Document:

evti_ex1015.htm

EXHIBIT 10.15
    
  NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. 
   
    	  Principal Amount: $101,800.00 
	   
	  Issue Date: July 30, 2015

	  Purchase Price: $70,000.00
  Original Issue Discount: $26,800.00
	   
	   

   
  CONVERTIBLE PROMISSORY NOTE
   
  FOR VALUE RECEIVED, Eventure Interactive, Inc. a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of CAREBOURN CAPITAL, L.P., a Delaware limited partnership, or registered assigns (the “Holder”) the sum of $101,800.00 together with any interest as set forth herein, on May 30, 2016 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at the rate of 10% (The “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a business day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date. As used in this Note, the term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required by law or executive order to remain closed. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”). 
   
    	 
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  This Note carries an original issue discount of $26,800.00 (the “OID”). In addition, the Borrower agrees to pay $5,000.00 to the Holder, or the Holder’s designee, to cover the Holder’s legal fees, accounting fees, due diligence fees, monitoring, and/or other transactional costs incurred in connection with the purchase and sale of the Note (the “Transactional Expense Amount”), all of which amount is included in the initial principal balance of this Note. Thus, the purchase price of this Note shall be $70,000.00, computed as follows: $101,800.00 initial principal balance, less the OID, less the Transactional Expense Amount.
   
  This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof. 
   
  The following terms shall apply to this Note: 
   
  ARTICLE I. CONVERSION RIGHTS
   
  1.1 Conversion Right. The Holder shall have the right from time to time, and at any time following Ninety (90) days after the date of this Note and ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount (as defined in Article III) pursuant to Section 1.6(a) or Article III, each in respect of the remaining outstanding principal amount of this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid and non- assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”); provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, further, however, that the limitations on conversion may be waived by the Holder upon, at the election of the Holder, not less than 61 days’ prior notice to the Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Holder, as may be specified in such notice of waiver). The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”). The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof. 
   
    	 
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  1.2 Conversion Price. 
   
  Calculation of Conversion Price. The conversion price (the “Conversion Price”) shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The "Variable Conversion Price" shall mean 50% multiplied by the Market Price (as defined herein) (representing a discount rate of 50%). In the case that shares of the Borrower’s common stock are not deliverable via DWAC following the conversion of any amount hereunder, an additional Five Percent (5%) discount shall be added to the amount being converted at such time. In the event that the Borrower’s shares of common stock are chilled for deposit into the DTC system and only eligible for Xclearing deposit, an additional Ten percent (10%) discount shall be added to the amount being converted at such time .“Market Price” means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. “Trading Price” means, for any security as of any date, the lowest price on the OTC Markets OTCQB Marketplace, or applicable trading market (the “OTCQB”) as reported by a reliable reporting service (“Reporting Service”) designated by the Holder (i.e. Bloomberg) or, if the OTCQB is not the principal trading market for such security, the closing bid price of such security on the principal securities exchange or trading market where such security is listed or traded or, if no closing bid price of such security is available in any of the foregoing manners, the average of the closing bid prices of any market makers for such security that are listed in the “pink sheets” by the National Quotation Bureau, Inc. If the Trading Price cannot be calculated for such security on such date in the manner provided above, the Trading Price shall be the fair market value as mutually determined by the Borrower and the holders of a majority in interest of the Notes being converted for which the calculation of the Trading Price is required in order to determine the Conversion Price of such Notes. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTCQB, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 
   
  1.3 Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have authorized and reserved three times the number of shares that is actually issuable upon full conversion of the Note (based on the Conversion Price of the Notes in effect from time to time)(the “Reserved Amount”). The Reserved Amount shall be increased from time to time in accordance with the Borrower’s obligations pursuant to Section 4(g) of the Purchase Agreement. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Notes. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note. 
   
    	 
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  If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note. However, upon receipt of written notice from the Holder of Borrower’s failure to maintain the Reserved Amount, the Borrower shall have three (3) days to cure any deficiencies in the Reserved Amount. 
   
  1.4 Method of Conversion. 
   
  (a) Mechanics of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at any time from time to time after One Hundred Eighty Days following the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower. 
   
  (b) Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion. In the event of any dispute or discrepancy, such records of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof. 
   
  (c) Payment of Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other securities or property unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Borrower the amount of any such tax or shall have established to the satisfaction of the Borrower that such tax has been paid. 
   
    	 
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  (d) Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. 
   
  (e) Obligation of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long as the Notice of Conversion is received by the Borrower before 6:00 p.m., New York, New York time, on such date. 
   
  (f) Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions contained in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system. 
   
  (g) Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (other than a failure due to the circumstances described in Section 1.3 above, which failure shall be governed by such Section) the Borrower shall pay to the Holder $2,000 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, and interference with such conversion right are difficult if not impossible to qualify. Accordingly the parties acknowledge that the liquidated damages provision contained in this Section 1.4(g) are justified. 
   
    	 
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  1.5 Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). Except as otherwise provided in the Purchase Agreement (and subject to the removal provisions set forth below), until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate: 
   
    	   
	  “NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.” 
	   

   
  	 
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  The legend set forth above shall be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Borrower or its transfer agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made without registration under the Act, which opinion shall be accepted by the Company so that the sale or transfer is effected or (ii) in the case of the Common Stock issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration statement filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note. 
   
  1.6 Effect of Certain Events. 
   
  (a) Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall either: (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization. 
   
  (b) Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Notes, there shall be any merger, consolidation, or an exchange of shares, recapitalization or reorganization pursuant to a merger or consolidation, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets or more than 50% of the total outstanding shares of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges. 
   
    	 
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  (c) Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution. 
   
  (f) Notice of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described in this Section 1.6, the Borrower, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish to the Holder of a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Borrower shall, upon the written request at any time of the Holder, furnish to such Holder a like certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon conversion of the Note. 
   
  1.7 Trading Market Limitations. Unless permitted by the applicable rules and regulations of the principal securities market on which the Common Stock is then listed or traded, in no event shall the Borrower issue upon conversion of or otherwise pursuant to this Note and the other Notes issued pursuant to the Purchase Agreement more than the maximum number of shares of Common Stock that the Borrower can issue pursuant to any rule of the principal United States securities market on which the Common Stock is then traded (the “Maximum Share Amount”), which shall be 9.99% of the total shares outstanding on the Closing Date (as defined in the Purchase Agreement), subject to equitable adjustment from time to time for stock splits, stock dividends, combinations, capital reorganizations and similar events relating to the Common Stock occurring after the date hereof. Once the Maximum Share Amount has been issued, if the Borrower fails to eliminate any prohibitions under applicable law or the rules or regulations of any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction over the Borrower or any of its securities on the Borrower’s ability to issue shares of Common Stock in excess of the Maximum Share Amount, in lieu of any further right to convert this Note, this will be considered an Event of Default under Section 3.3 of the Note. 
   
    	 
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  1.8 Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because of a failure by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted. In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right to receive Conversion Default Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any subsequent Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined in accordance with Section 1.3) for the Borrower’s failure to convert this Note. 
   
  1.9 Prepayment. Notwithstanding anything to the contrary contained in this Note, the Borrower may prepay the amounts outstanding hereunder pursuant to the following terms and conditions:
   
  (a) At any time during the period beginning on the Issue Date and ending on the date which is thirty (30) days following the Issue Date, the Borrower shall have the right, exercisable on not less than twenty (20) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full by making a payment to the Holder of an amount in cash equal to 125%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note plus (y) Default Interest. 
   
  (b) At any time during the period beginning the day which is thirty one (31) days following the Issue Date and ending on the date which is sixty (60) days following the Issue Date, the Borrower shall have the right, exercisable on not less than twenty (20) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full by making a payment to the Holder of an amount in cash equal to 130%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note plus (y) Default Interest.
   
  (c) At any time during the period beginning the day which is sixty one (61) days following the Issue Date and ending on the date which is ninety (90) days following the Issue Date, the Borrower shall have the right, exercisable on not less than twenty (20) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full by making a payment to the Holder of an amount in cash equal to 135%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note plus (y) Default Interest. 
   
    	 
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  (d) At any time during the period beginning the day which is ninety one (91) days following the Issue Date and ending on the date which is one hundred twenty (120) days following the Issue Date, the Borrower shall have the right, exercisable on not less than twenty (20) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full by making a payment to the Holder of an amount in cash equal to 140%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note plus (y) Default Interest. 
   
  (e) At any time during the period beginning the day which is one hundred twenty one (121) days following the Issue Date and ending on the date which is one hundred fifty (150) days following the Issue Date, the Borrower shall have the right, exercisable on not less than twenty (20) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full by making a payment to the Holder of an amount in cash equal to 145%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note plus (y) Default Interest. 
   
  (f) At any time during the period beginning the day which is one hundred fifty one (151) days following the Issue Date and ending on the date which is one hundred eighty (180) days following the Issue Date, the Borrower shall have the right, exercisable on not less than twenty (20) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full by making a payment to the Holder of an amount in cash equal to 150%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note plus (y) Default Interest. 
   
  (g) After the expiration of one hundred eighty (180) following the date of the Note, the Borrower shall have no right of prepayment.
   
  Any notice of prepayment hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note at its registered addresses and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall be not more than twenty (20) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment (the “Optional Prepayment Date”), the Borrower shall make payment of the applicable prepayment amount to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to the Optional Prepayment Date. If the Borrower delivers an Optional Prepayment Notice and fails to pay the applicable prepayment amount due to the Holder of the Note within two (2) business days following the Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this Section 1.9. Notwithstanding anything to the contrary in this Note, the Borrower’s right to prepay the amounts outstanding under this Note, in accordance with the terms and conditions of this Note, is expressly conditional upon the Holder’s written acceptance, in Holder’s sole discretion, of such applicable prepayment during the time that the Borrower is exercising their right to prepay this Note.
   
    	 
	10

	  

	 

   
  ARTICLE II. CERTAIN COVENANTS
   
  2.1 Distributions on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock except for distributions pursuant to any shareholders’ rights plan which is approved by a majority of the Borrower’s disinterested directors. 
   
  2.3 Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition. 
   
  2.4 Advances and Loans. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits or advances (a) in existence or committed on the date hereof and which the Borrower has informed Holder in writing prior to the date hereof, (b) made in the ordinary course of business, (c) made to a pending merging partner pursuant to an agreement of merger or (c) not in excess of $100,000. 
   
  ARTICLE III. EVENTS OF DEFAULT
   
  If any of the following events of default (each, an “Event of Default”) shall occur: 
   
  3.1 Failure to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity, upon acceleration or otherwise, following a five (5) day cure period. 
   
  3.2 Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty eight (48) hours of a demand from the Holder. 
   
    	 
	11

	  

	 

   
  3.3 Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of ten (10) days after written notice thereof to the Borrower from the Holder. 
   
  3.4 Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement. 
   
  3.5 Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 
   
  3.6 Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary of the Borrower or any of its property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld. 
   
  3.7 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower. 
   
  3.8 Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTCQB or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq Small Cap Market, the New York Stock Exchange, or the American Stock Exchange. 
   
  3.9 Failure to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act. 
   
  3.10 Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business. 
   
    	 
	12

	  

	 

   
  3.11 Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due. 
   
  3.12 Maintenance of Assets. The failure by Borrower to maintain any material intellectual property rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future). 
   
  3.13 Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC for any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the result of such restatement would, by comparison to the unrestated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement. 
   
  3.14 Reverse Splits. The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written notice to the Holder. 
   
  3.15 Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower. 
   
  3.16 Cross-Default. Notwithstanding anything to the contrary contained in this Note or other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained any other financial instrument, including but not limited to all convertible promissory notes, already issued, or issued in the future, by the Borrower, to the Holder or any other 3rd party, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note.
   
    	 
	13

	  

	 

   
  3.17 Event of Default. Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note upon a Trading Market Prepayment Event pursuant to Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, 3.15 and/or 3.16 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the greater of (i) 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Sum”) or (ii) the “parity value” of the Default Sum to be prepaid, where parity value means (a) the highest number of shares of Common Stock issuable upon conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately preceding the Mandatory Prepayment Date as the “Conversion Date” for purposes of determining the lowest applicable Conversion Price, unless the Default Event arises as a result of a breach in respect of a specific Conversion Date in which case such Conversion Date shall be the Conversion Date), multiplied by (b) the highest Closing Price for the Common Stock during the period beginning on the date of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment Date (the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity. 
   
  If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. 
   
    	 
	14

	  

	 

   
  ARTICLE IV. MISCELLANEOUS
   
  4.1 Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available. 
   
  4.2 Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 
   
  If to the Borrower, to: 
   
  Eventure Interactive, Inc.
  3420 Bristol Street, 6th Floor 
  Costa Mesa, CA 92626 
  Attn: Gannon Giguiere / President 
  Email: gannon.giguiere@eventure.com
   
  If to the Holder: 
   
  CAREBOURN CAPITAL, L.P.  
  8700 Black Oaks Lane N 
  Maple Grove, Minnesota 55311
  Attn: Chip Rice, Managing Member  
  Email: info@carebourncapital.com   
  
 
    	 
	15

	  

	 

   
  4.3 Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 
   
  4.4 Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral in connection with a bona fide margin account or other lending arrangement. 
   
  4.5 Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees. 
   
  4.6 Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Florida without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Florida or in the federal courts located in the state of Florida. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform to such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 
   
  4.7 Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest on such interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant to this Note. The Borrower and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of Common Stock. 
   
    	 
	16

	  

	 

    
  4.8 Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement. 
   
  4.9 Notice of Corporate Events. Except as otherwise provided below, the Holder of this Note shall have no rights as a Holder of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Borrower shall provide the Holder with prior notification of any meeting of the Borrower’s shareholders (and copies of proxy materials and other information sent to shareholders). In the event of any taking by the Borrower of a record of its shareholders for the purpose of determining shareholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share of any class or any other securities or property, or to receive any other right, or for the purpose of determining shareholders who are entitled to vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of the Borrower or any proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder, at least twenty (20) days prior to the record date specified therein (or thirty (30) days prior to the consummation of the transaction or event, whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right or other event, and a brief statement regarding the amount and character of such dividend, distribution, right or other event to the extent known at such time. The Borrower shall make a public announcement of any event requiring notification to the Holder hereunder substantially simultaneously with the notification to the Holder in accordance with the terms of this Section 4.9. 
   
  4.10 Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required. 
   
  4.12 Right of First Refusal. If at any time while this Note is outstanding, the Borrower has a bona fide offer of capital or financing from any 3rd party, the Borrower must first offer such opportunity to the Holder to provide such capital or financing to the Borrower on the same terms as each respective 3rd party’s terms. Should the Holder be unwilling or unable to provide such capital or financing to the Borrower within 15 days from receipt of written notice of the offer (the “Offer Notice”) from the Borrower, then the Borrower may obtain such capital or financing from that respective 3rd party upon the same terms and conditions offered by the Borrower to the Holder, which transaction must be completed within 30 days after the date of the Offer Notice. If the Borrower does not complete such transaction within such time period, then the Borrower must again offer the capital or financing opportunity to the Holder on the same terms, and the process detailed above shall be repeated.
   
  [SIGNATURE PAGE FOLLOWS]   
  
 
    	 
	17

	  

	 

   
  
  IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer this July 30, 2015. 
      	   
	Eventure Interactive, Inc. 	   

	 	 	 	 
		By:	/s/ Gannon Giguiere	   

	   
	   
	Gannon Giguiere	   

	   
	   
	President 	   

   
    	 
	18

	  

	 

   
  
  EXHIBIT A: NOTICE OF CONVERSION
   
  The undersigned hereby elects to convert $______________________principal amount of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of Eventure Interactive, Inc., a Nevada corporation (the “Borrower”) according to the conditions of the convertible note of the Borrower dated as of July 30, 2015 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. 
   
  Box Checked as to applicable instructions: 
   
    		 ̈	  The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).

	 		
	   
	   
	  Name of DTC Prime Broker: 
  Account Number: 

	    
	   
	   

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

	    
	   
	   

	   
	   
	  CAREBOURN CAPITAL, L.P.  
  8700 Black Oaks Lane N 
  Maple Grove, Minnesota 55311 
  Attention: Certificate Delivery  
  612.889.4671 

   
    	    
	   
	  Date of Conversion: 
	   
	   

	   
	   
	  Applicable Conversion Price: 
	  $
	   

	   
	   
	  Number of Shares of Common Stock to be issued  
	   
	   

	   
	   
	  Pursuant to Conversion of the Notes: 
	   
	   

	   
	   
	  Amount of Principal Balance Due remaining  
	   
	   

	   
	   
	  Under the Note after this conversion: 
	   
	   

    
  	   
	   
	  CAREBOURN CAPITAL, L.P.   
	   

	   
	   
	   
	   
	   

	   
	   
	   
	   
	   

	   
	   
	  By: 
	  /s/ Chip Rice
	   

	   
	   
	  Name: 
	  Chip Rice
	   

	   
	   
	  Title: 
	  Managing Member 
	   

	   
	   
	   
	  8700 Black Oaks Lane N
  Maple Grove, Minnesota 55311
	   

   
   
  19CONSULTING
SERVICES AGREEMENT

 

 

 

THIS CONSULTING SERVICES AGREEMENT (“Agreement”) is made
effective as of August 10, 2015 by and between Spherix, Inc. a Delaware corporation, with its corporate
headquarters at 6430 Rockledge Drive, Suite 503, Bethesda, Maryland 20817 (“Company”), and
Howard E Goldberg, d/b/a Forward Vision Associates, with a principal business address of
[REDACTED] (“Consultant”). The
above parties are collectively referred to as the “Parties” and
individually referred to as a “Party.”

 

BACKGROUND

 

1.                 Company is an intellectual property company that owns patented and unpatented
intellectual property; Company
has expanded its activities in wireless communications and
telecommunication sectors including antenna technology, Wi-Fi, base station functionality and
cellular through recent portfolio acquisitions from Rockstar Consortium US, LP, and from Harris
Corporation as a result of the acquisition of North South Holdings, Inc. (“Spherix IP”).

 

2.                 
Consultant has certain
expertise and experience
in the field
of intellectual property, licensing
and technology companies
required by Company
and desires to
consult directly with Company
and/or professionals acting
on behalf of
Company. The scope
may include without limitation,
interaction with the
Company’s outside Counsel,
on behalf of
the Company, in Consultant’s
area of expertise.
Such interactions shall
be subject to
all limitations otherwise
set forth in this
Agreement with respect
to third parties.

 

3.                 
Substantially contemporaneous with
the execution of
this Agreement, Consultant
may become a
member of the
Company’s Board of
Directors, and upon
appointment the board
will render separate services
in that role,
outside the scope
of this Agreement.

 

4.                 
Company desires to
retain the services
of Consultant and
Consultant desires to
render such services.

 

    NOW,
THEREFORE, in consideration
of the mutual
covenants herein contained,
the Parties, intending to
be legally bound,
agree as follows:

 

AGREEMENT

 

1.                 Retention
as Consultant. Company
hereby retains Consultant,
and Consultant hereby agrees
to render consulting
services to Company,
upon the terms
and conditions set
forth in Schedule 1
attached hereto.

 

2.                 Duties.
Consultant covenants and
agrees that he
will, as an
independent contractor, perform all
services as set
forth in Exhibit
“A” attached hereto
and incorporated herein
(the “Services”). Consultant
further covenants and
agrees that he
is fully qualified
to perform the Services,
and shall perform
the Services in
a prompt, professional
and competent manner.

 

    1 

     

    

 

3.                 Independent
Contractor Status. Each
of the Parties
agree and hereby
acknowledge that Consultant is
an independent contractor
and not an
employee, agent, or
representative of Company, this
Agreement does not
create an employer-employee
relationship between Consultant and
the Company and
that Consultant shall
not have the
power or the
authority to bind Company
in any manner
whatsoever. Consultant shall
at all times
disclose his independent contractor
status and that
Consultant is not
an employee, agent,
or representative of
Company.

 

4.                 Taxes.
All taxes applicable
to any amounts
paid by Company
to Consultant under
this Agreement shall be
Consultant’s sole responsibility,
and Company shall
not withhold or
pay any amounts for
any foreign tax
or any U.S.
federal, state or
local income tax,
Social Security, Unemployment or
Workman’s Compensation. Consultant
shall not be
entitled to receive
any employment benefits offered
to employees of
Company. The Company
shall issue Consultant
a Form 1099 following the
end of its
fiscal year, with
a copy to
the IRS, and
Consultant agrees to pay all
taxes due in
respect of the
Consultancy Fee and to
indemnify the Company
in respect of any
obligation that may be
imposed on the
Company to pay
any such taxes
or resulting from Consultant’s
being determined not
to be an independent
contractor. Upon request by
Company, Consultant will provide documentation evidencing compliance with all applicable laws, regulations and orders in
regard to amounts received under this Agreement. Consultant agrees to indemnify, defend and hold Company harmless from the payment
of Federal, State and local taxes, as well as the preparation and submission of all
reports, returns, and monies which may be imposed or
required under any
applicable laws, regulations and
orders relative to
any payments which Company makes to Consultant pursuant to this Agreement.

 

5.                 Compensation.
Company shall pay
to Consultant, as
compensation for the
Services to be rendered,
only those amounts
set forth in
Schedule 1 attached
hereto. Consultant shall
not be entitled to receive
any employment or other benefits offered to employees of Company.
Further, Consultant shall not
be entitled to
charge premiums for
overtime or weekend
work. It is expected
that Consultant will
dedicate substantial time
and commitment during
those days on which
Services are rendered.
The provision of
any additional Services
beyond those identified
in Schedule 1 and any additional costs associated therewith shall require advance written approval from Company.

 

6.                 Term.
This Agreement shall
commence on the
date of this
Agreement and shall
continue until the earlier
of (a) one
(1) year from
the date of
this Agreement, or
(b) the date
on which, by mutual
agreement of the
Parties, Services have
been completed as
evidenced by notice
of such completion by
Consultant. The term
of this Agreement
may be extended
only by written agreement
of both Consultant
and Company.

 

7.                 Termination. Except as otherwise provided herein, Company may not terminate this
Agreement. Consultant may terminate this Agreement by written notice to Company at least
thirty(30) calendar days prior to any anniversary quarter, the first such calendar quarter
commencing November 10, 2015 (“Subsequent Quarterly Retainer Period”). Upon any such
termination, (a) Company shall be entitled to receive and unconditionally use all work product
produced by Consultant in connection with the Services, and Consultant shall promptly deliver
all such work product to Company as a condition
of final payment hereunder, and (b)
Consultant shall be entitled to non-refundable
retainer and payment in
accordance with this Agreement for
Services properly rendered (and for
reimbursable expenses properly incurred) prior
to such termination, subject to offset for any amounts owing from Consultant to
Company hereunder. Upon the effective date of termination of this Agreement, all legal obligations, rights and duties arising
out of this Agreement shall terminate except for such legal obligations, rights and duties as shall have accrued prior to the
effective date of termination and except as otherwise expressly provided in this Agreement.

 

    2 

     

    

 

8.                 
Covenant of Non-Disclosure.
Except as otherwise
publicly disclosed, Consultant
shall not, at any
time during or
after the term
of this Agreement,
in any manner,
either directly or indirectly,
use, divulge, disclose or communicate to any person, firm, corporation or other
entity, the existence of
this Agreement or
its terms, or
any Confidential Information,
excepting use in performing
the Services hereunder,
without the express
prior written consent
of an authorized executive
officer of Company
in accordance with
and governed solely
by the terms
of a separate Mutual
Non-Disclosure Agreement dated
August 11, 2015,
as of August
10, 2015
(the “Non- Disclosure Agreement”),
which Non-Disclosure Agreement
is hereby expressly
reaffirmed.

 

9.                 
Ownership; Assignment of
Ideas. All work
product produced by
Consultant solely or jointly
or arising out
of Consultant in
connection with his
services to the
Company (“Work Product”) shall
be the sole
and exclusive property
of the Company,
and Consultant waives
any rights whatsoever in
such Work Product.

 

     (A)            
Consultant will report
and does hereby
assign to Company
(or its designated assignee)
all right, title
and interest to
the Work Product
and ideas, concepts,
trade secrets, inventions, articles
or work, whether
patentable, copyrightable or
not, created, uncovered
or developed during the
performance of his/her
duties hereunder. All
such ideas, concepts,
trade secrets, inventions and
articles of work
shall be considered
work “made for
hire” and Company shall
have the sole
right, title and
interest in such
Work Product and
Consultant will not
have any rights of
any kind whatsoever
in such Work
Product. Consultant shall
execute all documentation and
do all such
deeds as is reasonably
required to vest
ownership, right, title
and interest in Company and for Company
to secure patent or copyright protection, as applicable.

 

     (B)             
In the event
that Consultant integrates
any work that
was previously created
by the Consultant into
any Work Product,
the Consultant shall
grant to, and
Company is hereby granted,
a worldwide, royalty-free,
perpetual, irrevocable license
to exploit the
incorporated items, including, but
not limited to,
any and all
copyrights, patents, designs,
trade secrets, trademarks or
other intellectual property
rights, in connection
with the Work
Product in any manner
that Company deems
appropriate. Consultant warrants
that it shall
not knowingly incorporate into
any Work Product
any material that
would infringe any
intellectual property rights of
any third party.

 

10.              Legal and Equitable Relief. Consultant acknowledges
that if Consultant breaches, or
threatens to breach any of the covenants expressed herein, it would cause immediate and
irreparable harm to the Company for which monetary damages to Company may be difficult to
measure and be inadequate; therefore, Company will be entitled to apply to a court of competent
jurisdiction for injunctive or other equitable relief without proof of actual damages and without
posting of a bond or other security to restrain such breach or threat of breach, in addition to all
other relief available to Company in either law or equity.

 

    3 

     

    

 

In
the event that
any or all
of the covenants
expressed herein shall
be determined by
a court of competent
jurisdiction to be
invalid or unenforceable,
by reason of
its geographic or
temporal restrictions being too
great, or by
reason that the
range of activities
covered are too
great, or for any
other reason, these
covenants shall be
interpreted to extend
over the maximum
geographic area, period of
time, range of
activities or other
restrictions to which
they may be
enforceable.

 

11.             
Other Compensation/Conflict of
Interest. Consultant hereby
represents and warrants that
he will receive
no compensation from
any other party
for the performance
of its duties
to Company, as set
forth in Exhibit
“A”, except from
Company or as
otherwise agreed to
by Company, and that
Consultant will immediately
report to Company
any potential or
actual conflict of interest
in the performance
of its duties
hereunder.

 

12.             
Compliance with Laws
and Policies. Consultant
shall perform all
Services hereunder in compliance
with all applicable
laws, orders, rules
and regulations of
governmental authorities. In addition,
Consultant shall comply
with Company’s policies
and procedures applicable
to contractors and consultants
in connection with
its performance of
the Services.

 

13.             
Indemnification. Consultant shall
defend, indemnify and
hold harmless Company,
its affiliates, and their
respective officers, directors,
employees, agents, and
representatives, from and against
any and all
claims, losses, liabilities,
and expenses whatsoever
(including reasonable attorney’s fees
and related disbursements),
either in law
or in equity,
incurred by reason
of (i) any breach
by Consultant of
Sections 11 and
12 hereof, (ii)
any failure of
Consultant to comply with
applicable laws, or
(iii) any negligence
or willful misconduct
of Consultant in
connection with this Agreement
and/or the performance
of Services hereunder. Company
shall have the right
to offset any
amounts due to
Company by Consultant
for advancements under
this Agreement (excluding by way
of example and not by
way of limitation, any non-refundable
Retainer Payments) against any fees or other payments otherwise due Consultant hereunder.

 

14.                Miscellaneous.

 

		14.1	Cooperation. Each
of the Parties
hereto agree, at
any time and
from time to
time, upon the request
of the other
Party hereto, to
do, execute, acknowledge
and deliver, or cause
to be done,
executed, acknowledged and
delivered, all such
further acts, documents and
instruments as may
be required to
effect any of
the transactions contemplated by
this Agreement.

 

		14.2	Entire Agreement/Amendments.
This Agreement replaces
and supersedes all
prior consulting agreements, and
any other agreements
or understandings relating
to the subject matter
hereof, between the
Parties to this
Agreement; notwithstanding
the prior clause, the
Non-Disclosure Agreement referred
to in Sections
8 and 9
shall continue in full
force and effect.
No alteration, modification,
amendment or other change
of this Agreement
shall be binding
on the Parties
unless in writing
and executed by both
Parties.

 

 

    4 

     

    

 

		14.3	Binding Effect.
This Agreement shall
be binding upon
and inure to
the benefit of
the Parties hereto and
their respective heirs,
executors, successors and
permitted assignees.

 

		14.4	Assignment. This
Agreement is personal
to Consultant and
may not be
assigned, sold, transferred, delegated
or disposed by
Consultant without the
prior written consent of
Company. Any such
non-authorized transfer, sale,
delegation or disposition shall be
immediately deemed void and
of no effect. Company
may assign this Agreement,
or any of
its rights, benefits
or obligations hereunder
(excluding obligations relating to
payment of Consultant’s
fees and expenses),
without prior consent provided
that such transfer
is to a
bona fide third
party, made in
good faith, and not made for the
purpose of avoiding payment hereunder.

 

		14.5	Non-Competition. (a)
During the term
of this Agreement,
Consultant will engage
in no business or
other activities which
are, directly or
indirectly, competitive with
the business activities of
the Company without
obtaining the prior
written consent of
the Company; (b) Non-Solicitation.
Consultant agrees that
for a period
of one (1)
year after termination of
this Agreement, Consultant
shall not: (i)
divert or attempt
to divert from the
Company any business
of any kind
in which it
is engaged, including, without
limitation, the solicitation
of or interference
with any of
its suppliers or customers,
or (ii) employ, solicit for employment,
or recommend for employment any person
employed by the Company, during the Consultancy Period and for a period of one (1) year thereafter.

 

		14.6	Notices. Any
notice or other
communication pursuant to
this Agreement shall
be in writing and
shall be deemed
to have been
fully given or
made when personally delivered
or when mailed
by a nationally
recognized overnight delivery
service or by United
States registered or
certified mail, postage
prepaid, to the
following addresses:

 

If to
Company:

Anthony
Hayes, Chief Executive
Officer

Spherix
Incorporated

1350
Avenue of the
Americas, 2nd
Floor

New York, NY 10019

 

If to
Consultant:

 

Howard
E. Goldberg d/b/a
Forward Vision Associates

[REDACTED]

		14.7	Governing Law.
This Agreement shall
be construed in
accordance with the
laws of the State
of Delaware without
reference to conflict
of laws principles.
The Parties hereto agree
that any action
or proceeding related
to this Agreement
shall be subject to
the exclusive jurisdiction
of the courts
of the State
of New York,
New York

    5 

     

    

  

County,
or the U.S.
Federal Court for
the Southern District
of the District
of New York and
each of the
Parties consents to
the jurisdiction of
such courts (and
of the appropriate appellate
courts) in any
such action or
proceeding and waives
any objection to venue
laid therein.

 

		14.8	WAIVER OF
JURY TRIAL.
TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE
LAW, CONSULTANT AND
COMPANY HEREBY IRREVOCABLY WAIVE
ALL RIGHT TO
A TRIAL BY
JURY IN ANY
ACTION OR PROCEEDING (WHETHER
BASED ON CONTRACT,
TORT OR OTHERWISE) ARISING
OUT OF OR
RELATING TO THIS
AGREEMENT OR ANY BREACH
HEREOF.

 

		14.9	Invalidity. The
terms of this
Agreement shall be
severable so that
if any term, clause,
or provision hereof
shall be deemed
invalid or unenforceable
for any reason, such
invalidity or unenforceability
shall not affect
the remaining terms,
clauses and provisions hereof,
the Parties intending
that if any
such term, clause
or provision were held
to be invalid
prior to the
execution hereof, they
would have executed
an Agreement containing all
the remaining terms,
clauses and provisions
of this Agreement.

 

		14.10	Waiver of
Breach. No
failure or delay
by either Party
in exercising any
right, power or privilege
hereunder will operate
as a waiver
thereof, nor will
any single or
partial exercise thereof preclude
any other or
further exercise thereof
or the exercise
of any right, power
or privilege hereunder.

 

		14.11	Enumeration and
Headings. The
enumeration and headings
contained in this Agreement
are for convenience
of reference only
and are not
intended to have
any substantive significance in
interpreting this Agreement.

 

		14.12	Export
Control. In accordance
with and governed
solely by the
terms of a
separate Non-Disclosure Agreement ,
Consultant will adhere
to all applicable
laws, regulations and rules
relating to the
export and re-export
of technical data
and shall not
transfer any Confidential Information
received hereunder to
any country prohibited
from obtaining such data according
to any national export regulation
(e.g. U.S. Department of Commerce
Export Administration Regulations)
without first obtaining
Company’s consent to pursue
the appropriate export
licenses and authorizations.

 

		14.13	Force Majeure.
Neither Party shall
be deemed to
be in default
of, or to
have breached any provision
of this Agreement
as a result
of any delay,
or failure in
the performance or interruption
of the Services,
so long as
such interruption is
caused by a force
majeure event (i.e.,
an event beyond
the reasonable control
of either Party including, but
not limited to,
acts of nature, fire,
war, labor strikes, acts
or regulations of government
agencies, materials shortages,
etc.). The delay
or failure in performance
or interruption of
Service must be
without the fault
or negligence of
the Party claiming excusable delay
and the Party claiming excusable
delay must promptly notify the other Party of such delay. Performance under
this Agreement shall be considered extended for the period of time equivalent to the time of delay; provided, however, that if any such delay continues
for a period of more than five (5) business days, the Party not claiming excusable delay shall have the option of terminating
this Agreement upon written notice to the other Party hereto.

    6 

     

    

		14.14	Conflict of
Terms. The terms
of this Agreement
shall govern and
supersede any conflicting terms
contained within, but
not limited to,
any proposal, offer
or discussions by and
between the Parties
relating to the
subject matter hereof.

 

		14.15	Counterparts. This
Agreement may be
executed by the
Parties in two
(2) original counterparts, which
together shall constitute
one and the
same original instrument.

 

		14.16	Certain Acknowledgements.
COMPANY ACKNOWLEDGES THAT
CONSULTANT HAS NOT BEEN ENGAGED
TO, AND WILL NOT, RENDER EITHER
LEGAL OR FINANCIAL
ADVISE, AND THAT
ANY STRATEGIC OR OPERATIONAL
RECOMMENDATIONS RENDERED BY
OR DEVELOPED IN CONJUNCTION
WITH CONSULTANT AND
HAVING LEGAL AND/OR FINANCIAL
CONSEQUENCES SHOULD BE
REVIEWED WITH COMPANY’S LEGAL
AND FINANCIAL ADVISORS
AS PART OF THE
TRANSACTION PROCESS.

 

***

 

(Signatures
continued on the
next page)

 

    7 

     

    

 

 

IN WITNESS
WHEREOF, the Parties
have executed this
Agreement effective as
of the date
first above written.

 

COMPANY

 

Spherix Incorporated

 

By: ___________________________

Name:
_________________________

Title:
__________________________ 

 

 

CONSULTANT

 

Howard E.
Goldberg d/b/a Forward
Vision Associates

 

By: ____________________________

 Print Name: Howard
E. Goldberg, Principal

 

 

 

 

[Balance
of this page
intentionally left blank]

 

    8 

     

    

 

EXHIBIT
“A”

TO

CONSULTING
AGREEMENT

 

 

 

Services

 

 

Consultant shall perform the following services
(“Services”), subject to  the monitoring by Anthony
Hayes, Chief Executive
Officer, or his
successor or delegate:

 

	Ø	 	Review and suggestions for enhancement and/or modification of the Company’s business plan and strategies to optimize business opportunities and drive long-term shareholder value; consideration of collateral short-term strategies

	Ø	 	Initiating commercial contacts for the purpose of exploring potential strategic and financing relationships

	Ø	 	Advisory services related to Company’s current, future or potential Spherix IP monetization including related and associated licensing and/or litigation strategies, as appropriate in conjunction with Company counsel

	Ø	 	Requested assistance in conjunction with negotiation and documentation of any licensing and/or settlement related to Spherix IP

	Ø	 	Such other Advisory and Consulting Services as may be requested from time to time 

 

Scope: To
the extent that
an unusual situation
arises in which
the context does
not clearly delineate as
to whether the
Services are being
performed in a
role as a
director of Company
or as a Consultant
hereunder, and to
eliminate any doubt
or potential conflict
of interest, the
following shall be considered
in determining whether
the activities are
compensated pursuant to
the terms of this
Agreement:

		•	Whether the
services are provided
pursuant to responsibilities
delegated to management by
the Board of
Directors

		•	Whether the
responsibility and involvement
of the Company’s
Chief Executive Officer
is undertaken pursuant to
that role or
as a director
of the Company

		•	Whether, and
the extent to
which, any other
members of the
Board of Directors
has a concurrent and
similar level of
engagement in providing
such services as
a director

		•	Whether any
other officers, employees,
or third parties
are engaged to
collaborate with Consultant in
the scope of
services being undertaken

    9 

     

    

 

 

SCHEDULE I TO

CONSULTING
AGREEMENT

 

 

 

 

Billing
Rates (1),
(2):

 

		►	Hourly - $ 425 (within Quarterly Retainer, until exhausted); $335 paid in equity for first fifty (50) quarterly hours once
retainer has been exhausted; therefter above the Quarterly Retainer at $245 (non-equity).

•     Equity
due hereunder
shall be
in the
form mutually
agreed between
Consultant
and the
Company
based upon
Federal
Income
Tax
deferral
to the
Consultant.
Primary
consideration
shall be
given
to structuring
of restricted
stock
whose
vesting
terms
are primarily
time-based
without
further
performance
limitations.
In any
case, all
valuations
shall be
based upon
an IRC
Sec.
409A valuation
that is
current and
relevant
to the
time and
circumstances
of the
issuance.

		►	Quarterly
                                         Retainer
                                         - $20,400
                                         payable
                                         within
                                         ten
                                         (10)
                                         days
                                         of
                                         the
                                         commencement
                                         of
                                         the
                                         initial
                                         quarterly
                                         retainer
                                         period
                                         from
                                         August
                                         10,
                                         2015
                                         through
                                         November
                                         9,
                                         2015
                                         “(Initial
                                         Quarterly
                                         Retainer
                                         Period”),
                                         and
                                         thereafter
                                         by
                                         no
                                         later
                                         than
                                         the
                                         commencement
                                         of each
                                         Quarterly
                                         Retainer
                                         period
                                         on
                                         November
                                         10,
                                         2015,
                                         February
                                         10,
                                         2016,
                                         and
                                         May
                                         10,
                                         2016,
                                         as
                                         applicable
                                         (each
                                         a “Subsequent
                                         Quarterly
                                         Retainer
                                         Period”,
                                         and
                                         together
                                         with
                                         the
                                         Initial
                                         Quarterly
                                         Retainer
                                         Period,
                                         each
                                         a Quarterly
                                         Retainer
                                         Period(s)”).

		►	No
                                         Carryover
                                         – For
                                         purposes
                                         of
                                         billing,
                                         each
                                         Quarterly
                                         Retainer
                                         Period
                                         shall
                                         be
                                         considered
                                         a discrete
                                         and
                                         unique
                                         billing
                                         period,
                                         and
                                         billing
                                         shall
                                         begin
                                         in each
                                         Quarterly
                                         Retainer
                                         Period
                                         from
                                         the
                                         first
                                         hour
                                         applicable
                                         to each
                                         paid
                                         Quarterly
                                         Retainer.
                                         No unused
                                         or non-exhausted
                                         Quarterly
                                         Retainer
                                         amounts
                                         shall
                                         be
                                         carried
                                         over
                                         to any
                                         Subsequent
                                         Quarterly
                                         Retainer
                                         Period.

		►	Out-of-Pocket
                                         Costs
                                         – Billed
                                         on actual
                                         cost
                                         basis,
                                         with
                                         mileage
                                         charges
                                         at
                                         IRS
                                         rates;
                                         hotel,
                                         auto
                                         rerntal,
                                         train/plane
                                         fares
                                         and
                                         all
                                         other
                                         costs
                                         of
                                         a similar
                                         nature
                                         shall
                                         be
                                         booked
                                         in consultation
                                         with
                                         Company.
                                         Company
                                         shall
                                         be
                                         responsible
                                         for
                                         any
                                         cancellation/change
                                         fees or
                                         fees
                                         or
                                         charges
                                         of
                                         a similar
                                         nature
                                         in conjunction
                                         with
                                         restricted
                                         fare
                                         rates
                                         booked
                                         in consultation
                                         with
                                         Company.

 

		(1)	Excludes
                                         out-of-pocket
                                         costs
                                         to be
                                         billed
                                         at
                                         actual
                                         costs
                                         without
                                         mark-up,
                                         and
                                         travel
                                         time
                                         at

$175/hr
for non-working
billable
hours in
excess of
one hour
each way
on a
daily basis

		(2)	Daily
                                         hours
                                         below
                                         two
                                         (2)
                                         hours
                                         to be
                                         rounded
                                         up
                                         to nearest
                                         whole
                                         hour,
                                         and
                                         time
                                         above
                                         two
                                         hours
                                         daily
                                         shall
                                         be
                                         rounded
                                         up
                                         to the
                                         nearest
                                         one-half
                                         (1/2)
                                         hour;
                                         minimum
                                         billing
                                         of
                                         sixteen
                                         (16) hours per trip extending beyond the East Coast of the United States (e.g. west of
                                         the Mississipi River) on behalf of the Company (exclusive of non-working billable hours)

Billing
Policies:

		•	Retainer
                                         – Non-refundable.

		•	Monthly
                                         Billing
                                         – on
                                         a calendar
                                         month
                                         basis,
                                         except
                                         for
                                         end
                                         of
                                         Quarterly
                                         Retainer
                                         Period
                                         to be
                                         billed
                                         on
                                         partial
                                         month
                                         basis.

		•	Administrative
                                         Fees
                                         – no
                                         charge
                                         for
                                         administrative
                                         time,
                                         including
                                         electronic
                                         billing
                                         based
                                         upon standard
                                         Consutant
                                         practices;
                                         customized
                                         billing
                                         charged
                                         based
                                         upon
                                         standard
                                         hourly
                                         rates

		•	Payment
                                         Terms
                                         – net
                                         20;
                                         rights
                                         reserved
                                         to charge
                                         interest
                                         at
                                         1%
                                         per
                                         month
                                         on all
                                         past
                                         due accounts

		•	Currency
                                         – billed
                                         and
                                         payable
                                         in USD

 

10

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