Document:

NOTE
PURCHASE AGREEMENT

 

Dated
as of August 15, 2019

 

This
Note Purchase Agreement (the “Agreement”), dated as of the date first set forth above (the “Closing Date”)
is entered into by and between Ngen Technologies USA Corporation, a Texas Corporation (the “Company”) and Carebourn
Capital, LP, a Delaware Limited Partnership (“Buyer”).

 

WHEREAS,
the Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”) and Rule 506(b) promulgated
by the United States Securities and Exchange Commission (the “SEC”) under the 1933 Act;

 

WHEREAS,
the Company desires to issue and sell to the Buyer, upon the terms and conditions set forth in this Agreement, a Convertible Promissory
Note, in the form attached hereto as Exhibit A, in the aggregate principal amount of $860,000.00 (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, par value No Par Value per share, of the Company; and

 

WHEREAS,
the Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, the Note as set forth herein;

 

NOW
THEREFORE, in consideration of the foregoing and of the agreements and covenants herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Buyer hereby agree as follows:

 

	 	1.	Purchase
    and Sale of Note

 

	 	(a)	Purchase
    of Note. On the Closing Date, the Company shall issue and sell to the Buyer and the Buyer agree to purchase the Note from
    the Company in the amount as is set forth immediately below the Buyer name on the signature pages hereto.
	 	 	 
	 	(b)	Form of Payment.
    On the Closing Date, (i) the Buyer shall pay $860,000.00 (the “Purchase Price”) by wire transfer of immediately
    available funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the
    Note in the principal amount equal to the Purchase Price, and (ii) the Company shall deliver such duly executed Note on behalf
    of the Company, to the Buyer, against delivery of such Purchase Price.
	 	 	 
	 	(c)	Closing Date.
    The closing of the transactions set forth herein (the “Closing”) shall occur on the Closing Date at such location
    as may be agreed to by the parties.
	 	 	 
	 	(d)	Use of Proceeds:
    The Company covenants and agrees that it shall utilize the Purchase Price as follows:

 

	 	(i)	First, $60,000.00 of disbursements
    as set forth in the Note, which amount shall be disbursed on the Closing Date; and
	 	 	 
	 	(ii)	Second, for general corporate purposes.

 

    	1

    	 

    

 

	 	2.	Buyer’s
    Representations and Warranties. Buyer represents and warrants to the Company that:

 

	 	(a)	Corporate Existence and
    Power. Buyer is a Limited Partnership, duly organized and validly existing under the Laws of the State of Delaware, and
    has the Limited Partnership power and is duly authorized under all applicable laws, regulations, ordinances, and orders of
    public authorities to carry on its business in all material respects as it is now being conducted.
	 	 	 
	 	(b)	No Conflict;
    Due Authorization. The execution, delivery and performance of this Agreement and all agreements and other documents executed
    by the Buyer in connection herewith does not, and the consummation of the transactions contemplated hereby will not, violate
    any provision of the Buyer’s organizational documents or applicable law. Buyer has taken all actions required by law,
    its organizational documents or otherwise to authorize the execution, delivery and performance of this Agreement and to consummate
    the transactions herein contemplated.
	 	 	 
	 	(c)	Valid Obligation.
    This Agreement and all agreements and other documents executed by the Buyer in connection herewith constitute the valid and
    binding obligations of the Buyer, enforceable in accordance with its or their terms, except as may be limited by applicable
    bankruptcy, insolvency, moratorium or other similar Laws affecting the enforcement of creditors’ rights generally and
    subject to the qualification that the availability of equitable remedies is subject to the discretion of the court before
    which any proceeding therefore may be brought (the “Enforceability Exceptions”).
	 	 	 
	 	(d)	Investment
    Purpose. Buyer is purchasing     the Note 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, Buyer does not agree to hold any of the Note for any minimum
    or other specific term and reserves the right to dispose of the Note at any time in accordance with or pursuant to a
    registration     statement or an exemption under the 1933 Act.
	 	 	 
	 	(e)	Accredited
    Investor Status. Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D
    (an “Accredited Investor”).

 

    	2

    	 

    

 

	 	3.	Representations
    and Warranties of the Company. The Company represents and warrants to Buyer that:

 

	 	(a)	Corporate
    Existence and Power. The Company is a corporation, duly organized and validly existing under the laws of the State of
    Delaware, and has the corporate power and is duly authorized under all applicable laws, regulations, ordinances, and orders
    of public authorities to carry on its business in all material respects as it is now being conducted.
	 	 	 
	 	(b)	No Conflict;
    Due Authorization. The execution, delivery and performance of this Agreement and the Note and all agreements and other
    documents executed by the Buyer in connection herewith or therewith does not, and the consummation of the transactions contemplated
    hereby will not, violate any provision of the Buyer’s organizational documents or applicable law. Buyer has taken all
    actions required by law, its organizational documents or otherwise to authorize the execution, delivery and performance of
    this Agreement and the Note and to consummate the transactions contemplated herein and therein.
	 	 	 
	 	(c)	Valid Obligation. This Agreement and
    the Note and all agreements and other documents executed by the Buyer in connection herewith constitute the valid and binding
    obligations of the Buyer, enforceable in accordance with its or their terms, except as may be limited by the Enforceability
    Exceptions. The execution and delivery of this Agreement and the Note by the Company and the consummation by it of the transactions
    contemplated hereby and thereby 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.
	 	 	 
	 	(d)	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 will not (i) conflict with or result in a violation of any 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 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 regulations of any self-regulatory organizations
    to which the Company or its securities are subject) applicable to the Company or by which any property or asset of the Company
    is bound or affected.
	 	 	 
	 	(e)	Acknowledgment
    Regarding Buyer’s Purchase of Note. The Company acknowledges and agrees that Buyer is acting solely in the capacity
    of arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby. The Company further
    acknowledges that 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 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 Buyer’s purchase of the Note. The Company further represents to 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.

 

    	3

    	 

    

 

	 	(f)	No
    Disqualification Events. None of the Company, any of its predecessors, any Affiliated (as defined below) issuer, any director,
    executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more
    of the Company’s outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as
    that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the time of sale (each,
    an “Issuer Covered Person”) is subject to any of the “Bad Actor” disqualifications described in Rule
    506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification Event”), except for a Disqualification Event covered
    by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject
    to a Disqualification Event. For purposes hereof, an “Affiliate” means, with respect to any person or entity,
    any other person or entity that directly, or indirectly through one or more intermediaries, controls, or is controlled by,
    or is under common control with, such person or entity. For the purposes of this definition, the term “controls,”
    “is controlled by” or “under common control with” means, with respect to any person or entity, the
    possession, directly or indirectly, of the power to direct or cause the direction of the management policies of such person
    or entity, whether through the ownership of voting securities, by contract or otherwise.
	 	 	 
	 	(g)	Breach of Representations and Warranties
    by the Company. The Company agrees that 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 Buyer pursuant to this Agreement, it will be considered
    an Event of Default under the Note.

 

	 	4.	COVENANTS.

 

	 	(a)	Corporate Existence.
    The Company will, so long as Buyer beneficially owns any the Note, 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 assumes the Company’s
    obligations hereunder and under the agreements and instruments entered into in connection herewith.
	 	 	 
	 	(b)	Breach of Covenants. If the Company breaches
    any of the covenants set forth in this Section 4, in addition to any other remedies available to Buyer pursuant to this Agreement,
    it will be considered an Event of Default under the Note.

 

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	 	5.	Governing Law; Miscellaneous.

 

	 	(a)	Governing Law; Etc.
    Except in the case of the mandatory forum selection provisions below, which shall be governed and interpreted in accordance
    with Minnesota law, this Agreement shall be governed by and construed in accordance with the laws of the State of Florida
    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 courts or federal courts located in the state of Minnesota,
    County of Hennepin. 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. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL
    FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
    HEREBY. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and
    costs. In the event that any provision of this 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 this Agreement, the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby. 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, the Note or any other agreement, certificate, instrument or document contemplated hereby
    or thereby 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.
	 	 	 
	 	(b)	Construction; Headings. This Agreement
    shall be deemed to be jointly drafted by the Company and Buyer and shall not be construed against any person as the drafter
    hereof. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation
    of, this Agreement.
	 	 	 
	 	(c)	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.
	 	 	 
	 	(d)	Entire Agreement; Amendments. This Agreement,
    the Note 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 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 Buyer.

 

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	 	(e)	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, e-mail with return receipt requested 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 e-mail with return
    receipt requested or facsimile, with accurate confirmation generated by the transmitting facsimile machine or computer, 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 Company, to:

 

Ngen
Technologies USA Corporation

Attn:
Cliff Rhee

5430
LBJ Freeway, Suite 1200

Dallas,
Texas 75240

Email:
cliff.rhee@ngen-tech.com

 

If
to the Buyer:

 

Carebourn
Capital, LP

Attn:
Chip Rice

8700
Black Oak Lane

Maple
Grove, MN, 55311

Email:
chiprice@carebourncapital.com

 

	 	(f)	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.
	 	 	 
	 	(g)	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.
	 	 	 
	 	(h)	Survival. The representations and warranties
    of the Company and the agreements and covenants set forth in this Agreement shall survive the Closing hereunder notwithstanding
    any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless
    Buyer and all their officers, directors, employees and agents for loss or damage arising as a result of or related to any
    breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this Agreement
    or any of its covenants and obligations in the Note, including advancement of expenses as they are incurred.

 

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	 	(i)	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 in order
    to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
    hereby.
	 	 	 
	 	(j)	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.
	 	 	 
	 	(k)	Indemnification.
    In consideration of Buyer’s execution and delivery of this Agreement and acquiring the Note hereunder, and in addition
    to all of the Company’s other obligations under this Agreement or the Note, the Company shall defend, protect, indemnify
    and hold harmless Buyer and its members, partners, officers, managers, employees and direct or indirect investors and any
    of the foregoing persons’ agents or other representatives (including, without limitation, those retained in connection
    with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and
    all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection
    therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought),
    and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by
    any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation
    or warranty made by the Company in this Agreement, the Note or any other agreement, certificate, instrument or document contemplated
    hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in this Agreement, the
    Note or any other agreement, certificate, instrument or document contemplated hereby or thereby or (c) any cause of action,
    suit or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought
    on behalf of the Company) and arising out of or resulting from (i) the execution, delivery, performance or enforcement of
    this Agreement, the Note or any other agreement, certificate, instrument or document contemplated hereby or thereby, (ii)
    any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance
    of the Note, or (iii) the status of Buyer or holder of the Note as an investor in the Company pursuant to the transactions
    contemplated by this Agreement and the Note. To the extent that the foregoing undertaking by the Company may be unenforceable
    for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified
    Liabilities that is permissible under applicable law.

 

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	 	(l)	Remedies.
    The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to Buyer by vitiating
    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 or the Note will be inadequate and agrees, in the event of a breach or
    threatened breach by the Company of the provisions of this Agreement or the Note, that 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 the Note 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.
	 	 	 
	 	(m)	Payment Set
    Aside. To the extent that the Company makes a payment or payments to Buyer hereunder or pursuant to the Note or Buyer
    enforces or exercises its rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement
    or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered
    from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any
    other person or entity under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common
    law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended
    to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement
    or setoff had not occurred.
	 	 	 
	 	(n)	Failure or
    Indulgence Not Waiver. No failure or delay on the part of Buyer in the exercise of any power, right or privilege hereunder
    shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
    other or further exercise thereof or of any other right, power or privileges. All rights and remedies of Buyer existing hereunder
    are cumulative to, and not exclusive of, any rights or remedies otherwise available.
	 	 	 
	 	(o)	Independent
    Nature of Buyer’s Rights. Nothing contained herein or in any other document related to the transactions set forth
    in this Agreement, and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute Buyer as a partnership,
    an association, a joint venture or any other kind of entity, or create a presumption that Buyer are in any way acting in concert
    or as a group with respect to such obligations or the transactions contemplated by the Agreement or the Note. Buyer shall
    be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this
    Agreement or out of the other Agreement or the Note, and it shall not be necessary for any other Buyer to be joined as an
    additional party in any proceeding for such purpose.
	 	 	 
	 	(p)	Counterparts. 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. A
    facsimile or .pdf signature shall be considered due execution and shall be binding upon the signatory thereto with the same
    force and effect as if the signature were an original, not a facsimile or .pdf signature. Delivery of a counterpart signature
    hereto by facsimile or email/.pdf transmission shall be deemed validly delivery thereof.

 

[Signature
Page Follows]

 

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IN
WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the Closing Date.

 

	 	Ngen Technologies
    USA Corporation
	 	 	 
	 	By:	
	 	Name:	Clifford Rhee
	 	Title:	President

 

	 	Carebourn
    Capital, LP
	 	 	 
	 	By:	CareBourn Partner, LLC
	 	Its:	Manager
	 	 	 
	 	By:	
	 	Name:	Chip Rice
	 	Title:	Managing Member

 

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Exhibit
A

Convertible
Promissory Note

 

(Attached)

 

    	10NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS NOTENOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

	Principal
    Amount: U.S. $860,000.00	Issue
    Date: August 15th, 2019 

 

CONVERTIBLE
PROMISSORY NOTE

 

FOR
VALUE RECEIVED, Ngen Technologies USA Corporation, a Texas corporation (hereinafter called the “Borrower”), hereby
promises to pay to the order of Carebourn Capital, LP, a Delaware Limited Partnership, or registered assigns (the “Holder”)
the sum of U.S. $860,000.00 (the “Principal Amount”) together with any interest as set forth herein, on August 15th,
2020 (the “Maturity Date”), and to pay interest on the unpaid principal balance as set forth herein hereof from the
date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or
by prepayment or otherwise. All payments due hereunder (to the extent not converted into common stock, No Par Value par value
per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States
of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made
in accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any
day which is not a business day, the same shall instead be due on the next succeeding day which is a business day and, in the
case of any interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof
shall not be taken into account for purposes of determining the amount of interest due on such date. As used in this Note, the
term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city
of New York, New York are authorized or required by law or executive order to remain closed. Each capitalized term used herein,
and not otherwise defined, shall have the meaning ascribed thereto in that certain Note Purchase Agreement dated the date hereof,
pursuant to which this Note was originally issued (the “Purchase Agreement”).

 

In
addition, the Borrower shall authorize the Holder, pursuant to a disbursement memorandum dated on or around the Issue Date, to
pay U.S. $60,000.00 (the “Transactional Expense Amount”) to the Holder or the Holder’s designee, to cover the
Holder’s accounting fees, due diligence fees, monitoring (including but not limited to ACH monitoring costs), and/or other
transactional costs incurred in connection with the purchase of the Note, all of which are included in the initial principal balance
of this Note. The net amount to be received by the Company shall be U.S. $800,000.00, computed as follows: U.S. $860,000.00, less
the Transactional Expense Amount.

 

    	1

    	 

    

 

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

 

The
following terms shall apply to this Note:

 

Article
I. PAYMENT TERMS

 

Section
1.01 Interest Rate. This Note shall bear interest at the rate of 10% per three-month period following the Issue Date. Interest
shall commence accruing on the Issue Date and shall be computed on the basis of a 365-day year and the actual number of days elapsed
in each three-month period.

 

Section
1.02 Payments. Subject to the other provisions of this Note, payments on this Note shall be made by the Borrower to the
Holder as follows:

 

		(a)	On
                                         or before November 15, 2019, the Borrower shall pay to Holder the sum of US$86,000.00,
                                         which shall represent accrued interest from the Issue Date to November 15, 2019.

 

		(b)	On
                                         or before February 15, 2020, the Borrower shall pay to Holder the sum of US$86,000.00,
                                         which shall represent accrued interest from the November 16, 2020 to February 15, 2020.

 

		(c)	On
                                         or before May 15, 2020, the Borrower shall pay to Holder the sum of US$86,000.00, which
                                         shall represent accrued interest from the February 16, 2020 to May 15, 2020.

 

		(d)	On
                                         or before August 15, 2020, the Borrower shall pay to Holder (i) the sum of US$86,000.00,
                                         which shall represent accrued interest from the May 16, 2020 to August 15, 2020 plus
                                         (ii) an amount equal to the Principal Amount.

 

Section
1.03 Demand Repayment. At any time on or after November 15, 2019, the Holder may demand that the Borrower repay to Holder
the Principal Amount plus any accrued and unpaid interest plus any and all other amounts that may be due and payable to the Holder
hereunder (collectively, the “Indebtedness”), and, upon such request the Borrower shall repay the Indebtedness to
the Holder within 3 days of such request.

 

Article
II. CONVERSION RIGHTS

 

Section
2.01 Conversion Right. The Holder shall have the right from time to time, and at any time following November 15, 2019 and
ending on the full repayment of all Indebtedness, to convert all or any part of the Indebtedness into fully paid and non- assessable
shares of common stock, par value No Par Value per share, of the Borrower (the “Common Stock”), or any shares of capital
stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion
price (the “Conversion Price”) determined as provided herein (a “Conversion”); provided, however, that
in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion
of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares
of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised
or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the
limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this
Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder
and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately
preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1)
of such proviso, provided, further, however, that the limitations on conversion may be waived by the Holder upon, at the election
of the Holder, not less than 61 days’ prior notice to the Borrower, and the provisions of the conversion limitation shall
continue to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of
waiver). The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the
Indebtedness 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 2.04; 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”).

 

    	2

    	 

    

 

Section
2.02 Conversion Price. The conversion price (the “Conversion Price”) shall equal the Variable Conversion Price
(as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating
to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications,
extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 58% multiplied by the
Market Price (as defined herein) (representing a discount rate of 42%). In the case that shares of the Borrower’s common
stock are not deliverable via DWAC following the conversion of any amount hereunder, an additional Ten Percent (10%) discount
shall be added to the amount being converted at such time. In the event that the Borrower fails to meet the requirements of Section
4.18, an additional Five percent (5%) discount shall be added to the amount being converted at such time. “Market Price”
means the lowest Trading Price (as defined below) for the Common Stock during the thirty 30 Trading Day period ending on the latest
complete Trading Day prior to the Conversion Date. “TradingPrice” means, for any security as of any date, the lowest
price quoted on the OTC Markets operated by the OTC Markets Group, Inc. or applicable trading market (the “OTC”) as
reported by a reliable reporting service (“Reporting Service”) designated by the Holder (i.e. Bloomberg) or, if the
OTC Markets is not the principal trading market for such security, the closing bid price of such security on the principal securities
exchange or trading market where such security is listed or traded. If the Trading Price cannot be calculated for such security
on such date in the manner provided above, the Trading Price shall be the fair market value as mutually determined by the Borrower
and the holders of a majority in interest of the Notes being converted for which the calculation of the Trading Price is required
in order to determine the Conversion Price of such Notes. “Trading Day” shall mean any day on which the Common Stock
is tradable for any period on the OTC Markets, or on the principal securities exchange or other securities market on which the
Common Stock is then being traded.

 

Section
2.03 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 five
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 Borrower represents that upon issuance, such shares will
be duly and validly issued, fully paid and non- assessable. In addition, if the Borrower shall issue any securities or make any
change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible
at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall
be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding
Notes. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common
Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to
its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates
for shares of Common Stock in accordance with the terms and conditions of this Note. If, at any time the Borrower does not maintain
the Reserved Amount it will be considered an Event of Default under Article IV. However, upon receipt of written notice from the
Holder of Borrower’s failure to maintain the Reserved Amount, the Borrower shall have three (3) days to cure any deficiencies
in the Reserved Amount.

 

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Section
2.04 Method of Conversion.

 

		(a)	Mechanics
                                         of Conversion. Subject to Section 2.01, this Note may be converted by the Holder
                                         in whole or in part at any time from time to time after One Hundred Eighty Days following
                                         the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile,
                                         e-mail or other reasonable means of communication dispatched on the Conversion Date prior
                                         to 6:00 p.m., New York, New York time) and (B) subject to Section 2.04(b), surrendering
                                         this Note at the principal office of the Borrower.

 

		(b)	Surrender
                                         of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein,
                                         upon conversion of this Note in accordance with the terms hereof, the Holder shall not
                                         be required to physically surrender this Note to the Borrower unless the entire unpaid
                                         principal amount of this Note is so converted. The Holder and the Borrower shall maintain
                                         records showing the principal amount so converted and the dates of such conversions or
                                         shall use such other method, reasonably satisfactory to the Holder and the Borrower,
                                         so as not to require physical surrender of this Note upon each such conversion. In the
                                         event of any dispute or discrepancy, such records of the Borrower shall, prima facie,
                                         be controlling and determinative in the absence of manifest error. Notwithstanding
                                         the foregoing, if any portion of this Note is converted as aforesaid, the Holder may
                                         not transfer this Note unless the Holder first physically surrenders this Note to the
                                         Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the
                                         Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder
                                         of any applicable transfer taxes) may request, representing in the aggregate the remaining
                                         unpaid principal amount of this Note. The Holder and any assignee, by acceptance of this
                                         Note, acknowledge and agree that, by reason of the provisions of this paragraph, following
                                         conversion of a portion of this Note, the unpaid and unconverted principal amount of
                                         this Note represented by this Note may be less than the amount stated on the face hereof.

 

		(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.

 

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		(d)	Delivery
                                         of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of
                                         a facsimile transmission or e-mail (or other reasonable means of communication) of a
                                         Notice of Conversion meeting the requirements for conversion as provided in this Section
                                         2.04, the Borrower shall issue and deliver or cause to be issued and delivered to or
                                         upon the order of the Holder certificates for the Common Stock issuable upon such conversion
                                         within three (3) business days after such receipt (the “Deadline”) (and,
                                         solely in the case of conversion of the entire unpaid principal amount hereof, surrender
                                         of this Note) in accordance with the terms hereof and the Purchase Agreement.

 

		(e)	Obligation
                                         of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of
                                         Conversion, the Holder shall be deemed to be the holder of record of the Common Stock
                                         issuable upon such conversion, the outstanding principal amount and the amount of accrued
                                         and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless
                                         the Borrower defaults on its obligations under this Article II, 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 2.01 and in this Section 2.04, 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 2.03, which failure shall be governed by such Section 2.03) the Borrower shall
                                         pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower
                                         fails to deliver such Common Stock. Such cash amount shall be paid to Holder by the fifth
                                         day of the month following the month in which it has accrued or, at the option of the
                                         Holder (by written notice to the Borrower by the first day of the month following the
                                         month in which it has accrued), shall be added to the principal amount of this Note,
                                         in which event interest shall accrue thereon in accordance with the terms of this Note
                                         and such additional principal amount shall be convertible into Common Stock in accordance
                                         with the terms of this Note. The Borrower agrees that the right to convert is a valuable
                                         right to the Holder. The damages resulting from a failure, attempt to frustrate, interference
                                         with such conversion right are difficult if not impossible to qualify. Accordingly, the
                                         parties acknowledge that the liquidated damages provision contained in this Section 2.04(g)
                                         are justified.

 

    	5

    	 

    

 

Section
2.05 Concerning the Shares.

 

		(a)	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 2.05 and who is an Accredited Investor (as
                                         defined in the Purchase Agreement). Except as otherwise provided in the Purchase Agreement
                                         (and subject to the removal provisions set forth below), until such time as the shares
                                         of Common Stock issuable upon conversion of this Note have been registered under the
                                         Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number
                                         of securities as of a particular date that can then be immediately sold, each certificate
                                         for shares of Common Stock issuable upon conversion of this Note that has not been so
                                         included in an effective registration statement or that has not been sold pursuant to
                                         an effective registration statement or an exemption that permits removal of the legend,
                                         shall bear a legend substantially in the following form, as appropriate:

 

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

 

		(b)	The
                                         legend set forth above shall be removed and the Borrower shall issue to the Holder a
                                         new certificate therefore free of any transfer legend if (i) the Borrower or its transfer
                                         agent shall have received an opinion of counsel, in form, substance and scope customary
                                         for opinions of counsel in comparable transactions, to the effect that a public sale
                                         or transfer of such Common Stock may be made without registration under the Act, which
                                         opinion shall be accepted by the Company so that the sale or transfer is effected or
                                         (ii) in the case of the Common Stock issuable upon conversion of this Note, such security
                                         is registered for sale by the Holder under an effective registration statement filed
                                         under the Act or otherwise may be sold pursuant to 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 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 4.03.

 

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Section
2.06 Effect of Certain Events.

 

		(a)	Effect
                                         of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance
                                         or disposition of all or substantially all of the assets of the Borrower, the effectuation
                                         by the Borrower of a transaction or series of related transactions in which more than
                                         50% of the voting power of the Borrower is disposed of, or the consolidation, merger
                                         or other business combination of the Borrower with or into any other Person (as defined
                                         below) or Persons when the Borrower is not the survivor shall either: (i) be deemed to
                                         be an Event of Default (as defined in Article IV) pursuant to which the Borrower shall
                                         be required to pay to the Holder upon the consummation of and as a condition to such
                                         transaction an amount equal to the Default Amount (as defined in Article IV) or (ii)
                                         be treated pursuant to Section 2.06(b). “Person” shall mean any individual,
                                         corporation, Limited Partnership, partnership, association, trust or other entity or
                                         organization.

 

		(b)	Adjustment
                                         Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding
                                         and prior to conversion of all of the Notes, there shall be any merger, consolidation,
                                         or an exchange of shares, recapitalization or reorganization pursuant to a merger or
                                         consolidation, or other similar event, as a result of which shares of Common Stock of
                                         the Borrower shall be changed into the same or a different number of shares of another
                                         class or classes of stock or securities of the Borrower or another entity, or in case
                                         of any sale or conveyance of all or substantially all of the assets or more than 50%
                                         of the total outstanding shares of the Borrower other than in connection with a plan
                                         of complete liquidation of the Borrower, then the Holder of this Note shall thereafter
                                         have the right to receive upon conversion of this Note, upon the basis and upon the terms
                                         and conditions specified herein and in lieu of the shares of Common Stock immediately
                                         theretofore issuable upon conversion, such stock, securities or assets which the Holder
                                         would have been entitled to receive in such transaction had this Note been converted
                                         in full immediately prior to such transaction (without regard to any limitations on conversion
                                         set forth herein), and in any such case appropriate provisions shall be made with respect
                                         to the rights and interests of the Holder of this Note to the end that the provisions
                                         hereof (including, without limitation, provisions for adjustment of the Conversion Price
                                         and of the number of shares issuable upon conversion of the Note) shall thereafter be
                                         applicable, as nearly as may be practicable in relation to any securities or assets thereafter
                                         deliverable upon the conversion hereof. The Borrower shall not affect any transaction
                                         described in this Section 2.06(b) unless (a) it first gives, to the extent practicable,
                                         thirty (30) days prior written notice (but in any event at least fifteen (15) days prior
                                         written notice) of the record date of the special meeting of shareholders to approve,
                                         or if there is no such record date, the consummation of, such merger, consolidation,
                                         exchange of shares, recapitalization, reorganization or other similar event or sale of
                                         assets (during which time the Holder shall be entitled to convert this Note) and (b)
                                         the resulting successor or acquiring entity (if not the Borrower) assumes by written
                                         instrument the obligations of this Section 2.06(b). The above provisions shall similarly
                                         apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

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

 

		(d)	Notice
                                         of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion
                                         Price as a result of the events described in this Section 2.06, the Borrower, at its
                                         expense, shall promptly compute such adjustment or readjustment and prepare and furnish
                                         to the Holder of a certificate setting forth such adjustment or readjustment and showing
                                         in detail the facts upon which such adjustment or readjustment is based. The Borrower
                                         shall, upon the written request at any time of the Holder, furnish to such Holder a like
                                         certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price
                                         at the time in effect and (iii) the number of shares of Common Stock and the amount,
                                         if any, of other securities or property which at the time would be received upon conversion
                                         of the Note.

 

Section
2.07 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 2.03 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 2.03) for the Borrower’s failure to convert this Note.

 

Section
2.08 Prepayment.

 

		(a)	Notwithstanding
                                         anything to the contrary contained in this Note, the Borrower may prepay the amounts
                                         outstanding hereunder pursuant to the following terms and conditions, and subject to
                                         the Holder’s acceptance in Holder’s sole discretion:

 

		(i)	At
                                         any time during the period beginning on the Issue Date and ending on the date which is
                                         one hundred and eighty (180) days following the Issue Date, the Borrower shall have the
                                         right, exercisable on not less than twenty (20) Trading Days prior written notice to
                                         the Holder of the Note to prepay the outstanding Note (principal and accrued interest),
                                         in full by making a payment to the Holder of an amount in cash equal to 130%, multiplied
                                         by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued
                                         and unpaid interest on the unpaid principal amount of this Note.

 

    	8

    	 

    

 

		(ii)	At
                                         any time during the period beginning the day which is one hundred and eighty- one(181)
                                         days following the Issue Date and ending on the date which is three hundred sixty-four
                                         (364) days following the Issue Date, the Borrower shall have the right, exercisable on
                                         not less than twenty (20) Trading Days prior written notice to the Holder of the Note
                                         to prepay the outstanding Note (principal and accrued interest), in full by making a
                                         payment to the Holder of an amount in cash equal to 150%, multiplied by the sum of: (w)
                                         the then outstanding principal amount of this Note plus (x) accrued and unpaid interest
                                         on the unpaid principal amount of this Note.

 

		(iii)	After
                                         the expiration of three hundred sixty-four (364) days, the Borrower shall have no right
                                         of prepayment.

 

		(b)	Any
                                         notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be
                                         delivered to the Holder of the Note at its registered addresses and shall state: (1)
                                         that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment
                                         which shall be not more than twenty (20) Trading Days from the date of the Optional Prepayment
                                         Notice. On the date fixed for prepayment (the “Optional Prepayment Date”),
                                         the Borrower shall make payment of the applicable prepayment amount to or upon the order
                                         of the Holder as specified by the Holder in writing to the Borrower at least one (1)
                                         business day prior to the Optional Prepayment Date. If the Borrower delivers an Optional
                                         Prepayment Notice and fails to pay the applicable prepayment amount due to the Holder
                                         of the Note within two (2) business days following the Optional Prepayment Date, the
                                         Borrower shall forever forfeit its right to prepay the Note pursuant to this Section
                                         2.08. Notwithstanding anything to the contrary in this Note, the Borrower’s right
                                         to prepay the amounts outstanding under this Note, in accordance with the terms and conditions
                                         of this Note, is expressly conditional upon the Holder’s written acceptance, in
                                         Holder’s sole discretion, of such applicable prepayment during the time that the
                                         Borrower is exercising their right to prepay this Note.

 

Article
III. CERTAIN COVENANTS AND REPRESENTATIONS

 

Section
3.01 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.

 

Section
3.02 Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without
the Holder’s written consent, sell, lease, exchange (including but not limited to an exchange for assets of equal or greater
value) or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the
disposition of any assets may be conditioned on a specified use of the proceeds of disposition.

 

Section
3.03 Advances and Loans. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without
the Holder’s written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation,
including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits
or advances (a) in existence or committed on the date hereof and which the Borrower has informed Holder in writing prior to the
date hereof, (b) made in the ordinary course of business, (c) made to a pending merging partner pursuant to an agreement of merger
or (c) not in excess of $100,000.

 

    	9

    	 

    

 

Section
3.04 SEC Filings. Upon the execution of this Note and thereafter on each conversion of this Note in whole or in part, Borrower
shall file a Form 8-K (or any successor form) under Item 3.02 with the Securities and Exchange Commission, if and as required
by the Exchange Act, to disclose the execution of this Note or any conversion hereof, as applicable, in each case within the time
frame required by the Exchange Act.

 

Section
3.05 OTC Markets. Upon each conversion of this Note in whole or in part, Borrower shall ensure that, as of the date of
such conversion, the outstanding shares of Common Stock of Borrower as reported on the OTC Markets is current and up to date as
of such date of conversion.

 

Section
3.06 Warrant. On or before August 30, 2019, the Borrower shall issue to Holder a warrant to acquire a number of shares
of Common Stock of the Borrower in form and substance as agreed to by the Borrower and the Holder, and for a number of shares
of Common Stock and at an exercise price per share of Common Stock as agreed to by the Borrower and the Holder (the “Warrant”).
The Borrower and the Holder shall use their commercially reasonable efforts to agree on the terms and conditions of the Warrant
and the other matters as set forth above on or prior to August 30, 2019, and the failure of the Borrower and the Holder to so
agree, or the failure of the Borrower to issue the Warrant by the date, shall each be an Event of Default hereunder.

 

Section
3.07 Board Observer Rights. So long as the Borrower shall have any obligation under this Note, one individual designated
by the Holder (the “Holder Representative”) shall have the right to attend all meetings of the Board of Directors
of the Borrower (the “Board”) and to receive all materials related to such meetings as provided by the Board. The
Borrower may exclude the Holder Representative from such attendance, and shall not be required to deliver such materials to the
Holder Representative, in each case to the extent that the Borrower has received an opinion from its legal counsel, which opinion
the Borrower shall submit to the Holder prior to the applicable meeting or distribution of materials, that compliance by the Borrower
with this Section 3.07 would violate any applicable law or the fiduciary duties of the members of the Board.

 

Section
3.08 Additional Covenants. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without
the Holder’s written consent:

 

		(a)	enter
                                         into any contract, lease, or other form of agreement, directly or indirectly, whether
                                         written or oral, with any person, calling for payments in excess of $25,000 in any one
                                         year;

 

		(b)	enter
                                         into of any transaction between the Borrower and any of its shareholders or Affiliates
                                         other than customary transactions in the ordinary course of the Borrower’s business
                                         on an arms’-length basis;

 

		(c)	undertake
                                         any liquidation, dissolution, or winding-up, merger, acquisition, etc. of the Borrower;

 

		(d)	commence,
                                         compromise, settle or waive any litigation or arbitration proceeding involving the Borrower;

 

    	10

    	 

    

 

		(e)	hire
                                         or terminate any executive-level employee of the Borrower or employee of the Borrower
                                         receiving a salary of $75,000 or greater per year;

 

		(f)	substantially
                                         modify the lines of business in which the Borrower is engaged;

 

		(g)	issue
                                         any equity securities or debt securities of the Borrower or issue or sell any instruments
                                         convertible into any equity securities or debt securities of the Borrower;

 

		(h)	approve
                                         the incorporation of any subsidiary of the Borrower;

 

		(i)	approve
                                         any business plan or budget of any subsidiary of the Borrower; or

 

		(j)	undertake
                                         any amendment of the Articles of Incorporation or Bylaws of the Borrower; or

 

		(k)	propose
                                         to undertake any of the foregoing.

 

Section
3.09 Representations and Warranties. The Borrower hereby makes the representations and warranties as set forth in Exhibit
B to the Holder.

 

Article
IV. EVENTS OF DEFAULT

 

If
any of the events in Section 4.01 through Section 4.17, inclusive, occur, such event shall be an “Event of Default”
hereunder:

 

Section
4.01 Failure to Agree on or Issue the Warrant. Any failure to consummate the events set forth in Section 3.06.

 

Section
4.02 Failure to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due
on this Note, whether at maturity, upon acceleration or otherwise, following a five (5) day cure period.

 

Section
4.03 Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens
in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder
in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or
in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant
to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or
hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of
Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note,
or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing)
any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of
Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or
makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph)
and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall
not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an
obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this
Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent.
If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion,
such advanced funds shall be paid by the Borrower to the Holder within forty- eight (48) hours of a demand from the Holder.

 

    	11

    	 

    

 

Section
4.04 Breach of Covenants. The Borrower breaches any covenant or other material term or condition contained in this Note
or in any collateral documents, including but not limited to the Purchase Agreement, or in any other agreements, promissory notes,
or contracts between the Borrower and any of its Affiliates, on the one hand, and the Holder or any of its Affiliates, on the
other hand, and such breach continues for a period of ten (10) days after written notice thereof to the Borrower from the Holder.

 

Section
4.05 Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement,
statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase
Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of
time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

Section
4.06 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.

 

Section
4.07 Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary
of the Borrower or any of its property or other assets for more than

$50,000,
and shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder,
which consent will not be unreasonably withheld.

 

Section
4.08 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.

 

Section
4.09 Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of
the OTC Markets or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock
Exchange, or the American Stock Exchange.

 

Section
4.10 Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the
Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act, provided that compliance
with this Section 4.10 is waived by the Holder until December 31, 2019.

 

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

 

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

 

    	12

    	 

    

 

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

 

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

 

Section
4.15 Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower
fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in
a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve
shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.

 

Section
4.16 Cross-Default. Notwithstanding anything to the contrary contained in this Note or other related or companion documents,
a breach or default by the Borrower of any covenant or other term or condition contained any other financial instrument, including
but not limited to all convertible promissory notes, already issued, or issued in the future, by the Borrower, to the Holder or
any other 3rd party, 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.

 

Section
4.17 ACH Account Change. The Borrower changes it bank account to an account that differs from the bank account specified
on Exhibit B attached hereto, without (i) prior signed written consent of the Holder and (ii) Borrower’s execution of a
signed authorization agreement for preauthorized payments that is exactly the same as the form attached hereto as Exhibit B (except
for the new bank account information) with respect to the new bank account.

 

Section
4.18 Consequences of Event of Default. Upon the occurrence of any Event of Default specified in any of Section 4.01 through
Section 4.17, inclusive, exercisable through the delivery of written notice to the Borrower by such Holders (the “Default
Notice”), this Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction
of its obligations hereunder, an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding principal amount
of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory
Prepayment Date”) plus any amounts owed to the Holder pursuant to Section 2.03 and Section 2.04(g) (the then outstanding
principal amount of this Note to the date of payment plus the amounts referred to in clauses (x) and, (y) shall collectively be
known as 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.

 

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

 

    	13

    	 

    

 

Article
V. MISCELLANEOUS

 

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

 

Section
5.02 Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and shall be delivered in accordance with the provisions of the Purchase Agreement.

 

Section
5.03 Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower
and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
(and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then
as so amended or supplemented.

 

Section
5.04 Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be
the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor”
(as defined in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as
collateral in connection with a bona fide margin account or other lending arrangement.

 

Section
5.05 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.

 

Section
5.06 Governing Law.

 

		(a)	Except
                                         in the case of the Mandatory Forum Selection provisions in Section 5.06(b), which clause
                                         shall be governed and interpreted in accordance with Minnesota law, this Note shall be
                                         delivered and accepted in and shall be deemed to be contracts made under and governed
                                         by the internal laws of the State of Nevada, and for all purposes shall be construed
                                         in accordance with the laws of such State, without giving effect to the choice of law
                                         provisions of such state.

 

		(b)	Mandatory
                                         Forum Selection. Any action brought by either party against the other concerning
                                         the transactions contemplated by this Note shall be brought only in the state courts
                                         or federal courts located in the state of Minnesota, County of Hennepin. The parties
                                         to this Note hereby irrevocably waive any objection to jurisdiction and venue of any
                                         action instituted hereunder and shall not assert any defense based on lack of jurisdiction
                                         or venue or based upon forum non conveniens. The Borrower and Holder waive trial
                                         by jury. The prevailing party shall be entitled to recover from the other party its reasonable
                                         attorney’s fees and costs. In the event that any provision of this Note or any
                                         other agreement delivered in connection herewith is invalid or unenforceable under any
                                         applicable statute or rule of law, then such provision shall be deemed inoperative to
                                         the extent that it may conflict therewith and shall be deemed modified to conform with
                                         such statute or rule of law. Any such provision which may prove invalid or unenforceable
                                         under any law shall not affect the validity or enforceability of any other provision
                                         of any agreement. Each party hereby irrevocably waives personal service of process and
                                         consents to process being served in any suit, action or proceeding in connection with
                                         this Note by mailing a copy thereof via registered or certified mail or overnight delivery
                                         (with evidence of delivery) to such party at the address in effect for notices to it
                                         under this Note and agrees that such service shall constitute good and sufficient service
                                         of process and notice thereof. Nothing contained herein shall be deemed to limit in any
                                         way any right to serve process in any other manner permitted by law.

 

    	14

    	 

    

 

		(c)	Certain
                                         Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount
                                         in excess of the outstanding principal amount (or the portion thereof required to be
                                         paid at that time) plus accrued and unpaid interest, 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.

 

Section
5.07 Usury Savings Clause. Notwithstanding any provision in this Note or the other Transaction Documents to the contrary,
the total liability for payments of interest and payments in the nature of interest, including, without limitation, all charges,
fees, exactions, or other sums which may at any time be deemed to be interest, shall not exceed the limit imposed by the usury
laws of the jurisdiction governing this Note or any other applicable law. In the event the total liability of payments of interest
and payments in the nature of interest, including, without limitation, all charges, fees, exactions or other sums which may at
any time be deemed to be interest, shall, for any reason whatsoever, result in an effective rate of interest, which for any month
or other interest payment period exceeds the limit imposed by the usury laws of the jurisdiction governing this Note, all sums
in excess of those lawfully collectible as interest for the period in question shall, without further agreement or notice by,
between, or to any party hereto, be applied to the reduction of the outstanding principal balance due hereunder immediately upon
receipt of such sums by the Holder hereof, with the same force and effect as though the Company had specifically designated such
excess sums to be so applied to the reduction of the principal balance then outstanding, and the Holder hereof had agreed to accept
such sums as a penalty-free payment of principal; provided, however, that the Holder may, at any time and from time to time, elect,
by notice in writing to the Company, to waive, reduce, or limit the collection of any sums in excess of those lawfully collectible
as interest, rather than accept such sums as a prepayment of the principal balance then outstanding. It is the intention of the
parties that the Company does not intend or expect to pay, nor does the Holder intend or expect to charge or collect any interest
under this Note greater than the highest non-usurious rate of interest which may be charged under applicable law.

 

Section
5.08 Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase
Agreement.

 

Section
5.09 Notice of Corporate Events. Except as otherwise provided below, the Holder of this Note shall have no rights as
a holder of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Borrower shall
provide the Holder with prior notification of any meeting of the Borrower’s shareholders (and copies of proxy materials
and other information sent to shareholders). In the event of any taking by the Borrower of a record of its shareholders for
the purpose of determining shareholders who are entitled to receive payment of any dividend or other distribution, any right
to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification or
recapitalization) any share of any class or any other securities or property, or to receive any other right, or for the
purpose of determining shareholders who are entitled to vote in connection with any proposed sale, lease or conveyance of all
or substantially all of the assets of the Borrower or any proposed liquidation, dissolution or winding up of the Borrower,
the Borrower shall mail a notice to the Holder, at least twenty (20) days prior to the record date specified therein (or
thirty (30) days prior to the consummation of the transaction or event, whichever is earlier), of the date on which any such
record is to be taken for the purpose of such dividend, distribution, right or other event, and a brief statement regarding
the amount and character of such dividend, distribution, right or other event to the extent known at such time. The Borrower
shall make a public announcement of any event requiring notification to the Holder hereunder substantially simultaneously
with the notification to the Holder in accordance with the terms of this Section 5.09.

 

    	15

    	 

    

 

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

 

Section
5.11 Right of First Refusal. If at any time while this Note is outstanding, the Borrower has a bona fide offer of capital
or financing from any 3rd party, the Borrower must first offer such opportunity to the Holder to provide such capital or financing
to the Borrower on the same terms as each respective 3rd party’s terms. Should the Holder be unwilling or unable to provide
such capital or financing to the Borrower within 15 days from receipt of written notice of the offer (the “Offer Notice”)
from the Borrower, then the Borrower may obtain such capital or financing from that respective 3rd party upon the same terms and
conditions offered by the Borrower to the Holder, which transaction must be completed within 30 days after the date of the Offer
Notice. If the Borrower does not complete such transaction within such time period, then the Borrower must again offer the capital
or financing opportunity to the Holder on the same terms, and the process detailed above shall be repeated.

 

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

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this August 15th, 2019.

 

	 	Ngen
    Technologies USA Corporation
	 	 	 
	 	By:	
	 	Name: 	Clifford
    Rhee
	 	Title:	President

 

    	 

    	 

    

 

EXHIBIT
A: NOTICE OF CONVERSION

 

{PAGE
OMITTED INTENTIONALLY}

 

    	 

    	 

    

 

EXHIBIT
B

 

Representations
and Warranties Regarding Anti-Money Laundering; OFAC.

 

1.1.
The Borrower should check the Office of Foreign Assets Control (“OFAC”) website at http://www.treas.gov/ofac before
making the following representations.

 

1.2.
The Borrower represents that the cash amounts to be paid to Carebourn Capital, LP (the “Holder”) under the convertible
promissory note dated August 15th, 2019 (the “Note”), by the Borrower, were not and are not directly or indirectly
derived from activities that contravene U.S. federal or state or international laws and regulations, including anti-money laundering
laws and regulations. U.S. federal regulations and executive orders administered by OFAC prohibit, among other things, the engagement
in transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals. The
lists of OFAC prohibited countries, territories, persons and entities can be found on the OFAC website at http://www.treas.gov/ofac.
In addition, the programs administered by OFAC (the “OFAC Programs”) prohibit dealing with individuals1
or entities in certain countries regardless of whether such individuals or entities appear on the OFAC lists.

 

1.3.
To the best of the Borrower’s knowledge, none of: (1) the Borrower; (2) any person controlling or controlled by the Borrower;
(3) if the Borrower is a privately-held entity, any person having a beneficial interest in the Borrower; or (4) any person for
whom the Borrower is acting as agent or nominee is a country, territory, individual or entity named on an OFAC list, or a person
or entity prohibited under the OFAC Programs.

 

1.4.
To the best of the Borrower’s knowledge, none of: (1) the Borrower; (2) any person controlling or controlled by the Borrower;
(3) if the Borrower is a privately-held entity, any person having a beneficial interest in the Borrower; or (4) any person for
whom the Borrower is acting as agent or nominee is a senior foreign political figure2, or any immediate family3
member or close associate4 of a senior foreign political figure, as such terms are defined in the footnotes below.

 

1.5.
Borrower hereby represents and warrants that the cash payments under the Note are to be made on its own behalf or, if applicable,
and such cash payments do not directly or indirectly

 

 

1
These individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject
to OFAC sanctions and embargo programs.

2
A “senior foreign political figure” is defined as a senior official in the executive, legislative, administrative,
military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political
party, or a senior executive of a foreign government-owned corporation. In addition, a “senior foreign political figure”
includes any corporation, business or other entity that has been formed by, or for the benefit of, a senior foreign political
figure.

3
“Immediate family” of a senior foreign political figure typically includes the figure’s parents, siblings,
spouse, children and in-laws.

4
A “close associate” of a senior foreign political figure is a person who is widely and publicly known to maintain
an unusually close relationship with the senior foreign political figure, and includes a person who is in a position to conduct
substantial domestic and international financial transactions on behalf of the senior foreign political figure. contravene United
States federal, state, local or international laws or regulations applicable to Borrower, including anti-money laundering laws.

 

    	 

    	 

    

 

1.6.
If the Borrower is affiliated with a non-U.S. banking institution (a “Foreign Bank”), or if the Borrower receives
deposits from, makes payments on behalf of, or handles other financial transactions related to a Foreign Bank, the Borrower represents
and warrants to the Holder that: (1) the Foreign Bank has a fixed address, other than solely an electronic address, in a country
in which the Foreign Bank is authorized to conduct banking activities; (2) the Foreign Bank maintains operating records related
to its banking activities; (3) the Foreign Bank is subject to inspection by the banking authority that licensed the Foreign Bank
to conduct banking activities; and (4) the Foreign Bank does not provide banking services to any other Foreign Bank that does
not have a physical presence in any country and that is not a regulated affiliate.

 

1.7.
Upon the written request from the Holder, Borrower agrees to provide all information to the Holder to enable the Holder to comply
with all applicable anti-money laundering statutes, rules, regulations and policies. Borrower understands and agrees that the
Holder may release confidential information about Borrower and, if applicable, any of its affiliates, directors, officers, trustees,
beneficiaries and grantors related thereto, to any person if the Holder, in its sole discretion, determines that such disclosure
is necessary to comply with applicable statutes, rules, regulations and policies.

 

IN
WITNESS WHEREOF, Borrower has caused this representation letter to be signed in its name by its duly authorized officer this August
15th, 2019.

 

	 	Ngen
    Technologies USA Corporation
	 	 	 
	 	By:	
	 	Name: 	Clifford
    Rhee
	 	Title:	President

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