversion would be less than the par value of the Common Stock, then the Conversion
Price hereunder shall equal such par value for such Conversion and the Conversion Amount for such Conversion shall be increased
to include Additional Principal, where “Additional Principal” means such additional amount to be added to the Conversion
Amount to the extent necessary to cause the number of Conversion Shares issuable upon such Conversion to equal the same number
of Conversion Shares as would have been issued had the Conversion Price not been subject to the minimum price set forth in this
Section 1.2(b).

 

c) 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 free trading shares of Common Stock issuable upon conversion of this Note is not delivered by the Deadline
(as defined below) the Borrower shall pay to the Holder $1,000.00 per day in cash, for each day beyond the Deadline that the Borrower
fails to deliver such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month
in which it has accrued or, at the option of the Holder, 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 this Note is a valuable right to
the Holder. The damages resulting from a failure, attempt to frustrate, or interference with such conversion right are difficult
if not impossible to quantify. Accordingly the parties acknowledge that the liquidated damages provision contained in this Section
are justified.

 

1.3. Authorized
Shares. The Borrower covenants that the Borrower will at all times while this Note is outstanding 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 or adjustment of this Note. The Borrower is required at all times to have
authorized and reserved seven (7) times the number of shares that is actually issuable upon full conversion or adjustment of
this Note (based on the Conversion Price of the Notes in effect from time to time) (the “Reserved Amount”).
Initially, the Company will instruct the Transfer Agent to reserve four million eight hundred and six thousand (4,806,000)
shares of common stock in the name of the Holder for issuance upon conversion hereof. 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 this Note 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 this Note in full. 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.

 

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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.

 

1.4. Method of Conversion.

 

a) Mechanics of
Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at any time and from time
to time after the Issue Date, by 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 11:59 p.m., New York, New York time).

 

b) Book Entry 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. In the event of any dispute or discrepancy, such records
of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest error. Notwithstanding
the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder
first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order
of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes)
may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by
acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a
portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount
stated on the face hereof.

 

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

 

d)
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 or upon an event triggering the calculation of an Adjusted Conversion Price, 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 or such an event (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.

 

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e) Obligation
of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a duly and properly executed Notice of Conversion or upon
an event triggering the calculation of an Adjusted Conversion Price, the Holder shall be deemed to be the holder of record of the
Common Stock issuable upon such conversion or as a result of an Adjusted Conversion Price, the outstanding principal amount and
the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion or adjustment, and, unless the
Borrower defaults on its obligations under this Article I, all rights with respect to the portion of this Note being so converted
shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided,
on such conversion. If the Holder shall have given a Notice of Conversion as provided herein or upon an event triggering the calculation
of an Adjusted Conversion Price, 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.
The Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is received
by the Borrower before 11:59 p.m., New York, New York time, on such date.

 

f) Delivery
of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable
upon conversion, provided the 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 contained in Section 1.1
and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common
Stock issuable upon conversion or upon an event triggering the calculation of an Adjusted Conversion Price to the Holder by crediting
the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.

 

g) Failure
to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies,
including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable
upon conversion or adjustment of this Note is not delivered by the Deadline, the Borrower shall pay to the Holder $1,000.00
per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock to the Holder. 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, 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 and/or receive shares in the event of
an adjustment is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, or interference
with such conversion or adjustment right are difficult if not impossible to qualify. Accordingly the parties acknowledge that
the liquidated damages provision contained in this Section 1.4(g) are justified.

 

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h) The Borrower
acknowledges that it will take all reasonable steps necessary or appropriate, including accepting an opinion of counsel to Holder
confirming the rights of Holder to sell shares of Common Stock issued to Holder on conversion or adjustment of the Note pursuant
to Rule 144 as promulgated by the SEC (“Rule 144"), as such Rule may be in effect from time to time. So long as the
requested sale may be made pursuant to Rule 144 the Borrower agrees to accept an opinion of counsel to the Holder which opinion
will be issued at the Borrower’s expense.

 

i) Charges
and Expenses. Issuance of Common Stock to Holder, or any of its assignees, upon the conversion of this Note shall be made without
charge to the Holder for any issuance fee, transfer tax, legal opinion and related charges, postage/mailing charge or any other
expense with respect to the issuance of such Common Stock. Company shall pay all Transfer Agent fees incurred from the issuance
of the Common Stock to Holder, as well as any and all other fees and charges required by the Transfer Agent as a condition to effectuate
such issuance. That notwithstanding, the Holder may in the interest of securing issuance and/or delivery of Common Stock before
the Deadline, at any time from time to time, in its sole discretion elect to pay any such fees or charges upfront, and Company
agrees that any such fees or charges as noted in this Section that are paid by the Holder (whether from the Company’s delays,
outright refusal to pay, Holder’s interest in securing issuance and/or delivery of Common Stock before the Deadline, or otherwise),
will be at Company’s expense, and the conversion amount will automatically be reduced by that dollar amount to cover the
cost of the fees or charges as noted in this Section.

 

1.5. Restricted Securities.
The shares of Common Stock issuable upon conversion or adjustment 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 or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) (“Rule
144”) or (iv) such shares are transferred to an “affiliate” (as defined in Rule 144) of the 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 legend set forth on any stock certificate evidencing any Conversion Shares shall be removed and
the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Borrower or its transfer
agent shall have received an opinion of counsel form, substance and scope customary for opinions of counsel in comparable transactions,
to the effect that a public sale or transfer of such Common Stock may be made without registration under the Act, which opinion
shall be reasonably acceptable to the Company, or (ii) in the case of the Common Stock issued or issuable upon conversion of this
Note, such security is registered for sale by the Holder under an effective registration statement filed under the Act or otherwise
may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be
immediately sold.

 

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1.6. Effect of Certain Events.

 

a)
Effect
of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all
of the assets of the 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 either: (i) 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)
or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean any individual, corporation, limited liability
company, partnership, association, trust or other entity or organization.

 

b) Adjustment Due
to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the
Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event,
as a result of which shares of Common Stock of the 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, thirty (30) days prior written notice (but in any event at least fifteen (15) days prior
written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation
of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during
which time, for clarification, the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring
entity assumes by written instrument the obligations of this Section 1.6(b). The above provisions shall similarly apply to successive
consolidations, mergers, sales, transfers or share exchanges.

 

c)
Adjustment Due to Distribution. If the 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. Such assets shall be held in escrow by the Company pending any such conversion.

 

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

 

e) Stock Dividends
and Stock Splits. If the Company, at any time while this Note is outstanding: (A) pays a stock dividend or otherwise makes
a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any securities convertible into
or exercisable for Common Stock; (B) subdivides outstanding shares of Common Stock into a larger number of shares; (C) combines
(including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares; or (D) issues,
in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Company, then the Conversion
Price (and each sale or bid price used in determining the Conversion Price) shall be multiplied by a fraction, of which the numerator
shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the
number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall become
effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

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

 

1.7. Revocation.
If any Conversion Shares are not received by the Deadline, the Holder may revoke the applicable Conversion pursuant to which such
Conversion Shares were issuable. This Note shall remain convertible after the Maturity Date hereof until this Note is repaid or
converted in full.

 

    	 	9	 

     

    

 

1.8. Prepayment.
Notwithstanding anything to the contrary contained in this Note, subject to the terms of this Section, at any time during the
period beginning on the Issue Date and ending on the date which is six (6) months following the Issue Date
(“Prepayment Termination Date”), Borrower shall have the right, exercisable on not less than five (5) Trading
Days prior written notice to the Holder of this Note, to prepay the outstanding balance on this Note (principal and accrued
interest), in full, in accordance with this Section. 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 ten (10)
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 or upon the
order of the Holder as specified by the Holder in writing to the Borrower 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 (the “Optional Prepayment Amount”) equal to the Prepayment Factor (as defined below), 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 Sections 1.3 and 1.4(g) hereof.
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. After the Prepayment Termination Date, the Borrower shall have no right to prepay
this Note. For purposes hereof, the “Prepayment Factor” shall equal one hundred and fifty percent (150%),
provided that such Prepayment factor shall equal one hundred and thirty five percent (135%) if the Optional Prepayment Date
occurs on or before the date which is ninety (90) days following the Issue Date hereof.

 

ARTICLE II. CERTAIN COVENANTS

 

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

 

2.2. Restriction on
Stock Repurchases. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s
written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other securities or otherwise)
in any one transaction or series of related transactions any shares of capital stock of the Borrower or any warrants, rights or
options to purchase or acquire any such shares.

 

2.3. Borrowings;
Liens. Notwithstanding section 4(l) of the Purchase Agreement, so long as the Borrower shall have any obligation under
this Note, the Borrower shall not (i) create, incur, assume guarantee, endorse, contingently agree to purchase or
otherwise become liable upon the obligation of any person, firm, partnership, joint venture or corporation, except by the
endorsement of negotiable instruments for deposit or collection, or suffer to exist any liability for borrowed money, except
(a) borrowings in existence or committed on the date hereof and of which the Borrower has informed Holder in writing prior to
the date hereof, or (b) indebtedness to trade creditors or financial institutions incurred in the ordinary course of
business, or (ii) enter into, create or incur any liens, claims or encumbrances of any kind, on or with respect to any of its
property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom, securing any
indebtedness occurring after the date hereof.

 

    	 	10	 

     

    

 

2.4. 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.

 

2.5. Advances and
Loans. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s
written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without
limitation, officers, directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits or advances in existence
or committed on the date hereof and which the Borrower has informed Holder in writing prior to the date hereof.

 

2.6. Charter.
So long as the Borrower shall have any obligations under this Note, the Borrower shall not amend its charter documents, including
without limitation its certificate of incorporation and bylaws, in any manner that materially and adversely affects any rights
of the Holder.

 

2.7. Transfer Agent.
The Borrower shall not change its transfer agent without the prior written consent of the Holder. Any resignation by the transfer
agent without a replacement transfer agent consented to by the Holder prior to such replacement taking effect shall constitute
an Event of Default hereunder.

 

ARTICLE III. EVENTS OF DEFAULT

 

Any one or more of
the following events which shall occur and/or be continuing shall constitute an event of default (each, an “Event of Default”):

 

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

 

3.2. Conversion
and the Shares. The 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 at any time following the execution hereof or) 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 five (5) 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.

 

    	 	11	 

     

    

 

3.3. 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 three (3) days after written notice
(via email) thereof to the Borrower from the Holder.

 

3.4. 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.

 

3.5. 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.

 

3.6. Judgments.
Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary of the Borrower or
any of its property or other assets for more than $50,000.00, and shall remain unvacated, unbonded or unstayed for a period of
twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

 

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

 

3.8. Delisting of
Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTCBB, or OTCQB, or
an equivalent replacement exchange, NASDAQ, the NYSE or AMEX.

 

3.9. Failure to Comply
with the Exchange Act. The Borrower shall fail to comply in any material respect 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.

 

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

 

    	 	12	 

     

    

 

3.11.
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.

 

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

 

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

 

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

 

3.15. 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.

 

3.16. Cross-Default.
Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default
by the 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.

 

    	 	13	 

     

    

 

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 upon a Trading Market Prepayment Event pursuant to Section
1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, 3.17, 3.18 and/or 3. 15 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 in 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 Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note
to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the
“Default Sum”) or (ii) the “parity value” of the Default Sum to be prepaid, where parity value means
(a) the highest number of shares of Common Stock issuable upon conversion of or otherwise pursuant to such Default Sum in
accordance with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment Date as the
“Conversion Date” for purposes of determining the lowest applicable Conversion Price, unless the Default
Event arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion Date shall be the
Conversion Date), multiplied by (b) the highest Closing Price for the Common Stock during the period beginning on the
date of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the
“Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without
demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without
limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and
remedies available at law or in equity.

 

If the 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. The Holder may still convert
any amounts due hereunder, including without limitation the Default Sum, until such time as this Note has been repaid in full.

 

3.17. Inside Information.
The Borrower or its officers, directors, and/or affiliates attempt to transmit, convey, disclose, or any actual transmittal, conveyance,
or disclosure by the Borrower or its officers, directors, and/or affiliates of, material non-public information concerning the
Borrower, to the Holder or its successors and assigns, which is not immediately cured by Borrower’s filing of a Form 8-K
pursuant to Regulation FD on that same date.

 

3.18 Bid Price.
The Borrower shall lose the “bid” price for its Common Stock ($0.0001 on the “Ask” with zero market makers
on the “Bid” per Level 2) and/or a market (including the OTC Pink, OTCQB or an equivalent replacement exchange).

 

ARTICLE IV. MISCELLANEOUS

 

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

 

    	 	14	 

     

    

 

4.2. Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, email 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 or email, with accurate confirmation generated by the transmitting
facsimile machine or computer, at the address, email or number designated in the Purchase Agreement (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.

 

4.3. 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.

 

4.4. 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 1933 Act). 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.

 

4.5. 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.

 

4.6. Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of Delaware without regard to
conflicts of laws principles that would result in the application of the substantive laws of another jurisdiction. Any action
brought by either party against the other concerning the transactions contemplated by this Agreement must be brought only in
the civil or state courts of New York or in the federal courts located in the State and county of New York. Both parties
and the individual signing this Agreement on behalf of the Borrower agree to submit to the jurisdiction of such courts. 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 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 unenforceability of any other provision of this Note. Nothing contained herein shall be deemed or operate to
preclude the Holder from bringing suit or taking other legal action against the Borrower in any other jurisdiction to collect
on the Borrower’s obligations to Holder, to realize on any collateral or any other security for such obligations, or to
enforce a judgment or other decision in favor of the Holder. This Note shall be
deemed an unconditional obligation of Borrower for the payment of money and, without limitation to any other remedies of
Holder, may be enforced against Borrower by summary proceeding pursuant to New York Civil Procedure Law and Rules Section
3213 or any similar rule or statute in the jurisdiction where enforcement is sought. For purposes of such rule or statute,
any other document or agreement to which Holder and Borrower are parties or which Borrower delivered to Holder, which may be
convenient or necessary to determine Holder’s rights hereunder or Borrower’s obligations to Holder are deemed a
part of this Note, whether or not such other document or agreement was delivered together herewith or was executed apart from
this Note.

 

    	 	15	 

     

    

 

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

 

4.8. Disclosure.
Upon receipt or delivery by the Company of any notice in accordance with the terms of this Note, unless the Company has in good
faith determined that the matters relating to such notice do not constitute material, non-public information relating to the Company
or any of its Subsidiaries, the Company shall within one (1) Trading Day after any such receipt or delivery, publicly disclose
such material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Company believes that
a notice contains material, nonpublic information relating to the Company or any of its Subsidiaries, the Company so shall indicate
to such Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed
to presume that all matters relating to such notice do not constitute material, non-public information relating to the Company
or its Subsidiaries.

 

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

 

4.10. Remedies.
The 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.

 

4.11. Usury. This
Note shall be subject to the anti-usury limitations contained in the Purchase Agreement.

 

(Remainder of Page intentionally left blank)

 

    	 	16	 

     

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer as of the Issue Date first
set forth above.

 

	NANOFLEX POWER CORPORATION	 
	 	 	 
	By:	 	 
	 	Name: Dean L. Ledger 	 
	 	Title: CEO	 

 

    	 	17	 

     

    

 

EXHIBIT A

 

NOTICE OF CONVERSION

 

The undersigned hereby
elects to convert principal under the 10% Convertible Note of NANOFLEX POWER CORPORATION., a Florida corporation (the Company”),
into shares of common stock (the “Common Stock”), of the Company according to the conditions hereof, as of
the date written below. If shares of Common Stock are to be issued in the name of a person other than the undersigned, the undersigned
will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably
requested by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer
taxes, if any.

 

By the delivery of
this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Common Stock does not
exceed the amounts specified under Section 1.1 of this Note, as determined in accordance with Section 13(d) of the Exchange Act.

 

The undersigned agrees
to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the
aforesaid shares of Common Stock pursuant to any prospectus.

 

Conversion calculations:

 

	 	Issue Date of Note:	 

	 	Date to Effect Conversion:	 
	 	 	 

	 	Conversion Price:	 
	 	 	 

	 	Principal Amount of Note to be Converted: 	 

	 	Less applicable fees under the Note:	 

	 	Amount of Note to be Converted:	 
	 	 	 

	 	Interest Accrued on Account
	 	of Conversion at Issue:	 
	 	 	 

	 	Additional Principal on Account of Conversion

	 	Pursuant to Section 1.2(b) of the Note:	 
	 	 	 

	 	Number of shares of Common Stock to be issued:	 
	 	 	 

	 	Remaining Balance of Note*:	 

	 	 	 
	 	Signature:	 
	 	 	 

	 	Name:	 
	 	 	 

	 	Address for Delivery of Common Stock Certificates:	 
	 	 	 
	 	 	 
	 	 	 

	 	Or	 
	 	 	 
	 	DWAC Instructions: 	 

	 	Broker No:	 	 

	 	Account No:	 	 

 

*Sum provided does not include
accrued interest

 

    	 	18EX-10.1

 Exhibit 10.1 

ALTERNATIVE INVESTMENT 

SELLING AGENT AGREEMENT 

This Alternative Investment Selling Agent Agreement (“Agreement”) is dated as of January 19, 2018 by and among each of the
limited partnerships listed on Schedule 1 hereto (each, a “Partnership,” and together, the “Partnerships”), Ceres Managed Futures LLC, a Delaware limited liability company (the “General Partner”), and Harbor
Investment Advisory LLC, a Maryland Limited Liability Company (“Harbor” or “Selling Agent”). Partnerships may be added to this Agreement upon the agreement of the General Partner and Selling Agent, pursuant to the form of joinder
attached as Appendix B to this Agreement. The listing of such partnership on Schedule 1 hereto shall be evidence of such agreement. This Agreement supersedes all prior agreements between each Partnership, Selling Agent and the General Partner. 

WHEREAS, the offering and sale of units of limited partnership or other interests in the Partnerships (“Interests” or
“Units”) in accordance with the terms of each Partnership’s private placement offering memorandum and disclosure document, including any supplements thereto approved by the applicable Partnership (each, a “Memorandum”), each
Partnership’s subscription/exchange agreements (the “Subscription Agreements”) and certain other investor materials or supplements approved for use or prepared by each Partnership, including without limitation the summary information
contained in certain related marketing materials, all as amended from time to time (collectively, the “Offering Documents”), and each Partnership’s organizational documents (as amended or supplemented from time to time,
“Organizational Documents”) (collectively, “Offering Materials”) is exempt from the registration requirements of the Securities Act of 1933, as amended (“Securities Act”), pursuant to Section 4(a)(2) and Rule 506
of Regulation D promulgated thereunder (“Rule 506”); 
 WHEREAS, the Partnerships desire to retain Harbor as a selling agent and
to permit it to serve as an investment advisor to its customers investing in one or more of the Partnerships (in its capacity as an investment advisor, the “Investment Advisor”; provided that other than with respect to Sections 1 and 3,
references to “Selling Agent” in this Agreement shall be deemed to include the Investment Advisor); 
 NOW, THEREFORE, in
consideration of the promises and the mutual agreements hereinafter contained and other good and valuable consideration the value of which is hereby acknowledged, the parties hereto hereby agree as follows: 

 

	1.	Appointment of Harbor. 

 (a)    Harbor is hereby appointed as
a non-exclusive selling agent of the Partnerships during the term of this Agreement for the purpose of finding eligible investors for Interests through offerings that are exempt from registration under the
Securities Act, pursuant to Section 4(a)(2) thereof and Rule 506. With prior written consent of the General Partner (which may be electronic mail), Harbor may also accept transfers of Interests of existing limited partners of such Partnerships
into accounts established by such limited partners with Harbor and such limited partners shall be considered Selling Agent Clients (as defined below) of Harbor for the purposes of this Agreement. 

 (b)    Subject to the performance by the Partnership(s) and the General
Partner of their obligations hereunder, Selling Agent hereby accepts such appointment and agrees on the terms and conditions set forth herein to find eligible investors for Interests during the term hereof and to use reasonable efforts to assist the
Partnership(s) and the General Partner in communicating with investors that have been introduced to the Partnership(s) by Selling Agent (each a “Selling Agent Client” and collectively “Selling Agent Clients”) with respect to
consent solicitations and limited partner votes and other items requiring actions of the limited partners with respect to the Partnership(s), at the reasonable request of the General Partner. Selling Agent will have no obligation to offer or sell
any Interests. 
 (c)    Subject to the performance by the Partnership(s) and the General Partner of their obligations
hereunder, the Investment Advisor hereby agrees to the terms and conditions set forth herein to use such efforts, as it deems appropriate in its sole discretion, to refer its customers for investment in the Interests during the term hereof. The
Investment Advisor will have no obligation to offer or sell any Interests. 
 (d)    In the case of any Partnership
formed after the date of this agreement, Units initially shall be offered at $1,000 per Unit or as otherwise determined by the General Partner, and thereafter shall be offered on a continuous basis as of the first day of each month at the final Net
Asset Value per Unit (as defined in each Partnership’s limited partnership agreement) as of the last day of the immediately preceding month. For all other Partnerships, Units are being offered on a continuous basis as of the first day of each
month at the final Net Asset Value per Unit (as defined in each Partnership’s limited partnership agreement) as of the last day of the immediately preceding month. The General Partner in its sole discretion may terminate at any time the
continuous offering period of one or more of the Partnerships and may at any time in its sole discretion, terminate, discontinue or resume the continuous offering of any class of Units in any of the Partnerships. 

(e)    Subject to the right of the General Partner to reject any subscription in whole or in part at any time prior to
acceptance, the General Partner shall accept subscriptions for Units properly made and shall cause proper entries to be made in the books and records of the relevant Partnership. No certificate evidencing Interests shall be issued to any limited
partner, although limited partners shall receive confirmations of purchase from the General Partner in its customary form. Payment for the Interests shall be made as described in the Offering Documents at such time on such date as may be agreed to
by the General Partner. Payment shall be made against issuance of the Interests in the name of the limited partners. 

  
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	2.	Offering and Sale of Interests. 

 (a)    Selling Agent shall deliver
to each person to whom Selling Agent makes an offer of an Interest, the Offering Documents, as amended as of such time. 

(b)    Selling Agent shall not make any offer of Interests on the basis of any communications or documents relating to any
of the Partnerships or the Interests, except the Offering Materials, any other documents supplied or prepared by the General Partner on behalf of the Partnerships and delivered to Selling Agent by the Partnership(s) or the General Partner for use in
making an offer of Interests, or any other materials expressly approved for such use by the General Partner in writing (which shall include electronic mail). Subject to Section 4(d), the Partnerships and the General Partner shall provide
Selling Agent copies of any Offering Documents a commercially reasonable time prior to providing such Offering Documents to any limited partner for Selling Agent’s review and approval, which shall not be unreasonably withheld. Modifications of
such Offering Documents must be approved in writing by the General Partner. Such modifications generally will not be approved as contemplated by the previous sentence except in the case of modifications solely for the purpose of reflecting
formatting or cosmetic changes or including appropriate references to Selling Agent by name, address, insignia or similarly factual identifying characteristics. Selling Agent will maintain a written record of each prospective investor to which or to
whom it furnishes Offering Materials and agrees to provide such records to the General Partner within a reasonable time upon request. 

(c)    The Partnership(s) and the General Partner agree that the Partnership(s) will rely on Rule 506(b) as a safe harbor
from registration under Securities Act. Selling Agent will not use any form of “general solicitation” or “general advertising” (within the meaning of Rule 502(c) of Regulation D under the Securities Act) in making offers of
Interests, including any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, or any seminar or meeting whose attendees have been invited by general
solicitation or advertising. 
 (d)    Selling Agent shall, in accordance with requirements of Regulation D under the
Securities Act, reasonably believe immediately prior to making any offer or sale of Interests that any prospective investor solicited by Selling Agent is an “accredited investor,” as that term is defined in Rule 501(a) of Regulation D
under the Securities Act, and meets such other eligibility criteria as are set forth in the Offering Documents. The Partnerships shall be responsible for the timely filing with the U.S. Securities and Exchange Commission (“SEC”) of any
notices required by Rule 503 of Regulation D under the Securities Act. Selling Agent shall only solicit prospective investors in any jurisdiction in compliance with the marketing rules and private placement rules of such jurisdiction. 

(e)    No sale of Units to any single investor will be for less than the minimum denominations as specified in the
Offering Documents, unless such requirement is waived in advance by the General Partner in its sole discretion. 

  
 -3- 

 (f)    No offer or sale of any Units shall be made in any state or
jurisdiction, or to any prospective investor located in any state or jurisdiction, where such Units have not been registered or qualified for offer and sale under applicable state securities laws (unless such Units are “covered securities”
within the meaning of the Securities Act, or otherwise exempt from the registration or qualification requirements of such laws, and any and all required filings, including notice filings, have been made to perfect such exemptions or preemptions).
Selling Agent shall not offer or sell Units in any jurisdiction without the General Partner’s prior written consent. 

(g)    No transfers of Units will be effected other than in accordance with the Partnership’s limited partnership
agreement, as amended. 
 (h)    In the performance of this Agreement, Selling Agent and Selling Agent’s
affiliates, officers, directors, employees, agents and representatives will comply strictly with all applicable anti-corruption laws. Neither Selling Agent nor Selling Agent’s affiliates, officers, directors, employees, agents or
representatives has taken nor will take any action in furtherance of an offer, payment, promise to pay, receipt, acceptance or authorization of the payment or giving or receiving of anything of value, either directly or indirectly, to or from any
person while knowing that all or some portion of the money or value will be offered, given or promised to anyone to improperly influence official action, to obtain or retain business or otherwise to secure any improper advantage. Throughout the
duration of this Agreement, neither Selling Agent nor any of Selling Agent’s officers, directors, employees, agents or representatives is or will become a Government Official,1 and neither
Selling Agent nor any of Selling Agent’s affiliates, agents or representatives, is or will be owned, directly or indirectly, in whole or in part, or controlled by any government or Government Official. Selling Agent shall create and maintain
precise and accurate books and financial records in connection with the services performed under this Agreement. Upon request, the General Partner shall have the right to inspect such books and financial records in connection with the services
performed under this Agreement. Selling Agent will fully cooperate with any such inspection that may be conducted. Selling Agent shall notify the General Partner immediately if at any time the foregoing representations and warranties shall not be
true and correct. Upon receipt of such notification, or in the event that the General Partner determines that a breach of any of the foregoing representations and warranties has occurred or is likely to occur, the General Partner shall have the
right to unilaterally terminate this Agreement upon written notice without further payment under this Agreement; withhold payment under this Agreement until such time as it has received confirmation to its satisfaction that no breach has occurred or
is likely to occur; and/or pursue any other remedies available to it. The General Partner shall not be obligated under this Agreement to take any action or omit to take any action that it believes, in good faith, would cause it to be in violation of
any applicable anti-corruption laws. 
  
  

1 “Government Official” is broadly defined and includes (a) officials and employees of and
(b) any person acting in an official capacity on behalf of: 
 • governments, governmental
agencies and instrumentalities, and public international organizations; 
 • companies that are
partially or wholly-owned or controlled by governments or governmental agencies (notwithstanding that the company may be publicly listed); and 
 •
political parties, including candidates of the party. 

  
 -4- 

 (i)    Selling Agent shall be responsible for ensuring that any activities
taken in connection with the sale of Interests in any jurisdiction outside of the United States shall be conducted in compliance with the private placement or other applicable offering rules of such jurisdiction; provided, however,
that, the Partnerships and the General Partner agree to coordinate with Selling Agent in respect of determining the number of offers made to prospective investors in any particular jurisdiction and such other relevant information in respect of
offerings of Interests made by any party other than Selling Agent, which would reasonably be deemed to affect Selling Agent’s compliance with applicable offering rules. Selling Agent shall make no offer or sale of any Interest in any foreign
jurisdiction, or to any prospective investor located in any foreign jurisdiction, where there is a prohibition on the sale of securities such as the Interests. 

(j)    The General Partner shall be responsible for any applicable registration or qualification of the Interests under
all applicable laws, rules or regulations of the United States and the states therein. The General Partner on behalf of the Partnerships acknowledges that Selling Agent intends to offer the Interests in each state within the United States. The
General Partner, at the applicable Partnership’s expense, shall use reasonable efforts to register or qualify the Interests, if required, in each jurisdiction within the United States that the Interests are offered by Selling Agent or to make
any filings required by applicable law in each jurisdiction within the United States in which the Interests are sold by Selling Agent. If the Interests may not be offered in any particular jurisdiction in the United States, the applicable
Partnership and the General Partner shall promptly notify Selling Agent. 
 (k)    The General Partner shall provide one
copy of the Offering Materials for each of the Partnerships to the Selling Agent for informational purposes only and not for distribution to any prospective investors. The General Partner shall provide a numbered copy of the Offering Materials of a
Partnership to the Selling Agent for delivery to a prospective investor upon written request of the Selling Agent, which request shall contain, at a minimum, the name and address of the prospective investor. If any Offering Materials are amended or
supplemented, the General Partner shall promptly notify Selling Agent, and provide copies of such amendments or supplements in accordance with the preceding sentence. 

(l)    All subscriptions for Interests submitted by or through Selling Agent shall be subject to the General
Partner’s approval, in its sole discretion. The General Partner and Selling Agent agree that the General Partner has the ultimate responsibility to determine whether a prospective investor meets all applicable private placement accreditation,
minimum investment, and other regulatory requirements necessary to invest in a Partnership, provided, however, it is acknowledged by Selling Agent that the General Partner shall reasonably rely upon due diligence conducted by Selling
Agent on each prospective investor. 

  
 -5- 

 (m)    Each Partnership expects that subscriptions for Units will be accepted
as of the first day of the month provided that the General Partner has received a signed Subscription Agreement at least five business days before the end of the prior month, and the subscription amount must be submitted at least five business days
before the end of the prior month. 
 (n)    All subscriptions for Units and payments by subscribers of subscription
amounts for Units shall be made pursuant to the terms and conditions set forth in the Offering Documents, including the applicable Subscription Agreement. Subscriptions for Units from Selling Agent Clients shall be subject to processing by Selling
Agent and the applicable Partnership, as described below. The applicable Partnership also shall retain an escrow agent as necessary. 

(o)    All subscription amounts received by Selling Agent hereunder for subscriptions in the name of and on behalf of the
applicable Partnership shall be handled by Selling Agent in accordance with the terms of the Subscription Agreement. 

(p)    Selling Agent shall review each Subscription Agreement from any Selling Agent Client to confirm that it has been
completed in accordance with the instructions thereto and that each has been completed by or on behalf of an eligible investor and shall promptly forward completed Subscription Agreements, and any other information required to determine a
prospective investor’s eligibility, to (1) the applicable Partnership in care of the General Partner (or any successor entity designated by the applicable Partnership or the General Partner to serve in that capacity) or (2) another
third party as directed by the General Partner, which shall promptly communicate (generally within five business days) the Partnership’s acceptance or rejection of such documents to Selling Agent. Prior to forwarding a Subscription Agreement,
Selling Agent will ensure that the subscriber for Units has a legitimate source of funds, that there is no reason to suspect such subscriber of money laundering activities, that the contemplated investment in the Partnership by the Selling Agent
Client is suitable to that customer’s specific circumstances, and that in forwarding the Subscription Agreement, Selling Agent is compliant with its programs described in this Agreement. The General Partner reserves the right to reject any
subscription for Units in the Partnership for any reason. Selling Agent has no authority to accept subscriptions for Units and shall be solely responsible for matters relating to the qualification as an eligible investor of any Selling Agent Client,
for evaluating the suitability of an investment in the Partnership for any Selling Agent Client and for satisfaction of anti-money-laundering obligations relating to any Selling Agent Client, each as contemplated by the preceding sentences of this
Section 2(q). 
 (q)    Selling Agent shall ensure that each Selling Agent Client, simultaneous with completion of
the Subscription Agreements: 
 (i)    either (A) delivers to Selling Agent a check made out to the
applicable Partnership in the amount of the subscription, which Selling Agent shall submit, or cause to be submitted, to the General Partner along with the Subscription Agreement and subscription documents; or (B) completes a letter in the form
attached as Exhibit II of the Subscription Agreement for the Partnership, authorizing Selling Agent to wire, or cause to be wired, funds in the subscription amount for investment in the Partnership to an account specified by the General Partner; and

  
 -6- 

 (ii)    designates in the subscription documents sufficient
information for the Partnership and the General Partner to transfer and for Selling Agent to receive proceeds from redemptions. The General Partner will cause redemption proceeds to be wired to the Selling Agent or to Selling Agent’s designee.

 (r)    Selling Agent shall submit to the General Partner at least five business days prior to a redemption date a
list that includes the name of each Selling Agent Client who has requested a redemption as of such date and the number of Units each wishes to redeem. 

(s)    The General Partner, on behalf of the applicable Partnership, may suspend or terminate the offering of Units at any
time as to specific investors, as to specific jurisdictions or otherwise. Upon notice to Selling Agent of the terms of such suspension or termination, Selling Agent shall suspend solicitation of subscriptions for Units in accordance with such terms
until the Partnership notifies Selling Agent that such solicitation may be resumed. 
  

	3.	Fees and Expenses.  

 (a)    Each Partnership shall pay
Selling Agent the fees listed in Schedule 2, as such fees may be changed from time to time. With respect to Selling Agent Clients that do not participate in Selling Agent’s advisory program (a
“Non-Consulting Client”), each Partnership shall pay Selling Agent (i) the monthly ongoing selling agent fee (“Ongoing Selling Agent Fee”) listed in Schedule 2 and (ii) the
monthly intermediary services fee (the “Financial Intermediary Services Fee”) listed in Schedule 2, if any. With respect to Selling Agent Clients that participate in Selling Agent’s advisory program (each a “Consulting
Client”), each Partnership shall pay Selling Agent the Financial Intermediary Services Fee listed in Schedule 2, if any. The fees shall be payable monthly beginning with the first month that a Unit is issued. 

(b)    Selling Agent may pass the Ongoing Selling Agent Fee or a portion thereof on to its associated persons who are
registered as such with the CFTC and NFA and have passed the Series 3 or 31 Commodity Futures Examination or have been “grandfathered” as an associated person qualified to do commodity brokerage, or have a valid exemption from such
registrations. 
 (c)    Selling Agent, the Partnership(s), and the General Partner agree that Selling Agent shall not
be entitled to receive the Ongoing Selling Agent Fee with respect to Consulting Clients and such Consulting Clients shall be entitled to invest in the Partnership(s) on the following terms: 

(i)    The Partnership(s) and the General Partner acknowledge that each Consulting Client shall be
permitted to acquire lower fee, Class Z Units (as defined in the applicable Partnership’s Memorandum). 

  
 -7- 

 (ii)    Neither the Partnership(s) nor the General Partner shall pay any
Ongoing Selling Agent Fee to Selling Agent in respect of any Consulting Client and Selling Agent shall not charge Ongoing Selling Agent Fee with respect to such Consulting Clients. 

(iii)    If a Consulting Client ceases to participate in advisory program of Selling Agent, such Consulting Client shall
become a Non-Consulting Client if it remains a limited partner. The Units of such Non-Consulting Client will, beginning on the first day of the month following the date
that such Consulting Client becomes a Non-Consulting Client, (i) convert to the appropriate class of Units based on the aggregate capital contributions made by such limited partner, adjusted for
additional subscriptions, redemptions and exchanges and (ii) become subject to the applicable Ongoing Selling Agent Fee. While any such limited partner will have the right to redeem its Units, such redemption rights may be limited, requiring
such limited partner to bear the Ongoing Selling Agent Fee in respect of any such Units for an extended period of time. Selling Agent shall notify the General Partner that such Consulting Client has become a
Non-Consulting Client and be entitled to an Ongoing Selling Agent Fee for such Non-Consulting Client thereafter pursuant to the terms hereof. 

(d)    Selling Agent will designate each prospective investor it introduces to the Partnership(s) as either a Consulting
Client or a Non-Consulting Client. Each Partnership and the General Partner acknowledges that each Non-Consulting Client shall be permitted to acquire Class A or
Class D Units (as defined in the applicable Partnership’s Memorandum). 
 (e)    If Selling Agent becomes
aware that a limited partner is no longer a client of Selling Agent, it shall promptly inform the General Partner and if the General Partner becomes aware that a limited partner is no longer a client of Selling Agent, the General Partner shall
promptly notify Selling Agent. Once a limited partner is no longer a client of Selling Agent, the Partnership will no longer be obligated to pay the Ongoing Selling Agent Fee attributable to such limited partner. Notwithstanding the foregoing, a
limited partner may be a client of Selling Agent and another broker-dealer at the same time, and the fact that such limited partner is a client of another broker-dealer may not, by itself, serve as evidence that such limited partner is not a client
of Selling Agent. 
 (f)    The Partnerships and Selling Agent shall each bear their own expenses in connection with the
solicitation of prospective investors, including expenses of preparing, reproducing, mailing and/or delivering offering and sales materials. 

4.      Representations, Warranties and Agreements of the Partnerships and the General Partner. Each Partnership and the
General Partner (for purposes of Section 4 and Section 5 only, each a “Party”) severally, and not jointly, represent and warrant to Selling Agent and agree with Selling Agent as follows: 

(a)    It is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation or
organization, and it has full power and authority under applicable laws, rules or regulations to conduct its business as contemplated by the Offering Materials. 

  
 -8- 

 (b)    The execution, delivery and performance of this Agreement has been
duly authorized by all necessary action of each Party, and upon the execution and delivery hereof, this Agreement shall constitute a valid, binding and enforceable obligation of such Party. 

(c)    The execution, delivery and performance of this Agreement, the incurrence of the obligations set forth herein and
the consummation of the transactions contemplated herein and in the Offering Materials, including the issuance and sale of the Interests, shall not constitute a breach of or default under any agreement or instrument by which such Party is bound, or
to which any of its assets is subject, or any order, rule or regulation applicable to it of any court or any governmental body or administrative agency having jurisdiction over it. 

(d)    Subject only to Section 5(d), the Offering Materials, as of the date hereof and at any subsequent time during
the term of this Agreement, do not and shall not contain any materially untrue statement of a material fact, or omit to state any material fact required to be stated therein or necessary in order to make the statements contained therein, in light of
the circumstances under which they are made, not materially misleading. (With regard to sales material, advertising or subscription documentation prepared by Selling Agent and approved in writing by the General Partner, such representation and
warranty extends only to statements regarding the Partnership, the General Partner, or other matters relating to the business of each of these and as to which any of them reasonably has, or should have, knowledge.) At all times during which Selling
Agent Client(s) own(s) an Interest, the General Partner shall, as soon as commercially practical, (i) notify Selling Agent of any event that materially affects the Partnership and which should be set forth in an amendment or supplement to the
Offering Documents in order to make the statements therein not materially misleading in light of the circumstances under which they are made and (ii) promptly prepare and furnish to Selling Agent copies of an amendment or supplement to the
Offering Documents, in order that the Offering Documents will not contain any materially untrue statement of any material fact or omit to state a material fact which is necessary to make the statements therein not materially misleading in light of
the circumstances under which they are made. 
 (e)    The Partnership shall not offer Units under any of the provisions
of this Agreement and no subscriptions for Units shall be accepted by the Partnership unless a current Memorandum is on file with the National Futures Association (“NFA”), if required. 

(f)    The Interests have been duly authorized for issuance and sale, and, when issued and subscribed for in the amounts
and for the consideration described in the Offering Materials, shall be entitled to the rights and subject to the restrictions and conditions contained in the Organizational Documents; no limited partner shall be personally liable for the debts of
and claims against the Partnership in which it is invested by the mere reason of being a limited partner; and all necessary action required to be taken for authorization, issue and sale of the Interests has been validly and sufficiently taken. 

  
 -9- 

 (g)    It is not necessary in connection with the offer, sale and delivery of
the Interests in the manner contemplated by this Agreement to register the Interests under the Securities Act or, to the best knowledge of such Party, the laws of any other jurisdiction where it is being offered. Each Party shall conduct itself, and
ensure that its agents conduct themselves, in a manner consistent with the exemption from registration under Section 4(a)(2) of the Securities Act and the rules and regulations promulgated thereunder and, without limitation, shall not use, or
permit any other person to use, any form of prohibited solicitation or advertising in making offers of Interests. 

(h)    The General Partner is registered as a commodity pool operator under the Commodity Exchange Act (“CEA”)
with respect to the Partnerships. 
 (i)    Each Party acknowledges that in performing the services contemplated hereby,
Selling Agent shall be entitled to rely upon and assume, without independent verification, the accuracy and completeness of all information that has been provided to it by, or on behalf of, the Partnerships or the General Partner, and that Selling
Agent, subject only to Section 5(d), has no obligation to verify the accuracy or completeness of any such information and shall have no liability to the Partnerships, the General Partner or any third party for any information contained in the
Offering Materials. 
 (j)    Each Partnership and the General Partner agree to provide the Selling Agent copies of any
communications to the Selling Agent Clients in respect of the operation and performance of each Partnership. Communications which are provided on a regular basis such as capital account statements, monthly and/or quarterly investor materials and
capital call notices, if any, will be distributed to the Selling Agent when such communications are distributed to Selling Agent Clients, or otherwise on request from the Selling Agent. Each Partnership and the General Partner agree that the Selling
Agent may use such communications in connection with reports issued by the Selling Agent to the applicable Selling Agent Clients to which such communications were directed. Each Partnership and the General Partner agree to respond as soon as
practicable to inquiries of the Selling Agent Clients and prospective investors as communicated by the Selling Agent and will copy the Selling Agent on all such communications. 

(k)    Each Partnership and the General Partner agree to maintain, or cause to be maintained, accurate books and records
consistent with the terms of the Offering Materials in connection with their respective performance under the Agreement for the term of this Agreement or longer as required by applicable laws, rules or regulations. Such information shall be made
available to representatives of the Selling Agent upon prior written notice and at reasonable times to the extent permitted by law. 

(l)    The representations and warranties set forth in this Agreement are continuing during the term of this Agreement and
each Party agrees to notify Selling Agent promptly in writing if at any time during the term of this Agreement, any such representation or warranty becomes materially inaccurate or untrue and of the facts related thereto. 

  
 -10- 

 (m)    Each Party acknowledges that Selling Agent enters into this Agreement
in reliance on the representations, warranties and agreements of the Partnerships and the General Partner contained herein. 

5.      Representations, Warranties and Agreements of Selling Agent. Selling Agent represents and warrants to and agrees
with, the Partnerships and the General Partner as follows: 
 (a)    Selling Agent is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization and Selling Agent has full power and authority under applicable laws, rules or regulations to engage in the activities contemplated under this Agreement. 

(b)    The execution, delivery and performance of this Agreement has been duly authorized by all necessary action of
Selling Agent, and upon the execution and delivery hereof, this Agreement shall constitute a valid, binding and enforceable obligation of Selling Agent. 

(c)    The execution, delivery and performance of this Agreement, the incurrence of the obligations set forth herein and
the consummation of the transactions contemplated herein shall not constitute a breach of or default under any agreement or instrument by which Selling Agent is bound, or to which any of its assets is subject, or any order, rule or regulation
applicable to it or of any court or any governmental body or administrative agency having jurisdiction over it. 

(d)    Any information provided in writing by the Selling Agent to any one or more Parties for the specific purpose of
inclusion of such information in any of the Offering Materials does not and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under
which they were made, not misleading. 
 (e)    Selling Agent (or any designee to which it delegates its right and
obligations hereunder with the prior written approval of the General Partner) has and shall maintain all licenses, memberships and registrations necessary under applicable federal and state laws, rules and regulations, including the rules and
regulation of any self-regulatory organization with competent jurisdiction, to provide the services required to be provided by Selling Agent (or such designee) hereunder or determine that such designee is exempt from such license, membership or
registration. Selling Agent is registered as a broker-dealer and an investment adviser with the SEC and with the securities commission (or similar agency) of each state in which it is required to be so registered under the blue sky laws of each such
state and is admitted to membership in the Financial Industry Regulatory Authority, Inc. (“FINRA”). Selling Agent’s authority under its FINRA membership contemplates that Selling Agent may act as a selling agent for securities in the
manner contemplated by this Agreement. 

  
 -11- 

 (f)    On or before Selling Agent, in its capacity as the Investment Advisor,
refers a Consulting Client to a Partnership, it shall either (i) be registered with the CFTC as a commodity trading advisor and become a member of the NFA or (ii) provide evidence of its qualification for an exemption from such
registration. 
 (g)    To the reasonable knowledge of Selling Agent, Selling Agent has not solicited and shall not
solicit any offer to buy or offer to sell Interests in any manner that would be inconsistent with applicable laws and regulations, or in any manner that would be inconsistent with the solicitation and advertising limitations of Regulation D under
the Securities Act or any state securities laws. Selling Agent shall conduct itself and take reasonable measures to ensure that its respective agents conduct themselves, in a manner consistent with (i) the exemption from registration under
Section 4(a)(2) of the Securities Act and the rules and regulations promulgated thereunder, including, without limitation the requirements of Regulation D under the Securities Act, and (ii) any applicable state law exemptions from
registration. Selling Agent has not and will not solicit any offer to buy or sell Units in any jurisdiction in which it and its personnel are not duly licensed to do so. 

(h)    Selling Agent will appropriately disclose to each subscriber of Units that is a Selling Agent Client the
compensation Selling Agent will receive for its services in selling Units and will provide the General Partner with the Selling Agent Client’s acknowledgment of such disclosure. 

(i)    Selling Agent shall not offer Units under any of the provisions of this Agreement and no subscriptions for Units
shall be accepted unless it has received prior confirmation from the General Partner or the Partnership that a current Memorandum is on file with the NFA, if required. 

(j)    Selling Agent shall furnish to each subscriber of Units that is a Selling Agent Client the most current copy of the
applicable Partnership’s Memorandum and the Subscription Agreement, the additional subscription documentation, and any other such additional information as the Partnership or the General Partner sees fit or as may be reasonably requested by the
General Partner or required by applicable law or regulation, prior to such person’s admission as a limited partner of the Partnership; provided that the General Partner or the Partnership shall provide such documentation to Selling Agent in
sufficient quantities as Selling Agent shall reasonably request. In the case of an additional investment by a Selling Agent Client, prior to the acceptance of an additional subscription, Selling Agent will furnish each Selling Agent Client with the
most current copy of the Memorandum and the Subscription Agreement, and any other additional information as the Partnership or the General Partner sees fit or as may be reasonably requested by the General Partner or required by applicable law or
regulation. 

  
 -12- 

 (k)    Selling Agent will not sell Units to any potential investor that does
not qualify as an accredited investor under Rule 501 of Regulation D under the Securities Act. 
 (l)    Selling Agent
represents and warrants that it has policies and procedures reasonably designed to comply with applicable anti-money laundering and anti-terrorist financing laws, rules and regulations (including the USA Patriot Act) of the United States, as amended
from time to time. Selling Agent undertakes that it shall: (a) conduct its operations in accordance with applicable laws, regulations and regulatory interpretations, including all relevant sections of the USA Patriot Act; (b) provide
access to its books, records and operations relating to its anti-money laundering compliance by appropriate regulatory authorities, and if appropriate under the circumstances (subject to applicable law), by the General Partner and the Partnership;
(c) look through any nominees or intermediaries to the ultimate beneficial owner of Units, as required by law; (d) upon the request of a regulatory authority, provide copies of records of any investor due diligence performed; and
(e) certify in writing at least annually, upon written request, that it has implemented an anti-money laundering program in accordance with applicable rules and regulations of a federal functional regulator, as that term is defined for purposes
of 31 CFR §103.122, and that it is in compliance with all applicable anti-money-laundering laws, rules, regulations and regulatory interpretations. 

(m)    Selling Agent represents and warrants that it has in force policies, procedures, and internal controls reasonably
designed to ensure compliance with economic sanctions programs administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), including prohibitions set forth in OFAC’s Specially
Designated Nationals and Blocked Persons List (the “SDN List”), as well as sanctions programs administered or enforced by the European Union, United Nations and Her Majesty’s Treasury (United Kingdom), as applicable. Without prejudice
to any of the foregoing representations and covenants, Selling Agent will not, as applicable, sell or permit the Interests to be sold to, or purchase or hold the Interests for or on behalf of, any individual, entity, organization or government that
(a) is or becomes designated on the OFAC SDN List or (b) is incorporated, resident or located in any country, territory or region subject to comprehensive, geographic OFAC sanctions (currently, the Crimea region, Cuba, Iran, North Korea,
and Syria). 
 (n)    Without the prior written consent of the General Partner, Selling Agent will not sell Units to any
potential investor that represents it is, or will become, a “Benefit Plan Investor” within the meaning of U.S. Department of Labor Regulation 29 CFR 2510.3-101, as amended by the Pension Protection
Act of 2006 (the “Plan Assets Regulation”). A “Benefit Plan Investor” is, including but not limited to, any plan or fund organized by an employer or employee organization subject to Title I of the Employee Retirement Income
Security Act of 1974, as amended, or any plans subject to Section 4975 of the Internal Revenue Code of 1986 to provide retirement, deferred compensation, welfare or similar benefits to employees or beneficiaries, including an entity described
in Section (g) of the Plan Assets Regulation, in which 25% or more of any class of equity interests is owned by such plans and that is primarily engaged in the business of investing capital. Further, Selling Agent will not sell Units to any
potential investor who is “Benefit Plan Investor” unless such potential investor is represented by an independent fiduciary with financial expertise within the meaning of 29 U.S.C.
Section 2510.3-21(c) (the “Seller’s Exception”), and the Selling Agent reasonably believes the requirements of the Seller’s Exception will be satisfied, and the Selling Agent and the
General Partner will rely on representations from such Benefit Plan Investor to that effect in the Subscription Agreement. 

  
 -13- 

 (o)    Selling Agent will not sell Units to any person unless, immediately
before making such sales, Selling Agent reasonably believes such person (i) would be able to represent that such person is acquiring the Units for such person’s own account as principal for investment and not with a view to resale or
distribution and (ii) meets such other suitability standards as are specified in the applicable Partnership’s Memorandum and any other conditions contained in the accompanying subscription materials. With respect to state blue sky
requirements, Selling Agent agrees to cooperate with the General Partner as reasonably necessary for the General Partner to effectuate any required or advisable filings. Additionally, Selling Agent shall be responsible for issues relating to the
licensing of its representatives and agents in such jurisdictions. 
 (p)    For each Selling Agent Client, Selling
Agent shall submit an executed copy of the completed Subscription Agreement, signed by a person authorized to bind Selling Agent, which was used by Selling Agent to verify the Selling Agent Client’s qualifications as an eligible investor. 

(q)    Selling Agent shall furnish to each Partnership a description of all material pending and prior litigation and
regulatory actions involving Selling Agent and its subsidiaries, required to be disclosed in the Partnership’s Memorandum during the term of this Agreement. 

(r)    Selling Agent will not externally publish or furnish any offering literature, advertising or marketing or other
materials that contain any reference to the Partnership or the General Partner without the prior written consent of the General Partner contemplated by Section 2(b) hereof. No employee of Selling Agent or other person acting on behalf of
Selling Agent is authorized to make any representation (oral or otherwise) concerning the Partnership or the Units except those contained in the Offering Materials. 

(s)    Selling Agent has adopted suitability and other compliance policies and procedures with respect to offerings to
investors subject to minimum eligibility qualifications, and will do all that is reasonable in the industry to ensure that such policies and procedures remain current with all applicable regulatory requirements and are enforced during the term of
this Agreement. Selling Agent has read and is aware of FINRA Rule 2111 relating to a FINRA member’s suitability obligations to institutional (and sophisticated) customers. 

(t)    Selling Agent will (a) maintain all records required by law to be kept by it relating to transactions in Units
of the Partnership by or on behalf of Selling Agent Client and compensation received by Selling Agent in respect thereto, (b) upon request by the General Partner in connection with a governmental, court or administrative proceeding,
investigation or request, promptly make such records available to such requesting party, and (c) promptly notify the General Partner if Selling Agent experiences any difficulty in maintaining the records described in the foregoing clause in an
accurate and complete manner. 

  
 -14- 

 (u)    Selling Agent has and maintains policies, procedures, and internal
controls that are reasonably designed to ensure that no Covered Person identified in Appendix A subject to disqualification is permitted to participate in any of a Partnership’s offerings pursuant to Rule 506. Selling Agent represents
that it has exercised reasonable care, in accordance with section (e) of Rule 506 in making a factual inquiry into whether any Covered Person is the subject of any of the acts enumerated in Rule 506(d)(1)(i) through (viii) or that would
cause a Partnership to be unable to rely upon Rule 506 (each a “Disqualifying Event”). Selling Agent agrees (i) to prepare and provide the General Partner and each Partnership with disclosure relating to any Disqualifying Event
involving a Covered Person that occurred prior to September 23, 2013, in accordance with the method of disclosure under Rule 506(e) (the “Prior Disqualifying Event(s)”) and any Disqualifying Event involving a Covered Person the
disclosure of which is required by a regulator in connection with a Regulation D offering as a result of a settlement or otherwise (the “Disclosable Disqualifying Event(s)”) and (ii) that each Partnership may disclose the Prior
Disqualifying Event(s) or Disclosable Disqualifying Event(s). 
 (v)    The representations and warranties set forth in
this Agreement are continuing during the term of this Agreement and Selling Agent agrees to notify each of the Partnerships and the General Partner promptly in writing if at any time during the term of this Agreement, any such representation or
warranty becomes materially inaccurate or untrue and of the facts related thereto. 
 (w)    Selling Agent acknowledges
that each of the Partnerships and the General Partner enter into this Agreement in reliance on the representations, warranties and agreements of Selling Agent contained herein. 

6.      Covenants of Selling Agent. 

(a)    Selling Agent will promptly notify the Partnerships and the General Partner if it becomes aware of any Covered
Person who is or becomes the subject of a Disqualifying Event. 
 (b)    Selling Agent shall, to the extent practicable
and reasonable, make available personnel to the General Partner to respond to reasonable queries about its processes directly related to identifying Covered Persons and Disqualifying Events under Rule 506(d) and confirm that the representations made
in Section 5(s) are accurate and complete. 

  
 -15- 

 (c)    Selling Agent will promptly provide the General Partner and each
Partnership any updates, revisions or amendments to its disclosure regarding Prior Disqualifying Events and Disclosable Disqualifying Events. 

7.     Indemnification. 

(a)    Each Partnership shall indemnify, hold harmless, and defend Selling Agent, each person who controls Selling Agent
within the meaning of Section 15 of the Securities Act or Section 20(a) of the Securities Exchange Act of 1934, and their respective officers, directors, partners, members, shareholders, employees, agents and affiliates from and against
any losses, claims, damages or liabilities (or actions in respect thereof) (“Covered Claims”) arising out of or relating to (i) subject only to Section 5(d), any untrue statement or alleged untrue statement of material fact or
any omission of a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading in any Offering Materials or in any advertising or promotional material approved, published or
provided to Selling Agent by or on behalf of the applicable Partnership or the General Partner or accurately derived from information approved, published or provided to Selling Agent by or on behalf of the applicable Partnership or (ii) any
breach by the applicable Partnership or the General Partner of any representation, warranty or agreement contained in this Agreement, except to the extent that any such Covered Claim is caused by breach of this Agreement by Selling Agent or its
officers, directors, partners, members, shareholders, employees, agents and affiliates or the willful misconduct, negligence, bad faith or reckless disregard of any of the foregoing in the performance of, or failure to perform, their obligations
under this Agreement. 
 (b)    Selling Agent shall indemnify, hold harmless, and defend each of the Partnerships and
the General Partner, each person who controls any of the foregoing within the meaning of Section 15 of the Securities Act or Section 20(a) of the Securities Exchange Act of 1934, and their officers, directors, partners, members,
shareholders, employees, and agents from and against any Covered Claims arising out of or relating to (i) any breach by Selling Agent of any representation, warranty or agreement contained in this Agreement, (ii) failure of Selling Agent
to comply with marketing rules or private placement rules in any jurisdiction, (iii) any untrue statement, or alleged untrue statement of a material fact, made by Selling Agent in connection with Selling Agent’s placement of the Interests
that is not in reliance on or in conformity with the Offering Materials, or (iv) willful misconduct, negligence, bad faith or reckless disregard by Selling Agent (or its officers, directors, partners, members, shareholders, employees, agents
and affiliates) in the performance of, or failure to perform, its obligations under this Agreement, except in each case to the extent that any Covered Claim is caused by breach of this Agreement by any of the Partnerships or the General Partner or
their officers, directors, partners, members, shareholders, employees, agents and affiliates or the willful misconduct, negligence, bad faith or reckless disregard of any of the foregoing in the performance of, or failure to perform, their
obligations under this Agreement. This indemnity will be in addition to any liability which Selling Agent may otherwise have incurred under this Agreement. 

  
 -16- 

 (c)    Promptly after receipt of notice of any claim or complaint or the
commencement of any action or proceeding with respect to which an indemnified party is entitled to seek indemnification hereunder, the indemnified party shall notify the indemnifying party in writing of such claim or complaint or the commencement of
such action or proceeding. In case any such action is brought against any indemnified party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent it may
elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel satisfactory to such indemnified party; provided, however, that if, in
the judgment of such indemnified party, a conflict of interest exists where it is advisable for such indemnified party to be represented by separate counsel, the indemnified party shall have the right to employ separate counsel in any such action,
in which event the fees and expenses of such separate counsel shall be borne by the indemnifying party or parties. After notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof and the approval
by the indemnified party of counsel, the indemnifying party shall not be liable to such indemnified party under such subsections for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified
party, in connection with the defense thereof other than reasonable costs of investigation unless (i) the indemnified party shall have employed separate counsel in accordance with the provision to the next preceding sentence (it being
understood, however, that the indemnifying party or parties shall not be liable for the expenses of more than one such separate counsel representing the indemnified parties who are parties to such action), (ii) the indemnifying party or parties
shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action or (iii) the indemnifying party or parties have authorized the
employment of counsel for the indemnified party at the expense of the indemnifying party or parties; and except that, if clause (i) or (iii) is applicable, such liability shall be only in respect of the counsel referred to in such clause
(i) or (iii). No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding. 

(d)    If the foregoing indemnification is for any reason unavailable to an indemnified party (other than by reason of the
terms thereof), the indemnifying party shall contribute to the Covered Claims that are paid or payable by the indemnified party in such proportion as is appropriate to reflect the relative economic interests of the indemnifying party, on the one
hand, and the indemnified party, on the other hand, in the transactions contemplated by this Agreement (whether or not consummated) and any other relevant equitable considerations. For purposes of this paragraph, the relative interests of the
applicable Partnership and the General Partner, on the one hand, and Selling Agent, on the other hand, in the transactions contemplated by this Agreement, shall be deemed to be in the same proportion as (i) the total proceeds received or
contemplated to be received by the applicable Partnership and the General Partner in the transactions contemplated by this Agreement (whether or not any such transaction is consummated) bears to (ii) the fees paid or to be paid to Selling Agent
under the Agreement; provided however, that to the extent permitted by applicable law, in no event shall the applicable Partnership and the General Partner contribute less than the amount necessary to ensure that all indemnified parties, in
the aggregate, are not liable in excess of the amount of fees actually received by Selling Agent pursuant to this Agreement. 

  
 -17- 

 (e)    The foregoing indemnity shall be in addition to any liabilities
that the parties may otherwise have incurred hereunder. 
  

	8.	Confidentiality. 

 (a)    As required by applicable provisions of the
Gramm-Leach-Bliley Act, as well as other federal, state and international privacy and data security laws and regulations, and at all times in accordance with the applicable Partnership’s privacy policy described in its Memorandum, Selling
Agent, the General Partner and the Partnership each respectively agree to provide appropriate protections for “Nonpublic Personal Information” of persons invested in the Partnership. Each party acknowledges that, in performing its
obligations under this Agreement, it may have access to confidential and proprietary information of the other party (“Confidential Information”). The parties agree that information concerning any potential investor introduced by Selling
Agent to the Partnerships or the General Partner is the Confidential Information of Selling Agent. By way of illustration but not of limitation, “Confidential Information” includes any “Nonpublic Personal Information”2 regarding prospective investors and limited partners or members, trade secrets, data, know-how, accounting data, statistical data, financial data or
projections, forecasts, business practices or policies, research projects, reports, development and marketing plans, strategies, or other business information that is not generally known or available to the public. The term “Confidential
Information” does not include information that: (i) is or becomes generally available to the public other than as a result of an improper disclosure by the disclosing party; (ii) was rightfully available to a party on a non-confidential basis before its disclosure by the other party; (iii) was independently developed by the receiving party or (iv) becomes available to a party on a
non-confidential basis from a source other than the other party, provided that such source is not prohibited from transmitting the information by a contractual, legal, or fiduciary obligation. 

(b)    Except to the extent necessary to perform its obligations under this Agreement, no party may disclose or use any of
the other parties’ Confidential Information. Each party shall maintain the confidentiality of the other parties’ Confidential Information in its possession or control. For the avoidance of doubt, no party may provide information concerning
the Partnerships or prospective investors to 
  
  

2 “Nonpublic Personal Information” means any nonpublic information that is obtained by a party
that by itself or in combination any other information may be used to identify an individual or the existence of a nonpublic relationship between the Partnerships and prospective investors and limited partners or members.

  
 -18- 

 
any third party knowing that such third party may use such information in any form of publication, whether publicly or privately distributed, without the express prior written approval of the
other parties. Each party shall limit the disclosure of the other parties’ Confidential Information to those of its employees and agents with a need to know such Confidential Information for purposes of this Agreement. Each party shall use
reasonable care to prevent its employees and agents from violating the foregoing restrictions. Notwithstanding the above, Confidential Information may be disclosed to the extent required by law or by an order or decree of any court or other
governmental authority or a request is made by a governmental authority, regulatory agency or self-regulatory agency; provided, however, that each party shall, to the extent practicable, if legally compelled to disclose such information:
(i) provide the applicable party, to the extent permitted by law, with prompt written notice of that fact so that the other party may attempt to obtain a protective order or other appropriate remedy and/or waive compliance with the provisions
of this Section 8; (ii) disclose only that portion of the information that a party’s legal counsel advises is legally required; and (iii) endeavor to obtain assurance that confidential treatment shall be accorded the information so
disclosed. Notwithstanding the foregoing, limited partners shall also be governed by the privacy policy included in the Offering Materials. 

(c)    On written request or on the expiration or termination of this Agreement, each party shall return to the other
parties or destroy all Confidential Information in its possession or control, provided that each party may retain a single archival copy of any document or information that such party is obligated to maintain pursuant to record keeping requirements
to which it is subject under applicable laws, rules or regulations, but for only so long as such records are required to be maintained. 

(d)    Selling Agent shall provide the Partnerships with immediate notification following the discovery of any security
breaches that have occurred, or are reasonably believed to have occurred, that may compromise the Partnerships’ Nonpublic Personal Information. Selling Agent must provide all information requested by the Partnerships in order to fulfill
its legal and regulatory compliance obligations regarding any such security breach. 
 (e)    Selling Agent shall
maintain reasonable security procedures and practices in order to protect the Partnerships’ Nonpublic Personal Information in accordance with the standards of applicable laws, rules, regulations and industry best practices that are reasonably
designed to help safeguard the Nonpublic Personal Information from unauthorized access, use, modification, disclosure, acquisition or destruction. 

(f)    Selling Agent shall provide the Partnerships with copies of all policies and procedures related to data security
upon request. Such documentation must be provided no less than annually and promptly any time a substantive revision is made. 

(g)    Selling Agent shall provide the Partnerships with their most recent third party data security audits no less than
annually; 

  
 -19- 

 (h)    Selling Agent shall not use, store, maintain or process the
Partnerships’ Nonpublic Personal Information outside of the United States without the prior written consent of the Partnerships; 

(i)    Any subcontractor that will have access to the Partnerships’ Nonpublic Personal Information must be
preapproved by the Partnerships and any such subcontractor must be contractually required to comply with the Confidentiality section in this Agreement. Selling Agent shall provide to the Partnerships any and all information about its subcontractors
that Selling Agent would be required to provide the Partnerships directly as a result of the Confidentiality obligations in this Agreement. 

(j)    Selling Agent shall maintain insurance to cover losses related to cybersecurity incidents and data breaches. 

 

	9.	Term and Termination. 

 (a)    This Agreement shall continue in
effect until September 30, 2018. The General Partner or a Partnership may, in its sole discretion, renew this Agreement for additional one year periods upon notice to Selling Agent not less than 30 days prior to the expiration of the previous
period. After September 30, 2018, any party may terminate this Agreement on thirty days’ prior written notice to the other parties. 

(b)    Notwithstanding Section 9(a), this Agreement may be terminated immediately on written notice to the other
parties hereto on the dissolution, insolvency or bankruptcy of any party and upon a material breach of any condition, warranty, representation or other term of this Agreement by the other party. 

(c)    Notwithstanding Section 9(a), a Partnership may, in its sole discretion, immediately terminate this Agreement
on written notice to Selling Agent (or may terminate this Agreement on such future date as indicated in such notice) upon such Partnership becoming aware of a Disqualifying Event occurring on or after September 23, 2013 with respect to Selling
Agent or any of its Covered Persons. 
 (d)    Notwithstanding the foregoing, if this Agreement relates to more than one
Partnership, the termination of the Agreement with respect to any one Partnership shall not result in the termination of the Agreement with respect to the other parties thereto. 

10.    Notices. Any notice required or desired to be delivered under this Agreement shall be effective on actual receipt and shall
be in writing and (i) delivered personally; (ii) sent by first class mail or overnight delivery, postage prepaid; (iii) transmitted by electronic mail (with confirmation of delivery and receipt); or (iv) transmitted by fax (with
confirmation by first class mail, postage prepaid) to the parties at the following address or such other address as the parties from time to time specify in writing: 

  
 -20- 

			
	 If to the Partnership or the General Partner :

 
 [Name of Partnership]

c/o Ceres Managed Futures LLC

522 5th Avenue

New York, NY 10036

Fax: 212-507-2065

Email: Patrick.Egan@morganstanley.com

Attention: Patrick Egan, President
  

With a copy to:

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 10019

Email: RMolesworth@willkie.com

Attention: Rita Molesworth
	  	 If to Selling Agent:
  

Harbor Investment Advisory, LLC
 2330 West Joppa Road, Suite
160,
 Lutherville, MD 21093
 Fax: 410-659-8899
 Email: bbrennen@harborllc.com

Attention: Betsy B. Brennen

 11.    Status of Parties. In selling the Interests, Selling Agent shall be an independent
contractor (rather than employee, agent or representative) of any Partnership or the General Partner, and Selling Agent shall not have the right, power or authority to enter into any contract or to create any obligation on behalf of any Partnership
or the General Partner or otherwise bind any Partnership or the General Partner in any way. Nothing in this Agreement shall create a partnership, joint venture, agency, association, syndicate, unincorporated business or any other similar
relationship between the parties. Nothing in this Agreement shall be construed to imply that Selling Agent is a partner, shareholder, manager, managing member or member of any Partnership or the General Partner. 

12.    Services Not Exclusive. The services to be rendered by Selling Agent hereunder shall be provided on a non-exclusive basis. Selling Agent shall be free throughout the term of this Agreement and after the termination hereof to provide the same or different marketing services to other funds on the same or on different
terms and conditions. Nothing herein shall restrict Selling Agent or its affiliates from creating or marketing any other product or investment vehicle. 

13.    Limitation of Liability. The parties to this Agreement agree that the obligations of the Partnership(s) under this Agreement
shall not be binding upon any limited partner of the Partnership(s) or any officers, employees or agents of the Partnership(s), whether past, present or future, individually, but are binding only upon the assets and property of the Partnership(s).

  
 -21- 

	14.	Miscellaneous. 

 (a)    Headings. Headings to sections and
subsections in this Agreement are for the convenience of the parties only and are not intended to be a part of or affect the meaning or interpretation hereof. 

(b)    Entire Agreement. This Agreement embodies the entire agreement and understanding of the parties with respect
to the subject matter hereof, and supersedes all other agreements and understandings whether written or oral, between the parties relating to the subject matter hereof entered into prior to this Agreement. 

(c)    Amendments. This Agreement shall not be amended except by a writing signed by all parties hereto.
Notwithstanding the previous sentence, Partnerships may be added to this Agreement upon the agreement of the General Partner and Selling Agent. The listing of such Partnership on Schedule 1 hereto shall be evidence of such agreement. 

(d)    Waiver. No waiver of any provision of this Agreement shall be implied from any course of dealing between the
parties hereto either before or after the effective date of this Agreement or from any failure by any party hereto to assert its rights hereunder on any occasion or series of occasions. 

(e)    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of
New York. The provisions of Sections 3, 7 (including with respect to breaches of Section 4 or 5), 8, 9, and this Section 14 shall survive termination of this Agreement. If any provision of this Agreement is or should become inconsistent
with any present or future law, rule, or regulation of any governmental or regulatory authority having jurisdiction over the subject matter of this Agreement, such provision shall be deemed rescinded or modified in accordance with any such law, rule
or regulation. In all other respects, this Agreement shall continue and remain in full force and effect. 

(f)    Successors and Assigns. This Agreement shall inure to the benefit of and be binding on the parties hereto
and such parties’ respective successors and permitted assigns. 
 (g)    Assignment. No party may assign
this Agreement without the prior written consent of the other parties. Any purported assignment in violation of this Section 14 shall be void. 

(h)    Jurisdiction and Consent. THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE
NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN NEW YORK CITY OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND WAIVE TRIAL BY JURY. EACH OF THE PARTIES
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT 

  
 -22- 

 
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE PARTIES AGREES THAT A FINAL JUDGMENT IN ANY SUCH SUIT, ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND BINDING UPON THE PARTIES AND MAY BE
ENFORCED IN ANY OTHER COURTS TO WHOSE JURISDICTION A PARTY IS OR MAY BE SUBJECT, BY SUIT UPON SUCH JUDGMENT. EACH PARTNERSHIP AND THE GENERAL PARTNER EACH HEREBY CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUIT, ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT BY MEANS OF PERSONAL DELIVERY OR COURIER SERVICE, ADDRESSED TO ITS ADDRESS PROVIDED ABOVE AND TO THE ATTENTION OF ANY SECRETARY, ASSISTANT SECRETARY OR ANY OTHER OFFICER, DIRECTOR, MANAGING
AGENT OR GENERAL AGENT OF SUCH PARTY, AND SUCH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE UNDER NEW YORK LAW OR UNDER ANY LAW OF ANY STATE OF THE UNITED STATES OR OF ANY OTHER
JURISDICTION OR OTHERWISE TO SERVICE OF PROCESS IN SUCH MANNER. 
 (i)    Counterparts. This Agreement may be
executed in several counterparts, including via facsimile or email, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Facsimiles (including facsimiles of the signature pages of this
Agreement) shall have the same legal effect hereunder as originals. 
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

  
 -23- 

 IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed as of the
day and year first above written. 
  

									
	 THE PARTNERSHIPS LISTED ON

SCHEDULE 1 HERETO
	  		 	 Harbor Investment Advisory LLC

					
	By:	 	Ceres Managed Futures LLC	  		 		 	
					
	Name:	 	 /s/ Patrick T. Egan
	  		 	Name:	 	 /s/ Betsy B. Brennen

		 	Patrick T. Egan	  		 		 	Betsy B. Brennen
					
	Title:	 	President	  		 	Title:	 	Chief Compliance Officer
				
		 		  		 	 Ceres Managed Futures LLC

					
		 		  		 	Name:	 	 /s/ Patrick T. Egan

		 		  		 		 	Patrick T. Egan
					
		 		  		 	Title:	 	President

  
 -24- 

 Schedule 1 
  

					
	PARTNERSHIP	 	STATE AND DATE OF
ORGANIZATION	 	EFFECTIVE DATE
	Orion Futures Fund L.P.	 	New York; March 22, 1999	 	January 19, 2018
	Ceres Tactical Macro L.P.	 	Delaware; August 23, 2010	 	January 19, 2018
	Managed Futures Premier Graham L.P.	 	Delaware; July 15, 1998	 	January 19, 2018
	Ceres Tactical Systematic L.P.	 	New York; December 3, 2002	 	January 19, 2018

  
 -1- 

 Schedule 2 
  

							
	  

Fee
  
	  	  

Brokerage/Non-Consulting Clients

 
	 	 	 	  

Advisory/Consulting Clients
  

	  

Orion Futures Fund L.P.
  

	Ongoing Selling Agent Fee	  	  
 An amount which will be
calculated by multiplying the fund’s (i) futures transactions by $15.00 per round turn, swaps by up to an equivalent amount and options transactions by $7.50 each per side, with respect to Class A units. In each case, the amount will
be reduced by applicable floor brokerage.
  
  
	 	 	 	Class Z units will not be subject to an ongoing selling agent fee.
	  

Ceres Tactical Systematic L.P.
  

	Ongoing Selling Agent Fee	  	  
 2.00% per year of the adjusted
net assets of the Partnership (computed monthly by multiplying the adjusted net assets of the Partnership by 2.00% and dividing the result thereof by 12)1

 
	 	 	 	Class Z units will not be subject to an ongoing selling agent fee.
	  

Managed Futures Premier Graham L.P.
  

	Ongoing Placement Agent Fee	  	  
 2.0% annual of the net asset
value per unit of Class A Units paid on a monthly basis.
  
	 	 	 	Class Z units will not be subject to an ongoing selling agent fee.
	  

Ceres Tactical Macro L.P.
  

	Ongoing Placement Agent Fee	  	  
 2.0% annual of the net asset
value per unit of Class A Units paid on a monthly basis. 0.75% annual of the net asset value per unit of Class D Units paid on a monthly basis.
  
	 	 	 	Class Z units will not be subject to an ongoing selling agent fee.

 1As defined in 7(d)(1) of the Limited Partnership Agreement for Ceres
Tactical Systematic L.P., adjusted net assets are month-end Net Assets increased by that current month’s ongoing selling agent fee, management fee, the general partner’s administrative fee, the
incentive fee accrued, other expenses and any redemptions or distributions as of the end of such month. 

  
 -2- 

 Appendix A 

Covered Persons: 
  

	 	(i)	Selling Agent and its executive officers and directors and officers participating in the offering of any of the Partnerships; and 

  

	 	(ii)	Any of Selling Agent’s financial advisors or associated persons soliciting investors for the Partnerships on September 23, 2013 and thereafter who receive compensation with respect to such solicitation.

  
 -3- 

 APPENDIX B: FORM OF JOINDER 

TO THE ALTERNATIVE INVESTMENT SELLING AGENT AGREEMENT 

This joinder (the “Joinder”) is to the Alternative Investment Selling Agent Agreement, dated as of [  ],
20    , by and among [NAME OF SELLING AGENT] (“Selling Agent”), Ceres Managed Futures LLC (the “General Partner”) and each of the Partnerships listed on Schedules 1 and 2 thereto (the
“Schedules”), as amended from time to time (the “Agreement”). The undersigned (“Authorized Agent”) is acting on behalf of each Partnership (each, a “Joining Partnership”) set forth on the schedule of Joining
Partnerships (“Schedule of Joining Partnerships”) attached hereto pursuant to authority and a power of attorney devolved upon Authorized Agent by each such Joining Partnership, for the purpose of joining each such Joining Partnership to
the Agreement. Pursuant to the terms of the Agreement, Partnerships may be added to the Agreement upon the agreement of the General Partner and Selling Agent. The Schedules shall be amended by adding thereto the Joining Partnerships. Unless
otherwise indicated herein, capitalized terms used in this Joinder shall have the meanings set forth in the Agreement. 
 The execution of this Joinder by
Authorized Agent on behalf of each Joining Partnership shall be deemed to be an agreement by Selling Agent and each Joining Partnership to be bound by all of the terms and conditions set forth in the Agreement, effective with respect to each Joining
Partnership as of the date listed under the heading “Date of Joinder to the Agreement” on the schedule attached hereto. By the execution of this Joinder by Authorized Agent, each Joining Partnership also agrees and represents that all of
such Joining Partnership’s information in the Schedule of Joining Partnerships hereto provided by Authorized Agent on behalf of such Joining Partnership in connection with this Joinder (which Schedule of Joining Partnerships is hereby
incorporated into the Agreement) is true and correct and such Joining Partnership, by Authorized Agent, shall promptly notify Selling Agent of any material change in such information. 

IN WITNESS WHEREOF, Joining Partnership, by Authorized Agent, has executed this Agreement on the date indicated below. 

Joining Partnership: Each Partnership set forth on the attached schedule, in its individual capacity 

 

							
	By:	 	Authorized Agent
			
		 	By:	 	  

			
		 		 	  

		 		 	(Please Print Name and Title)	 	(Date)

  
 -4- 

 SCHEDULE OF JOINING PARTNERSHIPS 

 

							
	PARTNERSHIP	 	  

STATE AND DATE OF ORGANIZATION
  
	 	  

ONGOING SELLING AGENT FEE
  
	 	  

DATE OF JOINDER TO THE AGREEMENT
  

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  
 -5-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]