Document:

THIS
NOTE
MAY
NOT BE
SOLD, TRANSFERRED, ASSIGNED,
PLEDGED, HYPOTHECATED OR
OTHERWISE ALIENATED
OR ENCUMBERED
WITHOUT THE PRIOR
WRITTEN CONSENT OF INVESTOR.

 

 

$50,000.00

State
of Utah
May 29, 2015

 

INVESTOR
NOTE #3

 

FOR
VALUE RECEIVED,
TYPENEX CO-INVESTMENT,
LLC, a
Utah limited
liability company
(“Investor”), hereby
promises to pay
to AVALANCHE
INTERNATIONAL, CORP.,
a Nevada
corporation (“Company”,
and together
with Investor,
the “Parties”),
the principal
sum of $50,000.00
together with all
accrued and unpaid
interest thereon,
fees incurred
or other
amounts owing
hereunder, all as set
forth below in this
Investor Note #3
(this “Note”).
This Note
is issued
pursuant to that
certain Securities
Purchase Agreement of even date
herewith, entered into
by and between
Investor and Company
(as the same may be amended
from time to time, the “Purchase
Agreement”), pursuant
to which Company issued
 to  Investor
that  certain 
Secured  Convertible
 Promissory Note
in the  principal
amount  of

$252,500.00
(as the
same may be
amended from
time to time,
the “Company
Note”)
convertible into
shares of
Company’s Common
Stock. All
capitalized terms
used but
not otherwise
defined herein
shall have the meanings
ascribed thereto in
the Purchase Agreement.

 

1.                 
Principal and
Interest.
Interest
shall
accrue
on the unpaid principal
balance and any unpaid
late fees
or other
fees under this
Note at
a rate
of eight
percent (8%)
per annum
until the full
amount of
the principal and
fees has been
paid. Interest shall
be computed
on the
basis of a
365-day year
for the actual
number of days
elapsed. Notwithstanding any
provision to the
contrary herein, in
no event shall
the applicable interest
rate at any time
exceed the maximum
interest rate allowed
under applicable law, as
provided in Section
12 below. The entire
unpaid principal balance
and all accrued
and unpaid interest,
if any, under
this Note, shall
be due and
payable on the
date that is thirteen
(13) months from
the date hereof
(the “Investor
Note Maturity
Date”); provided,
however, that Investor
may elect, in its
sole discretion, to extend
the Investor Note Maturity
Date for up
to thirty (30)
days by delivering
written notice of
such election
to Company
at any
time prior
to the
Investor Note
Maturity Date.

 

2.                 
Payment.
Unless
prepaid,
all
principal
and accrued
interest under
this Note
is payable
in one
lump sum
on the Investor
Note Maturity
Date. All
payments of
interest and
principal shall
be (i)
in lawful
money of
the United
States of
America, and
(ii) in
the form
of immediately
available funds.
All payments shall
be applied first
to costs of collection, if
any, then to accrued and unpaid
interest, and thereafter
to principal.
Payment of
principal and interest
hereunder shall
be delivered
to Company
at the address
furnished to Investor for
that purpose.

 

3.                 
Prepayment
by Investor.
Investor may,
with Company’s consent,
pay, without penalty,
all or any
portion of
the outstanding
balance along
with any
accrued but
unpaid interest
on this
Note at
any time prior
to the Investor Note
Maturity Date.

 

4.                 
Security;
Collateral.
Investor may,
in its
sole discretion, designate
collateral (the “Collateral”)
as it deems
fit, as security
for Investor’s
obligations hereunder, which
Collateral may be,
but is not
required to
be, real
property, a letter
of credit
with a financial
institution determined by Investor
in its sole discretion,
or pledged membership interests,
provided that the net
fair market value of the
Collateral (net of any outstanding
monetary liens)
shall not be less than the principal
balance of this Note as
of the date
of any such designation.
Upon Investor’s
designation of
Collateral, each
of Investor and Company
shall timely execute any
and all documents necessary
or advisable in order to properly
grant a security interest
upon the Collateral
in favor of
Company.

    	1

    	 

    

 

5.                 
Release.
Company
covenants
and
agrees
that
in the
event that this
Note is secured
by Collateral, Company
shall timely execute
any and all documents necessary
or advisable in order
to release such security
interest and
Collateral to Investor,
or Investor’s
designee, upon
the earlier
of (i) the
date this Note
is paid
in full
and (ii)
the date
that is
six (6)
months and three
(3) days following
the date
such Collateral
is given
as security
for this
Note, or
such later
date as
determined in
the sole
discretion of
Investor (the
“Release Date”).
For the avoidance of
doubt, as of the date hereof,
there is no collateral securing
this Note,
and after
the Release
Date, as
applicable, there
shall be no
collateral securing
this Note.

 

6.                 
Right
of Offset.
Notwithstanding anything
to the contrary
herein or
in any of
the other
Transaction Documents,
in the event
(i) of
the occurrence
of any Event
of Default
(as defined
in the
Company Note)
under the
Company Note or
any other
note issued
by Company
in connection
with the
Purchase Agreement,
(ii) Investor applies
a Default Effect
(as defined
in the Company
Note) under
the Company Note,
(iii) the Outstanding
Balance is automatically increased
to the Mandatory Default Amount
under the Company Note, (iv)
the Company Note is accelerated
for any reason, or (v) of a breach
of any material term,
condition, representation,
warranty, covenant
or obligation of
Company under any Transaction
Document; Investor shall be entitled
to deduct and offset
any amount owing by
Company under the Company
Note from any amount owed
by Investor under
this Note (the
“Investor Offset
Right”), provided
that if any of the foregoing events
occur and Investor
has not yet exercised
the Investor Offset
Right, the Investor
Offset Right shall be automatically
exercised on the date that is
thirty (30) days prior
to the Investor Note Maturity
Date (an “Automatic Offset”).
Other than with respect
to an Automatic Offset,
Investor may only elect to exercise
the Investor Offset Right
by delivering to Company
an offset notice
in a form substantially
similar to Exhibit D
to the Company Note or another
form of Investor’s choosing. In
the event that Investor’s
exercise of the Investor
Offset Right under this Section
Error! Reference
source not
found. results
in the
full satisfaction
of Investor’s
obligations under
this Note, then
Company shall return this Note
to Investor for cancellation
or, in the event this Note
has been lost, stolen
or destroyed,
Company shall provide
Investor with
a lost note affidavit in a form
reasonably acceptable to Investor.

 

7.                 
Default.
If any of the
events specified below shall
occur (each,
an “Investor Note
Default”)
Company may
declare the
unpaid principal
balance under
this Note,
together with
all accrued
and unpaid interest
thereon, fees incurred
or other amounts
owing hereunder
immediately due and payable,
by notice in writing
to Investor. If any default, other
than a Payment Default
(as defined below), is
curable, then
the default
may be cured
(and no Investor
Note Default will
have occurred)
if Investor, after receiving
written notice
from Company
demanding cure of
such default,
either (i) cures
the default within
fifteen (15) days of the receipt
of such notice,
or (ii) if the cure requires
more than fifteen (15) days,
immediately initiates steps
that Company deems
in Company’s reasonable
discretion to be sufficient to
cure the default and thereafter
diligently continues and completes
all reasonable and necessary
steps sufficient to produce compliance
as soon as reasonably practical.
Each of the following events
shall constitute
an Investor Note Default:

 

7.1.           
Failure to
Pay. Investor’s
failure to make
any payment when
due and
payable under
this Note (a
“Payment Default”);

 

7.2.           
Breaches of
Covenants.
Investor’s failure
to observe
or perform any
other covenant, obligation,
condition or agreement
contained in this
Note;

 

7.3.           
Representations and
Warranties. If
any representation,
warranty, certificate,
or other
statement (financial
or otherwise)
made or
furnished by
or on behalf
of Investor
to Company
in writing
in connection
with this
Note or any of the
other Transaction
Documents, or as an inducement
to

    	2

    	 

    

 

Company
to enter
into the Purchase
Agreement, shall
be false
or misleading
in any
material respect
when made
or furnished; and

 

7.4.           
Involuntary Bankruptcy. If
any involuntary petition is filed
under any bankruptcy
or similar
law or
rule against
Investor, and such
petition is
not dismissed
within sixty
(60) days,
or a receiver,
trustee, liquidator, assignee,
custodian, sequestrator
or other similar official
is appointed to
take possession of
any of the assets
or properties of
Investor.

 

8.                 
Binding
Effect;
Assignment.
This Note
shall be
binding on
the Parties
and their
respective heirs,
successors, and
assigns; provided,
however, that
neither Party
shall assign
any of its
rights hereunder without
the prior written
consent of the
other Party, except that
Investor may assign this
Note to any of
its Affiliates without the
prior written consent
of Company and, furthermore,
Company agrees that it shall
not unreasonably withhold, condition
or delay its consent to
any other assignment of this Note by Investor.

 

9.                 
Governing
Law.
This Note
shall be
governed by
and interpreted
in accordance
with the
laws of the
State of Utah
for contracts
to be
wholly performed
in such state
and without
giving effect to
the principles thereof
regarding the conflict
of laws.

 

10.             
Purchase
Agreement;
Arbitration
of Disputes.
By acceptance
of this
Note, each
Party agrees
to be bound
by the applicable
terms, conditions
and general
provisions of
the Purchase
Agreement and the
other Transaction
Documents, including
without limitation
the Arbitration
Provisions attached
as an exhibit
to the Purchase
Agreement.

 

11.             
Customer
Identification–USA
Patriot
Act
Notice.
Company hereby
notifies Investor
that pursuant
to the requirements
of the USA
Patriot Act
(Title III
of Pub. L.
107-56, signed
into law
October 26, 2001)
(the “Act”),
and Company’s
policies and
practices, Company
is required
to obtain,
verify and record certain
information and documentation that
identifies Investor, which
information includes the name
and address of Investor
and such other information
that will allow
Company to identify
Investor in accordance with
the Act.

 

12.             
Lawful
Interest.
It
being the intention
of Company
and Investor
to comply
with all
applicable laws
with regard
to the interest
charged hereunder,
it is
agreed that,
notwithstanding any
provision to
the contrary in
this Note or any of the other
Transaction Documents,
no such provision,
including without limitation
any provision of this Note
providing for the payment of interest
or other charges,
shall require the payment
or permit the collection
of any amount in excess of the
maximum amount
of interest permitted by law
to be charged for
the use or detention, or
the forbearance in the collection,
of all or any portion
of the indebtedness evidenced
by this Note or by
any extension or renewal
hereof (“Excess Interest”).
If any Excess Interest is provided
for, or is adjudicated to be
provided for, in
this Note, then in
such event:

 

12.1.       
the provisions of this
Section 12 shall
govern and control;

 

12.2.
Investor shall not be obligated
to pay any Excess Interest;

 

12.3.       
any Excess Interest
that Company
may have
received hereunder
shall, at
the option
of Company,
be (i)
applied as
a credit
against the
principal balance
due under
this Note
or the
accrued and
unpaid interest
thereon not to
exceed the
maximum amount permitted
by law, or both, (ii)
refunded to Investor, or
(iii) any combination of
the foregoing;

    	3

    	 

    

 

12.4.       
the applicable
interest rate
or rates
shall be
automatically subject
to reduction
to the
maximum lawful
rate allowed
to be contracted
for in writing
under the
applicable governing
usury laws, and
this Note
and the Transaction
Documents shall
be deemed
to have
been, and
shall be,
reformed and modified
to reflect such reduction
in such interest rate or rates;
and

 

12.5.       
Investor shall
not have
any action
or remedy
against Company
for any damages
whatsoever or any
defense to
enforcement of
this Note
or arising
out of
the payment
or collection
of any
Excess Interest.

 

13.             
Pronouns.
Regardless
of their
form, all
words used
in this
Note shall
be deemed
singular or plural
and shall
have the
gender as required
by the text.

 

14.             
Headings.
The various
headings used in
this Note
as headings
for sections
or otherwise
are for
convenience and
reference only
and shall
not be
used in
interpreting the
text of the
section in
which they
appear and
shall not limit
or otherwise
affect the
meanings thereof.

 

15.
Time of
Essence.
Time is of the essence
with this Note.

16.             
Severability.
If
any part of
this Note is
construed to be
in violation of
any law,
such part shall
be modified to
achieve the
objective of
the Parties to
the fullest
extent permitted by law
and the
balance of this
Note shall
remain in full
force and effect.

 

17.             
 Attorneys’
Fees . If
any arbitration or action
at law or in
equity is necessary
to enforce this
Note or
to collect
payment under
this Note,
Company shall be
entitled to
recover reasonable
attorneys’ fees directly
related to such
enforcement or
collection actions.

 

18.             
Amendments
and Waivers;
Remedies.
No failure
or delay on
the part of
either Party
hereto in exercising
any right,
power or
remedy hereunder
shall operate
as a waiver
thereof, nor
shall any
single or partial
exercise of any such right,
power or remedy preclude
any other or
further exercise
thereof or the
exercise of
any other
right, power
or remedy.
The remedies
provided for
herein are
cumulative and are not
exclusive of any remedies that
may be available to either
Party hereto at law,
in equity or otherwise. Any
amendment, supplement
or modification of or to any provision
of this Note,
any waiver
of any provision of
this Note, and any
consent to any
departure by either Party
from the terms of any provision
of this Note, shall
be effective (i) only if it
is made or given in writing
and signed by Investor
and Company and (ii)
only in the specific
instance and for the
specific purpose
for which made
or given.

 

19.             
Notices.
Unless
otherwise
provided
for
herein,
all
notices,
requests,
demands,
claims
and other
communications hereunder
shall be
given in accordance
with the
subsection of
the Purchase
Agreement titled
“Notices.” Either
Party may
change the
address to
which notices,
requests, demands, claims
and other communications
hereunder are
to be delivered
by providing notice thereof
in the manner
set forth
in the Purchase Agreement.

 

20.             
Final
Note.
This Note,
together with
the other
Transaction Documents,
contains the
complete understanding and
agreement of
Investor and
Company and supersedes all
prior representations,
warranties, agreements,
arrangements, understandings,
and negotiations
of Investor
and Company
with respect to the
subject matter of the Transaction
Documents. THIS NOTE,
TOGETHER WITH THE
OTHER TRANSACTION
DOCUMENTS, REPRESENTS
THE FINAL AGREEMENT
BETWEEN THE PARTIES
AND MAY
NOT BE CONTRADICTED
BY EVIDENCE OF
ANY ALLEGED
PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT
ORAL AGREEMENTS
OF THE PARTIES.
THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN
THE PARTIES.

 

 

 

 

[Remainder
of
page
intentionally left blank;
signature page follows]

    	4

    	 

    

 

 

IN
WITNESS WHEREOF, the
Parties have executed
this Note as of
the date set
forth above.

 

INVESTOR:

 

TYPENEX
CO-INVESTMENT, LLC

 

By:
Red
Cliffs Investments, Inc., its Manager

 

/s/
John M. Fife

John
M. Fife, President 

 

ACKNOWLEDGED,
ACCEPTED AND
AGREED:
COMPANY:

AVALANCHE
INTERNATIONAL, CORP.

 

 

By:
 /s/ Phil Mansour

Name:
Phil Mansour

Title:
 
CEO

    	5NEITHER
THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE. THESE SECURITIES HAVE BEEN SOLO IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

AVALANCHE
 INTERNATIONAL,CORP.

 

CONVERTIBLE
NOTE

 

	Issuance
                                         Date: June 4, 2015

        Note
        No. AVLP-1
	Original
                                         Principal Amount: $50,000

        Consideration
        Paid at Close:  $50,000

 

FOR
VALUE RECEIVED, Avalanche International, Corp., a Nevada corporation (the "Company"), hereby promises to pay
to the order of Black Mountain Equities, Inc. or registered assigns (the "Holder") the amount set out above as
the Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the "Principal")
when due, whether upon the Maturity Date (as defined below), acceleration, redemption or otherwise (in each case in accordance
with the terms hereof) and to pay interest ("Interest") on any outstanding Principal at the applicable Interest
Rate from the date set out above as the Issuance Date (the "Issuance Date") until the same becomes due
and payable, upon the Maturity Date or acceleration, conversion, redemption or otherwise (in each case in accordance with the
terms hereof).

 

The
Original Principal Amount is $55,000 (Fifty Five thousand) plus accrued and unpaid interest and any other fees. The Consideration
is $50,000 (Fifty thousand) payable by wire transfer (there exists a $5,000 original issue discount (the "OID',)). The Holder
shall pay $25,000 of Consideration upon closing of this Note and $25,000 on the day that is 4 days after closing. For purposes
hereof, the term "Outstanding Balance" means the Original Principal Amount, as reduced or increased, as the case may
be, pursuant to the terms hereof for conversion, breach hereof or otherwise, plus any accrued but unpaid interest, collection
and enforcements costs, and any other fees or charges incurred under this Note. The Original Principal Amount due to Holder shall
be prorated based on the Consideration paid by Holder (plus an approximate 6% Original Issue Discount).

 

		(1)	GENERAL
                                         TERMS

 

(a)                 
Payment of Principal. The "Maturity Date" shall
be one year from the date of payment, as may be extended at the option of the Holder in the event that, and for so long as, an
Event of Default (as defined below) shall not have occurred and be continuing on the Maturity Date (as may be extended pursuant
to this Section l) or any event shall not have occurred and be continuing on the Maturity Date (as may be extended pursuant to
this Section I ) that with the passage of time and the failure to cure would result in an Event of Default.

 

(b)                 
Interest. A one-time interest charge of ten percent (I0%)
("Interest Rate") shall be applied on the Issuance Date to the Original Principal Amount. Interest hereunder
shall be paid on the Maturity Date (or sooner as provided herein) to the Holder or its assignee in whose name this Note is registered
on the records of the Company regarding registration and transfers of Notes in cash or converted into Common Stock at the Conversion
Price provided the Equity Conditions are satisfied.

    	1

    	 

    

 

(c)                  
Security. This Note shall not be secured by any collateral
or any assets pledged to the Holder.

 

(d)                 
Inducement. Company shall provide Five thousand shares (5,000)
to the Holder

in
the form of one certificate within I 0 days of closing.

 

		(2)	EVENTS
                                         OF DEFAU LT.

 

(a)                
An  "Event  of  Default'', wherever  used herein, means
 any one of the  following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation
of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental
body):

 

(i)                   
The Company's failure to pay to the Holder any amount of Principal,
Interest, or other amounts when and as due under this Note (including, without limitation, the Company's failure to pay any redemption
payments or amounts hereunder) or any other Transaction Document ;

 

(ii)                 
A Conversion Failure as defined in section 3(bXii)

 

(iii)                
The Company or any subsidiary of the Company shall commence, or
there shall be commenced against the Company or any subsidiary of the Company under any applicable bankruptcy or insolvency laws
as now or hereafter in effect or any successor thereto, or the Company or any subsidiary of the Company commences any other proceeding
under any reorganization , arrangement. adjustment of debt. relief of debtors, dissolution, insolvency or liquidation or similar
law of any jurisdiction whether now or hereafter in effect relating to the Company or any subsidiary of the Company or there is
commenced against the Company or any subsidiary of the Company any such bankruptcy, insolvency or other proceeding which remains
undismissed for a period of 61 days; or the Company or any subsidiary of the Company is adjudicated insolvent or bankrupt; or
any order of relief or other order approving any such case or proceeding is entered; or the Company or any subsidiary of the Company
suffers any appointment of any custodian, private or court appointed receiver or the like for it or any substantial part of its
property which continues undischarged or unstayed for a period of sixty one (61) days; or the Company or any subsidiary of the
Company makes a general assignment for the benefit of creditors; or the Company or any subsidiary of the Company shall fail to
pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company
or any subsidiary of the Company shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring
of its debts; or the Company or any subsidiary of the Company shall by any act or failure to act expressly indicate its consent
to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company or any subsidiary
of the Company for the purpose of effecting any of the foregoing;

 

(iv)                
The Company or any subsidiary of the Company shall default in any
of its obligations under any other Note or any mortgage, cred it agreement or other facility, indenture agreement, factoring agreement
or other instrument under which there may be issued, or by which there may be secured or evidenced any indebtedness for borrowed
money or money due under any long term leasing or factoring arrangement of the Company or any subsidiary of the Company in an
amount exceeding $100,000, whether such indebtedness now exists or shall hereafter be created; and

 

(v)                 
The Common Stock is suspended or delisted for trading on the Over
the Counter Bulletin Board market (the "Primary Market'').

 

(vi)                
The Company loses its ability to deliver shares via "DWAC/FAST”
electronic transfer.

(vii)              
The Company loses its status as "OTC Eligible.''

    	2

    	 

    

 

(viii)             
The Company shall become late or delinquent in its filing requirements
as a fully-reporting issuer registered with the Securities & Exchange Commission.

 

(b)                
Upon the occurrence of any Event of Default, the Outstanding Balance
shall immediately increase to 120% of the Outstanding Balance immediately prior to the occurrence of the Event of Default (the
"Default Effect"). The Default Effect shall automatically apply upon the occurrence of an Event of Default without the
need for any party to give any notice or take any other action.

 

(3)                
CONVERSION OF NOTE.This  Note  shall  be  convertible  into  shares  of the Company's Common Stock, on the terms and
conditions the forth in this Section 3.

 

(a)                
Conversion Right. Subject to the provisions of Section 3(c),
at any time or times on or after the Issuance Date, the Holder shall be entitled to convert any portion of the outstanding and
unpaid Conversion Amount (as defined below) into fully paid and non-assessable shares of Common Stock in accordance with Section
3(b), at the Conversion Price (as defined below). The number of shares of Common Stock issuable upon conversion of any Conversion
Amount pursuant to this Section 3(a) shall be equal to the quotient of dividing the Conversion Amount by the Conversion Price.
The Company shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance
of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole
share. The Company shall pay any and all transfer agent fees, legal fees, costs and any other fees or costs that may be incurred
or charged in connection with the issuance of shares of the Company's Common Stock to the Holder arising out of or relating to
the conversion of this Note.

 

(i)                   
"Conversion Amount" means the portion of the Original
Principal Amount and Interest to be converted, plus any penalties, redeemed or otherwise with respect to which this determination
is being made.

 

(ii)                 
“Conversion Price" shall equal 70% of the average
of the 3 lowest closing prices occurring during the twenty (20) consecutive Trading Days immediately preceding the applicable
Conversion Date on which the Holder elects to convert all or part of this Note, subject to adjustment as provided in this Note.
Mechanics of Conversion.

 

(iii)                
Optional Conversion. To convert any Conversion Amount into
shares of Common Stock on any date (a "Conversion Date"), the Holder shall (A) transmit by email, facsimile (or otherwise
deliver), for receipt on or prior to 1 1:59 p.m., New York, NY Time, on such date, a copy of an executed notice of conversion
in the form attached hereto as Exhibit A (the "Conversion Notice") to the Company. On or before the third Business Day
following the date of receipt of a Conversion Notice (the "Share Delivery Date"), the Company shall (A) if legends are
not required to be placed on certificates of Common Stock pursuant to the then existing provisions of Rule 144 of the Securities
Act of 1933 ("Rule 144") and provided that the Transfer Agent is participating in the Depository Trust Company's ("OTC")
Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be
entitled to the Holder's or its designee's balance account with DTC through its Deposit Withdrawal Agent Commission system or
(B) if the Transfer Agent is not participating in the OTC Fast Automated Securities Transfer Program, issue and deliver to the
address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number
of shares of Common Stock to which the Holder shall be entitled which certificates shall not bear any restrictive legends unless
required pursuant the Rule 144. If this Note is physically surrendered for conversion and the outstanding Principal of this Note
is greater than the Principal portion of the Conversion Amount being converted, then the Company shall, upon request of the Holder,
as soon as practicable and in no event later than three (3) Business Days after receipt of this Note and at its own expense, issue
and deliver to the holder a new Note representing the outstanding Principal not converted. The Person or Persons entitled to receive
the shares of Common Stock issuable upon a conversion of th is Note shall be treated for all purposes as the record holder or
holders of such shares of Common Stock upon the transmission of a Conversion Notice.

    	3

    	 

    

 

(iv)                
Company's failure to Timely Convert. If within two (2) Trading
Days after the Company's receipt of the facsimile or email copy of a Conversion Notice the Company shall fail to issue and deliver
to Holder via "OWAC/f AST" electronic transfer the number of shares of Common Stock to which the Holder is entitled
upon such holder's conversion of any Conversion Amount (a "Conversion Feature").the .original Principal Amount
of the Note shall increase by $2,000 per day until the Company issues and delivers a certificate to the Holder or credit the Holder's
balance account with OTC for the number of shares of Common Stock to which the Holder is entitled upon such holder's conversion
of any Conversion Amount (under Holder's and Company' s expectation that any damages will tack back to the Issuance Date). Company
will not be subject to any penalties once ifs transfer agent processes the shares to the DWAC system. If the Company fails
to deliver shares in accordance with the timeframe stated in this Section, resulting in a Conversion Failure, the Holder, at any
time prior to selling all of those shares, may rescind any portion, in whole or in part, of that particular conversion attributable
to the unsold shares and have the rescinded conversion amount returned to the Outstanding Balance with the rescinded conversion
shares returned to the Company (under Holder's and Company's expectations that any returned conversion amounts will tack back
to the original date of the Note).

 

(v)                 
DWAC/FAST Eligibility.If the Company fails for any reason
to deliver to the Holder the Shares by DWAC/FAST electronic transfer (such as by delivering a physical stock certificate), or
if there is a Conversion Failure as defined in Section 3(bXii), and if the Holder incurs a Market Price Loss, then at any time
subsequent to incurring the loss the Holder may provide the Company written notice indicating the amounts payable to the Holder
in respect of the Market Price Loss and the Company must make the Holder whole by either of the following options at Holder's
election:

 

Market
Price Loss = ((High trade price for the period between the day of conversion and the day the shares clear in the Holder's brokerage
account) x (Number of shares receivable from the conversion)) - [(Net Sales price realized by Holder) x (Number of shares receivable
from the conversion)].

 

Option
A - Pay Market Price Loss in Cash. The Company must pay the Market Price Loss by cash payment, and any such cash payment must
be made by the third business day from the time of the Holder's written notice to the Company.

 

Option
B -Add Market Price Loss to Outstanding Balance. The Company must pay the Market Price Loss by adding the Market Price Loss to
the Outstanding Balance (under Holder's and the Company's expectation that any Market Price Loss amounts will tack back to the
Issuance Date).

 

In
the case that conversion shares are not deliverable by DWAC/FAST electronic transfer an additional  10% discount to the Conversion
Price will apply.

 

(vi)              
OTC Eligibility & Sub-Penny. If the Company fails to
maintain its status as "OTC Eligible" for any reason, or, if the Conversion Price is less than $0.0 I , the Principal
Amount of the Note shall increase by five thousand dollars ($5,000) (under Holder' s and Company's expectation that any Principal
Amount increase will tack back to the Issuance Date). In addition, the Conversion Price shall be redefined to equal 50% of
the average of the 3 lowest closing prices occurring during the twenty five (25) consecutive Trading Days immediately preceding
the applicable Conversion Date on which the Holder elects to convert all or part of this Note, subject to adjustment as provided
in this Note.

 

(vii)            
Book-Entry. Notwithstanding  anything to the contrary set
forth herein upon conversion of an portion of this Note in accordance with the terms hereof, the Holder shall not be required
t phs1cally surrender this Note to the Company unless (A) the full Conversion Amount represented by this Note is being converted
or (BJ the Holder has provided the Company with prior written notice (which notice may be included m a Conversion Notice) requesting
re1ssuance of this Note upon physical surrender of this Note. The Holder and the Company shall maintain records showing the Principal
and Interest converted and the dates of such conversions .or shall use such other method, reasonably satisfactory to the Holder
and the Company, so as not to require physical surrender of this Note upon conversion.

    	4

    	 

    

 

(b)                
Limitations on Conversions or Trading.

 

(i)                 
Beneficial Ownership. The Company shall not effect any conversions
or this Note and the Holder shall not have the right to convert any portion or this Note or receive shares of Common Stock as
payment of interest hereunder to the extent that after giving effect to such conversion or receipt of such interest payment, the
Holder, together with any affiliate thereof, would beneficially own (as determined m accordance with Section 13(d) of the Exchange
Act and the rules promulgated thereunder) in excess of 4.99% of the number of shares of Common Stock outstanding immediately after
giving effect to such conversion or receipt of shares 85 payment of interest. Since the Holder will not be obligated to report
to the Company the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion at
issue would result in the issuance of shares of Common Stock in excess of 4.9/0 of the then outstanding shares of Common Stock
without regard to any other shares which may be beneficially owned by the Holder or an affiliate thereof. the Holder shall have
the authority and obligation to determine whether the restriction contained in this Section will limit any particular conversion
hereunder and to the extent that the Holder determines that the limitation contained in this Section applies, the determination
of which portion of the principal amount of this Note is convertible shall be the responsibility and obligation of the Holder.
If the Holder has delivered a Conversion Notice for a principal amount of this Note that, without regard to any other shares that
the Holder or its affiliates may beneficially own, would result in the issuance in excess of the permitted amount hereunder, the
Company shall notify the Holder of this fact and shall honor the conversion for the maximum principal amount permitted to be converted
on such Conversion Date in accordance with Section 3(a) and, any principal amount tendered for conversion in excess of the permitted
amount hereunder shall remain outstanding under this Note. The provisions of this Section may be waived at any time by Holder
upon written notification to the Company.

 

(c)                
Other Provisions.

 

(i)                 
Share Reservation. The Company shall at au times reserve
and keep available out or its authorized Common Stock a number or shares equal to at least 3 (three) times the full number or
shares or Common Stock issuable upon conversion of all outstanding amounts under this Note; and within 3 (three) Business Days
following the receipt by the Company of a Holder's notice that such minimum number of Underlying Shares is not so reserved, the
Company shall promptly reserve a sufficient number of shares of Common Stock to comply with such requirement .The Company will
at all times reserve at least 1,000,000 shares of Common Stock for conversion.

 

(ii)               
Prepavment. At any time within the 180 day period immediately
following the Issuance Date, the Company shall have the option, upon 10 business days' notice to Holder, to pre pay the entire
remaining outstanding principal amount of this Note in cash, provided that (i) the Company shall pay the Holder 1 15% of the Outstanding
Balance, (ii) such amount must be paid in cash on the next business day following such I0 business day notice period, and (iii)
the Holder may still convert this Note pursuant to the terms hereof at all times until such prepayment amount has been received
in full. Except as set forth in this Section the Company may not prepay this Note in whole or in part.

 

(iii)             
Terms of Future Financings. So long as this Note is outstanding,
upon any issuance by the Company 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 Company 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, conversion look-back periods,
interest rates, original issue discounts, stock sale price, private placement price per share, and warrant coverage.

 

    	5

    	 

    

 

(iv)              
All calculations under this Section 3 shall be rounded up to the
nearest $0.0000 I or whole share.

 

(v)                
Nothing herein shall limit a Holder's right to pursue actual damages
or declare an Event of Default pursuant to Section 2 herein for the Company's failure to deliver certificates representing shares
of Common Stock upon conversion within the period specified herein and such Holder shall have the right to pursue all remedies
available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief,
in each case without the need to post a bond or provide other security. The exercise of any such rights shall not prohibit the
Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law.

 

(4)                
SECTION 3CAX9) OR 3(AX l0) TRANSACTION. So long as this Note is outstanding, the Company shall not enter into any transaction
or arrangement structured in accordance with, based upon, or related or pursuant to, in whole or in part, either Section
3(a)(9) of the Securities Act (a "3(a)(9) Transaction") or Section 3(aXIO) of the Securities Act (a "3(aXI O) Transaction").
In the event that the Company does enter into, or makes any issuance of Common Stock related to a 3(aX9) Transaction or a 3(a)(
I 0) Transaction while this note is outstanding, a liquidated damages charge of 25% of the outstanding principal balance of this
Note, but not less than $25,000, will be assessed and will become immediately due and payable to the Holder at its election in
the form of cash payment or addition to the balance of this Note.

 

(5)                
PIGGYBACK REGISTRATION RIGHTS. The Company shall include on the next registration statement the Company files with SEC
(or on the subsequent registration statement if such registration statement is withdrawn) all shares issuable upon conversion
of this Note. failure to do so will result in liquidated damages of 25% of the outstanding principal balance of this Note, but
not less than $25,000, being immediately due and payable to the Holder at its election in the form of cash payment or addition
to the balance of this Note.

 

(6)                
REISSUANCE OF THIS NOTE.

 

(a)                
Assignability. The Company may not assign this Note. This
Note will be binding upon the Company and its successors and will inure to the benefit of the Holder and its successors and assigns
and may be assigned by the Holder to anyone of its choosing without Company's approval.

 

(b)                
Lost  Stolen  or  Mutilated  Note.  Upon  receipt  by  the
 Company  of  evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and,
in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and,
in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a
new Note representing the outstanding Principal.

 

(7)             
NOTICES.  Any  notices,  consents, waivers  or  other  communications  required  or permitted to be given under the terms
hereof must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt,
when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by
the sending party) (iii) upon receipt, when sent by email; or (iv) one ( I) Trading Day after deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be those set forth in the communications and documents that each party has provided the other immediately
preceding the issuance of this Note or at such other address and/or facsimile number and/or to the attention of such other person
as the recipient party has specified by written notice given to each other party three (3) Business Days prior to the effectiveness
of such change. Written conformation of receipt (i) given by the recipient of such notice, consent, waiver or other communication,
(ii) mechanically or electronically generated by the sender's facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (iii) provided by a nationally  recognized  overnight delivery service,
shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery
service in accordance with clause (i), (ii) or (iii) above, respectively.

    	6

    	 

    

 

The
addresses for such communications shall be:

 

If
to the Company, to:

 

Avalanche
International, Corp. 5940 S. Rainbow Avenue

Las
Vegas, NV 891 18

 

Attn:
Rachel Boulds, CFO

Email:
Rachel@AvalanchelntemationalC orp.com

 

If
to the Holder:

 

Black
Mountain Equities, Inc.

13366
Greenstone Crt.

San
Diego.CA 9213 I

 

Attn:
Adam Baker

Email:
adam@blackmountainequities.com

 

(8)                
APPLICABLE  LAW  ANO  VENUE. This Note shall  be governed  by and construed  in accordance with the laws of the State of
Nevada. without giving effect to conflicts of laws thereof. Any action brought by either party against the other concerning the
transactions contemplated by this Agreement shall be brought only in the state courts of California or in the federal courts located
in the city and county of San Diego, in the State of California. Both parties and the individuals signing this Agreement agree
to submit to the jurisdiction of such courts.

 

(a)                
WAIVER. Any waiver by the Holder of a breach of any provision
of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any
other provision of this Note. The failure of the Holder to insist upon strict adherence to any term of this Note on one or more
occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that
term or any other term of this Note. Any waiver must be in writing.

 

(Signature
Page Follows)

    	7

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Convertible Note to be duly executed by a duly authorized officer as of the date
set forth above.

 

COMPANY:

 

Avalanche
International, Corp.

 

By:
/s/ Philip Mansour

Name:
Philip Mansour

Title:
President and Chief Executive Officer

 

 

HOLDER:

 

Black
Mountain Equities, Inc.

 

By:
/s/ Adam Baker

Name:
Adam Baker

Title:
Principal

 

    	8

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