Document:

NEITHER
THIS NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE COMPANY UPON CONVERSION HEREOF (COLLECTIVELY, THE "SECURITIES")
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF ANY STATE
OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED: (I) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR APPLICABLE STATE
SECURITIES LAWS; OR (Il) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER, THAT REGISTRATION IS NOT
REQUIRED UNDER THE 1933 ACT OR; (Ill) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144 UNDER THE 1933 ACT.

CONVERTIBLE
PROMISSORY NOTE

MATURITY
DATE OF DECEMBER 27, 2017 *THE "MATURITY DATE"

$125,000
MARCH '27, 2017 *THE "ISSUANCE DATE"

PRINCIPAL
AMOUNT: $125,000

PURCHASE
PRICE: $118,750

FOR
VALUE RECEIVED Bemax Inc , a Nevada Corporation (the Company') dong business in Dallas, GA, hereby promises to pay to the order
of JSJ Investments Inc., an accredited investor and Texas Corporation, or its assigns (the Holder ' ), the principal amount of
One Hundred and Twenty Five Thousand Dollars ($125,000) Note"), on demand of the Holder at any time on or after December
22, 2017 (the Maturity Date"), and to pay interest on the unpaid principal balance hereof at the rate of Eight Percent (8%)
per annum (the "Interest Rate ') commencing on the date hereof (the "Issuance Date”).

The Principal
Amount is One Hundred and Twenty Five Thousand Dollars ($125,000) and the consideration paid by the Holder is One Hundred Eighteen
Thousand Seven Hundred and Fifty Dollars ($118,750) (the "Consideration"), there exists an original issue discount of
$6,250 (the "OID")).

1.
Payments of Principal and Interest.

a.
Pre-Payment and Payment of Principal and Interest. The Company may pay this Note in full, together With any and all accrued and
unpaid interest, plus any applicable ore-payment premium set forth herein and subject to the terms of this Section 1 a, at any
time on or prior to the date which occurs 180 days after the Issuance Date hereof (the "Prepayment Date"). In the event
the Note is not prepaid in full on or before the Prepayment Date, it shall be deemed a "Pre-Payment Default" hereunder.
Until the Ninetieth (90th) day after the Issuance Date the Company may pay the principal at a cash redemption premium of 135%,
in addition to outstanding interest, without the Holder's consent; from the 91st day to the One Hundred and Twentieth (120th) day
after the Issuance Date, the Company may pay the principal at a cash redemption premium of 140%, in addition to outstanding interest,
without the Holder's consent, from the 121st day to the Prepayment Date, the Company may pay the principal at a cash redemption
premium of 145%, in addition to outstanding interest, without the Holder's consent. After the Prepayment Date up to the Maturity
Date this Note shall have a cash redemption premium of 150% of the then outstanding principal amount of the Note, plus accrued
interest and Default Interest, if any, which may only be paid by the Company upon Holder's prior written consent. At any time on
or after the Maturity Date, the Company may repay the then outstanding principal plus accrued interest and Default Interest (defined
below), if any, to the Holder.

b
Demand of Repayment. The principal and interest balance of this Note shall be paid to the Holder hereof on demand by the Holder
at any time on or after the Maturity Date. The Default Amount (defined herein), if applicable, shall be paid to Holder hereof on
demand by the Holder at any time such Default Amount becomes due and payable to Holder.

c.
Interest. This Note shall bear interest ("Interest") at the rate of Eight Percent (8%) per annum from the Issuance Date
until the same is paid, or otherwise converted in accordance with Section 2 below, in full and the Holder, at the Holder's sole
discretion, may include any accrued but unpaid Interest in the Conversion Amount. Interest shall commence accruing on the Issuance
Date, shall be computed on the basis of a 365day year and the actual number of days elapsed and shall accrue daily and, after
the Maturity Date, compound quarterly Upon an Event of Default, as defined in Section 10 below, the Interest Rate shall increase
to Eighteen Percent (18%) per annum for so long as the Event of Default is continuing ( Default Interest")

d
General Payment Provisions. This Note shall be paid in lawful money of the United States of America by check or wire transfer to
such account as the Holder may from time to time designate by written notice to the Company 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 (as defined
below), 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

    	 	1	 

     

    

 

into account
for purposes of determining the amount of interest due on such date. For purposes of this Note,

Business
Day shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the State of Texas are authorized or
required by law or executive order to remain closed.

2
Conversion of Note. At any time after the Issuance Date, the Conversion Amount (see Paragraph 2(a)(i)) of this Note shall be convertible
into shares of the Company's common stock (the Common Stock") according to the terms and conditions set forth in this Paragraph
2

		a.	Certain Defined Terms. For purposes of
this Note, the following terms shall have the following meanings:

Conversion
Amount' means the sum of (a) the principal amount of this Note to be converted With respect to which this determination is being
made, (b) Interest; and (c) Default Interest, if any, if so included at the Holder's sole discretion.

Conversion Price' means a 40% discount to the average
of the three (3) lowest trades during the previous ten (10) trading days to the date of a Conversion Notice

Person'
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization
and a government or any department or agency thereof

Shares'
means the Shares of the Common Stock of the Company into which any balance on this Note may be converted upon submission of a
Conversion Notice' to the Company substantially in the form attached hereto as Exhibit 1 .

		b.	Holder's Conversion Rights. At any time
after the Issuance Date, the Holder shall be entitled to convert all of the outstanding and unpaid principal and accrued interest
of this Note into fully paid and non-assessable shares of Common Stock in accordance with the stated Conversion Price. The Holder
shall not be entitled to convert on a Conversion Date that amount of the Note in connection with that number of shares of Common
Stock which would be in excess of the sum of the number of shares of Common Stock issuable upon the conversion of the Note with
respect to which the determination of this provision is being made on a Conversion Date, which would result in beneficial ownership
by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock of the Company on such Conversion
Date. For the purposes of the provision 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, and Regulation 13d-3 thereunder. Subject to the foregoing,
the Holder shall not be limited to aggregate conversions of 4.99% ("Conversion Limitation 1"). The Holder shall have
the authority to determine whether the restriction contained in this Section 2(b) will limit any conversion hereunder, and
accordingly, the Holder may waive the conversion limitation described in this Section 2(b), in whole or in part, upon and
effective after 61 days prior written notice to the Company to increase or decrease such percentage to any other amount as determined
by Holder in its sole discretion ("Conversion Limitation 2").

		c.	Fractional
Shares. The Company shall not issue any fraction of a share of Common Stock upon any conversion, if such issuance would result
in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up
to the nearest whole share except in the event that rounding up would violate the conversion limitation set forth in section 2(b)
above

		d.	Conversion Amount. The Conversion Amount
shall be converted pursuant to Rule 144(b)(1)(ii) and Rule 144(d)(1)(ii) as promulgated by the Securities and Exchange Commission
under the Securities Act of 1933, as amended, into unrestricted shares at the Conversion Price.

 

Mechanics
of Conversion. The conversion of this Note shall be conducted in the following manner:

Holder's
Conversion Requirements. To convert this Note into shares of Common Stock on any date set forth in the Conversion Notice by the
Holder (the Conversion Date"), the Holder shall transmit by email, facsimile or otherwise deliver, for receipt on or prior
to 11 59 p.m., Eastern Time, on such date or on the next business day, a copy of a fully executed notice of conversion in the
form attached hereto as Exhibit 1 to the Company.

Company's
Response. Upon receipt by the Company of a copy of a Conversion Notice, the Company shall as soon as practicable, but in no event
later than one (1) Business Day after receipt of such Conversion Notice, send, Via email, facsimile or overnight courier, a confirmation
of receipt of such Conversion Notice to such Holder indicating that the Company will process such Conversion Notice in accordance
with the terms herein Within two (2) Business Days after the date the Conversion Notice is delivered, the Company shall have Issued
and electronically transferred the shares to the Broker indicated in the Conversion Notice; should the Company be unable to transfer
the shares electronically, it shall, within two (2) Business Days after the date the Conversion Notice was delivered, have surrendered
to an overnight courier for delivery the next day to the address as specified in the Conversion Notice, a certificate, registered
in the name of the Holder, for the number of shares of Common Stock to which the Holder shall be entitled

    	 	2	 

     

    

Record
Holder, The person or persons entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be
treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

Timely
Response by Company. Upon receipt by Company of a Conversion Notice, Company shall respond within one business day to Holder confirming
the details of the Conversion, and provide within two business days the Shares requested in the Conversion Notice

Liquidated
Damages for Delinquent Response. If the Company fails to deliver for whatever reason (including any neglect or failure by, e.g.,
the Company, its counsel or the transfer agent) to Holder the Shares as requested in a Conversion Notice within three (3) business
days of the Conversion Date, the Company shall be deemed in Default of Conversion. Beginning on the fourth (4th ) business
day after the date of the Conversion Notice, after the Company is deemed in Default of Conversion, there shall accrue liquidated
damages (the Conversion Damages") of $2,000 per day for each day after the third business day until delivery of the Shares
IS made, and such penalty will be added to the Note bang converted (under the Company's and Holder's expectation and understanding
that any penalty amounts will tack back to the Issuance Dete of the Note). The Parties agree that, at the time of drafting of
this Note, the Holder's damages as to the delinquent response are incapable or difficult to estimate and that the liquidated damages
called for is a reasonable forecast of just compensation

 Liquidated Damages for Inability to Issue Shares.
If the Company fails to deliver Shares requested by a Conversion Notice due to an exhaustion of authorized and issuable
common stock such that the Company must increase the number of shares of authorized Common Stock before the Shares requested
may be issued to the Holder, the discount set forth in the Conversion Price will be increased by 5 percentage points (i.e.
40% to 45%) for the Conversion Notice in question and all future Conversion Notices until the outstanding principal and
interest of the Note is converted or paid in full. These liquidated damages shall not render the penalties prescribed by
Paragraph 2(e)(v) void, and shall be applied in conjunction with Paragraph 2(e)(v) unless otherwise agreed to in writing by
the Holder The Parties agree that, at the time of drafting of this Note, the Holder's damages as to the inability to issue
shares are incapable or difficult to estimate and that the liquidated damages called for is a reasonable forecast of just
compensation.

vil.
Rescindment of Conversion Notice. If: (i) the Company fails to respond to Holder within one business day from the date of delivery
of a Conversion Notice confirming the details of the Conversion, (li) the Company fails to provide the Shares requested in the
Conversion Notice within three business days from the date of the delivery of the Conversion Notice, (iii) the Holder is unable
to procure a legal opinion required to have the Shares Issued unrestricted and/or deposited to seIl for any reason related to
the Company's standing with the SEC or FINRA, or any action or inaction by the Company, (iv) the Holder is unable to deposit the
Shares requested in the Conversion Notice for any reason related to the Company's standing with the SEC or FINRA, or any action
or inaction by the Company, (v) if the Holder is informed that the Company does not have the authorized and Issuable Shares available
to satisfy the Conversion, or (vi) if OTC Markets changes the Company's designation to 'Limited Information' (Yield), 'No Information'
(Stop Sign), 'Caveat Emptor' (Skull and Crossbones), or 'OTC', 'Other OTC or 'Grey Market' (Exclamation Mark Sign) on the day
of or any day after the date of the Conversion Notice, the Holder maintains the option and sole discretion to rescind the Conversion
Notice ("Rescindment') by delivering a notice of rescindment to the Company in the same manner that a Conversion Notice is
required to be delivered to the Company pursuant to the terms of this Note

Vill.
Transfer Agent Fees and Legal Fees. The issuance of the certificates shall be without charge or expense to the Holder The Company
shall pay any and all Transfer Agent fees, legal fees, and advisory fees required for execution of this Note and processing of
any Notice of Conversion, including but not limited to the cost of obtaining a legal opinion With regard to the Conversion. The
Holder will deduct $3,000 from the principal payment of the Note solely to cover the cost of obtaining any and all legal opinions
required to obtain the Shares requested in any given Conversion Notice These fees do not make provision for or suffice to defray
any legal fees incurred in collection or enforcement of the Note as described in Paragraph 13.

Conversion
Right Unconditional. If the Holder shall provide a Notice of Conversion as provided herein, the Company's obligations to deliver
Common Stock shall be absolute and unconditional, irrespective of any claim of setoff, counterclaim, recoupment, or alleged breach
by the Holder of any obligation to the Company

		3	Other Rights of Holder: Reorganization,
Reclassification, Consolidation, Merger or Sale. Any recapitalization, reorganization, reclassification, consolidation, merger,
sale of all or substantially all of the Company's assets to another Person or other transaction which is effected in such a way
that holders of Common Stock are entitled to receive (either directly or upon subsequent liquidation) stock, securities, cash or
other assets with respect to or in exchange for Common Stock is referred to herein as Organic Change. Prior to the consummation
of any (i) Organic Change or (ii) other Organic Change following which the Company is not a surviving entity, the Company will
secure from the

    	 	3	 

     

    

Person
purchasing such assets or the successor resulting from such Organic Change (in each case, the Acquiring Entity') a written agreement
(in form and substance reasonably satisfactory to the Holder) to deliver to Holder in exchange for this Note, a security of the
Acquiring Entity evidenced by a written instrument substantially similar in form and substance to this Note, and reasonably satisfactory
to the Holder. Prior to the consummation of any other Organic Change, the Company shall make appropriate provision (in form and
substance reasonably satisfactory to the Holder) to ensure that the Holder will thereafter have the right to acquire and receive
in lieu of or in addition to (as the case may be) the shares of Common Stock immediately theretofore acquirable and receivable
upon the conversion of the Note, such shares of stock, securities, cash or other assets that would have been Issued or payable
in such Organic Change with respect to or in exchange for the number of shares of Common Stock which would have been acquirable
and receivable upon the conversion of the Note as of the date of such Organic Change (without taking into account any limitations
or restrictions on the convertibility of the Note set forth in Section 2(b) or otherwise). All provisions of this Note must be
included to the satisfaction of Holder in any new Note created pursuant to this section

		4	Representations and Warranties of the
Company. In connection With the transactions provided for herein, the Company hereby represents and warrants to the Holder the
following

		a.	Organization, Good Standing and Qualification.
The Company is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation
and has all requisite corporate power and authority to carry on its business as now conducted. The Company is duly qualified to
transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse
effect on its business or properties.

		b.	Authorization All corporate action has
been taken on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and
delivery of this Agreement The Company has taken all corporate action required to make all of the obligations of the Company reflected
in the provisions of this Agreement, valid and enforceable obligations The shares of capital stock issuable upon conversion of
the Note have been authorized or will be authorized prior to the issuance of such shares.

		c.	Fiduciary
Obligations. The Company hereby represents that it intends to use the proceeds of the Note primarily for the operations of its
business and not for any personal, family, or household purpose The Company hereby represents that its board of directors, in
the exercise of its fiduciary duty, has approved the execution of this Agreement based upon a reasonable belief that the proceeds
of the Note provided for herein is appropriate for the Company after reasonable inquiry concerning its financial objectives and
financial situation

		d.	Data Request Form. The Company hereby
represents and warrants to Holder that all of the information furnished to Holder pursuant to the data request form C' DRF")
dated March 22, 2017 is true and correct in all material respects as of the date hereof

		5	Issuance of Common Stock Equivalents.
If the Company, at any time after the Issuance Date, shall issue any securities convertible into or exchangeable for, directly
or indirectly, Common Stock C Convertible Securities"), other than the Note, or any rights or warrants or options to purchase
any such Common Stock or Convertible Securities, shall be Issued or sold (collectively, the Common Stock Equivalents") and
the aggregate of the price per share for which additional Shares of Common Stock may be issuable thereafter pursuant to such Common
Stock Equivalent, plus the consideration received by the Company for issuance of such Common Stock Equivalent divided by the number
of shares of Common Stock issuable pursuant to such Common Stock Equivalent (the Aggregate Per Common Share Price ') shall be less
than the applicable Conversion Price then in effect, or if, after any such issuance of Common Stock Equivalents, the price per
share for which additional Shares of Common Stock may be issuable thereafter is amended or adjusted, and such price as so amended
shall make the Aggregate Per Share Common Price be less than the applicable Conversion Price in effect at the time of such amendment
or adjustment, then the applicable Conversion Price upon each such issuance or amendment shall be reduced to the lower of: (i)
the Conversion Price, or (ii) a twentyfive percent (25%) discount to the lowest Aggregate Per Common Share Price (whether or not
such Common Stock Equivalents are actually then exercisable, convertible or exchangeable in whole or in part) as of the earlier
of (A) the date on which the Company shall enter into a firm contract for the issuance of such Common Stock Equivalent, or (B)
the date of actual issuance of such Common Stock Equivalent. No adjustment of the applicable Conversion Price shall be made under
this Section 6 upon the issuance of any Convertible Security which is outstanding on the day immediately preceding the Issuance
Date.

    	 	4	 

     

    

 

 

		6	Reservation of Shares. The Company shall
at all times, so long as any principal amount of the Note is outstanding, reserve and keep available out of its authorized and
unissued shares of Common Stock, solely for the purpose of effecting the conversion of the Note, eight times the number of shares
of Common Stock as shall at all times be sufficient to effect the conversion of all of the principal amount, plus Interest and
Default Interest, if any, of the Note then outstanding Share Reserve"), unless the Holder stipulates otherwise in the "Irrevocable
Letter of Instructions to the Transfer Agent. So long as this Note is outstanding, upon written request of the Holder or via telephonic
communication, the Company's Transfer Agent shall furnish to the Holder the then-current number of common shares Issued and outstanding,
the then-current number of common shares authorized, the then-current number of unrestricted shares, and the then-current number
of shares reserved for third parties.

		7	Voting Rights. The Holder of this Note
shall have no voting rights as a note holder, except as required by law, however, upon the conversion of any portion of this Note
into Common Stock, Holder shall have the same voting rights as all other Common Stock holders with respect to such shares of Common
Stock then owned by Holder.

8.
Reissuance of Note, In the event of a conversion or redemption pursuant to this Note of less than all of the Conversion Amount
represented by this Note, the Company shall promptly cause to be issued and delivered to the Holder, upon tender by the Holder
of the Note converted or redeemed, a new note of like tenor representing the remaining principal amount of this Note which has
not been so converted or redeemed and which is in substantially the same form as this Note, as set forth above

9Default
and Remedies.

		a.	Event of Default. For purposes of this
Note, an Event of Default shall occur upon:

i.
the Company's default in the payment of the outstanding principal,
Interest or Default Interest of this Note when due, whether at Maturity, acceleration or otherwise,

ii. the
occurrence of a Default of Conversion as set forth in Section 2(e)(v)

iii.
the failure by the Company for ten (10) days after notice to it to comply With any material provision of this Note not
included in this Section 10(a),

iv.
the Company's breach of any covenants, warranties, or representations made by the Company

v.
any of the information in the DRF is false or misleading in any material respect;

 

vi.the
default by the Company in any Other Agreement entered into by and between the Company and Holder, for purposes hereof "Other
Agreement" shall mean, collectively, all agreements and instruments between, among or by: (1) the Company, and, or for the
benefit of, (2) the Holder and any affiliate of the Holder, including without limitation, promissory notes;

 

vii. the cessation
of operations of the Company or a material subsidiary;

 

viii.
the Company pursuant to or within the meaning of any Bankruptcy Law, (a) commences a voluntary case, (b) consents to the entry
of an order for relief against it in an involuntary case, (c) consents to the appointment of a Custodian of it or for all or substantially
all of its property; (d) makes a general assignment for the benefit of its creditors; or (e) admits in writing that it is generally
unable to pay its debts as the same become due; 

 

ix.
court of competent jurisdiction entering an order or decree under any Bankruptcy Law that: (a) is for relief against the
Company in an involuntary case, (b) appoints a Custodian of the Company or for all or substantially all of its property; or
(c) orders the liquidation of the Company or any subsidiary, and the order or decree remains unstayed and in effect for
thirty (30) days,

 

x.
the Company files a Form 15 with the SEC

 

xi.
the Company's failure to timely file all reports required to be filed by it with the Securities and Exchange Commission;

    	 	5	 

     

    

 

xii. the
Company's failure to timely file all reports required to be filed by it with OTC Markets to remain a  Current Information" designated company, 

 

xiii.
the Company's Common Stock is reported as 'No Inside" by OTC Markets at any time while any principal, Interest or
Default Interest under the Note remains outstanding, 

 

xiv.
the Company's failure to maintain the required Share Reserve
pursuant to the terms of the Irrevocable Letter of Instructions to the Transfer Agent;

 

xv.
the Company directs its transfer agent not to transfer, or delays, impairs, 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 and stop
transfer instructions) 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 its obligations pursuant to a Conversion Notice submitted by the Holder) and any such failure shall continue uncured
for three (3) Business Days after the Conversion Notice has been delivered to the Company by Holder,

 

xvi.
the Company's failure to remain current in its billing obligations with
its transfer agent and such delinquency causes the transfer agent to refuse to issue Shares to Holder pursuant to a Conversion
Notice,

 

xvii. the
Company effectuates a reverse split of its Common Stock and fails to provide twenty (20) days prior written notice to Holder
of its intention to do so; or

 

		XVIII.	OTC Markets changes the Company's designation
to 'No Information' (Stop Sign), 'Caveat Emptor' (Skull and Crossbones), or 'OTC', 'Other OTC' or 'Grey Market' (Exclamation Mark
Sign).

 

		XIX.	Change of Control Transaction" means
the occurrence after the date hereof of any of (a) an acquisition after the date hereof by an individual or legal entity or "group"
(as described in Rule 13d5(b)(1) promulgated under the Securities Exchange Act of 1934) of effective control (whether through legal
or beneficial ownership of capital stock of the Company, by contract or otherwise) of In excess of 40% of the voting securities
of the Company, (b) the Company merges into or consolidates with any other Person, as that term is defined in the Securities Act
of 1933, as amended, or any Person merges into or consolidates With the Company and, after giving effect to such transaction, the
stockholders of the Company immediately prior to such transaction own less than 60% of the aggregate voting power of the Company
or the successor entity of such transaction, (c) the Company sells or transfers all or substantially all of its assets to another
Person and the stockholders of the Company immediately prior to such transaction own less than 60% of the aggregate voting power
of the acquiring entity immediately after the transaction, (d) a replacement at one time or within a three year period of more
than one-half of the members of the Board of Directors which is not approved by a majority of those individuals who are members
of the Board of Directors on the Issuance Date (or by those individuals who are serving as members of the Board of Directors on
any date whose nomination to the Board of Directors was approved by a majority

of
the members of the Board of Directors who are members on the date hereof), or (e) the execution by the Company of an agreement
to which the Company is a party or by which it is bound. 

xx.
Altering the conversion terms of any notes that are currently outstanding

The
Term ' Bankruptcy Law" means Title 11, U.S Code, or any similar Federal or State Law for the relief of debtors. The term Custodian
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

    	 	6	 

     

    

 

		b.	Remedies, If an Event of Default occurs,
the Holder may in its sole discretion determine to request immediate repayment of all or any portion of the Note that remains outstanding;
at such time the Company will be required to pay the Holder the Default Amount (defined herein) in cash For purposes hereof, the
Default Amount' shall mean: the product of (A) the then outstanding principal amount of the Note, plus accrued Interest and Default
Interest, divided by (B) the Conversion Price as determined on the Issuance Date, multiplied by (C) the highest price at which
the Common Stock traded at any time between the Issuance Date and the date of the Event of Default If the Company fails to pay
the Default Amount within five (5) Business Days of written notice that such amount is due and payable, then Holder shall have
the right at any time, so long as the Company remains in default (and so long and to the extent there are a sufficient number of
authorized but unissued shares), to require the Company, upon written notice, to immediately issue, in lieu of the Default Amount,
the number of shares of Common Stock of the Company equal to the Default Amount divided by the Conversion Price then in effect.

10.
Vote to Change the Terms of this Note. This Note and any provision hereof may only be amended by an instrument

In
writing signed by the Company and the Holder

11.
Lost or Stolen Note. Upon receipt by the Company of evidence satisfactory
to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of
an indemnification undertaking by the Holder to the Company in a form reasonably acceptable to the Company and, in the case of
mutilation, upon surrender and cancellation of the Note, the Company shall execute and deliver a new Note of like tenor and date
and in substantially the same form as this Note; provided, however, the Company shall not be obligated to re-issue a Note if the
Holder contemporaneously requests the Company to convert such remaining principal amount, plus accrued Interest and Default Interest,
if any, into Common Stock

12
Payment of Collection, Enforcement and Other Costs. If: (i) this Note is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding; or (ii) an attorney is retained to represent the Holder of this Note
in any bankruptcy, reorganization, receivership or other proceedings affecting creditors' rights and involving a claim under this
Note, then the Company shall pay to the Holder all reasonable attorneys' fees, costs and expenses incurred in connection therewith,
in addition to all other amounts due hereunder.

		13.	Cancellation. After all principal, accrued
Interest and Default Interest, if any, at any time owed on this Note has been paid in full or otherwise converted in full, this
Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.

 

		14.	Waiver of Notice. To the extent permitted
by law, the Company hereby waives demand, notice, protest and all other demands and notices in connection with the delivery, acceptance,
performance, default or enforcement of this Note

 

		15.	Governing Law. This Note shall be construed
and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this
Note shall be governed by, the laws of the State of Texas, without giving effect to provisions thereof regarding conflict of laws.
Each party hereby irrevocably submits to the nonexclusive jurisdiction of the state and federal courts sitting in Texas for the
adjudication of any dispute hereunder or in connection herewith or With any transaction contemplated hereby or discussed herein,
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that
the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by sending, through certified mail or overnight courier,
a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY.

    	 	7	 

     

    

 

 

		16.	Remedies, Characterizations, Other Obligations,
Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative and in addition to all other remedies available
under this Note, at law or in equity (including a decree of specific performance and/or other injunctive relief), and no remedy
contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein shall
limit the Holder's right to pursue actual damages for any failure by the Company to comply with the terms of this Note The Company
covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein.
Amounts set forth or provided for herein With respect to payments, conversion and the like (and the computation thereof) shall
be the amounts to be received by the Holder thereof and shall not, except as expressly provided herein, be subject to any other
obligation of the Company (or the performance thereof)

		17.	Specific Shall Not Limit General; Construction.
No specific provision contained in this Note shall limit or modify any more general provision contained herein This Note shall
be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any person as the drafter hereof.

 

18
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exerase 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
further exercise thereof or of any other right, power or privilege

		19.	Partial Payment. In the event of partial
payment by the Holder, the principal sum due to the Holder shall be prorated based on the consideration actually paid by the Holder
such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion
of this Note, with the exception of any OID contemplated herein

		20.	Entire Agreement This Agreement constitutes
the full and entire understanding and agreement between the parties with regard to the subjects herein None of the terms of this
Agreement can be waived or modified, except by an express agreement signed by all Parties hereto.

 

21
Additional Representations and Warranties. The Company expressly acknowledges that the Holder, including but not limited to its
officer, directors, employees, agents, and affiliates, have not made any representation or warranty to it outside the terms of
this Agreement. The Company further acknowledges that there have been no representations or warranties about future financing or
subsequent transactions between the parties

		22.	Notices. All notices and other communications
given or made to the Company pursuant hereto shall be in writing (including facsimile or similar electronic transmissions) and
shall be deemed effectively given (i) upon personal delivery, (ii) when sent by electronic mail or facsimile, as deemed received
by the close of business on the date sent, (iii) five (5) days after having been sent by registered or certified mail, return receipt
requested, postage prepaid or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day
delivery. All communications shall be sent either by email, or fax, or to the email address or facsimile number set forth on the
signature page hereto. The physical address, email address, and phone number provided on the signature page hereto shall be considered
valid pursuant to the above stipulations, should the Company's contact information change from that listed on the signature page,
it is incumbent on the Company to inform the Holder.

 

		23.	Severability. If one or more provisions
of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the
rest of the Agreement shall be enforceable in accordance with its terms.

 

24
Usury. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing
usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted
under applicable law. The Company covenants (to the extent that it may lawfully do so) that it will not seek to claim or take advantage
of any law that would prohibit or forgive the Company from payng all or a portion of the principal, Interest or Default Interest
on this Note.

25.
Successors and Assigns. This Agreement shall be binding upon all successors and assigns hereto

SIGNATURE
PAGE TO FOLLOW

    	 	8	 

     

    

 

 

 

 

IN WITNESS
WHEREOF, the Company has caused this Note to be signed by its CEO, on and as of the Issuance Date.

COMPANY

Signature

		By	

Title

 

 

Address

 

Email:

77

phone

Facsimile

JSJ Investments
Inc.

Signature:

Sameer Hirji,
President

JSJ Investments
Inc.

10830 North
Central Expressway, Suite 152

Dallas TX 75231

		888-503-2599	

 

    	 	9	 

     

    

 

 

Exhibit 1

Conversion Notice

Reference
IS made to the 8% Convertible Note issued by Bemax Inc. (the "Note"), dated March 22, 2017 in the principal amount of
$125,000 with 8% interest This note currently holds a principal balance of $125,000. The features of conversion stipulate a Conversion
Price equal to 40% discount to the average of the three (3) lowest trades during the previous ten (10) trading days to the date
of a Conversion Notice

In
accordance with and pursuant to the Note, the undersigned hereby elects to convert $ ___of
the principal/ interest balance of the Note, indicated below into shares of Common Stock (the "Common Stock"), of the
Company, by tendering the Note specified as of the date specified below.

Date
of Conversion:

Please confirm
the following information:

Conversion
Amount: $ 

Conversion
Price: $ 

Number
of Common Stock to be issued: 

Current Issued/Outstanding:

If the Issuer
is DWAC eligible, please issue the Common Stock into which the Note is being converted in the name of the Holder of the Note and
transfer the shares electronically to:

[BROKER INFORMATION]

Holder Authorization:

JSJ Investments
Inc.

10830 North Central
Expressway, Suite 152Do not send certificates to this address

Dallas, TX
75231

		888-503-2599	

Tax ID 20-2122354

Sameer Hirji,
President

		[DATE]	

[CONTINUED
ON NEXT PAGE]

    	 	10	 

     

    

 

 

PLEASE BE
ADVISED, pursuant to Section 2(e)(ii) of the Note, "Upon receipt by the Company of a copy of the Conversion Notice, the Company
shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion Notice, SEND, VIA
EMAIL, FACSIMILE OR OVERNIGHT COURIER, A CONFIRMATION OF RECEIPT OF SUCH CONVERSION NOTICE TO SUCH HOLDER INDICATING THAT THE COMPANY
WILL PROCESS SUCH CONVERSION NOTICE in accordance with the terms herein. Within two (2) Business Days after the date of the Conversion
Confirmation, the Company shall have Issued and electronically transferred the shares to the Broker indicated in the Conversion
Notice, should the Company be unable to transfer the shares electronically, they shall, within two (2) Business Days after the
date of the Conversion Confirmation, have surrendered to FedEx for delivery the next day to the address as specified in the Conversion
Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which the Holder shall
be entitled."

Signature

Taiwo Aimasiko

CEO

Bemax
Inc

 

    	 	11NEITHER 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: US$145,000.00	Issue Date: April 4, 2017 

Purchase
Price: US$145,000.00 

CONVERTIBLE
PROMISSORY NOTE

FOR VALUE
RECEIVED, BEMAX, INC., a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay
to the order of AUCTUS FUND, LLC, a Delaware limited liability company, or registered assigns (the “Holder”)
the sum of US$145,000.00 together with any interest as set forth herein, on December 30, 2017 (the “Maturity Date”),
and to pay interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”)
per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon
acceleration or by prepayment or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set
forth herein with the written consent of the Holder which may be withheld for any reason or for no reason. Any amount of principal
or interest on this Note which is not paid when due shall bear interest at the rate of twenty-four percent (24%) per annum from
the due date thereof until the same is paid (the “Default Interest”). Interest shall commence accruing on the date
that the Note is fully paid and shall be computed on the basis of a 360-day year and the actual number of days elapsed. All payments
due hereunder (to the extent not converted into common stock, $0.0001 par value per share (the “Common Stock”) in accordance
with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address
as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. 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 dated the date hereof, pursuant to which this Note was originally issued (the “Purchase
Agreement”).

    	 		 

     

    

 

 

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

 

The
following terms shall apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS

 

1.1
Conversion Right. The Holder shall have the right from time to time, and at

any time
following the Issue Date and ending on the later of (i) the Maturity Date and (ii) the date of payment of the Default Amount (as
defined in Article III) pursuant to Section 1.6(a) or Article III, each in respect of the remaining outstanding principal amount
of this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non-assessable
shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the
Borrower into which such Common Stock shall hereafter be changed or reclassified at the Conversion Price (as defined below) determined
as provided herein (a “Conversion”); provided, however, that in no event shall the Holder be entitled
to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of
shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed
beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any
other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein)
and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the
determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than
4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial
ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, 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 shall be determined by dividing the Conversion Amount (as defined
below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached
hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section
1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably
expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion
Date”). The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal
amount of this Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid interest,
if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, provided however, that the
Borrower shall have the right to pay any or all interest in cash plus (3) at the Holder’s option, Default Interest,
if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option,
any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

    	 	2	 

     

    

 

 

1.2 Conversion
Price.

 

Calculation
of Conversion Price. Subject to the adjustments described herein, the

conversion
price (the “Conversion Price”) shall equal the Variable Conversion Price (as defined herein) (subject to equitable
adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or
the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions
and similar events). The “Variable Conversion Price” shall mean 60% multiplied by the Market Price (as defined herein)
(representing a discount rate of 40%). “Market Price” means the lowest Trading Price (as defined below) for the Common
Stock during the ten (10) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. “Trading
Price” means, for any security as of any date, the lowest closing bid price on the OTC Pink, OTCQB, applicable trading market,
or principal securities exchange or trading market where such security is listed or traded as reported by a reliable reporting
service (“Reporting Service”) designated by the Holder or, if no closing bid price of such security is available in
any of the foregoing manners, the average of the closing bid prices of any market makers for such security that are listed in the
“pink sheets” by the National Quotation Bureau, Inc. To the extent the Conversion Price of the Borrower’s Common
Stock closes below the par value per share, the Borrower will take all steps necessary to solicit the consent of the stockholders
to reduce the par value to the lowest value possible under law. The Borrower agrees to honor all conversions submitted pending
this adjustment. If the shares of the Borrower’s Common Stock have not been delivered within three (3) business days to the
Borrower, the Notice of Conversion may be rescinded. At any time after the Closing Date, if in the case that the Borrower’s
Common Stock is not deliverable by DWAC (including if the Borrower’s transfer agent has a policy prohibiting or limiting
delivery of shares of the Borrower’s Common Stock specified in a Notice of Conversion), an additional 10% discount will apply
for all future conversions under all Notes. If in the case that the Borrower’s Common Stock is “chilled” for
deposit into the DTC system and only eligible for clearing deposit, an additional 15% discount shall apply for all future conversions
under all Notes while the “chill” is in effect. If in the case of both of the above, an additional cumulative 25% discount
shall apply. 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 one hundred eighty-one (181) days from the Issue Date, an additional 15% discount will be attributed
to the Conversion Price. If the Trading Price cannot be calculated for such security on such date in the manner provided above,
the Trading Price shall be the fair market value as mutually determined by the Borrower and the holders of a majority in interest
of the Notes being converted for which the calculation of the Trading Price is required in order to determine the Conversion Price
of such Notes. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC Pink,
OTCQB or on the principal securities exchange or other securities market on which the Common Stock is then being traded. The Borrower
shall be responsible for the fees of its transfer agent and all DTC fees associated with any such issuance.

 

    	 	3	 

     

    

While this
Note is outstanding, each time any 3rd party has the right to convert monies owed to that 3rd party (or receive
shares pursuant to a settlement or otherwise), including but not limited to under Section 3(a)(9) and Section 3(a)(10), at a discount
to market greater than the Conversion Price in effect at that time (prior to all other applicable adjustments in the Note), then
the H1older, in Holder’s sole discretion, may utilize such greater discount percentage (prior to all applicable adjustments
in this Note) until this Note is no longer outstanding. While this Note is outstanding, each time any 3rd party has
a look back period greater than the look back period in effect under the Note at that time, including but not limited to under
Section 3(a)(9) and Section 3(a)(10), then the Holder, in Holder’s sole discretion, may utilize such greater number of look
back days until this Note is no longer outstanding. The Borrower shall give written notice to the Holder within one (1) business
day of becoming aware of any event that could permit the Holder to make any adjustment described in the two immediately preceding
sentences.

		(a)	Conversion Price During Major Announcements. Notwithstanding

anything
contained in Section 1.2(a) to the contrary, in the event the Borrower (i) makes a public announcement that it intends to consolidate
or merge with any other corporation (other than a merger in which the Borrower is the surviving or continuing corporation and its
capital stock is unchanged) or sell or transfer all or substantially all of the assets of the Borrower or (ii) any person, group
or entity (including the Borrower) publicly announces a tender offer to purchase 50% or more of the Borrower’s Common Stock
(or any other takeover scheme) (the date of the announcement referred to in clause (i) or (ii) is hereinafter referred to as the
“Announcement Date”), then the Conversion Price shall, effective upon the Announcement Date and continuing through
the Adjusted Conversion Price Termination Date (as defined below), be equal to the lower of (x) the Conversion Price which would
have been applicable for a Conversion occurring on the Announcement Date and (y) the Conversion Price that would otherwise be in
effect. From and after the Adjusted Conversion Price Termination Date, the Conversion Price shall be determined as set forth in
this Section 1.2(a). For purposes hereof, “Adjusted Conversion Price Termination Date” shall mean, with respect to
any proposed transaction or tender offer (or takeover scheme) for which a public announcement as contemplated by this Section 1.2(b)
has been made, the date upon which the Borrower (in the case of clause (i) above) or the person, group or entity (in the case of
clause (ii) above) consummates or publicly announces the termination or abandonment of the proposed transaction or tender offer
(or takeover scheme) which caused this Section 1.2(b) to become operative.

 

		(b)	Pro Rata Conversion; Disputes. In the event of a dispute as
to the 

number of
shares of Common Stock issuable to the Holder in connection with a conversion of this Note, the Borrower shall issue to the Holder
the number of shares of Common Stock not in dispute and resolve such dispute in accordance with Section 4.13.

    	 	4	 

     

    

 

 

		1.3	Authorized Shares. The Borrower covenants that during the period
the 

conversion
right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from
preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase
Agreement. The Borrower is required at all times to have authorized and reserved three times the number of shares that is actually
issuable upon full conversion of the Note (based on the Conversion Price of the Notes in effect from time to time) (the “Reserved
Amount”). The Reserved Amount shall be increased from time to time in accordance with the Borrower’s obligations pursuant
to Section 3(d) of the Purchase Agreement. The Borrower represents that upon issuance, such shares will be duly and validly issued,
fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure
which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion
Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares
of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Notes. 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. Notwithstanding the foregoing, in no event shall the Reserved Amount
be lower than the initial Reserved Amount, regardless of any prior conversions.

 

If,
at any time after 180 days from the Issue Date, the Borrower does not maintain

or replenish
the Reserved Amount within three (3) business days of the request of the Holder, the principal amount of the Note shall increase
by Five Thousand and No/100 United States Dollars ($5,000) (under Holder’s and Borrower’s expectation that any principal
amount increase will tack back to the Issue Date) per occurrence.

 

		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 from time to time after the Issue Date, by (A) submitting to the Borrower a Notice
of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 5:00
p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower.

 

(b)              
Surrender of Note Upon Conversion. Notwithstanding anything to the 

contrary
set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically
surrender this Note to the 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.

    	 	5	 

     

    

 

 

(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, the Borrower shall issue and deliver or cause to be issued and delivered to or
upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after
such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof,
surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. 

 

(e)              
Obligation of Borrower to Deliver Common Stock. Upon receipt by 

the Borrower
of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion,
the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion,
and, unless the Borrower defaults on its obligations under this Article I, all rights with respect to the portion of this Note
being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets,
as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the 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 5:00 p.m., New York,
New York time, on such date.

    	 	6	 

     

    

 

 

(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 commercially reasonable
best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by
crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal At Custodian (“DWAC”)
system.

 

(g)              
DTC Eligibility & Sub-Penny. If the Borrower fails to maintain its 

status as
“DTC Eligible” for any reason, or, if the Conversion Price is less than $0.01, the principal amount of the Note shall
increase by Fifteen Thousand and No/100 United States Dollars ($15,000) (under Holder’s and Borrower’s expectation
that any principal amount increase will tack back to the Issue Date). In addition, the Variable Conversion Price shall be redefined
to mean forty percent (40%) multiplied by the Market Price, subject to adjustment as provided in this Note.

 

(h)              
Failure to Deliver Common Stock Prior to Delivery Deadline. Without in any way limiting
the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if
delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (other than a failure due to
the circumstances described in Section 1.3 above, which failure shall be governed by such Section) the Borrower shall pay to the
Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock until the
Borrower issues and delivers a certificate to the Holder or credit the Holder's balance account with OTC for the number of shares
of Common Stock to which the Holder is entitled upon such Holder's conversion of any Conversion Amount (under Holder's and Borrower's
expectation that any damages will tack back to the Issue Date).. Such cash amount shall be paid to Holder by the fifth day of the
month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first
day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event
interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible
into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right
to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult
if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages provision contained in this Section
1.4(h) are justified. 

 

(i)                
Rescindment of a Notice of Conversion. If (i) the Borrower fails 

to respond
to Holder within one (1) business day from the Conversion Date confirming the details of Notice of Conversion, (ii) the Borrower
fails to provide any of the shares of the Borrower’s Common Stock requested in the Notice of Conversion within three (3)
business days from the date of receipt of the Note of Conversion, (iii) the Holder is unable to procure a legal opinion required
to have the shares of the Borrower’s Common Stock issued unrestricted and/or deposited to sell for any reason related to
the Borrower’s standing, (iv) the Holder is unable to deposit the shares of the Borrower’s Common Stock requested in
the Notice of Conversion for any reason related to the Borrower’s standing, (v) at any time after a missed Deadline, at the
Holder’s sole discretion, or (vi) if OTC Markets changes the Borrower's designation to ‘Limited Information’
(Yield), ‘No Information’ (Stop Sign), ‘Caveat Emptor’ (Skull & Crossbones), ‘OTC’, ‘Other
OTC’ or ‘Grey Market’ (Exclamation Mark Sign) or other trading restriction on the day of or any day after the
Conversion Date, the Holder maintains the option and sole discretion to rescind the Notice of Conversion (“Rescindment”)
with a “Notice of Rescindment.”

    	 	7	 

     

    

 

 

1.5
Concerning the Shares. The shares of Common Stock issuable upon

conversion
of this Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under
the Act or (ii) the 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). Except as otherwise
provided in the Purchase Agreement (and subject to the removal provisions set forth below), until such time as the shares of Common
Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 without
any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for
shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration statement
or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall
bear a legend substantially in the following form, as appropriate:

 

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

		SECURITIES.”	

 

    	 	8	 

     

    

The legend
set forth above 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, in form, substance and scope customary for
opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made without
registration under the Act, which opinion shall be reasonably accepted by the Borrower so that the sale or transfer is effected
or (ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder
under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction
as to the number of securities as of a particular date that can then be immediately sold. In the event that the Borrower does not
accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration,
such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.

1.6
Effect of Certain Events.

		(a)	Effect of Merger, Consolidation, Etc. At the option of the Holder,
the

sale, conveyance
or disposition of all or substantially all of the assets of the 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 the Holder shall be entitled to convert
this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations
of this Section 1.6(b). The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share
exchanges.

    	 	9	 

     

    

 

 

		(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.

 

		(d)	Adjustment Due to Dilutive Issuance. If, at any time when any
Notes 

are issued
and outstanding, the Borrower issues or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold,
except for shares of Common Stock issued directly to vendors or suppliers of the Borrower in satisfaction of amounts owed to such
vendors or suppliers (provided, however, that such vendors or suppliers shall not have an arrangement to transfer, sell or assign
such shares of Common Stock prior to the issuance of such shares), any shares of Common Stock for no consideration or for a consideration
per share (before deduction of reasonable expenses or commissions or underwriting discounts or allowances in connection therewith)
less than the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares of Common Stock (a “Dilutive
Issuance”), then immediately upon the Dilutive Issuance, the Conversion Price will be reduced to the amount of the consideration
per share received by the Borrower in such Dilutive Issuance.

 

The Borrower
shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or grants any warrants, rights
or options (not including employee stock option plans), whether or not immediately exercisable, to subscribe for or to purchase
Common Stock or other securities convertible into or exchangeable for Common Stock (“Convertible Securities”) (such
warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as “Options”)
and the price per share for which Common Stock is issuable upon the exercise of such Options is less than the Conversion Price
then in effect, then the Conversion Price shall be equal to such price per share. For purposes of the preceding sentence, the “price
per share for which Common Stock is issuable upon the exercise of such Options” is determined by dividing (i) the total amount,
if any, received or receivable by the Borrower as consideration for the issuance or granting of all such Options, plus the minimum
aggregate amount of additional consideration, if any, payable to the Borrower upon the exercise of all such Options, plus, in the
case of Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of additional consideration
payable upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable,
by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Options (assuming full conversion
of Convertible Securities, if applicable). No further adjustment to the Conversion Price will be made upon the actual issuance
of such Common Stock upon the exercise of such Options or upon the conversion or exchange of Convertible Securities issuable upon
exercise of such Options.

    	 	10	 

     

    

 

 

Additionally,
the Borrower shall be deemed to have issued or sold shares

of Common
Stock if the Borrower in any manner issues or sells any Convertible Securities, whether or not immediately convertible (other than
where the same are issuable upon the exercise of Options), and the price per share for which Common Stock is issuable upon such
conversion or exchange is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price
per share. For the purposes of the preceding sentence, the “price per share for which Common Stock is issuable upon such
conversion or exchange” is determined by dividing (i) the total amount, if any, received or receivable by the Borrower as
consideration for the issuance or sale of all such Convertible Securities, plus the minimum aggregate amount of additional consideration,
if any, payable to the Borrower upon the conversion or exchange thereof at the time such Convertible Securities first become convertible
or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the conversion or exchange of all such
Convertible Securities. No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock
upon conversion or exchange of such Convertible Securities.

 

		(e)	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.

 

		(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.

    	 	11	 

     

    

 

 

1.7             
Trading Market Limitations. Unless permitted by the applicable rules and 

regulations
of the principal securities market on which the Common Stock is then listed or traded, in no event shall the Borrower issue upon
conversion of or otherwise pursuant to this Note and the other Notes issued pursuant to the Purchase Agreement more than the maximum
number of shares of Common Stock that the Borrower can issue pursuant to any rule of the principal United States securities market
on which the Common Stock is then traded (the “Maximum Share Amount”), which shall be 4.99% of the total shares outstanding
on the Closing Date (as defined in the Purchase Agreement), subject to equitable adjustment from time to time for stock splits,
stock dividends, combinations, capital reorganizations and similar events relating to the Common Stock occurring after the date
hereof. Once the Maximum Share Amount has been issued, if the Borrower fails to eliminate any prohibitions under applicable law
or the rules or regulations of any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction
over the Borrower or any of its securities on the Borrower’s ability to issue shares of Common Stock in excess of the Maximum
Share Amount, in lieu of any further right to convert this Note, this will be considered an Event of Default under Section 3.2
of the Note.

 

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

 

1.9             
Prepayment. Notwithstanding anything to the contrary contained in this Note, 

the Borrower
may prepay the amounts outstanding hereunder (in whole or in part) pursuant to the following terms and conditions:

 

(a)              
At any time during the period beginning on the Issue Date and ending 

on the date
which is ninety (90) days following the Issue Date, the Borrower shall have the right, exercisable on not less than three (3) Trading
Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full by
making a payment to the Holder of an amount in cash equal to 125%, 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 plus (y) Default
Interest, if any.

 

    	 	12	 

     

    

 

(b)              
At any time during the period beginning the day which is ninety one (91) days following the
Issue Date and ending on the date which is one hundred eighty (180) days following the Issue Date, the Borrower shall have the
right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding
Note (principal and accrued interest), in full by making a payment to the Holder of an amount in cash equal to 140%, 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 plus (y) Default Interest, if any. 

(c)              
After the expiration of one hundred eighty (180) days following the 

date of
the Note, the Borrower shall have no right of prepayment.

Any notice
of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note at its registered
addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which
shall be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment
(the “Optional Prepayment Date”), the Borrower shall make payment of the applicable prepayment amount 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 delivers an Optional Prepayment Notice and fails to pay the applicable prepayment amount due to the Holder
of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to
prepay the Note pursuant to this Section 1.9.

 

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

    	 	13	 

     

    

 

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 (a) in existence or committed on the date hereof and which the Borrower has
informed Holder in writing prior to the date hereof, (b) made in the ordinary course of business or (c) not in excess of $100,000.

 

2.6
Section 3(a)(9) or 3(a)(10) Transaction. So long as this Note is outstanding,

the Borrower
shall not enter into any transaction or arrangement structured in accordance with, based upon, or related or pursuant to, in whole
or in part, either Section 3(a)(9) of the Securities Act (a “3(a)(9) Transaction”) or Section 3(a)(l0) of the Securities
Act (a “3(a)(l0) Transaction”). In the event that the Borrower does enter into, or makes any issuance of Common Stock
related to a 3(a)(9) Transaction or a 3(a)(l0) Transaction while this note is outstanding, a liquidated damages charge of 25% of
the outstanding principal balance of this Note, but not less than Fifteen Thousand Dollars $15,000, will be assessed and will become
immediately due and payable to the Holder at its election in the form of cash payment or addition to the balance of this Note.

 

2.7
Preservation of Existence, etc. The Borrower shall maintain and preserve, and

cause each
of its Subsidiaries to maintain and preserve, its existence, rights and privileges, and become or remain, and cause each of its
Subsidiaries (other than dormant Subsidiaries that have no or minimum assets) to become or remain, duly qualified and in good standing
in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business
makes such qualification necessary.

 

2.8 Non-circumvention.
The Borrower hereby covenants and agrees that the Borrower will not, by amendment of its Certificate or Articles of Incorporation
or Bylaws, or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue
or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms
of this Note, and will at all times in good faith carry out all the provisions of this Note and take all action as may be required
to protect the rights of the Holder.

 

ARTICLE
III. EVENTS OF DEFAULT

 

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

    	 	14	 

     

    

 

 

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 (i) fails to issue shares of Common Stock to the Holder (or announces or threatens in writing
that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance
with the terms of this Note, (ii) 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, (iii) 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, (iv) fails to remove (or
directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend
(or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to
the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement,
statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue
uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three
(3) business days after the Holder shall have delivered a Notice of Conversion, (v) fails to remain current in its obligations
to its transfer agent, (vi) causes a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower
to its transfer agent, (vii) fails to repay Holder, within forty eight (48) hours of a demand from the Holder, any amount of funds
advanced by Holder to Borrower’s transfer agent in order to process a conversion, and/or (viii) fails to maintain the Reserved
Amount.

 

3.3 Failure
to Deliver Transaction Expense Amount. The Borrower fails to

deliver
the Transaction Expense Amount (as defined in the Purchase Agreement) to the Holder within three (3) business days of the date
such amount is due.

 

3.4
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 ten (10) days after written notice thereof to the Borrower from the Holder.

 

3.5
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.

    	 	15	 

     

    

 

3.6
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall

make an
assignment for the benefit of creditors or commence proceedings for its dissolution, 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 for the Borrower or for a substantial part of its property or business without its consent and shall not be discharged
within sixty (60) days after such appointment.

3.7
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, 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.

3.8 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, or the Borrower admits in writing its inability to
pay its debts generally as they mature, or have filed against it an involuntary petition for bankruptcy relief, all under federal
or state laws as applicable or the Borrower admits in writing its inability to pay its debts generally as they mature, or have
filed against it an involuntary petition for bankruptcy relief, all under international, federal or state laws as applicable.

3.9
Delisting of Common Stock. The Borrower shall fail to maintain the listing of

the Common
Stock on at least one of the OTC Pink, OTCQB, Nasdaq National Market, Nasdaq Small Cap Market, New York Stock Exchange, NYSE MKT,
or an equivalent replacement exchange

3.10 Failure
to Comply with the Exchange Act. The Borrower shall fail to

comply with
the reporting requirements of the Exchange Act (including but not limited to becoming delinquent in its filings); and/or the Borrower
shall cease to be subject to the reporting requirements of the Exchange Act.

3.11 Liquidation.
Any dissolution, liquidation, or winding up of Borrower or

any substantial
portion of its business.

3.12 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.

3.13 Maintenance
of Assets. The failure by Borrower 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),
or any disposition or conveyance of any material asset of the Company.

 

    	 	16	 

     

    

 

3.14 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.

 

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

 

3.16
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.

3.17 Cessation
of Trading. Any cessation of trading of the Common Stock on

at least
one of the OTC Pink, OTCQB, Nasdaq National Market, Nasdaq Small Cap Market, New York Stock Exchange, NYSE MKT, or an equivalent
replacement exchange, and such cessation of trading shall continue for a period of five consecutive (5) Trading Days.

 

3.18 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 (as defined herein), 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) or any other third party, including, without
limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the agreements and instruments
defined as the Documents. 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.

 

3.19 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).

 

3.20 OTC
Markets Designation. OTC Markets changes the Borrower’s

designation
to ‘No Information’ (Stop Sign), ‘Caveat Emptor’ (Skull and Crossbones), or ‘OTC’, ‘Other
OTC’ or ‘Grey Market’ (Exclamation Mark Sign).

 

3.21 Inside
Information. Any attempt by the Borrower or its officers, directors,

and/or affiliates
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.

    	 	17	 

     

    

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 acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.10, 3.11,
3.12, 3.13, 3.14, 3.15, 3.16. 3.17, 3.18, 3.19, 3.20, and/or 3.21 exercisable through the delivery of written notice to the
Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the
remaining sections of Article 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 (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) at the option of the
Holder, 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 Trading 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. Further, if a
breach of Sections 3.9, 3.10 and/or 3.19 occurs or is continuing after the six (6) month anniversary of this Note, then the
principal amount of the Note shall increase by Fifteen Thousand and No/100 United States Dollars ($15,000) (under
Holder’s and Borrower’s expectation that any principal amount increase will tack back to the Issue Date) and the
Holder shall be entitled to use the lowest Trading Price during the delinquency period as a base price for the conversion
with the Variable Conversion Price shall be redefined to mean forty percent (40%) multiplied by the Market Price, subject to
adjustment as provided in this Note. For example, if the lowest Trading Price during the delinquency period is $0.01 per
share and the conversion discount is 50%, then the Holder may elect to convert future conversions at $0.005 per share. If
this Note is not paid at Maturity Date, then the outstanding principal due under this Note shall increase by Fifteen Thousand
and No/100 United States Dollars ($15,000).

 

    	 	18	 

     

    

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. This requirement
by the Borrower shall automatically apply upon the occurrence of an Event of Default without the need for any party to give any
notice or take any other action.

 

If the Holder
shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging an attorney,
then if the Holder prevails in such action, the Holder shall be reimbursed by the Borrower for its attorneys' fees and other costs
and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

ARTICLE
IV. MISCELLANEOUS

 

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

 

4.2
Notices. All notices, demands, requests, consents, approvals, and other

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

    	 	19	 

     

    

 

 

If
to the Borrower, to:

 

Bemax,
Inc.

625
Silver Oak Drive

Dallas,
GA 30132

Attn:
Taiwo Aimasiko

E-mail: admin@bemaxinc.com

 

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

 

                              Law Office
of Carl A. Generes

4358
Shady Bend Drive

Dallas,
TX 75244

E-mail:
cgeneres@genereslaw.com

 

If
to the Holder:

 

                              Auctus
Fund, LLC

101
Arch Street, 20th Floor

Boston,
MA 02110

                              Attn:
Lou Posner

Facsimile:
(617) 532-6420

 

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

 

Chad
Friend, Esq., LL.M.

Legal
& Compliance, LLC

330
Clematis Street, Suite 217

West Palm Beach, FL 33401

e-mail:
CFriend@LegalandCompliance.com

 

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.
The Holder and any assignee, by acceptance of this Note, acknowledge and agree that 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.

    	 	20	 

     

    

 

 

4.5 Cost
of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof reasonable 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 Nevada without regard to principles of conflicts of laws. Any action brought by either party against the
other concerning the transactions contemplated by this Note shall be brought only in the state courts of Massachusetts or in the
federal courts located in the Commonwealth of Massachusetts. The parties to this Note hereby irrevocably waive any objection to
jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue
or based upon forum non conveniens. THE BORROWER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY
TRANSACTION CONTEMPLATED HEREBY. The prevailing party shall be entitled to recover from the other party its reasonable attorney's
fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid
or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that
it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may
prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

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
Purchase Agreement. By its acceptance of this Note, each party agrees to be

bound by
the applicable terms of the Purchase Agreement.

    	 	21	 

     

    

 

 

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 including,
but not limited to, name changes, recapitalizations, etc. as soon as possible under law.

4.10 Usury.
If it shall be found that any interest or other amount deemed

interest
due hereunder violates the applicable law governing usury, the applicable provision shall automatically be revised to equal the
maximum rate of interest or other amount deemed interest permitted under applicable law. The Borrower covenants (to the extent
that it may lawfully do so) that it will not seek to claim or take advantage of any law that would prohibit or forgive the Borrower
from paying all or a portion of the principal or interest on this Note.

4.11 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. No
provision of this Note shall alter or impair the obligation of the Borrower, which is absolute and unconditional, to pay the principal
of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

4.12 Severability.
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 provision hereof which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

    	 	22	 

     

    

 

 

4.13 Dispute
Resolution. In the case of a dispute as to the determination of the Conversion Price, Conversion Amount, any prepayment amount
or Default Amount, Default Sum, Closing or Maturity Date, the closing bid price, or fair market value (as the case may be) or the
arithmetic calculation of the Conversion Price or the applicable prepayment amount(s) (as the case may be), the Borrower or the
Holder shall submit the disputed determinations or arithmetic calculations via facsimile (i) within two (2) Business Days after
receipt of the applicable notice giving rise to such dispute to the Borrower or the Holder or (ii) if no notice gave rise to such
dispute, at any time after the Holder learned of the circumstances giving rise to such dispute. If the Holder and the Borrower
are unable to agree upon such determination or calculation within two (2) Business Days of such disputed determination or arithmetic
calculation (as the case may be) being submitted to the Borrower or the Holder, then the Borrower shall, within two (2) Business
Days, submit via facsimile (a) the disputed determination of the Conversion Price, the closing bid price, the or fair market value
(as the case may be) to an independent, reputable investment bank selected by the Borrower and approved by the Holder or (b) the
disputed arithmetic calculation of the Conversion Price, Conversion Amount, any prepayment amount or Default Amount, Default Sum
to an independent, outside accountant selected by the Holder that is reasonably acceptable to the Borrower. The Borrower shall
cause at its expense the investment bank or the accountant to perform the determinations or calculations and notify the Borrower
and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations.
Such investment bank’s or accountant’s determination or calculation shall be binding upon all parties absent demonstrable
error.

4.14 Terms
of Future Financings. So long as this Note is outstanding, upon any

issuance
by the Borrower or any of its subsidiaries of any security with any term more favorable to the holder of such security or with
a term in favor of the holder of such security that was not similarly provided to the Holder in this Note, then the Borrower shall
notify the Holder of such additional or more favorable term and such term, at Holder’s option, shall become a part of the
transaction documents with the Holder. The types of terms contained in another security that may be more favorable to the holder
of such security include, but are not limited to, terms addressing conversion discounts, prepayment rate, conversion lookback periods,
interest rates, original issue discounts, stock sale price, private placement price per share, and warrant coverage.

 

 

[signature
page follows] 

 

    	 	23	 

     

    

 

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

                                            BEMAX,
INC. 

: 

                           Name:
Taiwo Aimasiko

                           Title: Chief Executive Officer

    	 	24	 

     

    

 

EXHIBIT
A

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert $_________________principal amount

of the Note
(defined below) together with $________________ of accrued and unpaid interest thereto, totaling $_____________ into that number
of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below,
of Bemax, Inc., a Nevada corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower
dated as of April 4, 2017 (the “Note”), as of the date written below. No fee will be charged to the Holder for any
conversion, except for transfer taxes, if any.

 

Box Checked
as to applicable instructions:

 

	
        [ ]

         

         
	
        The Borrower
        shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned
        or its nominee with DTC through its Deposit Withdrawal At Custodian system (“DWAC Transfer”).

        Name of DTC Prime Broker:

        Account Number:

	
        [ ]

         
	
        The undersigned
        hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below
        (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional
        space is necessary, on an attachment hereto:

         

        Name: [NAME]

        Address: [ADDRESS]

        Date of Conversion: 
          _____________

        Applicable Conversion Price:
          $____________

        Number of Shares of Common
        Stock to be Issued

        Pursuant to Conversion
        of the Notes:  ______________

        Amount of Principal Balance
        Due remaining

        Under the Note after this
        conversion: ______________

        Accrued and unpaid interest
        remaining:  ______________

         

        [HOLDER]

         

         

        By:_____________________________

        Name: [NAME]

        Title: [TITLE]

        Date: [DATE]

 

 

 

    	 	25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}]]