Document:

NEITHER
THE ISSUANCE NOR 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 MARGlN ACCOUNT OR
OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE
SECURITIES.

 

Principal
Amount: $150,000.00Issue
Date: September
11, 2017

 

 

 

PROMISSORY NOTE

FOR
VALUE RECEIVED, AIM EXPLORATION, INC.,
a Nevada corporation (hereinafter called the "Borrower"),
hereby promises
to pay to the order of L2 CAPITAL, LLC,
a Kansas limited liability company, or
registered assigns (the "Holder") the principal
sum of

$150,000.00
(the "PrincipalAmount"),
together with
interest at the
rate of eight percent
(8%) per annum,
at maturity or upon acceleration
or otherwise, as set forth herein (the "Note").
The maturity date shall be twelve
(12) months
from the Issue Date (the " Maturity
Date"),
and is the date upon which the principal sum, as
well as any accrued and unpaid interest and other fees, shall be due and payable. This
Note is being issued by the Borrower to the
Holder as a commitment fee, pursuant
to that certain $5,000,000.00equity
purchase agreement of even
date (the "EPA").
This Note may not be prepaid in whole or in part except as otherwise explicitly set forth
herein. Any amount of principal or interest on this Note, which is not paid by
the Maturity Date,
shall bear interest at the
rate of the lesser
of (i) twenty four percent (24%)
per annum or (ii) the maximum amount allowed by law, from the
due date thereof until the same is
paid ("Default
Interest"). Interest shall commence
accruing on the date
that the Note is fully paid and shall
be computed on the basis
of a 365-day
year and the actual number of days elapsed. All payments due
hereunder
(to the extent not
converted into the Borrower's common
stock (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

 

    	 	1	 

    	 

    

 

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.

 

This
Note is free from all taxes, liens, claims and encumbrances
with resp·ect
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 additional
terms shall also apply to this Note:

 

ARTICLE I. CONVERSION RIGHTS

 

1.1       Conversion
Right. The Holder shall have the right at any
time on or after an Event of Default
(as defined herein) occurs under the Note,
to convert all or any part of the outstanding and unpaid principal amount and accrued
and unpaid interest of this Note into fully paid and non-assessable shares of Common Stock, as such
Common Stock exists on the Issue Date, or any shares of
capital stock or other securities of the Borrower into
which such Common Stock shall hereafter be changed or reclassified at
the conversion price (the "Conversion Price") determined
as provided herein (a "Conversion"); provided.
however, that in no event
shall the Holder be entitled to convert any portion of
this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially
owned by the Holder and its affiliates (other
than shares of Common Stock which may be deemed beneficially owned through the
ownership of the unconverted portion of the Notes
or the unexercised or unconverted portion of any other security
of the Borrower subject to a limitation on conversion or
exercise analogous to the limitations contained herein)
and (2) the number of shares of Common Stock issuable upon the conversion of the
portion of this Note with respect to which the determination
of this proviso is being made, would result in beneficial ownership
by the Holder and its affiliates of more than 4.99% of
the outstanding shares of Common Stock. For purposes of
the proviso to the immediately preceding sentence, beneficial ownership shall be determined
in accordance with Section
13(d) of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), and Regulations 13D-G thereunder, except as otherwise
provided in clause (I) of
such proviso. 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

 

    	 	2	 

    	 

    

 

Conversion
Date, plus (3) at the Holder's
option, Default Interest, if
any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder's
option,
any amounts owed to the Holder pursuant to Sections 1.3
and 1.4(g) hereof.

 

		12	Conversion Price.

 

(a)   
Calculation of Conversion Price. The
Conversion Price
shall be the Variable Conversion Price (as
defined herein) (subject,
in each case,
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) (also subject to adjustment as further described
herein). 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 one (1) Trading
Price
(as defined below)
for the Common Stock during the thirty (30) Trading
Day period
ending, in Holder's sole discretion on
each conversion, on
either (i) the last complete Trading Day
prior to the Conversion Date or
(ii) the Conversion Date. "Trading
Price"
means, for any security as of any date,
the lowest traded price on the Over-the-
Counter Pink Marketplace, OTCQB, or applicable trading
market (the "OTCQB") as reported by a reliable reporting
service ("Reporting Service")
designated by the
Holder (i.e.
www.Nasdaq.com) or, if the OTCQB is
not the principal trading market for such security, on
the principal securities exchange or trading
market where such security is listed or traded or, if
the·lowest
intraday trading price of such security is
not available in any of the foregoing manners, the lowest
intraday price of any market makers for such security that are quoted on the OTC Markets. If
the Conversion Price on the date in which
the Holder
actually receives the Conversion Shares (each a "Share
Delivery Date") is less
than the Conversion Price in the respective Notice of Conversion, then the Conversion Price in the respective
Notice of Conversion shall be retroactively adjusted
downward to equal the Conversion Price on the Share Delivery
Date. 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
OTCQB, or
on the principal securities exchange or other securities market on which the Common Stock is then being traded. Each time an Event
of Default (as
defined herein)
occurs while
this Note is outstanding, an additional discount
of five percent (5%) shall be factored
into the Variable Conversion Price. All
expenses incurred by Holder,
for the issuance
and clearing of the Common
Stock into which this Note is convertible into, shall immediately and automatically be added to the balance of the Note at such
time as the expenses are incurred by Holder.

 

Each
time, while this Note is outstanding, the Borrower enters
into a Section 3(a)(9) Transaction (as defined herein) (including but not limited
to the issuance of new promissory notes or of a replacement promissory note), or Section
3(a)(IO) transaction (as defined herein), in which any 3rd
party bas the right to convert monies owed to that 3rd
party (or receive shares pursuant to a settlement or otherwise) at a discount to market greater than the
Variable Conversion Price in
effect at that time (prior to all other applicable adjustments
in the Note),

 

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then
the Variable Conversion Price shall be automatically adjusted to such
greater discount percentage (prior to all applicable adjustments in this
Note) until this Note is no longer outstanding. Each time,
while this Note is outstanding, the Borrower enters
into a Section 3(a)(9) Transaction (including but not limited
to the issuance of new promissory notes or of a replacement
promissory note), or Section
3(a)(10) Transaction, in which any 3rd party
has a look back period greater than the look back
period in effect under
the Note at that time, then the Holder's look back period
shall automatically be adjusted to such greater number of days until this Note is no longer outstanding. The
Borrower shall give written notice to the Holder, with the adjusted Variable Conversion Price
and/or adjusted look back period (each adjustment that
is applicable due to the triggering event), within one (1)
business day of an event that
requires any adjustment described in
the two immediately preceding sentences. So long as this Note is outstanding, if
any security of the Borrower contains 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.

 

If
at any time the Conversion Price as
determined hereunder for any conversion would be less than
the par value of the Common Stock, then at the sole discretion of the Holder, the Conversion Price
hereunder may equal such par value
for such conversion and the Conversion Amount for such
conversion may be increased to include Additional Principal,
where "Additional Principal" means such
additional amount to be added to the Conversion Amount to
the extent necessary to cause the number of conversion shares issuable
upon such conversion to equal the same number of conversion shares as would have been issued
had the Conversion Price not been adjusted by the Holder
to the par value price

 

(b)          
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. 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 hereunder. The
Borrower represents that upon issuance,
such shares will be duly
and validly issued, fully paid and non-
assessable. In addition,
if the Borrower
shall issue any securities or
make any change to its capital structure which would
change the number
of shares of Common Stock
into which the Notes shall be convertible at the then current Conversion Price,
the Borrower
shall at the same time make proper
provision so that thereafter there shall be
a sufficient number of shares
of Common Stock authorized and
reserved, free from preemptive rights, for conversion
of the outstanding 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 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.

 

    	 	4	 

    	 

    

 

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

 

 

		13	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 on or after an Event of Default occurs under the Note, by submitting to
the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion
Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section l.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, primafacie, 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
truces) may request, representing in the aggregate the remaining unpaid
principal amount of this Note .
The Holder and any assignee, by acceptance of this Note,
acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the
unpaid and unconverted principal amount of this Note represented by this Note may be less than
the amount stated on the face hereof.

 

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

 

(d)   
Delivery
of Common Stock Upon Conversion.
Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail
(or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided

 

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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 two (2) 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.

(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 6:00 p.m., New
York, New
York time, on such date.

 

(f)    
Delivery of Common Stock by Electronic Transfer. In
lieu of delivering physical certificates representing the Common Stock issuable upon conversion,
provided the Borrower is participating in the Depository Trust Company ("DTC") Fast Automated
Securities Transfer ("FAST") program, upon request
of the Holder and its
compliance with the provisions contained in
Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause
its transfer agent to electronically
transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder's
Prime Broker with DTC through its Deposit Withdrawal Agent Commission ("DWAC") system.

 

(g)   
Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting
the Holder's right to pursue other remedies, including actual damages and/or
equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion 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 $1,000 per day in cash,
for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (unless
such failure results from war, acts of terrorism,
an epidemic, or natural disaster). 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

 

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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(g) are
justified.

 

1.4       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.
Except as otherwise provided (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 (WIDCH
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."

 

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

 

    	 	7	 

    	 

    

 

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 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 Holder
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.

 

15       [Intentionally Omitted].

 

1.6       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.

 

ARTICLE ll.
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.

 

    	 	8	 

    	 

    

 

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.

 

ARTICLE III. EVENTS OF DEFAULT

 

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

 

3.1                                                 
Failure to
Pay Principal or Interest. The Borrower fails to pay the
principal hereof or interest thereon when due on this Note, which
shall be due on the earlier of (i) the Maturity Date and (ii) upon acceleration
or otherwise.

 

3.2                                                 
Conversion and the Shares. The Borrower fails
to reserve a sufficient amount
of shares of common
stock as required under the terms of this Note
(including Section 1.3 of this Note), fails
to issue shares of Common Stock to the Holder (or announces
or threatens in writing that it will not honor its
obligation to
do so)
upon exercise by the Holder of the conversion
rights of the Holder in accordance with the terms of this Note,
fails to transfer or cause its transfer agent
to transfer
(issue) (electronically or in certificated form) shares
of Common Stock issued
to the Holder upon conversion of or otherwise pursuant
to this Note as and when required by this Note,
the Borrower
directs its transfer agent not to
transfer or delays, impairs, and/or
hinders its transfer agent
in transferring (or
issuing) (electronically or
in certificated
form) shares of Common Stock to be issued to the Holder upon
conversion of or
otherwise pursuant to this
Note as and when
required by this
Note, or fails to remove (or directs its
transfer agent not to
remove or impairs, delays, and/or hinders
its transfer agent from removing) any restrictive legend
(or to withdraw any stop transfer
instructions in respect thereof) on any 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 two
(2) business days after the
Holder shall have delivered a
Notice of Conversion. It is an obligation of the
Borrower to
remain current in its obligations to its transfer
agent. It shall
be an event
of default of this Note, if a conversion of this Note
is delayed, hindered or frustrated due to a balance owed by
the Borrower to its transfer agent. If at the option of the
Holder, the Holder advances any funds to the Borrower's
transfer agent in order to
process a conversion, such advanced funds shall
be paid by the Borrower to the
Holder within five (5) business days, either in cash or as an
addition to the balance of the Note, and
such choice
of payment method is at
the discretion of the Borrower.

 

3.3                                                 
Breach of Covenants.
The Borrower breaches any material covenant or other material term
or condition contained in
this Note and any collateral documents and such
breach continues for a period of three (3) days after written notice thereof
to the

 

    	 	9	 

    	 

    

 

Borrower
from the Holder or after five (5) days after the Borrower should have been aware of the breach.

 

3.4                                                
Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement,
statement or certificate given in writing pursuant hereto or in connection herewith, 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.

 

3.5                                                
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise be appointed.

 

3.6                                                
Judgments. Any money judgment, writ or similar
process shall be entered or filed against the Borrower or any subsidiary of the Borrower or any of its property or other assets
for more than $100,000, and shall remain unvacated, unbonded or unstayed for a period of ten (10) days unless otherwise consented
to by the Holder, which consent will not be unreasonably withheld.

 

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

 

3.8                                            
. Delisting of Common Stock. The Borrower
shall fail to maintain the listing or quotation of the Common Stock on the OTCQB or an equivalent replacement exchange, the Nasdaq
Global Market, the Nasdaq Capital Market, the New York Stock Exchange, or the NYSE MKT.

 

3.9                                                
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.

 

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

 

3.11                                            
Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable
to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower's ability to continue as a

"going
concern" shall not be an admission that the Borrower cannot pay its debts as they become due.

 

		3.12	Financial Statement Restatement. The Borrower replaces its

 

    	 	10	 

    	 

    

 

auditor,
or any 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.

 

3.13                                                      
Failure to Draw Down.
The Borrower fails
to deliver a
put notice to the Holder
pursuant to the EPA
during the initial six (6) month period immediately following the Issue
Date.

 

3.14                                                      
Replacement of
Transfer Agent. 1n the
event that the Borrower replaces
its transfer agent, and the Borrower fails
to provide prior to the effective
date of such replacement,
a fully executed Irrevocable Transfer
Agent Instructions (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 that reserves the greater of

(i)
the total amount of shares previously held in reserve for
the Note with the Borrower's immediately preceding transfer
agent and (ii) the Reserved
Amount.

 

3.15                                                      
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 financial instrument, including but not limited to all convertible
promissory notes, currently issued, or
hereafter issued, by the
Borrower, to the Holder or
any 3rd party (the "Other Agreements"), after the passage of
all applicable notice and cure or grace periods, shall, at the option of the Holder,
be considered a default under this
Note, in which event
the Holder shall be
entitled to apply all
rights and remedies of the
Holder under the terms
of this Note by reason
of a default under
said Other Agreement or
hereunder. Cross-defaults
will not apply as to any indebtedness subject to litigation, at
the Issue Date, between
the Borrower and
any other third party.

 

3.16                                                      
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.

 

3.17                                                     
No Bid.
At any time while this Note is outstanding, the lowest Trading
Price on the OTCQB
or other applicable principal trading market for the Common Stock
is equal to or less than
$0.001.

 

3.18                                                     
Prohibition on
Debt and Variable
Securities. So long as the Note is outstanding, the Borrower
shall not, without written consent of the Investor,
issue any Variable Security (as defined herein),
unless (i) the Borrower
is permitted to pay off the Note in cash at the time of the issuance of the respective
Variable Security and
(ii) the Borrower pays
off the Note, pursuant to the terms of the Note, in cash at the time of the
issuance of the respective

 

    	 	11	 

    	 

    

 

Variable
Security. A Variable Security shall mean any
security issued by the Borrower (other than
this note or other notes with the Holder)
that (i) has or may
have conversion rights of any kind, contingent, conditional
or otherwise in which the number of shares that may be issued pursuant to such conversion right varies with the market price of
the common stock; (ii) is or may become convertible into common stock (including without limitation convertible debt,
warrants or convertible preferred stock), with a conversion or exercise price that varies with
the market price of the common stock, even
if such security only becomes convertible or exercisable following an event of default,
the passage of time,
or another trigger event or condition; or (iii) was issued
or may be issued in the future in exchange for or in connection with any contract, security, or instrument, whether convertible
or not, where the number of shares of common stock issued
or to be issued is based upon or
related in any way to the market price of the
common stock, including, but not limited to,
common stock issued in connection with a Section
3(a)(9) exchange, a Section 3(a)(l0) settlement, or any other similar settlement or exchange.

 

3.19                                                     
Failure to Repay Upon Qualified Offering.
The Borrower fails to repay this Note, in its entirety, pursuant
to the terms of the Note, with funds
received from its next completed
offering of $1,000,000.00
or more (consummated on or after the Issue Date).

 

UPON
THE OCCURRENCE
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 of any Event of Default specified
in Sections 3.1, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11,
3.12, 3.13, 3.14,

3.15,
3.16, 3.17, 3.18, and/or 3.19, 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 140%
(plus an additional 5% per each additional Event of Default
that occurs hereunder) multiplied by the then outstandingentire
balance of the Note (including principal and accrued and
unpaid interest) plus Default Interest,
if any. plus any amounts
owed to the Holder pursuant
to Sections 1.4(g) hereof (collectively, in the aggregate of all
of the above, the "Default Sum"), 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.

 

The
Holder shall have the right at any time,
to require the Borrower,
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, subject to
issuance in tranches due to the beneficial ownership limitations contained in this Note.

 

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

 

    	 	12	 

    	 

    

 

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.

 

42       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, facsimile, or electronic mail 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, upon electronic mail delivery,
or delivery by facsimile,
with accurate confirmation generated by the transmitting facsimile machine, at the address
or number designated below (if delivered
on a business day during normal business
hours where such notice is
to be received), or the
first business day following such delivery (if delivered other
than on a business day during normal business hours where
such notice is to be received) or (b) on the second business
day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses
for such communications shall be:

 

If to the Borrower, to:

 

AIM EXPLORATION, INC.

170
S. Green Valley Pkwy,
Suite 300 Henderson, NV 89012

e-mail:
bob.todhunter@aimexploration.com If to the Holder:

L2 CAPITAL, LLC

8900 State
Line Rd., Suite
410

Leawood, KS
66206

e-mail: investments@ltwocapital.com

 

43       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 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

 

    	 	13	 

    	 

    

 

pledged
as collateral in connection with a bona fide margin
account or other lending arrangement.

45       Cost
of Collection.
If default is made in the payment of
this Note,
the Borrower
shall pay the Holder
hereof costs of collection, including reasonable attorneys' fees.

 

 

4.6                                                   
Governing Law.
This Note
shall be governed by and
construed in accordance with the
laws of the
State of 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 and/or federal
courts of
Johnson
County, Kansas. The parties to this
Note hereby irrevocably waive any objection to
jurisdiction and venue
of any
action instituted hereunder and shall
not assert
any defense based on
lack of jurisdiction or venue
or based upon forum
non conveniens.
The Borrower
and Holder waive trial by jury. Toe 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 tbat
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                                                   
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

 

    	 	14	 

    	 

    

 

purpose
of the transaction contemplated hereby. Accordingly, the
Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees,
in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that
the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties
assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically
the terms and provisions
thereof, without the necessity
of showing economic loss and without any bond or other security being required.

4.9                                                     
Repayment. Notwithstanding anything to the contrary contained in this Note, the Borrower may repay any amount outstanding
under this Note, at any time after the Issue Date, by making a payment to the Holder of an amount in cash equal to 135% multiplied
the amount that the Borrower is repaying. In order to repay this Note, the Borrower shall provide notice to the Holder ten (10)
business days prior to such respective repayment date, and the Holder must receive such repayment within twelve (12) business days
of the Holder's receipt of the respective repayment notice, but not sooner than ten (10) business days from the date of notice
(the "Repayment Period"). The Holder may convert the Note in whole or in part at any time during the Repayment Period,
subject to the tenns and conditions of this Note.

 

4.10                                             
Section 3(a)O0) Transactions.
If at any time while this Note is outstanding,
the Borrower enters into a transaction structured in accordance
with, based upon, or related or pursuant to, in whole or in part, Section 3(a)(l0) of the Securities Act (a "3(a)(10) Transaction"),
then a liquidated damages charge of 100% of the outstanding principal balance of this Note at that time, will be assessed and will
become immediately due and payable to the Holder, either in the form of cash payment, an
addition to the balance of the Note, or a combination of both forms of payment, as determined by the Holder.

 

		4.11	[Intentionally Omitted].

 

		4.12	(Intentionally Omitted].

 

4.13                                              
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 (except with respect to any other security issued to, or any other agreement with,
the Holder), 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
look back periods, interest rates, original issue discounts, stock
sale price, private
placement price per share, and warrant coverage.

 

4.14                                               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
Borrower covenants (to the extent that it may
lawfully do so) that it shall not at any time insist
upon, plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay, extension or
usury law or other law which would prohibit or forgive the Borrower
from paying all or any portion of the principal of or
interest on this Note as contemplated herein, wherever enacted, now
or at any time hereafter in force,
or which may affect the covenants or the performance
of this Note, and the Borrower (to the extent it may
lawfully do so) hereby expressly waives all benefits
or advantage of any such law, and covenants that it will not,
by resort to any such law, hinder, delay or impede
the execution of any
power

herein
granted to the Holder, but will suffer and permit the execution of
every such as though no such law has been enacted.

    	 	15	 

    	 

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in
its name by its duly authorized officer this September 11, 2017.

 

AIM EXPLORATION,
INC.

 

 

By: /s/ James
Todhunter

Name: James Todhunter

Title: Chief Executive
Officer

 

    	 	16	 

    	 

    

 

 

 

EXHIBIT A -
NOTICE OF CONVERSION

 

The
undersigned hereby elects
to convert $_
_ _ _

principal
amount of the

Note
(defined below) into that number of shares of Common Stock
to be issued pursuant to the conversion of the Note ("Common
Stock") as set forth below, of AIM EXPLORATION,
INC., a Nevada corporation (the "Borrower") according to the conditions of the promissory
note of the Borrower dated as of September 11, 2017 (the ''Note"), as
of the date written
below. No fee will be charged to the Holder
for any conversion, except for transfer taxes, if
any.

 

Box Checked
as to applicable instructions:

 

[
] The Borrower shall
electronically transmit the Common Stock issuable pursuant
to this Notice of Conversion
to the account
of the undersigned or its nominee with DTC through its
Deposit Withdrawal Agent Commission system ("DWAC Transfer").

 

Name of
DTC Prime Broker: Account Number:

 

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

 

L2
CAPITAL, LLC

8900 State Line
Rd., Suite 410

Leawood,
KS 66206

e-mail: investments@ltwocapital.com

 

Date of Conversion:

Applicable
Conversion Price:$_
_ _

Number of Shares of Common Stock to
be Issued

Pursuant
to Conversion of the Notes:  Amount of
Principal Balance Due remaining

Under
the Note after this
conversion: 

 

L2 CAPITAL, LLC

 

By:

Name:-------------

Title:-------------

Date:
-------------

 

    	 	17SECURITIES PURCHASE
AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT
(the "Agreement"), dated
as of September 11,
2017, by and between AIM
EXPLORATION,
INC., a Nevada
corporation, with headquarters
located at 170 S. Green
Valley Pkwy, Suite
300, Henderson, NV
89012 (the "Company"), and L2 CAPITAL, LLC,
a Kansas limited liability company, with its address at 8900
State Line Rd., Suite
410, Leawood, KS 66206
(the "Buyer").

 

WHEREAS:

 

A.              
The Company and the Buyer
are executing and delivering
this Agreement in reliance upon the exemption
from securities registration afforded by the rules and regulations as promulgated by the
United States Securities and Exchange Commission (the "SEC") under the Securities
Act of 1933, as amended
(the "1933 Act");

 

B.              
Buyer desires
to purchase and the Company desires to issue and sell,
upon the terms and conditions set forth in this Agreement
a 8% promissory note of the Company, in the
form attached hereto as Exhibit A, in the aggregate principal amount of US$222,222.00 (together
with any note(s) issued in replacement thereof or as
a dividend
thereon or otherwise with
respect thereto in accordance
with the terms thereof, the "Note"), convertible
into shares of common stock,
nil par value per
share, of
the Company (the "Common Stock"),
upon the terms and subject to the
limitations and conditions
set forth in such Note.

 

C.               
The
Buyer wishes to purchase, upon the terms and
conditions stated in
this Agreement, such principal amount of Note as is set
forth immediately below its name on
the signature pages hereto;
and

 

NOW
THEREFORE, the Company and the Buyer
severally (and not
jointly) hereby agree
as follows:

 

		l.	PURCHASE
AND SALE OF NOTE.

 

a.     
Purchase
of Note. On
the Closing Date (as defined
below), the Company shall issue
and sell to the Buyer and
the Buyer agrees to purchase from the
Company such principal amount
of Note as is
set forth immediately below the Buyer's
name on the
signature pages hereto,
subject to the express terms of the Note. At
the time of Holder's funding
of each tranche under the Note, the Company shall issue
to Buyer as a commitment
fee, a warrant to purchase
an amount of shares of its common
stock equal to the
face value of each
respective tranche divided
by 120% of the closing price of the Common Stock on the
Trading Day immediately
preceding the closing
date of the respective tranche (all warrants issuable
hereunder, including now and
in the future, shall be
referred to, in the aggregate, as
the "Warrant").

 

    	 	1	 

    	 

    

 

b.     
Form of Payment. On the
Closing Date, the Buyer shall pay the purchase price of $35,000.00
(the "Purchase Price") for the First Tranche (as defined in the Note) under the Note,
by wire transfer of immediately available funds, in accordance with the Company's written wiring instructions, against delivery
of the Note, pursuant to the terms of the Note.
In the event that Buyer funds additional tranches under the Note, as further described in the
Note, then such additional amounts shall be paid in accordance with the Company's written wiring instructions as well.

 

c.     
Closing Date.
Subject to the satisfaction (or written waiver) of the
conditions thereto set forth in Section 6 and Section 7 below, the date and time of
the issuance and sale of the Note pursuant to this Agreement (the "Closing
Date") shall be 5:00 P.M.,
Eastern Standard Time on or about September 11, 2017,
or such other mutually agreed upon time. The closing of the transactions contemplated by this
Agreement (the "Closing") shall occur on the Closing Date at
such location as may be agreed to by the parties.

 

2.                
REPRESENTATIONS AND WARRANTIES OF
THE BUYER.The
Buyer represents and warrants to the Company that:

 

a.     
Investment Purpose. As of the date
hereof, the Buyer is purchasing
the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note (including, without limitation,
such additional shares of Common Stock, if any, as are issuable (i) on account of interest
on the Note or (ii) as a result of the
events described in Sections 1.3 and l .4(g) of the Note,
such shares of Common Stock being collectively referred to herein as the "Conversion Shares'' and, collectively with the Note,
the "Securities") for its own account and not with a present view towards the public sale or distribution thereof, except
pursuant to sales registered or exempted from registration under the 1933 Act; provided, however, that by making the representations
herein, the Buyer does not agree to
hold any of the Securities for any minimum or other specific term and reserves the right to dispose
of the

Securities
at any time in accordance with or pursuant to a registration statement
or an exemption under the 1933 Act.

 

b.    
Reliance on Exemptions. The Buyer understands
that the Securities are being offered and sold to it in reliance
upon specific exemptions from the registration requirements of United States federal and state securities laws
and that the Company is relying upon the truth and accuracy of, and the Buyer's compliance with, the
representations, warranties, agreements,
acknowledgments and understandings of
the Buyer set forth herein in order to

determine
the availability of such exemptions and the eligibility
of the Buyer to acquire the Securities.

 

c.     
Information. The Buyer and its advisors, if any, have been, and for so long as
the Note remain outstanding will continue to be, furnished with all materials relating to the business, finances and operations
of the Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer
or its advisors. The Buyer and
its

 

    	 	2	 

    	 

    

 

advisors,
if any, have been,
and for so long as the Note remain outstanding
will continue to be, afforded the opportunity to ask questions of the Company. Notwithstanding the foregoing, the
Company has not disclosed to the Buyer any
material nonpublic information and will not disclose such information unless such information
is disclosed to the public prior to or promptly following such disclosure to the Buyer.
Neither such inquiries nor
any other due diligence investigation conducted by Buyer or
any of its advisors or representatives shall modify,
amend or affect Buyer's right
to rely on the Company'
s representations and warranties contained in Section 3 below. The
Buyer understands that its investment in the Securities involves a significant degree
of risk. The Buyer
is not aware of any facts that may constitute a breach of any of the Company's representations and
warranties made herein.

 

d.    
Governmental Review. The Buyer understands that no United States federal or state
agency or any other government or governmental agency has passed
upon or made any recommendation or endorsement of
the Securities.

 

e.     
Transfer or Re-sale.
The Buyer understands that (i) the sale or re-sale of the
Securities has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the Securities
may not be transferred unless (a) the Securities are sold pursuant to an effective registration statement under
the 1933 Act, (b) the
Buyer shall have delivered to the Company, at the cost
of the Buyer, an opinion of counsel that shall be in
form, substance and scope
customary for opinions of counsel in comparable transactions to the
effect that the Securities to be sold or transferred may
be sold or transferred pursuant to an exemption from such registration,
which opinion shall be accepted by the Company, (c) the
Securities are sold or transferred to an "affiliate"
(as defined in Rule 144 promulgated under the 1933 Act
(or a successor rule) ("Rule 144")) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance
with this Section 2(f) and who is an Accredited Investor,
(d) the Securities are sold pursuant to Rule
144, or (e) the Securities are sold pursuant to Regulation
Sunder the 1933 Act (or a successor rule) ("Regulation S"), and the Buyer shall
have delivered to the Company, at the cost of
the Buyer, an
opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions, which
opinion shall be accepted by
the Company; (ii) any sale
of such Securities made in reliance on Rule 144 may be
made only in accordance with the terms of said Rule
and further, if said Rule is not applicable,
any re-sale of such Securities under circumstances in which the seller (or the person through
whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act)
may require compliance with some other exemption under
the 1933 Act or the rules and regulations of the SEC thereunder; and (iii)
neither the Company
nor any other person is under any obligation to register such Securities under the 1933 Act or
any state securities laws or to comply with the terms and
conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein to the contrary,
the Securities

may
be pledged as collateral in connection with a bona
fide margin account or other lending arrangement.

 

    	 	3	 

    	 

    

 

f.      
Legends. The Buyer understands
that the Note and, until such time as the Conversion Shares have been registered under
the 1933 Act may be sold pursuant
to Rule 144 or Regulation
S without any restriction as to the number of securities
as of a particular date that
can then be immediately sold, the Conversion Shares may bear
a restrictive legend in
substantially the following form (and a stop-transfer order
may be placed against transfer of the certificates for such Securities):

 

"NEITHER
THE ISSUANCE AND SALE OF
THE SECURITIES REPRESENTED BY Tms
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."

 

The
legend set forth above shall be removed and
the Company shall issue a certificate without such legend to the
holder of any Security upon which it is stamped, if,
unless otherwise required
by applicable state securities laws, (a) such Security
is registered for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to
Rule 144 or Regulation S without any
restriction as to the number of securities as of a particular date
that can then be immediately sold, or (b) such holder
provides the Company with
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 Security may be made without registration
under the 1933 Act, which opinion shall be accepted
by the Company so that
the sale or transfer is effected. The Buyer
agrees to sell all Securities, including those represented by a certificate(s) from which the
legend has been removed, in compliance with applicable prospectus delivery requirements, if any. In
the event that the Company 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.

 

    	 	4	 

    	 

    

 

g.     
Authorization; Enforcement.
This Agreement has been duly
and validly authorized. This Agreement has been duly executed
and delivered on behalf of the Buyer,
and this Agreement constitutes a valid and binding agreement of the
Buyer enforceable in accordance with its terms.

 

		3.	REPRESENTATIONS AND
WARRANTIES OF THE COMPANY.
The

Company represents
and warrants to the Buyer that:

 

a.     
Organization and Qualification.
The Company and each of its Subsidiaries (as defined below),
if any, is a corporation duly organized, validly existing
and in good standing under the laws
of the jurisdiction in which it is incorporated, with full power
and authority (corporate and other) to own, lease, use and operate
its properties and to carry on its business as and where now owned, leased, used, operated
and conducted. Schedule 3(a) sets forth a list of all of
the Subsidiaries of the Company and the jurisdiction in which each is incorporated. The Company and each of its Subsidiaries is
duly qualified as a foreign corporation to do business
and is in good standing in every jurisdiction in
which its ownership or use of property or the nature of the business conducted by
it makes such qualification necessary except
where the failure to
be so qualified or
in good standing would not have a Material Adverse Effect.
"Material Adverse
Effect" means any material adverse effect on the business, operations, assets, financial condition or prospects of the Company
or its Subsidiaries, if any, taken as a whole, or
on the transactions contemplated hereby or by the agreements
or instruments to be entered into in connection herewith.
"Subsidiaries" means any corporation or other organization, whether incorporated
or unincorporated, in
which the Company owns, directly or indirectly, any equity or other ownership interest.

 

b.    
Authorization; Enforcement. (i) The Company
has all requsite corporate power and authority to
enter into and perform this Agreement, the Note and
to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance
with the terms hereof and thereof, (ii) the execution and delivery
of this Agreement, the Note by the Company and the consummation by it
of the transactions
contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance
and reservation for issuance of the Conversion
Shares issuable upon conversion or
exercise thereof) have been duly
authorized by the Company's Board of Directors
and no further consent or authorization of the Company, its Board
of Directors,
or its shareholders is required,
(iii) this Agreement has been duly executed and delivered
by the Company by its authorized representative, and such authorized representative is
the true and official representative with authority to sign this
Agreement and the other documents executed
in connection herewith and bind the Company
accordingly, and (iv) this Agreement
constitutes, and upon execution and delivery by the Company of the Note, each of such instruments
will constitute, a legal, valid and

binding
obligation of the Company enforceable against the Company in accordance with
its terms.

c.     
Capitalization.
Except as disclosed in
the SEC Documents, no shares are reserved for issuance
pursuant to the Company's stock option plans, no shares are reserved

 

    	 	5	 

    	 

    

 

for
issuance pursuant to securities (other than the Note) exercisable for, or convertible into or exchangeable for shares of Common
Stock and sufficient shares are reserved for issuance upon conversion of the Note (as required by the Note and transfer agent share
reserve letter). All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized, validly issued,
fully paid and non-assessable. No shares of capital stock of the Company are subject to preemptive rights or any other similar
rights of the shareholders of the Company or any Liens or encumbrances imposed through the actions or failure to act of the Company.
Except as disclosed in the SEC Documents, as of the effective date
of this Agreement, (i) there are no outstanding options, warrants, scrip, rights to subscribe for, puts, calls, rights of first
refusal, agreements, understandings, claims or other commitments or rights of any character whatsoever relating to, or securities
or rights convertible into or exchangeable for any shares of capital stock of the Company or any of its Subsidiaries, or arrangements
by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company
or any of its Subsidiaries, (ii) there are nb agreements or arrangements under which the Company or any of its Subsidiaries is
obligated to register the sale of any of its or their securities under the 1933 Act and (iii) there are no anti-dilution
or price adjustment provisions contained in any security issued by the Company (or in any agreement providing rights to security
holders) that will be triggered
by the issuance of the Note or the Conversion Shares. The
Company has filed in its SEC Documents true and correct copies of the Company's Certificate of Incorporation as in effect on the
date hereof ("Certificate of Jncorporation"), the Company's By-laws, as in effect on the date hereof (the "By-laws"),
and the terms of all securities convertible into or exercisable for Common Stock of the Company and the material rights of the
holders thereof in respect thereto. The Company shall provide
the Buyer with a written update of this representation signed by the Company's Chief Executive on behalf of the Company as of the
Closing Date.

 

d.     
Issuance of Shares.
The Conversion Shares are duly authorized and reserved
for issuance and, upon conversion of the Note in accordance with its respective
terms, will be validly issued,
fully paid and non-assessable, and 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 Company and will not impose personal liability upon the holder thereof.

 

e.      
Acknowledgment of Dilution. The Company understands and acknowledges
the potentially dilutive effect to the Common Stock upon the issuance of the Conversion Shares
upon conversion of the Note. The
Company further acknowledges that its obligation to issue Conversion
Shares upon conversion of the Note in accordance with this Agreement, the
Note is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of
other shareholders of the Company.

 

f.      
No Conflicts. The execution,
delivery and performance of this Agreement, the Note by the Company and the consummation by the Company of the transactions contemplated
hereby and thereby (including, without limitation, the issuance and
reservation for issuance of the Conversion Shares) will not (i) conflict with or
result in a violation of any

 

    	 	6	 

    	 

    

 

provision
of the Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in
a breach of any provision of,
or constitute a default (or an event which
with notice or lapse of time or both could become a default)
under, or give to others
any rights of termination, amendment, acceleration
or cancellation of, any agreement,
indenture, patent, patent license or instrument to which the Company or any of its Subsidiaries is a
party, or (iii) result in
a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations
and regulatiqns of any self-regulatory organizations to
which the Company or its securities are subject) applicable to
the Company or any of its Subsidiaries or by which any
property or asset of the Company or any of its Subsidiaries
is bound or affected (except for such conflicts, defaults,
terminations, amendments,
accelerations, cancellations and violations as would not,
individually or in the aggregate, have a Material
Adverse Effect). Neither the Company
nor any of its Subsidiaries is in violation of its Certificate
of Incorporation, By-laws
or other organizational documents and
neither the Company nor any of its Subsidiaries is in
default (and no event
has occurred which with notice
or lapse of time or both could
put the Company or any of its Subsidiaries in default) under,
and neither the Company nor any of its Subsidiaries has
taken any action or failed to take any action that would
give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture
or instrument to which the Company or any of its
Subsidiaries is a party or by which any property or assets
of the Company or any of its Subsidiaries is
bound or affected, except for possible defaults as
would not, individually or in- the aggregate,
have a Material Adverse
Effect. The businesses of the Company and its Subsidiaries,
if any, are not being conducted, and
shall not be conducted so
long as the Buyer
owns any of the Securities, in
violation of any law, ordinance
or regulation of any governmental entity. Except as specifically
contemplated by this Agreement and as required under the
1933 Act and any applicable state securities laws, the Company is not required to obtain
any consent, authorization or order
of, or make any filing or registration with, any court,
governmental agency, regulatory agency, self-regulatory organization or stock market or any third party in order for it to execute,
deliver or perform any of its obligations under
this Agreement, the Note in accordance with the terms
hereof or thereof or to issue and sell the Note in accordance
with the terms hereof and to issue the Conversion Shares upon conversion
of the Note. All consents, authorizations, orders, filings and registrations which the Company is
required to obtain pursuant to the preceding sentence have been obtained or effected
on or prior to the date hereof.
The Company is not in violation of the listing requirements
of the Over-the- Counter Bulletin Board (the "OTCBB"),
the OTCQB or any similar quotation
system, and does not reasonably anticipate that
the Common Stock will
be delisted by the OTCBB,
the OTCQB or any
similar quotation system,
in the foreseeable future. The Company
and its Subsidiaries are unaware of
any facts or circumstances which might give rise to any
of the foregoing.

 

g.     
SEC Documents; Financial Statements. The Company has timely filed all reports,
schedules, forms, statements and
other documents required to be filed by it with the SEC
pursuant to the reporting requirements of the Securities
Exchange Act of 1934, as amended
(the "1934 Act") (all of the foregoing filed prior to the
date hereof and all exhibits included therein and financial
statements and schedules thereto and documents (other than
exhibits to such documents) incorporated by reference therein,
being hereinafter referred to herein as the "SEC

 

    	 	7	 

    	 

    

 

Documents").
The Company has delivered to the Buyer true and complete
copies of the SEC Documents,
except for such exhibits and incorporated documents.
As of their respective
dates, the SEC Documents complied in all material
respects with the requirements of the 1934 Act and the
rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and
none of the SEC Documents,
at the time they were filed with the SEC,
contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not
misleading. None of the statements made in any such SEC Documents
is, or has been, required to be amended or updated under
applicable law (except for such statements as have been
amended or updated in subsequent filings prior the date
hereof). As of their respective dates, the
financial statements of the Company included in the SEC Documents complied
as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC
with respect thereto. Such
financial statements have been prepared in accordance with United States
generally accepted accounting principles, consistently
applied, during the periods involved and fairly present in all material respects the consolidated financial position
of the Company and its consolidated Subsidiaries as of
the dates thereof and
the consolidated results of their operations and cash flows for the periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments). Except as set forth in the
financial statements of the Company
included in the
SEC Documents,
the Company
has no liabilities, contingent or otherwise, other
than (i) liabilities incurred in the ordinary course
of business, and (ii) obligations
under contracts and commitments
incurred in the ordinary course of business and not required
under generally accepted accounting principles to be reflected
in such financial statements, which, individually or in the aggregate,
are not material to the financial condition or operating results of the Company. The
Company is subject to the reporting requirements of the 1934 Act. For the avoidance of doubt,
filing of the documents
required in this Section 3(g) via the SEC's Electronic Data
Gathering, Analysis, and Retrieval system
("EDGAR") shall satisfy all delivery requirements
of this Section 3(g).

 

h.    
Absence of Certain Changes. There have
been no material adverse change and no material adverse
development in the assets, liabilities, business, properties,
operations, financial condition, results
of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.

 

i.      
Absence of Litigation.
There is no action,
suit, claim,
proceeding, inquiry
or investigation before or by any court,
public board, government agency,
self-regulatory organization or body pending or,
to the knowledge of the Company or any
of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers or
directors in their capacity as such, that could have a Material Adverse Effect. Schedule 3(i)
contains a complete list and summary description
of any pending or, to
the knowledge of the Company,
threatened proceeding against or affecting
the Company or any of its Subsidiaries, without regard
to whether it would have a Material Adverse Effect. The
Company and its

Subsidiaries
are unaware of any facts or circumstances which might give rise to
any of the foregoing.

 

    	 	8	 

    	 

    

 

j.      
Patents, Copyrights, etc.
The Company and each of its Subsidiaries owns or possesses the requisite
licenses or rights to use all patents, patent applications,
patent rights, inventions, know-how,
trade secrets, trademarks, trademark applications, service marks, service names,
trade names and copyrights ("Intellectual Property") necessary
to enable it to conduct its business as now operated (and, as presently contemplated to be operated in the future); Except as disclosed
in the SEC Documents,
there is no claim or action by any person pertaining to, or
proceeding pending, or to the Company's knowledge threatened, which challenges the right of the Company or of a Subsidiary with
respect to any Intellectual Property necessary to enable
it to conduct its business as now operated (and, as presently contemplated to be operated in the future); to the best of the Company's
knowledge, the Company's or its Subsidiaries' current
and intended products, services
and processes do not infringe on any Intellectual Property or other rights held by any person; and the Company is unaware of any
facts or circumstances which might give rise to any of the foregoing. The Company and each of its Subsidiaries have taken reasonable
security measures to protect the secrecy, confidentiality and value of their Intellectual Property.

 

k.     
No Materially Adverse Contracts, Etc. Neither
the Company nor any of its Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment, decree,
order, rule or regulation which in the judgment of the Company's officers has or is expected in the future to have a Material Adverse
Effect. Neither the Company nor any of its Subsidiaries is a party to any contract or agreement which in the judgment of the Company's
officers has or is expected to have a Material Adverse
Effect.

 

1.      
Tax Status. The
Company and each of its Subsidiaries has made or filed all federal, state and foreign income and all other tax returns, reports
and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of
its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes)
and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due
on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provisions
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations
apply. There
are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the
Company know of no basis for any such claim. The Company has not executed a waiver with respect to the statute of limitations relating
to the assessment or collection of any foreign,

federal,
state or local tax. None of the Company's tax returns is presently being audited by any taxing authority.

 

m.   
Certain Transactions. Except
for arm's length transactions pursuant to which the Company or any of its
Subsidiaries makes payments in the ordinary course of business upon terms no less favorable than the Company or any of its Subsidiaries
could obtain from third parties and other than the grant of stock options disclosed on Schedule 3(c),
none of the officers,

 

    	 	9	 

    	 

    

 

directors,
or employees of the Company is presently a party to any transaction with the Company or any of its
Subsidiaries (other than for services as employees, officers and directors), including any contract,
agreement or other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee
or, to the knowledge of the Company, any corporation, partnership,
trust or other entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee or partner.

 

n.    
Disclosure.
All information relating to or concerning the Company or any of its Subsidiaries set forth in this
Agreement and provided to the Buyer pursuant to Section
2(d) hereof and otherwise in connection with the transactions contemplated hereby is true
and correct in all material respects and the Company has not omitted to state any material fact necessary in order to make the
statements made herein or therein, in light of the circumstances under which they were made, not misleading. No event or circumstance
has occurred or exists with respect to the Company or any of its Subsidiaries
or its or their business, properties, prospects,
operations or financial conditions, which, under applicable
law, rule or regulation, requires public disclosure
or announcement by the Company but which
has not been so publicly announced or disclosed (assuming for this purpose that the
Company's reports filed under the 1934 Act are being incorporated into an effective registration statement filed by the Company
under the 1933 Act).

 

o.    
Acknowledgment Regarding Buyer' Purchase
of Securities. The Company acknowledges and agrees
that the Buyer is acting solely in the capacity of arm's
length purchasers with respect to this Agreement and the
transactions contemplated hereby. The Company further acknowledges
that the Buyer is not acting as a financial advisor or
fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and
any statement made by the Buyer or any of its respective
representatives or agents in connection with this Agreement and the
transactions contemplated hereby is not advice or a recommendation
and is merely incidental to
the Buyer' purchase of the Securities. The Company further represents to the Buyer that the Company's
decision to enter

into
this Agreement has been based solely on the independent evaluation of the Company and its representatives.

 

p.      No
Integrated Offering. Neither the Company, nor any
of its affiliates, nor any person acting on its or
their behalf, has directly
or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that
would require registration under the 1933 Act of the issuance of
the Securities to the Buyer. The
issuance of the Securities to the Buyer will
not be integrated with any other issuance of the
Company's securities (past, current or future) for purposes of any shareholder approval provisions
applicable to the Company or its securities.

 

    	 	10	 

    	 

    

 

q.     
No Brokers. The Company has taken no action which would give rise to any claim
by any person for brokerage commissions, transaction fees or similar payments relating to
this Agreement or the transactions contemplated hereby.

 

r.      
Permits: Compliance. The Company and each of its Subsidiaries is in possession
of all franchises, grants, authorizations, licenses, permits, easements, variances, exemptions, consents, certificates,
approvals and orders necessary
to own, lease and operate its properties and to carry on its
business as it is now being conducted
(collectively, the "Company Permits"), and there is no action
pending or, to the knowledge of the Company, threatened
regarding suspension or cancellation of any of the Company
Permits. Neither the Company nor any of its Subsidiaries is
in conflict with, or in default or
violation of, any of the Company Permits, except for any
such conflicts, defaults or violations which, individually or in the
aggregate, would not reasonably
be expected to have a Material Adverse Effect. Neither the Company nor any
of its Subsidiaries has received any notification with
respect to possible conflicts, defaults or violations of
applicable laws, except for notices relating to
possible conflicts, defaults or violations, which conflicts, defaults or violations would not
have a Material Adverse Effect.

 

		s.	Environmental Matters.

 

(i)                     
There are, to the Company's knowledge,
with respect to the Company or any of its Subsidiaries or any predecessor of the Company, no past
or present violations of Environmental Laws (as defined
below), releases of any material into the environment, actions, activities, circumstances,
conditions, events, incidents,
or contractual obligations which may give rise to any
common law environmental liability
or any liability under the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 or similar
federal,
state, local or foreign laws and neither
the Company nor any of its Subsidiaries has received any
notice with respect to any of the foregoing, nor is any
action pending or, to the Compan)'."s knowledge, threatened
in connection with any of the foregoing. The
term "Environmental Laws" means all federal, state, local or foreign laws relating
to pollution or protection of human health or the environment (including, without
limitation, ambient air, surface water, groundwater, land surface or subsurface
strata), including, without limitation, laws relating to emissions, discharges, releases or
threatened releases of
chemicals, pollutants contaminants, or toxic or hazardous
substances or wastes (collectively, "Hazardous Materials") into the
environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or
handling of Hazardous Materials, as
well as all authorizations, codes, decrees, demands or
demand letters, injunctions, judgments,
licenses,

notices
or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

(ii)                  
Other than those
that are or were stored, used or disposed
of in compliance with applicable
law, no Hazardous Materials
are contained on or about any real
property currently owned, leased or used by the Company
or any of its Subsidiaries, and no

 

    	 	11	 

    	 

    

 

Hazardous
Materials were released on or about any real property
previously owned, leased
or used by the Company or any
of its Subsidiaries during the period
the property was owned, leased or used
by the Company or any of its
Subsidiaries, except in the normal course of the Company's or any
of its Subsidiaries' business.

 

(iii)                 
There are no
underground storage tanks on or under any real property owned, leased
or used by the Company or any of its Subsidiaries
that are not in compliance with applicable law.

 

t.       
Title to
Property. Except as
disclosed in the SEC Documents
the Company and its Subsidiaries have good and marketable title in fee simple
to all real property
and good and marketable title to all personal property owned by them which is material to the business of the Company and
its Subsidiaries, in
each case free and clear of all liens, encumbrances and defects or
such as would not have a
Material Adverse Effect. Any real property and
facilities held under lease by the Company and
its Subsidiaries are held
by them under valid, subsisting and enforceable leases
with such exceptions as would not have a Material
Adverse Effect.

 

u.     
Internal Accounting
Controls. Except as
disclosed in the
SEC Documents the
Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient, in the
judgment of the
Company's board of directors, to provide reasonable assurance that (i) transactions
are executed in accordance with management's general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to maintain asset
accountability, (iii) access to assets is permitted only in
accordance with management's general or specific authorization and (iv)
the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate
action is taken with respect
to any differences.

 

v.     
Foreign Corrupt
Practices. Neither the Company, nor any of its Subsidiaries, nor any
director, officer, agent, employee or other person acting
on behalf of the
Company or any Subsidiary has, in the course of his
actions for, or on
behalf of, the Company, used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expenses
relating to political activity; made any direct or
indirect unlawful payment
to any foreign or domestic government
official or employee from corporate funds; violated or is
in violation of any provision of the U.S.
Foreign Corrupt Practices Act
of 1977, as amended,
or made any bribe, rebate, payoff, influence payment, kickback or other
unlawful payment to any foreign or domestic government official or employee.

 

w.   
Solvency. The Company (after g1vmg effect to the transactions contemplated
by this Agreement)
is solvent (i.e.,
its assets have
a fair market value in excess of the
amount required to pay its probable liabilities
on its existing debts
as they become absolute
and matured) and currently the
Company has no information
that would lead
it to reasonably

 

    	 	12	 

    	 

    

conclude
that the Company would not,
after giving effect to the transaction contemplated by this Agreement,
have the ability to, nor does it intend to talce any action that would impair its ability to,
pay its debts from time to time
incurred in connection therewith as such debts mature.
The Company did not receive a qualified opinion from its
auditors with respect to its most recent fiscal year end and, after
giving effect to the transactions contemplated by this Agreement, does not anticipate or know
of any basis upon which its auditors might issue a qualified opinion
in respect of its current fiscal year. For the avoidance of doubt any disclosure of the Borrower's
ability to continue as a
"going concern" shall not, by itself, be a violation
of this Section 3(w).

 

x.     
No Investment
Company. The Company
is not, and upon the issuance
and sale of the Securities as contemplated by this Agreement will not be an "investment company" required
to be registered under the Investment
Company Act of 1940 (an "Investment
Company"). The Company is not controlled
by an Investment Company.

 

y.     
Insurance. Upon written request the Company
will provide to the Buyer
true and correct copies of all policies relating to directors'
and officers' liability coverage,
errors and omissions
coverage, and commercial general liability coverage, if any.

 

z.      
Breach of Representations
and Warranties by the
Company.
If the Company
breaches any of the
representations or warranties set forth in this
Section 3, and in addition to any other remedies available to the Buyer pursuant to
this Agreement, it will be considered an Event of Default under Section
3.4 of the Note.

 

		4.	COVENANTS.

 

a.      
Best Efforts. The parties shall use their commercially reasonable
best efforts to satisfy timely each of the conditions described in Section 6
and 7 of this Agreement.

 

b.     
Use of Proceeds.
The Company shall use the proceeds from the sale of the Note for working capital
and other general corporate purposes and shall
not, directly or indirectly,
use such proceeds for any loan to or investment in any other corporation, partnership,
enterprise or other person (except in connection with its currently existing direct
or indirect Subsidiaries).

 

c.     
Financial Information.
The Company agrees to send or
make available the following reports to the Buyer until
the Buyer transfers,
assigns, or sells all of the Securities:

(i)
within ten (10) days after
the filing with the SEC, a copy of its Annual Report on Form 10-K its Quarterly Reports on Form 10-Q and any Current Reports
on Form 8-K; (ii) within one (I)
day after release, copies of all press releases issued
by the Company or any
of its Subsidiaries; and (iii) contemporaneously with the making available or giving to the shareholders of the
Company, copies of any notices or other information the Company
makes available or gives to such shareholders. For the avoidance of doubt, filing the documents
required in (i) above
via

 

    	 	13	 

    	 

    

 

EDGAR
or releasing any documents set forth in (ii) above via a recognized wire service shall satisfy the delivery requirements of this
Section 4(t).

 

d.     
Listing. The Company shall promptly secure the
listing of the Conversion Shares upon each national securities exchange or automated quotation system, if any, upon which shares
of Common Stock are then listed (subject to official notice of issuance) and,
so long as the Buyer owns any of the Securities, shall maintain,
so long as any other shares of Common Stock shall be so listed, such listing of all Conversion Shares from time to time issuable
upon conversion of the Note. The Company will obtain and, so long as the
Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCBB, OTCQB, OTC Pink or
any equivalent replacement exchange, the Nasdaq National Market
(" Nasdaq"),
the Nasdaq SmallCap Market ("Nasdaq SmallCap"),
the New York Stock Exchange ("NYSE"), or the NYSE
MKT and will comply in all respects with the Company's reporting, filing and other obligations under the bylaws or rules of the
Financial Industry Regulatory Authority ("FINRA") and
such exchanges, as applicable. The
Company shall promptly provide to the Buyer copies of any material notices it receives from the OTCBB,
OTCQB and any other exchanges or quotation systems on which
the Common Stock is then listed regarding the continued eligibility
of the Common Stock for listing on such exchanges and quotation systems.

 

e.      
Corporate Existence. So long as the Buyer beneficially
owns any Note, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company's
assets, except in the event of a merger or consolidation or sale of all or substantially all of the Company's assets,
where the surviving or successor entity in such transaction
(i) assumes the Company's obligations hereunder and under the agreements and instruments entered into in connection herewith and
(ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTCBB,
OTCQB, OTC Pink,
Nasdaq, NasdaqSmallCap ,
NYSE or AMEX.

 

f.      
No Integration. The Company shall not make any offers or sales of
any security (other than the
Securities) under circumstances that would require registration of the Securities
being offered or sold hereunder under the 1933 Act or cause the offering
of the Securities
to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision applicable
to the Company or its securities.

 

g.     
Failure to Comply with
the 1934 Act.
So long as the Buyer beneficially owns the Note,
the Company shall comply with the reporting requirements of the

1934 Act;
and the Company shall continue to be subject to the reporting requirements of the 1934 Act.

 

h.     
Trading Activities. Neither the Buyer nor its
affiliates has an open short position (or other hedging or similar transactions)
in the common stock of the Company and the Buyer agree that it shall not, and that it will cause its affiliates not to, engage
in any short

 

    	 	14	 

    	 

    

 

sales of
or hedging transactions with respect to the common
stock of the Company.

 

i.      
Breach of Covenants.
If the Company breaches
any of the covenants set forth in this Section 4,
and in addition to any other remedies available to the Buyer pursuant to this Agreement,
it will be considered an event of default under Section 3.3 of the Note.

 

5.                
Transfer Agent
Instructions. Prior to
registration of the
Conversion Shares under the 1933 Act or the date
on which the Conversion
Shares 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, all such certificates shall bear the restrictive
legend specified in Section 2(g) of this Agreement. The Company
warrants that: (i)
no stop transfer instructions to give
effect to Section 2(f) hereof (in the case of the Conversion Shares, prior to registration of the Conversion
Shares under the 1933
Act or the date on
which the Conversion Shares 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), will be given
by the Company to
its transfer agent
and that the Securities shall otherwise be freely transferable on
the books and records of the Company
as and to the extent provided in this Agreement and the Note; (ii) it will not
direct its transfer
agent not to transfer or
delay, impair, and/or
hinder its transfer agent in transferring (or
issuing) (electronically or in certificated form) any
certificate for Conversion Shares to be
issued to the Buyer upon conversion of or otherwise pursuant to the Note
as and when required by
the Note and this Agreement; and (iii) it will not fail 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 Conversion Shares issued
to the Buyer
upon conversion of or otherwise pursuant to the Note as and when required
by the Note and this Agreement. Nothing in this Section shall
affect in any way the Buyer's obligations
and agreement set forth in Section 2(g) hereof to comply
with all applicable prospectus delivery requirements,
if any, upon re-sale of the
Securities. If the Buyer provides
the Company, at the cost
of the Buyer, with
(i) an opinion of
counsel in form, substance and scope
customary for opinions in comparable transactions, to the effect
that a public sale or transfer
of such Securities may be
made without registration under the
1933 Act and such
sale or transfer is effected or (ii) the Buyer provides
reasonable assurances that the Securities can be sold pursuant to Rule 144, the Company shall permit the transfer, and, in the
case of the Conversion
Shares, promptly instruct
its transfer agent to issue one or more certificates, free from restrictive
legend, in
such name and in such denominations as specified by
the Buyer. The Company
acknowledges that a breach
by it of its obligations hereunder will cause irreparable harm
to the Buyer, by
vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, the Company acknowledges that the
remedy at law
for a breach of its
obligations under this Section may be inadequate and agrees, in the event of a
breach or threatened
breach by the Company
of the provisions of this
Section, that the Buyer shall be entitled, in addition to all other available remedies, to
an injunction restraining any breach
and requiring immediate
transfer, without the necessity
of showing economic loss and without any bond or other security being
required.

 

    	 	15	 

    	 

    

 

6.                
CONDITIONS PRECEDENT TO THE COMPANY'S
OBLIGATIONS TO SELL.
The obligation of the Company hereunder to issue and sell
the Note to the Buyer at the Closing is subject to the satisfaction, at or
before the Closing Date of each of the following conditions thereto, provided that these conditions are for the Company's sole
benefit and may be waived by the Company at any time in its sole discretion:

 

a.     
The
Buyer shall have executed
this Agreement and delivered the same

to the Company.

 

		b.	The Buyer shall
have delivered the
Purchase Price in accordance with

Section 1(b)
above.

 

c.     
The representations and warranties of the Buyer
shall be true and correct in all material respects as of the date when made
and as of the Closing Date as
though made at that time (except for representations and
warranties that speak as of a specific date), and the Buyer
shall have performed, satisfied and complied in all material respects
with the covenants, agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Buyer at or prior to the Closing Date.

 

d.     
No litigation, statute, rule, regulation, executive order, decree,
ruling or injunction shall have
been enacted, entered, promulgated or endorsed by or
in any court or governmental authority of competent jurisdiction or any self-regulatory organization
having authority over the matters contemplated hereby which prohibits the consummation of any of the
transactionscontemplated by
this Agreement.

 

		7.	CONDITIONS PRECEDENT TO THE BUYER'
S OBLIGATION TO

PURCHASE.
The obligation of the Buyer hereunder to
purchase the Note at the Closing is subject to the satisfaction,
at or before the Closing Date of each of the following
conditions, provided that these conditions are for the Buyer's
sole benefit and may be waived by the Buyer at any time in its
sole discretion:

 

 

same to
the Buyer.

		a.	The Company shall have executed this Agreement and delivered the

 

b.    
The Company shall have delivered to the Buyer duly
executed Note (in such denominations as the Buyer
shall request) in accordance with Section l(b) above.

 

c.     
The representations and warranties of the Company shall be true and correct in
all material respects as of the
date when made and as of the Closing Date as though
made at such time
(except for representations and warranties that speak as
of a specific date) and the Company shall have performed,
satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be
performed,
satisfied or complied with by the Company at or prior to the Closing Date.
The Buyer shall have received
a

 

    	 	16	 

    	 

    

 

certificate
or certificates, executed by the chief executive officer of the Company, dated as of the Closing Date, to the foregoing effect
and as to such other matters as may be reasonably requested by the Buyer including, but not limited to certificates with respect
to the Company's Certificate of Incorporation, By-laws and Board of Directors' resolutions relating to the transactions contemplated
hereby.

 

d.     
No litigation, statute, rule, regulation, executive
order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by or in any court or governmental
authority of competent jurisdiction or any self-regulatory organization having authority over the matters contemplated hereby which
prohibits the consummation of any of the transactions contemplated by this Agreement.

 

e.     
No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company
including but not limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely
in its 1934 Act reporting obligations.

 

f.      
The Conversion Shares shall have been authorized for quotation on the OTCBB, OTCQB or any similar quotation system
and trading in the Common Stock on the OTCBB, OTCQB or any similar quotation system shall not have been suspended by the SEC or
the OTCBB, OTCQB or any similar quotation system.

 

g.     
The Buyer shall have received an officer's certificate described in Section 3(c) above, dated as of the Closing Date.

 

		8.	GOVERNING LAW; MISCELLANEOUS.

 

a.     
Governing Law. This Agreement 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 Agreement shall be brought only in the state or federal courts of Johnson
County, Kansas. The parties to this Agreement 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 Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover
from the other party its reasonable attorney's fees and costs. In the event that any provision
of this Agreement 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

 

    	 	17	 

    	 

    

 

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.

 

b.    
Counterparts: Signatures by Facsimile. This Agreement may be executed in one
or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and
shall become effective when counterparts have been signed by each party and delivered to the other party. This Agreement,
once executed by a party, may be delivered to the other party
hereto by facsimile
transmission of a copy of this Agreement bearing the signature
of the party so delivering this Agreement.

 

c.     
Headings. The headings of this Agreement are for convenience of reference only
and shall not form part of, or affect the interpretation
of, this Agreement.

 

d.     
Severability. In the event that any provision
of this Agreement 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.

 

e.     
Entire Agreement: Amendments.
This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters
covered herein and therein and, except as specifically
set forth herein or therein, neither the Company nor the
Buyer makes any representation, warranty, covenant or undertaking
with respect to such matters. No provision of this Agreement may be waived or amended other
than by an instrument in writing signed by the majority in interest of the Buyer.

 

f.     
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

 

    	 	18	 

    	 

    

 

address,
or upon actual receipt of such mailing, whichever shall
first occur. The addresses for such communications shall
be:

 

Ifto the
Company, to:

 

AIM EXPLORATION,
INC.

170
S. Green Valley Pkwy,
Suite 300 Henderson, NV 89012

E-mail:
bob.todhunter@aimexploration.com
If to the Holder, to:

L2 CAPITAL, LLC

8900 State Line
Rd., Suite 410

Leawood, KS
66206

E-mail: investments@ltwocapital.com

 

Each party shall
provide notice to the other party of any change
in address.

 

g.     
Successors and Assigns. This Agreement
shall be binding
upon and inure to
the benefit of the parties and
their successors and assigns. Neither
the Company nor the
Buyer shall assign
this Agreement or any rights or obligations
hereunder without the prior written consent of the other.
Notwithstanding the foregoing,
subject to Section
2(f), the Buyer may assign its rights hereunder to any
person that purchases
Securities in a private transaction from
the Buyer or to any
of its "affiliates," as
that term is defined under the 1934 Act, without the consent of the Company.

 

h.     
Third Party
Beneficiaries .
This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors
and assigns, and is
not for the benefit of, nor may
any provision hereof be enforced by,
any other
person.

 

i.      
Survival. The representations
and warranties of the Company and the agreements and covenants set forth in this
Agreement shall survive the closing hereunder.
The Company agrees
to indemnify and hold harmless the Buyer and
all their officers, directors, employees and agents for loss or
damage arising as a result of or related
to any breach by the
Company of any of its representations, warranties and covenants set forth in this
Agreement or any of
its covenants and obligations under this Agreement, including advancement
of expenses as they are incurred.

 

j.       
Further Assurances.
Each party shall do
and perform, or cause to be done and performed, all such further acts and
things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as
the other party may reasonably request

 

    	 	19	 

    	 

    

 

in
order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions
contemplated hereby.

 

k.     
No Strict
Construction.
The language used in
this Agreement will be deemed
to be the language
chosen by the parties
to express their mutual intent, and no rules of
strict construction will be applied against any party.

 

		1.	Remedies.

 

(i)               
The Company acknowledges that a breach
by it of
its obligations hereunder will cause irreparable harm to the
Buyer by viti ting
the intent and purpose
of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach
of its obligations
under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach
by the Company of the provisions of this Agreement, that the Buyer 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 Agreement
and to enforce specifically the terms and
provisions hereof,
without the necessity of showing economic loss and without any
bond or other security being required.

 

(ii)            
In addition to any
other remedy provided herein or in any
document executed in connection
herewith, Borrower shall
pay Holder for all
costs, fees and expenses in connection with any litigation, contest, dispute,
suit or any other action to enforce any rights of Holder against Borrower in connection herewith, including, but not
limited to,
costs and expenses and attorneys' fees, and costs and time charges of counsel to
Holder. In furtherance of the foregoing, Borrower shall
pay an amount equal to $25,000 to the Holder immediately
upon the Holder'
s filing of any litigation,
contest, dispute,
suit or any other action to enforce any rights of Holder
against Borrower in connection herewith,
which such amount
shall be used to pay Holder's attorneys' fees, cost and expenses.
Additional amounts shall be paid by Borrower to
Holder immediately
upon Borrower's receipt
of invoices
from Holder's
attorney evidencing the charges and fees assessed in connection with any such litigation,
contest, dispute, suit or any other action to
enforce any rights of Holder and,
upon receiving such invoices which indicate outstanding fees in excess
of $20,000 at any time, Borrower
shall promptly pay an additional $25,000
to
Holder to be used
in satisfaction of
additional attorneys' fees, and costs
and time charges of counsel to Holder. Such
payments shall continue indefinitely until
said litigation, contest, dispute, suit
or any other action to enforce any rights
of Holder against Borrower
is settled to the satisfaction of the Holder. Further,
Borrower agrees to save and hold Holder harmless from and against any
and all liabilities with respect to or resulting from any
delay in paying or omission to pay such costs and expenses.

 

m.
Publicity. The
Company, and the Buy r shall
have the right to review
a reasonable period of time before issuance of any press releases, SEC, OTCQB (or
other applicable trading market), or FINRA filings, or
any other public statements with
respect to the

 

    	 	20	 

    	 

    

 

transactions
contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of the Buyer,
to make any press release or SEC, OTCQB (or
other applicable trading market) or FINRA filings with respect to such transactions as is required by applicable law and regulations
(although the Buyer shall be consulted by the Company in
connection with any such press release prior to its release and shall be provided with a copy thereof).

 

 

 

 

 

[
- signature page follows - ]

 

 

    	 	21	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned
Buyer and the Company have caused
this Agreement to be
duly executed as of the date
first above written.

 

AIM EXPLORATION, INC.

 

 

By: /s/ James Todhunter

Name: James Todhunter

Title: Chief Executive Officer

 

 

 

L2 CAPITAL, LLC

 

 

By: /s/ Adam Long

Name: Adam Long

Title: Managing Partner

 

 

 

AGGREGATE SUBSCRIPTION AMOUNT:

 

Aggregate
Principal Amount of Note: Aggregate Purchase
Price:

 

 

US$222,222.00
US$200,000.00*

 

*$35,000.00
of the Aggregate Purchase Price with respect to the First
Tranche shall be paid within a reasonable amount of
time of the full execution of
the Note and transactional documents related to
this Note.

    	 	22

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