Document:

EX-10.42

 Exhibit 10.42 

The MENTOR Network 

Human Services and Corporate Management 

Incentive Compensation Plan 

Fifth Amendment and Restatement 

dated December 16, 2014 

Effective October 1, 2014 

 Table of Contents 

 

					
	 Purpose of Plan
	  	 	2	  
	 Eligibility
	  	 	2	  
	 Definitions
	  	 	2	  
	 Minimum Threshold Requirement
	  	 	4	  
	 Weighting of Performance Criteria
	  	 	4	  
	 Calculation of Incentive Payouts
	  	 	4	  
	 Calculating the Potential Payout
	  	 	5	  
	 Applying Quality of Services or Work Rating to the Potential Payout
	  	 	6	  
	 Applying the DSO Modifier
	  	 	6	  
	 Discretionary Incentive Compensation
	  	 	7	  
	 Distribution of 3% Discretionary Pool
	  	 	7	  
	 Discretionary Divestitures
	  	 	7	  
	 In the Event that Calculated Payouts Exceed Funds Available to Pay Incentive Compensation
	  	 	7	  
	 Administration
	  	 	8	  
	 Plan Changes
	  	 	8	  
	 Management of Financial Goals
	  	 	8	  
	 Incentive Compensation Payouts
	  	 	8	  
	 Approval of New Plan Entrants
	  	 	8	  
	 Participant Termination Provisions
	  	 	9	  
	 Terminations Without Cause and Voluntary Terminations
	  	 	9	  
	 Involuntary Terminations for Cause
	  	 	9	  
	 Retirement and Death
	  	 	9	  
	 Special Provisions Relating to Position and Status Changes
	  	 	9	  
	 Promotions and Job Transfers
	  	 	9	  
	 Interruptions in Work
	  	 	10	  
	 Company Clawback
	  	 	10	  
	 Plan Year and Effective Date
	  	 	10	  
	 Plan Amendments
	  	 	10	  
	 Exhibit A: Eligibility, Target IC Opportunity, and Weighting for Management Positions
	  			
	 Exhibit C: Individuals Responsible for DSO and Level at Which DSO Measured
	  			
	 Annex 1: Performance Scales
	  			
	 Annex 2: DSO Modifier
	  			
	 Annex 3: Sample Incentive Compensation Calculation
	  			
	 Exhibit D: Adjusted EBITDA/CTO for Certain Employees
	  			

 Purpose of Plan 

The purpose of The MENTOR Network Human Services and Corporate Management Incentive Compensation Plan (the “Plan”) is to provide executives,
management and other employees in designated key positions with the opportunity to receive an annual cash incentive award for achieving performance goals that align with the business goals of The MENTOR Network (“The Network”). 

Eligibility 
 Eligibility for participation in the Plan is
limited to employees in the Human Services operating groups and certain other management positions, specifically: (i) Executive Officers (as such term is defined under the Securities Exchange Act of 1934, as amended) and other employees whose
positions are listed on Exhibit B and (ii) employees whose positions are listed on Exhibit A. However, the President and Chief Executive Officer (“CEO”), the Chief Financial Officer (“CFO”) and the Chief Human Resources
Officer (“CHRO”), acting together, may amend Exhibit A and Exhibit B with respect to positions which are not Executive Officers. Employees are not eligible to participate in the Plan if they are eligible for participation under any other
cash incentive plan of The Network, with the exception of discretionary bonuses available to participants in the Mergers and Acquisitions Bonus Plan and additional plans as may be specifically approved by the CEO, CFO and CHRO from time to time.

 Definitions 
 3% Discretionary Pool.
The “3% Discretionary Pool” is a discretionary pool budgeted each fiscal year as three percent of the total budgeted incentive compensation. The actual pool amount is equal to three percent of the sum of the Potential Payouts for all
of the participants in the Plan. The discretionary pool may be used to increase incentive compensation payouts for participants whose calculated Potential Payout adjusted for quality of services/work rating may not adequately reflect their
performance; for example, to a high performer within a state or other organizational unit that does not perform well. Awards from the 3% Discretionary Pool are made at the sole discretion of the CEO, other than awards to Executive Officers, which
must also be approved by the Compensation Committee. 
 Adjusted EBITDA. Earnings before interest, taxes, depreciation and
amortization, with adjustments, as reported to The Network’s equity sponsor.  
 Adjusted EBITDA/CTO. Adjusted EBITDA, CTO or
both, as applicable to a particular participant. For employees listed on Exhibit D, including the Executive Officers, Adjusted EBITDA/CTO for The Network excludes new start investments under immunity but includes EBITDA for any acquisitions.
For all other employees, Adjusted EBITDA/CTO excludes new start investments under immunity and acquisitions other than tuck-ins (as determined by the CEO). 

  
 2 

 Adjusted EBITDA/CTO Performance Level. Actual Adjusted EBITDA/CTO divided by planned (or budgeted)
Adjusted EBITDA/CTO as applicable to a given participant, expressed as a percentage. 
 CTO. “CTO” means contribution to overhead
for a given organizational unit within The Network. 
 DSO. “DSO” means days sales outstanding. It is a measure of the average number of days that
it takes to collect revenue after a sale has been made. 
 DSO Modifier. “DSO Modifier” means the percentage amount by which a Potential Payout
will be increased or decreased based on the actual DSO achieved as of the last day of the fiscal year compared to the target DSO set by the CEO, in consultation with the CFO and the applicable Operating Group President and Functional Head. 

IC Payout Level. The percentage incentive compensation payout that is associated with actual Adjusted EBITDA/CTO and Revenue performance
achieved against plan, as shown on the applicable Performance Scale in Annex 1. A given Performance Level corresponds to an IC Payout Level, ranging from 50.0% to 150.0%, which is factored into the Potential Payout calculation. For Network Adjusted
EBITDA/CTO and Revenue, the Performance Level scale ranges from 92.5% to 107.5%. For Human Services organizational unit Adjusted EBITDA/CTO and Revenue, the Performance Level scale ranges from 92.5% to 104.0%. In cases where actual Adjusted
EBITDA/CTO and/or Revenue performance falls between two performance points in the Performance Scale table, the IC Payout Level used for the Potential Payout calculation will fall proportionately between the two IC Payout Level percentages in the
table. 
 Potential Payout. A participant’s “Potential Payout” is the amount of incentive compensation potentially payable to a
participant based on Network and/or organizational unit performance, before reduction based on quality of services and/or quality of work, as determined by the participant’s supervisor, and before application of the DSO Modifier (if
applicable). 
 Reallocation Pool. Unallocated (or forfeited) incentive compensation as a result of unsatisfactory quality of services/work,
which forms a pool of residual dollars for potential reallocation by the applicable Operating Group President or Functional Head. 
 Revenue.
As measured in The Network’s financial statements, excluding new start investments under immunity and acquisitions other than tuck-ins (as determined by the CEO). 

Revenue Performance Level. Actual Revenue achieved for the fiscal year divided by planned (or budgeted) Revenue for that year, expressed as a
percentage. 
 Target IC Opportunity. The amount a given participant may earn under the Plan if the applicable planned (or budgeted) financial
targets are achieved and the participant receives a 

  
 3 

 
satisfactory rating for quality of services/work. This amount is calculated by multiplying the participant’s annual salary by the applicable Target IC% shown in Exhibit A or Exhibit B. A
participant’s “Target IC Opportunity” is based on the participant’s level of responsibility for and impact on The Network’s business goals. Refer to Exhibit A for management and other key positions, and to Exhibit B for
Executive Officers and others. 
 Minimum Threshold Requirement 

The minimum actual performance level required for a participant to receive incentive compensation is 92.5 percent of the planned Adjusted EBITDA/CTO target
goal for The Network or an organizational unit, whichever is applicable to the participant. If the minimum threshold requirement is not met, the participant will not receive any incentive compensation unless the participant is awarded discretionary
incentive compensation. 
 In the case of participants whose incentive compensation is based on both The Network’s and an organizational unit’s
performance, the minimum threshold requirement applies separately to each. That is, if The Network does not achieve the minimum threshold, then the participant will not receive the portion of the incentive compensation based on The Network’s
performance. Similarly, if the organizational unit does not achieve the minimum threshold, then the participant will not receive the portion of incentive compensation based on the organizational unit’s performance. 

Weighting of Performance Criteria 
 For purposes of
calculating a participant’s incentive compensation, weighting between The Network’s and organizational unit’s Adjusted EBITDA/CTO and Revenue performance is determined according to a participant’s position, as set out on Exhibits
A and B. 
 For purposes of calculating a participant’s incentive compensation, the weighting between Revenue and Adjusted EBITDA and/or CTO is
determined each year by the Compensation Committee. 
 Calculation of Incentive Payouts 

Plan participants are eligible to receive incentive compensation based on The Network’s and/or their organizational unit’s EBITDA/CTO and revenue
performance and their quality of services/work and for certain participants, DSO performance. The principle steps for calculating a participant’s incentive compensation payout are as follows: 

 

	1.	Calculate the participant’s Potential Payout. 

  

	2.	 Determine the participant’s rating for quality of services/work, then calculate the portion of the Potential Payout that will be paid to the
participant based on the results. If participant 

  
 4 

	 	
achieves a satisfactory rating (100 percent) for quality of services/work (including workforce management and employee engagement), then the participant’s payout will equal the Potential
Payout calculated in Step 1. However, if the participant’s rating is less than satisfactory (that is, less than 100 percent), the Potential Payout calculated in Step 1will be reduced proportionately by the amount of the participant’s
rating. 

  

	3.	If the participant’s position is listed on Exhibit C, then such participant’s Potential Payout may be adjusted further based on the DSO performance level achieved by the applicable organizational unit for the
fiscal year then ended. 

  

	4.	If applicable, add discretionary incentive compensation to the amount calculated in Step 1 and Step 3 (if applicable) above. Discretionary incentive compensation may be added from the Reallocation Pool and/or the
3% Discretionary Pool. 

 Calculating the Potential Payout 

To calculate a participant’s Potential Payout described in Step 1 above, the following steps apply: 

 

	1.	Determine if the Adjusted EBITDA/CTO Performance Level meets the minimum threshold requirement (i.e., 92.5 percent of planned performance). 

If the Adjusted EBITDA/CTO Performance Level does not meet the minimum threshold requirement, then the participant’s Potential Payout is
zero. If the minimum threshold requirement is met, then proceed to the next step. 
  

	2.	Determine the IC Payout Level associated with the EBITDA/CTO Performance Level determined in Step 1 using the Performance Scale set out on Annex 1. 

 

	3.	Calculate the portion of the participant’s Potential Payout attributable to Adjusted EBITDA/CTO performance by multiplying the participant’s Target Incentive Compensation by the applicable weighting, as
determined by the Compensation Committee for that fiscal year, and then by the IC Payout Level determined in Step 2. 

  

	4.	Determine the Revenue Performance Level for The Network and/or the organizational unit, whichever is applicable to the participant, and then determine the IC Payout Level associated with the Revenue Performance Level
using the Performance Scale set out on Annex 1. 

  

	5.	Calculate the portion of the participant’s Potential Payout attributable to Revenue performance by multiplying the participant’s Target Incentive Compensation by the applicable weighting, as determined by the
Compensation Committee for that fiscal year, and then by the IC Payout Level determined in Step 4. 

  

	6.	Sum the amounts calculated in Steps 3 and 5 to obtain the Potential Payout. 

  
 5 

 Applying Quality of Services or Work Rating to the Potential Payout 

7. When quality of services or work score is satisfactory or better (a score of 100 percent), the Potential Payout is unaffected. When quality is
assessed as less than satisfactory (a score of less than 100 percent), the Potential Payout is modified. Human Services positions that are set forth on Exhibit A are rated based on quality of services of the participant’s applicable
organizational unit, including factors such as licensure issues and restrictions, workforce management and employee engagement. Other positions (as set forth on Exhibits A and B) are rated based on an individual participant’s quality of work,
including factors such as quality of management, employee engagement, achievement of assigned goals, completion of assigned projects, and contributions to the achievement of departmental or company goals. A participant’s ratings must be
certified by the participant’s supervisor and: (i) the Operating Group President for a Vice President of Operations; (ii) the Vice President of Operations, for all other Operations positions; (iii) the functional head, or chief,
of a corporate function (the “Functional Head”), for corporate positions. The CEO will certify quality ratings for the Executive Officers (other than the Executive Chair), respectively, and the Compensation Committee will approve and
certify the quality rating for the Executive Chair and CEO. 
 8. The participant’s supervisor will assign a percentage score ranging from
0 percent to 100 percent, where 100 percent represents a satisfactory quality rating (and a deduction of 0) and 0 percent represents the lowest possible quality rating (and a deduction of 100 percent). 

9. If the participant’s rating is satisfactory (100 percent), then the percentage score is multiplied by the Potential Payout, resulting in no
decrease in a participant’s potential payout. If a participant’s rating is less than satisfactory (or less than 100 percent), then the following calculation must occur: 

 

	Step A	Subtract 100% from the participant’s rating percentage (“Step A Amount”) 

	Step B	Multiply the Potential Payout by the Step A Amount (the “Step B Amount”) 

	Step D	Subtract the Potential Payout from the Step B Amount 

 10. If the participant’s rating is less than
satisfactory, the Quality Modifier (as determined above) will yield a calculation of an individual’s incentive compensation ranging from 0 percent to 100 percent of the Potential Payout as initially calculated. 

Applying the DSO Modifier 
 To calculate
the amount of a participant’s awarded payout if such participant is subject to the DSO Modifier described in “Calculation of Incentive Payouts” above, the following steps apply: 

11. Review Exhibit C and determine if the participant holds a position for which DSO performance will be taken into account and the
organizational level at which DSO performance will be evaluated. If the participant is not subject to the DSO Modifier, then the participant’s payout will be equal to the Potential Payout adjusted for quality of service or work as calculated in
Steps 1 through 10 above. If the participant is subject to the DSO Modifier, then proceed to the next step. 

  
 6 

 12. Determine the DSO Modifier associated with the DSO performance level achieved by the
organizational unit using the performance scale set out on Annex 2. 
 13. Multiply the DSO Modifier by the Potential Payout adjusted for
quality of services or work calculated in Steps 1 through 10 above. In no event shall a participant’s Potential Payout be decreased or increased by more than 10% of the amount of the Potential Payout as a result of the application of the DSO
Modifier. 
 For an example of an incentive compensation payout calculation, refer to Annex 3. 

Discretionary Incentive Compensation 
 In
cases where a participant’s performance may not be adequately rewarded by the calculations above, additional compensation may be awarded from the 3% Discretionary Pool, as detailed below, and/or the Reallocation Pool (established when quality
of services/work ratings are less than satisfactory). Awards from the Reallocation Pool will be made in the discretion of the applicable Operating Group President or Functional Head, except for additions to payouts for Executive Officers, whose
additions must be recommended by the CEO and approved by the Compensation Committee. 
 Distribution of 3% Discretionary Pool 

Based on actual Network Adjusted EBITDA and Revenue performance, the planned (or budgeted) 3% Discretionary Pool will be adjusted so that it is
three percent of the total potential pool. The 3% Discretionary Pool shall be available for increases to incentive compensation payouts to any participant, which payouts shall be approved by the CEO, except for additions to payouts for
Executive Officers, whose additions must be recommended by the CEO and approved by the Compensation Committee. 
 Discretionary
Divestitures 
 If a participant engages in or bears responsibility for exceptionally poor conduct or poor performance during the fiscal year, he or she
may not be entitled to receive any incentive compensation. The decision to divest a participant by assigning a quality rating of zero will be made by: (i) the President and the Operating Group President, for Operations positions; (ii) the
CEO and Functional Head, for corporate positions; or (iii) the Compensation Committee, for Executive Officers. 
 In the Event that
Calculated Payouts Exceed 
 Funds Available to Pay Incentive Compensation 

In the event that the total calculated incentive payouts, after taking into account any discretionary redistributions of unallocated incentive compensation,
exceed the funds that are available to pay incentive compensation, all payouts will be reduced proportionately based on the funds available. 

  
 7 

 Administration 

Plan Changes 
 The Compensation Committee
must approve the Plan and any changes to the Plan, except that the President, CFO and CHRO, acting together, may amend Exhibit A and/or Exhibit B to the extent such amendments do not relate to Executive Officers. 

Management of Financial Goals 
 For each
fiscal year, the Compensation Committee must approve: 
  

	 	•	 	The Adjusted EBITDA and Revenue performance goals that will be used for measuring Hastings Operating Group, Redwood Operating Group and Network performance; 

 

	 	•	 	The weighting between Adjusted EBITDA and Revenue that will be used to calculate performance under the Plan; and 

  

	 	•	 	The actual performance results for Hastings Operating Group, Redwood Operating Group and the Network that will be used as the basis for calculating incentive compensation payouts. 

The CEO, President and CFO must approve actual performance results for organizational units as compared to the budgeted (i.e., planned) goals approved by
management. 
 Incentive Compensation Payouts 

Each fiscal year, the Compensation Committee must approve all incentive compensation payouts for Executive Officers. The CEO must approve all other incentive
compensation payouts. If either the CEO is not available to sign approval of the payments, then the CFO or the CHRO may co-sign approval. 

Approval of New Plan Entrants 
 The
Compensation Committee must approve any new Executive Officer entering the plan and the applicable performance weightings and incentive compensation payout opportunities. 

Approval of new entrants other than Executive Officers is based on whether an employee’s position has been approved for plan participation (as set forth
on Exhibit A or Exhibit B). New participants (other than Executive Officers and other than those set forth on Exhibit A or Exhibit B) must be approved for entry into the Plan by the President, CFO and CHRO. 

  
 8 

 Participant Termination Provisions 

Terminations Without Cause and Voluntary Terminations 

Plan participants whose employment is terminated without cause or who terminate employment voluntarily before the actual payment date of incentive
compensation, other than by retirement, will not be eligible for any incentive payout under the Plan, with the exception of specific situations that are approved by the CEO or, in the case of payouts for Executive Officers, (i) approved by the
Compensation Committee or (ii) provided for in the Executive Officer’s employment agreement. 
 Involuntary Terminations for
Cause 
 Plan participants whose employment is involuntarily terminated for cause will not be eligible for incentive payouts under the Plan under any
circumstances. “Cause” shall mean any of the following: (i) theft or embezzlement, or attempted theft or embezzlement, of money or property of the Company or any subsidiary, perpetration or attempted perpetration of fraud, or
participation in a fraud or attempted fraud, on the Company or any subsidiary, or any third party, or unauthorized appropriation of, or attempt to misappropriate, any tangible or intangible assets or property of the Company or any subsidiary;
(ii) any act or acts of disloyalty, misconduct, or moral turpitude injurious to the interest, property, operations, or business reputation of the Company or any subsidiary; (iii) material violation of any agreement with the Company or any
serious violation of the Company’s policies, including its Code of Conduct; or (iv) failure or inability (other than by reason of disability) to carry out effectively a participant’s duties and obligations to the Company and its
subsidiaries or to participate effectively and actively in the management of the Company and its subsidiaries, as determined in the reasonable judgment of the CEO or, with respect to the Executive Chairman and/or CEO, the Compensation Committee.

 Retirement and Death 
 Plan
participants whose employment terminates because of retirement or death are eligible to receive an incentive compensation payout. The payout will be calculated based upon actual Network and/or organizational unit performance for the full fiscal year
and the quality rating for the portion of the year that the individual was employed, and the resulting amount prorated for the portion of the year that was worked. Any incentive compensation payout that is earned will be paid at the normal payout
date for all Plan participants. 
 Special Provisions Relating to Position and Status Changes 

Promotions and Job Transfers 
 Plan goals
and payout weightings may be reestablished for an individual participant upon transfer or promotion to a new position. Unless otherwise determined by the CEO, incentive payouts will be calculated based upon the participant’s position and base
salary as of the last day of the fiscal year. 

  
 9 

 Interruptions in Work 

A long-term illness or disability will not affect the eligibility of an employee to participate in the Plan. Actual performance achieved will be evaluated and
the corresponding incentive payout will be prorated based upon the amount of time worked during the performance period. 
 “Disability” shall mean
the inability, due to illness, accident, injury, physical or mental incapacity, or other disability, of any participant to carry out effectively his or her duties and obligations to the Company or to participate effectively and actively in the
management of the Company for a period of at least 90 consecutive days or for shorter periods aggregating at least 90 days (whether or not consecutive) during any 180-day period, as determined in the reasonable judgment of the CEO, or in the case of
an Executive Officer, the Compensation Committee. 
 Special assignments generally will not affect either the target goals or incentive payout, except as
may be reflected in a participant’s performance review rating. However, if the special assignment is of a significant nature or duration, Plan goals may be reestablished and incentive payouts prorated based on the time spent in each position
during the performance period. 
 Company Clawback 
 All
incentive compensation payouts granted under this Plan will be subject to deduction, forfeiture, recoupment or similar requirement in accordance with any clawback policy that may be implemented by the Company from time to time, including such
policies that may be implemented after the date the incentive compensation is awarded, pursuant to the NYSE listing standards or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law, or
other agreement or arrangement with a Participant. 
 Plan Year and Effective Date 

The Plan year is the fiscal year, which starts on October 1st and ends on September 30th. The effective date of this amended and restated plan is October 1, 2013. 
 Plan Amendments

 The MENTOR Network reserves the right to amend this Plan at any time, including termination of the Plan, without prior notice to participants. 

  
 10 

 

 
 Exhibit A: Eligibility, Target IC Opportunity, and Weighting for Management Positions 
Positions Target IC Opportunity Network Weighting Organizational Unit Weighting 
Operations and
Field Management Positions 
Vice President, Operations 30% 25% 75% 
Vice
President, CFO 30% 25% 75% 
Vice President, Field HR 30% 25% 75% 
Senior
Executive Director 25% 25% 75% 
Executive Director 20% 0% 100% 
State Director
20% 0% 100% 
Regional Director 15% 0% 100% 
Operations Director 15% 0% 100%

Area Director 10% 0% 100% 
Program Manager II 10% 0% 100% 
Senior Business Director 20% 25% 75% 
Business Director 15% 25% 75% 
Business Manager 10% 0% 100% 
State Accounting Manager 10% 0% 100% 
Operating Group Director, QA 15% 25% 75% 
Director (Regional level HR & QA) 10% 25% 75%

Corporate (All positions at levels indicated below) 
Vice President 30% 100%
0% 
Senior Director 20% 100% 0% 
Director 15% 100% 0% 
Manager 10% 100% 0% 
Manager (Designated Field) 10% 100% 0% 

 

 
 Exhibit B: Target IC Opportunity and Weighting for Executive Officer Positions 
Position Target IC Payout Opportunity Network Operating Group 
Executive Chairman 100% 100% 0%

CEO 100% 100% 0% 
President & CEO 100% 100% 0% 
President & COO 75% 100% 0% 
Operating Group Presidents 50% 25% 75% 
All Other Executive Officers 50% 100% 0% 

 

 
 Exhibit C: Individuals Responsible for DSO and Level at Which DSO Measured 
Position Level at Which DSO Measured 
The MENTOR Network Human Services and Corporate
Management Incentive Compensation Plan 
Executive Chairman of the Board Network

CEO Network 
President & CEO Network 
President & COO Network 
CFO Network 
CIO Network 
VP, Corporate Finance Network 
Sr. Director, Finance Shared Services Network 
Manager, Accounts Receivable (Finance Shared
Services) Based on book of business 
President, Hastings Operating Group Hastings Operating Group 
VP, CFO, Hastings Operating Group Hastings Operating Group 
President, Redwood Operating Group
Redwood Operating Group 
VP, CFO, Redwood Operating Group Redwood Operating Group 
VP, AR/Billing Services Network 
VPO Region 
Sr. Executive Director State 
Executive Director State 
State Director State 
Sr. Operations Director State 
Operations Director (if heading up a State) State 
Sr. Business Director Region 
Business Director Region 
Sr. Business Manager State(s) 
Business Manager State 

 

 
 Annex 1: Performance Scales 
IC Payout Level Based
on Performance 
Network Performance Level (Revenue and EBITDA) IC Payout Level Human Services Performance Level (Org Unit Revenue and EBITDA/CTO) IC Payout Level

107.5% 150.0% 
106.0% 140.0% 104.0% 150.0% 
104.5% 130.0% 103.0% 137.5% 
103.0% 120.0% 102.0% 125.0% 
101.5% 110.0% 101.0% 112.5% 
Target (Plan) 100.0% 100.0% 100.0% 100.0% 
98.5% 90.0% 98.5% 90.0% 
97.0% 80.0% 97.0% 80.0% 
95.5% 70.0% 95.5% 70.0% 
94.0% 60.0% 94.0% 60.0% 
92.5% 50.0% 92.5% 50.0% 

 

 
 Annex 2: DSO Modifier 
If the DSO performance level
achieved is: Then the modifier equals: 
107.5% or greater -10.0% 
At least
105.0% but less than 107.5% -5.0% 
At least 102.5% but less than 105.0% -2.5%

At least 97.5% but less than 102.5% 0.0% 
At least 95.0% but less than 97.5%
2.5% 
At least 92.5% but less than 95.0% 5.0% 
Less than 92.5% 10.0%

 

 
 Annex 3: 
Sample Incentive Compensation Calculation

 

 
 Sample Incentive Compensation Calculations 
Example
#1: 
General Information Fiscal Year Results 
Employee Brown, Jane CTO
Performance Level 97.00% 
Job Title State Director CTO Payout Level 80.00%

Annual Salary $50,000 Revenue Performance Level 101.00% 
Target IC % 15%
Revenue Payout Level 112.50% 
Target IC $ $7,500 Combined Payout Level 96.25%

Network Weighting 0% DSO Actual 48 days 
Org Unit Weighting 100% DSO
Performance Level 102.1% 
CTO Weighting 50% DSO Modifier 0.0% 
Rating 90%

Revenue Weighting 50% IC Payout Calculation 
DSO Target 47 days Potential
Payout $7,219 
Payout After Quality Modifier $6,497 
DSO Modifier $0

Discretionary Awards $0 
IC Payout $6,497 
Example #2: 
General Information Fiscal Year Results 
Employee Smith, Robert Network Org Unit 
Job Title Business Director CTO Performance Level
94.00% 97.00% 
Annual Salary $50,000 CTO Payout Level 60.00% 80.00% 
Target IC
% 15% Revenue Performance Level 101.50% 101.00% 
Target IC $ $7,500 Revenue Payout Level 110.00% 112.50% 
Network Weighting 25% Combined Payout Level 85.00% 96.25% 
Org Unit Weighting 75% DSO Actual 44
days 
DSO Performance Level 93.6% 
CTO Weighting 50% DSO Modifier 5.0%

Revenue Weighting 50% Quality Modifier 100% 
DSO Target 47 days IC Payout
Calculation 
Potential Payout $7,008 
Payout after Quality Modifier $7,008

Payout After DSO Modifier $7,358 
Discretionary Awards $1,000 
IC Payout $8,358 

 

 
 Exhibit D: Adjusted EBITDA/CTO for Certain Employees

Adjusted EBITDA/CTO for the employees listed below excludes new start investments under immunity but includes EBITDA for any acquisitions. 
1) All Executive Officers 
2) VP, Financial Planning & Analysis 
3) VP, CFO, Operating Groups 
4) VP, HR for Operating Groups 
5) VP, QA for Operating Groups 
6) VP, OperationsNEITHER THIS NOTE NOR THE SECURITIES INTO
WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTER ED UNDER THE SECURITIES ACT OF I933, AS AMENDED (THE "ACT") OR ANY
STATE SECURITIES LAWS AND NEITHER THIS NOTE NOR ANY INTEREST THEREIN NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE MAY
BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH
ACT AND SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS.

 

CONVERTIBLE PROMISSORY NOTE

 

	Principal Amount: $20,000.00	Issue Date: September 17, 2014
		Maturity Date: March 17, 2015

 

For good and valuable consideration, Aja
Cannafacturing, Inc., a Nevada corporation ("Maker"), hereby makes and delivers this Promissory Note
(this "Note") in favor of Blackbridge Capital, LLC, or its assigns ("Holder"), and hereby
agrees as follows:

 

ARTICLE I.

PRINCIPAL AND INTEREST

 

Section 1.1. For value received, Maker
promises to pay to Holder at such place as Holder or its assigns may designate in writing, in currently available funds of the
United States, the Principal A mount of Twenty Thousand Dollars ($20,000.00). Maker's obligation under this Note shall accrue
interest at the rate of Five percent (5.0%) per annum from the date hereof until paid in full. Interest shall be computed
on the basis of a 365-day year or 366-day year, as applicable, and actual days lapsed. Accrual of interest shall commence on the
first business day to occur after the Issue Date and continue until payment in full of the principal sum has been made or duly
provided for.

 

Section 1.2

 

a.                  
All payments shall be applied first to interest, then to principal and shall be credited to
the Maker’s account on the date that such payment is physically received by the Holder.

 

b.                  
All principal and accrued interest then outstanding shall be due and payable to the Maker’s
account on or before March 17, 2015 (the “Maturity Date.”)

 

c.                   
Maker shall have no right to repay all or any part of the principal under this Note.

 

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

 

Section 1.3 This Note is issued solely
for value received, paid by Holder to Maker by wire ("Consideration"). This Note is issued solely for value received,
paid by Holder to Maker by wire ("Consideration"). The Principal Amount due to Holder shall be prorated based on the
consideration actually paid by Holder to Maker, such that the Maker is only required to repay the amount of consideration and the
Maker is not required to repay any unfunded portion of this Note.

 

    	 

    	 

    

 

ARTICLE II.

CONVERSION RIGHTS; CONVERSION PRICE

 

Section 2.1. Conversion. The
Holder or its assigns shall have the right, from time to time, commencing on the Issuance Date of this Note, to convert any part
of the outstanding interest or Principal Amount of this Note into fully paid and non-assessable shares of Common Stock of the Maker
(the "Notice Shares") at the Conversion Price determined as provided herein. Promptly after delivery to Maker of a Notice
of Conversion of Convertible Note in the forms attached hereto as Exhibit 1, or any other form provided by the Holder, properly
completed and du l y executed by the Holder or its assigns (a "Conversion Notice"), the Maker shall issue and deliver
to or upon the order of the Holder that number of shares of Com mon Stock for the that port ion of this Note to be converted as
shall be determined in accordance herewith.

 

No fraction of a share or scrip representing
a fraction of a share will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share.
The date on which Notice of Conversion is given (the "Conversion Date") shall be deemed to be the date on which the Holder
faxes or emails the Notice of Conversion duly executed to the Maker. Certificates representing Common Stock upon conversion will
be delivered to the Holder within two (2) trading days from the date the Notice of Conversion is delivered to the Maker. Delivery
of shares upon conversion shall be made to the address specified by the Holder or its assigns in the Notice of Conversion.

 

Section 2.2. Conversion Price. Upon
any conversion of this Note, the Conversion Price shall equal Fifty Percent (50%) of the lowest Trading Price (defined below) during
the Valuation Period (defined below), and the Conversion Amount shall be the amount of principal or interest electively converted
in the Conversion Notice. The total number of shares due under any conversion notice ("Notice Shares") will be equal
to the Conversion Amount divided by the Conversion Price.

 

On the date that a Conversion Notice is delivered
to Holder, the Company shall deliver an estimated number of shares ("Estimated Shares") to Holder's brokerage account
equal to the Conversion Amount divided by 50% of the Market Price. "Market Price" shall mean the lowest of the daily
Trading Price for the Common Stock during the forty (40) Trading Day period ending on the latest complete Trading Day prior to
the Conversion Date.

    	2

    	 

    

 

The "Valuation Period" shall mean
forty Trading Days, commencing on the first Trading Day following delivery and clearing of the Notice Shares in Holder's brokerage
account, as reported by Holder ("Valuation Start Date"). If at any time, one or multiple times, during the Valuation
Period the number of Estimated Shares delivered to Holder is less than the Notice Shares, the company must immediately deliver
enough shares equal to the difference. I f at the end of the Valuation Period the number of Estimated Shares delivered to Holder
is greater than the Notice Shares, the Holder shall return to the Company shares equal to the difference. A Conversion Amount will
not be considered fully converted until the end of the Valuation Period for that Conversion Amount.

 

"Trading Price" means, for any security
as of any date, any trading price on the OTC Bulletin Board, or other applicable trading market (the "OTCBB") as reported
by a reliable reporting service ("Reporting Service") mutually acceptable to Maker and Holder (i.e. Bloomberg) or, if
the OTCBB is not the principal trading market for such security, the volume weighted average price of such security on the principal
securities exchange or trading market where such security is listed or traded. "Trading Day" shall mean any day on which
the Common Stock is tradable for any period on the OTCBB, or on the principal securities exchange or other securities market on
which the Common Stock is then being traded.

 

Section 2.3. Reorganization, Reclassification,
Merger, Consolidation, or Disposition of Assets. In case the Maker shall reorganize its capital, reclassify its capital stock,
consolidate or merge with or into another corporation (where the Maker is not the surviving corporation or where there is a change
in or distribution with respect to the Common Stock of the Maker), or sell, transfer or otherwise dispose of all or substantially
all its property, assets or business to another corporation and, pursuant to the terms of such reorganization, reclassification,
merger, consolidation or disposition of assets, shares of common stock of the successor or acquiring corporation, or any cash,
shares of stock or other securities or property of any nature whatsoever (including warrants or other subscription or purchase
rights) in addition to or in lieu of common stock of the successor or acquiring corporation ("Other Property"), are to
be received by or distributed to the holders of Common Stock of the Maker, then Holder shall have the right thereafter to receive,
upon conversion of this Note, the number of shares of common stock of the successor or acquiring corporation or of the Maker, if
it is the surviving corporation, and Other Property receivable upon or as a result of such reorganization, reclassification, merger,
consolidation or disposition of assets by a holder of the number of shares of Common Stock into which this Note is convertible
immediately prior to such event. In case of any such reorganization, reclassification, merger, consolidation or disposition of
assets, the successor or acquiring corporation (if other than the Maker) shall expressly assume the due and punctual observance
and performance of each and every covenant and condition of this Note to be performed and observed by the Maker and all the obligations
and liabilities hereunder, subject to such modifications as may be deemed appropriate (as determined in good faith by resolution
of the Board of Directors of the Maker) in order to provide for adjustments of the number of shares of common stock into which
this Note is convertible which shall be as nearly equivalent as practicable to the adjustments provided for in this Section 2.3(a).
For purposes of this Section 2.3(a), "common stock of the successor or acquiring corporation" shall include stock of
such corporation of any class which is not preferred as to dividends or assets over any other class of stock of such corporation
and which is not subject to redemption and shall also include any evidences of indebtedness, shares of stock or other securities
which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe for or purchase any such stock. The foregoing provisions
of this Section 2.3(a) shall similarly apply to successive reorganizations, reclassifications, mergers, consolidations or disposition
of assets.

 

Section 2.4. Restrictions on Securities.
This Note has been issued by the Maker pursuant to the exemption from registration under the Securities Act of 1933, as amended
(the "Act"). None of this Note or the shares of Common Stock issuable upon conversion of this Note may be offered, sold
or otherwise transferred unless (i) they first shall have been registered under the Act and applicable state securities laws or
(ii) the Maker shall have been furnished with an opinion of legal counsel (in form, substance and scope reasonably acceptable to
Maker) to the effect that such sale or transfer is exempt from the registration requirements of the Act. Each certificate for shares
of Common Stock issuable upon conversion of this Note that have not been so registered and that have not been sold pursuant to
an exemption that permits removal of the applicable legend, shall bear a legend substantially in the following form, as appropriate:

    	3

    	 

    

 

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF I933 (THE "ACT"). THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR SUCH OFFERS, SALES
AND TRANSFERS ARE MADE PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS.

 

Upon the request of a holder of a certificate
representing any shares of Common Stock issuable upon conversion of this Note, the Maker shall remove the foregoing legend from
the certificate or issue to such Holder a new certificate free of any transfer legend, if (a) with such request, the Maker shall
have received an opinion of counsel, reasonably satisfactory to the Maker in form, substance and scope, to the effect that any
such legend may be removed from such certificate or (b) a registration statement under the Act covering such securities is in effect.

 

Section 2.5. Reservation of Common
Stock.

 

(a) The Maker covenants
that during the period the Note is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number
of shares to provide for the issuance of Common Stock of the Maker upon the Conversion of the Note. The Maker further covenants
that its issuance of this Note shall constitute full authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for shares of Common Stock of the Maker issuable upon the conversion
of this Note. The Maker will take all such reasonable action as may be necessary to assure that such shares of Common Stock may
be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the OTC Bulletin
Board (or such other principal market upon which the Common Stock of the Maker may be listed or quoted).

 

(b) The Maker shall not
by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms of this Note, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder against
impairment. Without limiting the generality of the foregoing, the Maker will (a) not increase the par value of any shares of Common
Stock issuable upon the conversion of this Note above the amount payable therefor upon such conversion immediately prior to such
increase in par value, (b) take all such action as may be necessary or appropriate in order that the Maker may validly and legally
issue fully paid and nonassessable shares of Common Stock upon the conversion of this Note, and (c) use its best efforts to obtain
all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary
to enable the Maker to perform its obligations under this Note.

    	4

    	 

    

 

(c) Upon the request of
Holder, the Maker will at any time during the period this Note is outstanding acknowledge in writing, in form reasonably satisfactory
to Holder, the continuing validity of this Note and the obligations of the Maker hereunder.

 

(d) Before taking any action
which would cause an adjustment reducing the current Conversion Price below the then par value, if any, of the shares of Common
Stock issuable upon conversion of the Notes, the Maker shall take any corporate action which may be necessary in order that the
Maker may validly and legally issue fully paid and non-assessable shares of such Common Stock at such adjusted Conversion Price.

 

(e) Before taking any action
which would result in an adjustment in the number of shares of Common Stock into which this Note is convertible or in the Conversion
Price, the Maker shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any
public regulatory body or bodies having jurisdiction thereof.

 

(f) lf at any time the
Maker does not have a sufficient number of authorized and available shares of Common Stock for issuance upon conversion of the
Note, then the Maker shall call and hold a special meeting of its stockholders within forty-five (45) days of that time for the
sole purpose of increasing the number of authorized shares of Common Stock.

 

Section 2.6. Maximum Conversion.

The Holder shall not be entitled to convert
on a Conversion Date that amount of the Notes in connection with that number of shares of Common Stock which would be in excess
of the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its affiliates on Conversation Date,
and (ii) the number of shares of Common Stock issuable upon the conversion of the Notes with respect to which the determination
of this provision is being made on a Conversion Date, which would result in beneficial ownership by the Holder and its Affiliates
of more than 9.99% of the outstanding shares of Common Stock of the Company on such Conversion Date. For the purposes of the provision
to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended, and Regulation l3d-3 thereunder.

 

    	5

    	 

    

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.1. The Holder represents and
warrants to the Maker:

 

(a) The Holder of this
Note, by acceptance hereof, agrees that this Note is being acquired for investment and that such Holder will not offer, sell or
otherwise dispose of this Note or the Common Stock issuable upon conversion hereof except under circumstances that will not result
in a violation of the Act or any application state securities laws or similar laws relating to the sale of securities;

 

(b) That Holder understands
that none of this Note or the Common Stock issuable upon conversion hereof have been registered under the Securities Act of 1933,
as amended (the "Act"), in reliance upon the exemptions from the registration provisions of the Act and any continued
reliance on such exemption is predicated on the representations of the Holder set forth herein;

 

(c) Holder (i) has adequate
means of providing for his current needs and possible contingencies, (ii) has no need for liquidity in this investment, (iii) is
able to bear the substantial economic risks of an investment in this Note for an indefinite period, (iv) at the present time, can
afford a complete loss of such investment, and (v) does not have an overall commitment to investments which are not readily marketable
that is disproportionate to Holder's net worth, and Holder's investment in this Note will not cause such overall commitment to
become excessive;

 

(d) Holder is an "accredited
investor" (as defined in Regulation D promulgated under the Act) and the Holder's total investment in this Note does
not exceed l0% of the Holder's net worth; and

 

(e) Holder recognizes that
are investment in the Maker involves significant risks and only investors who can afford the loss of their entire investment should
consider investing in the Maker and this Note.

 

Section 3.2 The Maker represents and
warrants to Holder:

    	6

    	 

    

 

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

 

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

 

(c) Issuance of Shares.
The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective
terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances with respect
to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Maker and will
not impose personal liability upon the holder thereof.

 

(d) Acknowledgment of
Dilution. The Maker understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance of the
Conversion Shares upon conversion of this Note. The Maker further acknowledges that its obligation to issue Conversion Shares upon
conversion of this Note is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership
interests of other shareholders of the Maker.

    	7

    	 

    

 

ARTICLE IV.

EVENTS OF DEFAULT

 

Section 4.1. Default. The following
events shall be defaults under this Note: ("Events of Default"):

 

(a) default in the due
and punctual payment of all or any part of any payment of interest or the Principal Amount as and when such amount or such part
thereof shall become due and payable hereunder; or

 

(b) failure on the part
of the Maker duly to observe or perform in all material respects any of the covenants or agreements on the part of the Maker contained
herein (other than those covered by clause (a) above) for a period of 5 business days after the date on which written notice specifying
such failure, stating that such notice is a 'Notice of Default" hereunder and demanding that the Maker remedy the same, shall
have been given by the Holder by registered or certified mail, return receipt requested, to the Maker; or

 

(c) any representation,
warranty or statement of fact made by the Maker herein when made or deemed to have been made, false or misleading in any material
respect; provided, however, that such failure shall not result in an Event of Default to the extent it is corrected
by the Maker within a period of 5 business days after the date on which written notice specifying such failure, stating that such
notice is a 'Notice of Default" hereunder and demanding that the Maker remedy same, shall have been given by the Holder by
registered or certified mail, return receipt requested; or

 

(d) any of the following
actions by the Maker pursuant to or within the meaning title 11, U.S. Code or any similar federal or state law for the relief of
debtors (collectively, the "Bankruptcy Law"): (A) commencement of a voluntary case or proceeding, (B) consent to the
entry of an order for relief against it in an involuntary case or proceeding, (C) consents to the appointment of a receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law (each, a "Custodian"), of it or for all or substantially
all of its property, (D) a general assignment for the benefit of its creditors, or (E) admission in writing its inability to pay
its debts as the same become due; or

 

(e) entry by a court of
competent jurisdiction of an order or decree under any Bankruptcy Law that: (A) is for relief against the Maker in an involuntary
case, (B) appoints a Custodian of the Maker or for all or substantially all of the property of the Maker, or (C) orders the liquidation
of the Maker, and such order or decree remains unstayed and in effect for 60 days.

 

Section 4.2. Remedies Upon Default.
Upon the occurrence of an event of default by Maker under this Note or at any time before default when the Holder reasonably feels
insecure, then, in addition to all other rights and remedies at law or in equity, Holder may exercise any one or more of the following
rights and remedies:

    	8

    	 

    

 

a. Accelerate the time
for payment of all amounts payable under this Note by written notice thereof to Maker, whereupon all such amounts shall be immediately
due and payable.

 

b. Pursue any other rights
or remedies available to Holder at law or in equity.

 

Section 4.3. Payment of Costs.
The Maker shall reimburse the Holder, on demand, for any and all reasonable costs and expenses, including reasonable attorneys'
fees and disbursement and court costs, incurred by the Holder in collecting or otherwise enforcing this Note or in attempting to
collect or enforce this Note.

 

Section 4.4. Powers and Remedies
Cumulative: Delay or Omission Not Waiver of Default. No right or remedy herein conferred upon or reserved to the Holder is
intended to be exclusive of any other right or remedy available to Holder under applicable law, and every such right and remedy
shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. No delay or omission of the
Holder to exercise any right or power accruing upon any Default occurring and continuing as aforesaid shall impair any such right
or power or shall be construed to be a waiver of any such Default or an acquiescence therein; and every power and remedy given
by this Note or by law may be exercised from time to time, and as often as shall be deemed expedient, by the Holder.

 

Section 4.5. Waiver of Past Defaults.
The Holder may waive any past default or Event of Default hereunder and its consequences but no such waiver shall extend to any
subsequent or other default or Event of Default or impair any right consequent thereon.

 

Section 4.6. Waiver of Presentment
etc. The Maker hereby waives presentment, demand, notice, protest and all other demands and notices in connection with the
delivery, acceptance, performance and enforcement of this Note, except as specifically provided herein.

 

AII.TICLE V.

MISCELLANEOUS

 

Section5.l. Notices. Any notice herein required
or permitted to be given shall be in writing and may be personally served or delivered by courier or sent by United States mail
and shall be deemed to have been given upon receipt if personally served (which shall include telephone line facsimile transmission)
or sent by courier or three (3) days after being deposited in the United States mail, certified, with postage pre-paid and properly
addressed, if sent by mail. For the purposes hereof, the address of the Holder shall be 450 7th Ave., Suite 601, New York. NY 10123;
and the address of the Maker shall be 5333 Birch Street, Lake Elsinore, CA 92530. Both the Holder or its assigns and the Maker
may change the address for service by delivery of written notice to the other as herein provided.

    	9

    	 

    

 

Section 5.2. Amendment. This
Note and any provision hereof may be amended only by an instrument in writing signed by the Maker and the Holder.

 

Section 5.3. Assignability. This
Note shall be binding upon the Maker and its successors and assigns and shall inure to be the benefit of the Holder and its successors
and assigns; provided, however, that so long as no Event of Default has occurred, this Note shall only be transferable in whole
subject to the restrictions contained in the restrictive legend on the first page of this Note.

 

Section 5.4. Governing Law. This
Note shall be governed by the internal laws of the State of Delaware, without regard to conflicts of laws principles.

 

Section 5.5. Replacement of Note.
The Maker covenants that upon receipt by the Maker of evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of this Note, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which
shall not include the posting of any bond), and upon surrender and cancellation of such Note, if mutilated, the Maker will make
and deliver a new Note of like tenor.

 

Section 5.6. This Note shall not entitle
the Holder to any of the rights of a stockholder of the Maker, including without limitation, the right to vote, to receive dividends
and other distributions, or to receive any notice of or to attend, meetings of stockholder or any other proceedings of the Maker,
unless and to the extent converted into shares of Common Stock in accordance with the terms hereof.

 

Section 5.7. Severability. In
case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable,
such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and
the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

 

Section 5.8. Headings. The headings
of the sections of this Note are inserted for convenience only and do not affect the meaning of such section.

 

Section 5.9. Counterparts. This
Note may be executed in multiple counterparts, each of which shall be an original, but all of which shall be deemed to constitute
one instrument.

    	10

    	 

    

 

IN WITNESS WHEREOF, with the intent to be legally
bound hereby, the Maker as executed this Note as of the date first written above.

 

Aja Cannafacturing, Inc.

 

 

/s/ Scott Plantinga

By: Scott Plantinga

Its: CEO

 

 

Acknowledged and Agreed:

 

Blackbridge Capital, LLC.

 

 

/s/ Alexander Dillon

By: Alexander Dillon

Its: Partner

    	11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}]]