Document:

Exhibit
10.18

 

 

 

SUBSCRIPTION
AGREEMENT

 

in
connection with

 

PLASTIC2OIL,
INC.

 

12%
Secured Promissory Notes

(together
with Warrants to Purchase shares of Common Stock)

 

 

 

November
19, 2014

 

    	 

    	 

    

 

SUBSCRIPTION
AGREEMENT

 

This
Subscription Agreement (the “Agreement”), is executed by the undersigned (the “Subscriber”) in connection
with the offering (the “Offering”) by Plastic2Oil, Inc., a Nevada corporation (the “Company”), of five-year
12% Secured Promissory Notes (the “Notes”) and Warrants (the “Warrants”) to purchase shares of Common
Stock, par value $.001 per share, of the Company (the “Shares”) (the Notes and the Warrants are collectively referred
to as the “Offered Securities” and the Offered Securities and the Shares issuable upon the exercise of the Warrants
are collectively referred to herein as the “Securities”). For every $100,000 principal amount of Notes purchased,
the Subscriber shall receive Warrants to purchase 100,000 shares of Common Stock. The Notes shall be substantially in the form
attached hereto as Exhibit A. The Warrants shall be substantially in the form attached hereto as Exhibit B. The
obligations under the Note will be secured pursuant to a Security Agreement substantially in the form attached hereto as Exhibit
C.

 

SECTION
1

 

	Section
    1.1	 	Subscription.
    The Subscriber, intending to be legally bound, hereby irrevocably subscribes for and agrees to purchase the principal amount
    of Notes indicated on Page 10 hereof, on the terms and conditions described herein.
	 	 	 
	Section
    1.2	 	Purchase.
    The Subscriber understands and acknowledges that the purchase price to be remitted to the Company in exchange for the Offered
    Securities shall be equal to the principal amount of Notes purchased.
	 	 	 
	Section 1.3	 	Payment
    for Purchase. PAYMENT FOR THE SECURITIES SHALL BE BY WIRE TRANSFER OR CHECK PAYABLE TO: “PLASTIC2OIL” and
    delivered to the Company, together with an original executed copy of this Agreement. Wire transfer instructions are available
    upon request from Mr. Rahoul Banerjea at (716) 278-0015; Extension 257.
	 	 	 
	Section 1.4	 	Closings.
    The Company may schedule any number of closings to consummate the sale and issuance of the Notes subscribed for by the Investors
    in connection with the Offering (the “Closing”).

 

SECTION
2

 

	Section
2.1	 	 Acceptance or Rejection.

 

	 	(a)	The
    Subscriber understands and agrees that the Company reserves the right to reject this subscription for the Offered Securities
    in whole or in part in any order, if, in its reasonable judgment, it deems such action in the best interest of the Company,
    notwithstanding prior receipt by the Subscriber of notice of acceptance of the Subscriber’s subscription.
	 	 	 
	 	(b)	In
    the event of rejection of this subscription, or in the event the sale of the Offered Securities is not consummated by the
    Company for any reason (in which event this Agreement shall be deemed to be rejected), this Agreement and any other agreement
    entered into between the Subscriber and the Company relating to this subscription shall thereafter have no force or effect
    and the Company shall promptly return or cause to be returned to the Subscriber the purchase price remitted to the Company
    by the Subscriber in exchange for the Offered Securities.

 

SECTION
3

 

	Section
    3.1	 	Subscriber
    Representations and Warranties. The Subscriber hereby acknowledges, represents and warrants to, and agrees with, the Company
    and its affiliates as follows:

 

	 	(a)	The
    Subscriber is acquiring the Offered Securities for the Subscriber’s own account as principal, not as a nominee or agent,
    for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof in whole or
    in part and no other person has a direct or indirect beneficial interest in such Offered Securities. Further, the Subscriber
    does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations
    to such person or to any third person, with respect to any of the Securities.
	 	 	 
	  	(b)	The
    Subscriber acknowledges the Subscriber’s understanding that the offering and sale of the Offered Securities is intended
    to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) by virtue of
    Section 4(a)(2) of the Securities Act, the provisions of Rule 506 of Regulation D promulgated under the Securities Act (“Regulation
    D”) and Regulation S promulgated under the Securities Act (“Regulation S”). In furtherance thereof, the
    Subscriber represents and warrants to and agrees with the Company and its affiliates as follows:

 

    	 

    	 

    

 

	 	(i)	The
    Subscriber realizes that the basis for the foregoing exemptions may not be present, if, notwithstanding such representations,
    the Subscriber has in mind merely acquiring Securities for a fixed or determinable period in the future, or for a market rise,
    or for sale if the market does not rise. The Subscriber does not have any such intentions;
	 	 	 
	  	(ii)	The
    Subscriber has the financial ability to bear the economic risk of the Subscriber’s investment, has adequate means for
    providing for the Subscriber’s current needs and personal contingencies and has no need for liquidity with respect to
    the Subscriber’s investment in the Company; and
	 	 	 
	 	(iii)	The
    Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and
    risks of the prospective investment. If other than an individual, the Subscriber also represents it has not been organized
    for the purpose of acquiring the Offered Securities.

 

	(c)		The
    Subscriber represents and warrants to the Company as follows:

 

	 	(i)	The
    Subscriber has been given the opportunity for a reasonable time prior to the date hereof to ask questions of, and receive
    answers from the Company or its representatives concerning the terms and conditions of the Offering, and other matters pertaining
    to this investment, and has been given the opportunity for a reasonable time prior to the date hereof to obtain such additional
    information in connection with the Company in order for the Subscriber to evaluate the merits and risks of purchase of the
    Offered Securities, to the extent the Company possesses such information or can acquire it without unreasonable effort or
    expense; and
	 	 	 
	  	(ii)	The
    Subscriber has not been furnished with any oral representation or oral information in connection with the offering of the
    Offered Securities; and
	 	 	 
	  	(iii)	The
    Subscriber has determined that the Offered Securities are a suitable investment for the Subscriber and that at this time the
    Subscriber could bear a complete loss of the Subscriber’s investment; and
	 	 	 
	  	(iv)	The
    Subscriber is not relying on the Company, or its affiliates with respect to economic considerations involved in this investment;
    and
	 	 	 
	  	(v)	The
    Subscriber realizes that it may not be able to resell readily any of the Securities purchased hereunder because (A) there
    may only be a limited public market for any Securities and (B) none of the Securities have been registered under the “blue
    sky” laws; and
	 	 	 
	  	(vi)	The
    Subscriber understands that the Company has the absolute right to refuse to consent to the transfer or assignment of the Securities
    if such transfer or assignment does not comply with applicable state and federal securities laws; and
	 	 	 
	 	(vii)	No
    representations or warranties have been made to the Subscriber by the Company, or any officer, employee, agent, affiliate
    or subsidiary of any of it, other than the representations of the Company in this Agreement; and
	 	 	 
	 	(viii)	Any
    information which the Subscriber has heretofore furnished to the Company with respect to the Subscriber’s financial
    position and business experience is correct and complete as of the date of this Agreement and if there should be any material
    change in such information the Subscriber will immediately furnish such revised or corrected information to the Company; and
	 	 	 
	 	(ix)	The
    Subscriber has received and reviewed the Company’s Confidential Private Placement Memorandum dated as of August 9, 2013,
    as amended, and has had access to the reports of the Company filed pursuant to the Securities Exchange Act of 1934, as amended;
    and
	 	 	 
	 	(x)	The
    foregoing representations, warranties and agreements shall survive the sale of the Securities and acceptance by the Company
    of the Subscriber’s subscription.

 

    	 

    	 

    

 

SECTION
4

 

The
Company represents and warrants to the Subscriber as follows:

 

	Section
    4.1	 	Organization,
    Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
    the laws of the State of Nevada and has all requisite corporate power and authority to carry on its business as now conducted
    and as proposed to be conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction
    in which the failure to so qualify would have a material adverse effect on the business or properties of the Company and its
    subsidiaries taken as a whole.
	 	 	 
	Section 4.2	 	Authorization.
    All corporate action on the part of the Company, its officers, directors and shareholders necessary for the authorization,
    execution and delivery of this Agreement, the performance of all obligations of the Company hereunder and the authorization,
    issuance (or reservation for issuance) and delivery of the Securities being sold hereunder have been taken, and this Agreement
    constitutes a valid and legally binding obligation of the Company, enforceable in accordance with its terms.
	 	 	 
	Section 4.3	 	Valid
    Issuance of Securities. The Securities, when issued, sold and delivered in accordance with the terms hereof for the consideration
    expressed herein, will be validly issued, and, based in part upon the representations of the Subscriber in this Agreement,
    will be issued in compliance with all applicable U.S. federal and state securities laws.
	 	 	 
	Section 4.4	 	No
    Conflicts. The execution and delivery of this Agreement and the consummation of the issuance of the Securities and the
    transactions contemplated by this Agreement do not and will not conflict with or result in a breach by the Company of any
    of the terms or provisions of, or constitute a default under, the certificate of incorporation or bylaws of the Company, or
    any indenture, mortgage, deed of trust or other material agreement or instrument to which the Company is a party or by which
    it or any of its properties or assets are bound, or any existing applicable decree, judgment or order of any court, Federal
    or State regulatory body, administrative agency or other governmental body having jurisdiction over the Company or any of
    its properties or assets.
	 	 	 
	Section 4.5	 	Compliance
    with Laws. As of the date hereof, the conduct of the business of the Company complies in all material respects with all
    material statutes, laws, regulations, ordinances, rules, judgments, orders or decrees applicable thereto. The Company shall
    comply with all applicable securities laws with respect to the sale of the Securities.

 

SECTION
5 (CANADIAN SECURITIES REQUIREMENTS)

 

If
the Subscriber is a resident of Alberta, Ontario or British Columbia, such Subscriber’s subscription for Offered Securities
is subject to the terms and conditions of this Section 5.

 

	Section
5.1		 Offering Exemption.

 

If
the Subscriber is a resident of Alberta, Ontario or British Columbia, the sale of the Offered Securities by the Company to the
Subscriber is conditional upon such sale being exempt from the requirements as to the filing of a prospectus and as to the preparation
of an offering memorandum contained in any statute, regulation, instrument, rule or policy applicable to the sale of the Offered
Securities or upon the issue of such orders, consents or approvals as may be required to permit such sale without the requirement
of filing a prospectus or delivering an offering memorandum.

 

    	 

    	 

    

 

Section
5.2 Representations and Warranties.

 

By
the Subscriber’s acceptance of this Agreement, the Subscriber represents and warrants to the Company (which representations
and warranties shall survive the Closing) that:

 

	 	●	the
    Subscriber is a resident of Alberta, Ontario or British Columbia and the Subscriber complies with one of the following:

 

(i)
the Subscriber is purchasing as principal or is deemed to be purchasing as principal in accordance with applicable Canadian securities
legislation and meets the definition of “accredited Subscriber” as such term is defined under NI 45-106 and has completed
and signed the Subscriber questionnaire set forth on Annex B; or

 

(ii)
the Subscriber is purchasing as principal and has purchased that number of Offered Securities having an acquisition cost to the
Subscriber of not less than $150,000 to be paid in cash on the date of Closing;

 

	 	●	The
    Subscriber is not a person created or used solely to purchase or hold securities in order to comply with an exemption from
    the prospectus requirements of applicable Canadian securities legislation; and
	 	 	 
	 	●	The
    Subscriber and any beneficial purchaser for whom it is acting is resident in the jurisdiction set out in column (1) on Schedule
    I, such address was not created and is not used solely for the purpose of acquiring the Offered Securities and the Subscriber
    was solicited to purchase in such jurisdiction.

 

Section
5.3 Anti-Money Laundering.

 

The
Subscriber represents and warrants that the funds representing the Purchase Price for the Offered Securities being subscribed
for herein which will be advanced by the Subscriber to the Company hereunder will not represent proceeds of crime for the purposes
of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada)(the “PCMLTFA”) and the Subscriber
acknowledges that the Company may in the future be required by law to disclose the Subscriber’s name and other information
relating to this Agreement and the Subscriber’s subscription hereunder, on a confidential basis, pursuant to PCMLTFA. To
the best of the Subscriber’s knowledge: (a) none of the subscription funds to be provided by the Subscriber (i) have been
or will be derived from or related to any activity that is deemed criminal under the laws of Canada or the United States of America
or any other jurisdiction, or (ii) are being tendered on behalf of a person or entity who has not been identified to the Subscriber;
and (b) it shall promptly notify the Company if the Subscriber discovers that any of such representations ceases to be true, and
to provide the Company with appropriate information in connection therewith.

 

Section
5.4 Ontario Securities Commission Disclosure.

 

If
the Subscriber is resident in Ontario, it acknowledges it has been notified by the Company: (i) of the delivery to the Ontario
Securities Commission (the “OSC”) of the Subscriber’s personal information; (ii) that the Subscriber’s
personal information is being collected indirectly by the OSC under the authority granted to it in the securities legislation;
(iii) the Subscriber’s personal information is being collected for the purposes of the administration and enforcement of
the securities legislation of Ontario; and (iv) the contact information of the public official in Ontario who can answer questions
about the OSC’s indirect collection of personal information is, Administrative Assistant to the Director of Corporate Finance,
Ontario Securities Commission, Suite 1903, Box 5520 Queen Street West, Toronto, Ontario, M5H 3S8, telephone (416) 593-8086, facsimile
(416) 593-8252.

 

	Section
    5.5	 	Stock
    Legends. If the Subscriber is a resident of Alberta, Ontario or British Columbia, in addition to the securities legends
    set forth in Section 3.7, such Subscriber hereby agrees with the Company as follows: the certificates evidencing the Securities
    issued to such Subscriber, and each certificate issued in transfer thereof within the four month period after issuance of
    the Securities, will bear the following or similar legend:

 

    	 

    	 

    

 

UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS
AND A DAY AFTER THE LATER OF (I) [INSERT THE DISTRIBUTION DATE], AND (II) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY
PROVINCE OR TERRITORY OF CANADA.

 

SECTION
6

 

	Section
    6.1	 	Additional
    Representations and Warranties of Non-U.S. Persons. Each Subscriber that is not a U.S. Person (as defined under Regulation
    S), severally and not jointly, further represents and warrants to the Company as follows: (i) at the time of (A) the offer
    by the Company and (B) the acceptance of the offer by such Person, of the Securities, such Person was outside the U.S; (ii)
    no offer to acquire the Securities or otherwise to participate in the transactions contemplated by this Agreement was made
    to such Person or its representatives inside the U.S.; (iii) such Person is not purchasing the Securities for the account
    or benefit of any U.S. Person, or with a view towards distribution to any U.S. Person, in violation of the registration requirements
    of the Securities Act; (iv) such Person will make all subsequent offers and sales of the Securities either (A) outside of
    the U.S. in compliance with Regulation S; (B) pursuant to a registration under the Securities Act; or (C) pursuant to an available
    exemption from registration under the Securities Act; (v) such Person is acquiring the Securities for such Person’s
    own account, for investment and not for distribution or resale to others; (vi) such Person has no present plan or intention
    to sell the Securities in the U.S. or to a U.S. Person at any predetermined time, has made no predetermined arrangements to
    sell the Securities and is not acting as an underwriter or dealer with respect to such securities or otherwise participating
    in the distribution of such securities; (vii) neither such Person, its Affiliates nor any Person acting on behalf of such
    Person, has entered into, has the intention of entering into, or will enter into any put option, short position or other similar
    instrument or position in the U.S. with respect to the Securities at any time after the date of Closing through the one year
    anniversary of the date of Closing except in compliance with the Securities Act; (viii) such Person consents to the placement
    of a legend on any certificate or other document evidencing the Securities as required under applicable law (ix) such Person
    is not acquiring the Securities in a transaction (or an element of a series of transactions) that is part of any plan or scheme
    to evade the registration provisions of the Securities Act.
	 	 	 
	Section 6.2	 	Opinion.
    Such Subscriber will not transfer any or all of such Subscriber’s Securities pursuant to Regulation S or absent an effective
    registration statement under the Securities Act and applicable state securities law covering the disposition of such Subscriber’s
    Securities, without first providing the Company with an opinion of counsel (which counsel and opinion are reasonably satisfactory
    to the Company) to the effect that such transfer will be made in compliance with Regulation S or will be exempt from the registration
    and the prospectus delivery requirements of the Securities Act and the registration or qualification requirements of any applicable
    U.S. state securities laws

 

SECTION
7

 

	Section
    7.1	 	Indemnity.
    The Subscriber agrees to indemnify and hold harmless the Company, its officers and directors, employees and its affiliates
    and each other person, if any, who controls any thereof, against any loss, liability, claim, damage and expense whatsoever
    (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending
    against any litigation commenced or threatened or any claim whatsoever) arising out of or based upon any false representation
    or warranty or breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber herein
    or in any other document furnished by the Subscriber to any of the foregoing in connection with this transaction.
	 	 	 
	Section 7.2	 	Modification.
    Neither this Agreement nor any provisions hereof shall be waived, amended, modified, discharged or terminated except by an
    instrument in writing signed by the party against whom any waiver, amendment, modification, discharge or termination is sought.
	 	 	 
	Section 7.3	 	Notices.
    Any notice, demand or other communication which any party hereto may be required, or may elect, to give to anyone interested
    hereunder shall be in writing and shall be deemed given when (a) deposited, postage prepaid, in a United States mail letter
    box, registered or certified mail, return receipt requested, addressed to such address as may be given herein, or (b) delivered
    personally, to the other party hereto at their address set forth in this Agreement or such other address as a party hereto
    may request by notifying the other party hereto.

 

    	 

    	 

    

 

	Section
    7.4	 	Counterparts.
    This Agreement may be executed through the use of separate signature pages or in any number of counterparts, and each of such
    counterparts shall, for all purposes, constitute one agreement binding on all parties, notwithstanding that all parties are
    not signatories to the same counterpart.
	 	 	 
	Section 7.5	 	Binding
    Effect. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of the parties
    and their heirs, executors, administrators, successors, legal representatives and assigns. If the Subscriber is more than
    one person, the obligation of the Subscriber shall be joint and several and the agreements, representations, warranties and
    acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and his heirs, executors,
    administrators and successors.
	 	 	 
	Section
    7.6	 	Entire
    Agreement. The Exhibits attached hereto are hereby incorporated herein by reference. This Agreement together with the
    Annex and Exhibits contains the entire agreement of the parties and there are no representations, covenants or other agreements
    except as stated or referred to herein.
	 	 	 
	Section
    7.7	 	Assignability.
    This Agreement is not transferable or assignable by the Subscriber except as may be provided herein.
	 	 	 
	Section
    7.8	 	Applicable
    Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York.
	 	 	 
	Section
    7.9	 	Amendments.
    The provisions of this Agreement may be amended at any time and from time to time, and particular provisions of this Agreement
    may be waived, with and only with an agreement or consent in writing signed by the Company and by the Subscribers currently
    holding fifty percent (50%) of the aggregate principal amount of the outstanding Notes as of the date of such amendment or
    waiver.
	 	 	 
	Section
    7.10	 	Neutral
    Gender. The use in this Agreement of words in the male, female or neutral gender are for convenience only and shall not
    affect or control any provisions of this Agreement.
	 	 	 
	Section 7.11	 	Captions.
    The Section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning
    or interpretation of this Agreement.

 

[Subscription
signature pages follow]

 

    	 

    	 

    

 

	A.	SUBSCRIPTION:

 

Principal
Amount of Note = $1,000,000.

 

	B.	MANNER
    IN WHICH TITLE IS TO BE HELD (Please check One):

 

	1.	[  ]	Individual	7.	[  ]	Trust/Estate/Pension
        or Profit Sharing Plan, and

        Date
        Opened: _______________

	 	 	 	 	 	 
	2.	[  ]	Joint
    Tenants with Rights of Survivorship	8.	[  ]	As
        a Custodian for ___________

        ___________________________

        UGMA
        ____________ (State)

	 	 	 	 	 	 
	3.	[  ]	Community
    Property	 	 	 
	 	 	 	 	 	 
	4.	[  ]	Tenants
    in Common	9.	[  ]	Married
    with Separate Property
	 	 	 	 	 	 
	5.	[  ]	Corporation/Partnership	10.	[  ]

	Keogh
	 	 	 	 	 	 
	6.	[  ]	IRA	11.	[  ]	Tenants
    by the Entirety
	 	 	 	 	 	 
	12.	Other		 	 	 

 

	C.	ACCREDITED
    INVESTOR REPRESENTATION:

 

Subscriber
must complete and sign the Accredited Investor Questionnaire attached as Annex A and Annex B (for Canadian Subscribers only) to
this Agreement.

 

    	 

    	 

    

 

	D.	TITLE:

 

PLEASE
GIVE THE EXACT AND COMPLETE NAME IN WHICH TITLE TO THE SECURITIES ARE TO BE HELD: Heddle Marine Service Inc.

____________________________________________________________________

____________________________________________________________________

 

IN
WITNESS WHEREOF, the Subscriber has executed this Agreement on the 19th day of November, 2014.

 

Heddle
Marine Service Inc.

 

	Signature:
    	/S/
    Richard Heddle	 	Signature:
	Name:
    	Richard Heddle	 	Name:
	Title:	President	 	 

 

Address On File with Plastic2Oil, Inc.

 

***DO
NOT WRITE BELOW DOTTED LINE***

 

ACCEPTED
ON BEHALF OF THE COMPANY:

 

	PLASTIC2OIL, INC.	 	 	
	By:	/S/
                                         Rahoul Banerjea

        

        
	 	Principal
    Amount of Notes:	$1,000,000
    
	Name:	Rahoul Banerjea	 	No. of Warrants:	1,000,000
	Title:	Chief Financial OfficerExhibit
10.19

 

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR APPLICABLE STATE
SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR PURSUANT TO
AN EXEMPTION THEREFROM UNDER THE SECURITIES ACT AND SUCH STATE LAWS, SUPPORTED BY AN OPINION OF COUNSEL, REASONABLY SATISFACTORY
TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

12%
SECURED PROMISSORY NOTE

DUE
NOVEMBER 19, 2019

 

	No.
    2014-1	 	 
	$1,000,000	 	November
    19, 2014

 

FOR
VALUE RECEIVED, PLASTIC2OIL, INC., a Nevada corporation (herein called the “Company”), for value received hereby promises
to pay on November 19, 2019, to Heddle Marine Service Inc., with an address at 208 Hillyard St., Hamilton, Ontario, Canada L8L
6B6 (herein called the “Holder”), the principal sum of One Million Dollars ($1,000,000), together with interest upon
the principal hereof at the rate of 12% per annum. Interest on this Note shall be compounded annually and shall accrue on the
outstanding principal amount on this Note from the date of issuance until the date of repayment of the principal and payment of
accrued interest in full. Interest shall be calculated on the basis of a 365 day year and shall be payable at maturity. Payments
hereunder shall be made at such place as the holder hereof shall designate to the undersigned, in writing, in lawful money of
the United States of America. Any payment which becomes due on a Saturday, Sunday or legal holiday shall be payable on the next
business day.

 

This
Note shall, (i) upon declaration by the Holder or (ii) automatically upon acceleration pursuant to clause (c) below, become immediately
due and payable upon the occurrence of any of the following specified events of default:

 

	(a)	If
        the Company shall default in the due and punctual payment of the principal amount of this Note when and as the same shall
        become due and payable, whether at maturity or by acceleration; or

        

	 	 
	(b)	If
        the Company shall default in the due and punctual payment of interest on this Note when the same shall become due and
        payable; or

        

	 	 
	(c)	If
    the Company shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect
    to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment
    of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, or
    shall consent to any such relief or to the appointment of or taking of possession by any such official in an involuntary case
    or other proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall take any
    corporate action to authorize any of the foregoing; or an involuntary case or other proceeding shall be commenced against
    the Company seeking liquidation, reorganization or other relief with respect to it or its debts under any bankruptcy, insolvency
    or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or
    other similar official of it or any substantial part of its property, and such involuntary case or other proceeding shall
    remain undismissed or unstayed for a period of 60 consecutive days; or
	 	 
	(d)	Company
        defaults in the performance of any covenant or other provision with respect to this Note or any other agreement between
        Company and the Holder or the Collateral Agent (as defined in the Security Agreement referred to below); or

        

	 	 
	(e)	Company
        fails to pay when due (whether at the stated maturity, by acceleration or otherwise) any indebtedness for borrowed money
        owing to the Holder (other than under this Note), any third party or the occurrence of any event which could result in
        acceleration of payment of any such indebtedness or the failure to perform any agreement with any third party; or

        

	 	 
	(f)	any
                                                                              representation or warranty made in this Note, any related document, any agreement between Company and the Holder or the
                                                                              Collateral Agent or in any financial statement of Company proves to have been misleading in any material respect when made;
                                                                              Company omits to state a material fact necessary to make the statements made in this Note, any related document, any
                                                                              agreement between Company and the Holder or the Collateral Agent or any financial statement of Company not misleading in
                                                                              light of the circumstances in which they were made; or, if upon the date of execution of this Note, there shall have been any
                                                                              material adverse change in any of the facts disclosed in any financial statement, representation or warranty that was not
                                                                              disclosed in writing to the Holder at or prior to the time of execution hereof; or

        

 

    	 

    	 

    

 

	(g)	any
        pension plan of Company fails to comply with applicable law or has vested unfunded liabilities that, in the opinion of
        the Holder, might have a material adverse effect on Company’s ability to repay its debts; or

        

	 	 
	(h)	if
        the validity of this Note or any mortgage, pledge agreement, security agreement or any other collateral agreement, including
        without limitation the Security Agreement, shall have been challenged or disaffirmed by or on behalf of any of such parties
        thereto; or if, other than as a direct result of any action or inaction of the Holder, the liens created or intended to
        be created by any such collateral agreements shall at any time cease to be valid and perfected first priority liens in
        favor of Holder’s collateral agent, subject to no equal or prior liens.

        

 

Declaration
of this Note being immediately due and payable by the Holder may only be made by written notice to the Company declaring the unpaid
balance of the principal amount of this Note and accrued interest thereon to be due. Such declaration shall be deemed given upon
the occurrence of any event specified in clause (c) above. In the event of a default, all costs of collection, including reasonable
attorneys’ fees, shall be paid by the Company.

 

This
Note may be prepaid by the Company in whole or in part at any time or from time to time without penalty or premium. This Note
is not assignable by the holder hereof and any such purported assignment shall be null and void.

 

The
Company for itself and its successors and assigns hereby waives presentment, demand, notice, protest and all other demands and
notices in connection with the delivery, acceptance, performance or endorsement of this Note, and agrees that this Note shall
be deemed to have been made under, and shall be interpreted and governed by reference to, the laws of the State of New York.

 

Except
as expressly agreed in writing by the Holder, no extension of time for payment of this Note, or any installment hereof, and no
alteration, amendment or waiver of any provision of this Note shall release, discharge, modify, change or affect the liability
of the Company under this Note.

 

All
of the covenants, stipulations, promises and agreements made by or contained in this Note on behalf of the undersigned shall bind
its successors, whether so expressed or not.

 

No
failure on the part of the Holder to exercise, and no delay in exercising, any right under this Note shall operate as a waiver
thereof, nor shall any single or partial exercise of such rights preclude any other or further exercise thereof or the exercise
of any other right.

 

It
is the intention of the Company and the Holder that all payments due hereunder will be treated for accounting and tax purposes
as indebtedness of the Company to the Holder. Each of the Company and the Holder agrees to report such payments due hereunder
for the purposes of all taxes in a manner consistent with such intended characterization.

 

If
any term or provision of this Note shall be held invalid, illegal or unenforceable, the validity of all other terms and provisions
herein shall in no way be affected thereby.

 

The
Company’s obligations under this Note shall be secured pursuant to that certain Security Agreement, dated as of August 29,
2013 (the “Security Agreement”), by the Company and certain of its subsidiaries, each as grantor, in favor of the
Collateral Agent for the benefit of the purchasers of 12% secured promissory notes of like tenor issued by the Company, including
Mr. Richard Heddle, personally, as purchaser of 12% secured promissory notes in August or September of 2013 in an aggregate principal
amount of $2 million (this Note and such other notes are collectively, the “12% Company Notes”). The Company’s
obligations under this Note and the other 12% Company Notes are also secured by each of the following agreements made in favor
of the holders of 12% Company Notes by the Company (and if requested by the Collateral Agent or the Holder, one or more of its
subsidiaries) (the “Additional Collateral Documents”):

 

	(a)	mortgages
        in the Company’s (or one of its subsidiaries’, as applicable) real properties located in Niagara Falls, New
        York;

        

	 	 
	(b)	one
or more intellectual property security agreements covering material intellectual property owned by the Company (or one of its
subsidiaries, as applicable).

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be signed in its corporate name by its Chief Financial Officer as of the
date hereinabove set forth.

 

	 	PLASTIC2OIL,
    INC.
	 	 	 
	 	By:	/S/
    Rahoul     Banerjea
	 	Name:	Rahoul
    Banerjea
	 	Title:	Chief
    Financial Officer

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