Document:

Exhibit
10.3 

 

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

 

	Original
    Issue Date: FEBUARY 4, 2016	$
    1,365,000.00

 

sionix
corporation

AMENDED
AND RESTATED

12%
CONVERTIBLE NOTE

 

THIS
Note is one of a series of duly authorized and validly issued twelve percent (12.00%) Convertible Notes of Sionix Corporation,
a Nevada corporation, (the “Company”), having its principal place of business at 2010 North Loop Freeway West,
Suite 110, Houston, Texas 77018, designated as its twelve percent (12.00)% Convertible Notes (this “Note”,
the “Notes” and, collectively with the other Notes of such series, the “Convertible Notes”).

 

FOR
VALUE RECEIVED, the Company promises to pay to the order of Steelworks Investments Limited or its registered assigns (the
“Holder”), or shall have paid pursuant to the terms hereunder, the principal sum of One-Million Three-Hundred
Sixty-Five Thousand Dollars ($1,365,000.00) on December 4, 2020 (the “Maturity Date”) or such
earlier date as this Note is required or permitted to be repaid as provided hereunder, and to pay interest to the Holder on the
aggregate unconverted and then outstanding principal amount of this Note in accordance with the provisions hereof. This Note is
subject to the following additional provisions:

 

Section
1.         Definitions. For the purposes hereof, in addition to the
terms defined elsewhere in this Note, the following terms shall have the following meanings:

 

“Alternate
Consideration” shall have the meaning set forth in Section 5(c).

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in
Rule 1-02 (w) of Regulation S-X), thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the
Company or any Significant Subsidiary thereof; (b) there is commenced against the Company or any Significant Subsidiary thereof
any such case or proceeding that is not dismissed within 60 days after commencement; (c) the Company or any Significant Subsidiary
thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered;
(d) the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial
part of its property that is not discharged or stayed within 60 calendar days after such appointment; (e) the Company or any Significant
Subsidiary thereof makes a general assignment for the benefit of creditors; (f) the Company or any Significant Subsidiary thereof
calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or (g) the
Company or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of or
acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which shall be a federal legal holiday in the United States
or any day on which banking institutions in the State of Texas are authorized or required by law or other governmental action
to close.

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (i) an acquisition after the date hereof
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act)
of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise)
of in excess of 51% of the voting securities of the Company (other than by means of conversion or exercise of the Note and the
Securities issued together with the Note), or (ii) the Company merges into or consolidates with any other Person, or any Person
merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders of the Company immediately
prior to such transaction own less than 66% of the aggregate voting power of the Company or the successor entity of such transaction,
or (iii) the Company sells or transfers all or substantially all of its assets to another Person and the stockholders of the Company
immediately prior to such transaction own less than 66% of the aggregate voting power of the acquiring entity immediately after
the transaction, or (iv) the execution by the Company of an agreement to which the Company is a party or by which it is bound,
providing for any of the events set forth in clauses (i) through (iii) above.

 

    	 	1	 

     

    

 

“Conversion
Date” shall have the meaning set forth in Section 4(a).

 

“Conversion
Price” shall have the meaning set forth in Section 4(c).

 

“Conversion
Shares” means, collectively, the shares of Series A Convertible Preferred Stock (“Preferred Stock”)
issued or issuable upon conversion of this Note in accordance with the terms hereof, and included as Attachment B, including without
limitation shares of Preferred Stock issued or issuable as interest or in payment of principal hereunder or as damages under this
document. Each share of Preferred Stock is convertible to 5,000 shares of common stock of the Company, independent of and without
taking into account of and regardless of, the then current market price of a share of the Company’s common stock on the
Conversion Date.

 

“Note
Register” shall have the meaning set forth in Section 2(c).

 

“Event
of Default” shall have the meaning set forth in Section 8.

 

“Fundamental
Transaction” shall have the meaning set forth in Section 5(b).

 

“Mandatory
Default Amount” means the sum of the outstanding principal amount of this Note, plus all accrued and unpaid interest
hereon.

 

“Notice
of Conversion” shall have the meaning set forth in Section 4(a).

 

“Original
Issue Date” means the date of the first issuance of the Note, regardless of any transfers of any Note and regardless
of the number of instruments which may be issued to evidence such Note.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Share
Delivery Date” shall have the meaning set forth in Section 4(e).

 

“Texas
Courts” shall have the meaning set forth in Section 9(d).

 

“Voting
Rights” shall mean that each holder of the Convertible Notes shall have the right to that number of votes equal to the
number of shares of Common Stock issuable upon conversion of the Preferred Stock, the Preferred Stock being issuable in accordance
with the terms and conditions of the Convertible Notes, and shall vote with the Common Stock.

 

Section
2.           Interest.

 

a)          Interest
Rate. Interest shall be charged daily on the outstanding principal amount of this Note at a rate per annum equal to 12% for
years 1 through 3, 15% for year 4 and 20% for year 5.

 

b)          Payment
of Interest. Interest shall be payable annually in arrears on December 4th of each year. The Company will have the option
to pay interest in cash or, with the approval of the Holder, by the issuance of Preferred Stock. The first Payment of Interest
will be December 4, 2016.

 

c)          Interest
Calculations. Interest shall be calculated on the basis of a 365-day year and actual days elapsed. Interest hereunder will
be paid to the Person in whose name this Note is registered on the records of the Company regarding registration and transfers
of this Note (the “Note Register”).

 

Section
3.            Registration of Transfers and Exchanges.

 

a)          Investment
Representations. This Note has been issued subject to certain investment representations of the original Holder and may be
transferred or exchanged only in compliance with applicable federal and state securities laws and regulations.

 

b)          Reliance
on Note Register. Prior to due presentment for transfer to the Company of this Note, the Company and any agent of the Company
may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving
payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor any such
agent shall be affected by notice to the contrary.

 

    	 	2	 

     

    

 

Section
4.           Conversion.

 

a)          Voluntary
Conversion. At any time from the Original Issue Date, until this Note is no longer outstanding, this Note shall be convertible,
in whole or in part, into shares of Series A Preferred Stock at the option of the Holder, at any time. The Holder shall effect
conversions by delivering to the Company a Notice of Conversion, the form of which is attached hereto as Attachment A (a
“Notice of Conversion”), specifying therein the principal amount of this Note to be converted and the date
on which such conversion shall be effected (such date, the “Conversion Date”). If no Conversion Date is specified
in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is deemed delivered hereunder.
To effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the
entire principal amount of this Note, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder
shall have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion.
The Holder and the Company shall maintain records showing the principal amount(s) converted and the date of such conversion(s).
The Company may deliver an objection to any Notice of Conversion within one (1) Business Day of delivery of such Notice of Conversion.
In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of
manifest error. 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 may
be less than the amount stated on the face hereof.

 

b)          Early
Redemption. The Holder may elect to redeem this Note for Preferred Stock at any time.

 

c)          Conversion
Price. The “Conversion Price” shall equal $20.00 per Preferred Share.

 

d)
        Conversion Limitation – Holder’s Restriction on Conversion.

 

As
of the date of this Note, the Company does not have sufficient shares of common stock to allow for the issuance of, or have sufficient
shares to satisfy the conversion privileges of the Preferred Stock. The Company agrees that as soon as practicable it will cause
its Articles of Incorporation to be amended to provide for such shares to satisfy the conversion privileges of the Preferred Stock.

 

e)          Mechanics
of Conversion.

 

i.              Delivery
of Certificate upon Conversion. Not later than ten Trading Days after each Conversion Date (the “Share Delivery Date”),
the Company shall deliver, or cause to be delivered, to the Holder a certificate or certificates representing the Conversion Shares.

 

ii.             Failure
to Deliver Certificates. If in the case of any Notice of Conversion such certificate or certificates are not delivered to
or as directed by the applicable Holder by the third Trading Day after the Conversion Date, the Holder shall be entitled to elect
by written notice to the Company at any time on or before its receipt of such certificate or certificates, to rescind such Conversion,
in which event the Company shall promptly return to the Holder any original Note delivered to the Company and the Holder shall
promptly return to the Company the Preferred Stock certificates representing the principal amount of this Note unsuccessfully
tendered for conversion to the Company.

 

iii.            Reservation
of Shares Issuable Upon Conversion. The Company covenants that it will at all times reserve and keep available out of its
authorized and unissued shares of Preferred Stock for the sole purpose of issuance upon conversion of this Note and payment of
interest on this Note, each as herein provided, free from preemptive rights or any other actual contingent purchase rights of
Persons other than the Holder (and the other holders of the Note), not less than such aggregate number of shares of the Preferred
Stock as shall be issuable (taking into account the adjustments of Section 5) upon the conversion of the outstanding principal
amount of this Note and payment of interest hereunder. The Company covenants that all shares of Preferred Stock that shall be
so issuable shall, upon issue, be duly authorized, validly issued and fully paid.

 

iv.           Fractional
Shares. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Note. As
to any fraction of a share which Holder would otherwise be entitled to purchase upon such conversion, the Company shall at its
election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the
Conversion Price or round up to the next whole share.

 

v.            Transfer
Taxes. The issuance of certificates for shares of the Preferred Stock on conversion of this Note shall be made without charge
to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such
certificates, provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved
in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of this Note and
the Company shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that
such tax has been paid.

 

    	 	3	 

     

    

 

Section
5.           Certain Adjustments.

 

a)          Distributions.
The Company may not, at any time while this Note is outstanding, make a distribution of any kind to any class of holders of any
class of the Company’s stock other than the Preferred Stock.

 

b)          Fundamental
Transaction. If, at any time while this Note is outstanding, (A) the Company effects any merger or consolidation of the Company
with or into another Person, (B) the Company effects any sale of all or substantially all of its assets in one transaction or
a series of related transactions, (C) any tender offer or exchange offer (whether by the Company or another Person) is completed
pursuant to which holders of Preferred Stock are permitted to tender or exchange their shares for other securities, cash or property,
or (D) the Company effects any reclassification of the Preferred Stock or any compulsory share exchange pursuant to which the
Preferred Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental
Transaction”), then, upon any subsequent conversion of this Note, the Holder shall have the right to receive, for each
Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction,
the same kind and amount of securities, cash or property as it would have been entitled to receive upon the occurrence of such
Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of one (1) share of Preferred
Stock (the “Alternate Consideration”). For purposes of any such conversion, the determination of the Conversion
Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one (1) share of Preferred Stock in such Fundamental Transaction, and the Company shall apportion the Conversion
Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the
Alternate Consideration. If holders of Preferred Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any conversion of this Note following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions,
any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new Note consistent
with the foregoing provisions and evidencing the Holder’s right to convert such Note into Alternate Consideration. The terms
of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving
entity to comply with the provisions of this Section 5(e) and insuring that this Note (or any such replacement security) will
be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

c)          Calculations.
All calculations under this Section 5 shall be made to four decimal places or the nearest 1/100th of a share, as the case may
be. For purposes of this Section 5, the number of shares of Preferred Stock deemed to be issued and outstanding as of a given
date shall be the sum of the number of shares of Preferred Stock (excluding any treasury shares of the Company) issued and outstanding.

 

Section 6.         Prepayment / Early Redemption. The Company can
prepay this Note in full or in part at any time for cash, and must give the Holder Notice, of thirty (30) days, in accordance
with Section 9(a) of the Note of intent to redeem for any amount.

 

Section
7.            Negative Covenants. As long as any portion
of this Note remains outstanding, unless the Holder has otherwise given prior written consent, the Company shall not, and shall
not permit any of its subsidiaries (whether or not a Subsidiary on the Original Issue Date) to, directly or indirectly:

 

a)          amend
its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially
and adversely affects any rights of the Holder, other than to increase the number of shares of common stock authorized;

 

b)          repay,
repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Preferred Stock or
Preferred Stock Equivalents;

 

c)          pay
cash dividends or distributions on any equity securities of the Company other than the Preferred Stock; or

 

d)          enter
into any agreement with respect to any of the foregoing.

 

Section
8.            Events of Default.

 

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

 

i.              any
default in the payment of (A) the principal amount of any Note or (B) interest, liquidated damages and other amounts owing to
a Holder on any Note, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity Date or
by acceleration or otherwise) which default, solely in the case of an interest payment or other default under clause (B) above,
is not cured within 3 Trading Days;

 

    	 	4	 

     

    

 

ii.             the
Company shall fail to observe or perform any other covenant or agreement contained in the Note (other than a breach by the Company
of its obligations to deliver shares of Preferred Stock to the Holder upon conversion, which breach is addressed in clause (xi)
below) which failure is not cured, if possible to cure, within the earlier to occur of (A) 5 Trading Days after notice of such
failure sent by the Holder or by any other Holder and (B) 10 Trading Days after the Company has become or should have become aware
of such failure;

 

iii.            a
default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument)
shall occur under this document;

 

iv.            any
representation or warranty made in this Note which shall be untrue or incorrect in any material respect as of the date of this
Note;

 

v.             the
Company or any Significant Subsidiary shall be subject to a Bankruptcy Event;

 

b)          Remedies
Upon Event of Default. If any Event of Default occurs, the outstanding principal amount of this Note plus accrued but unpaid
interest, liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become, at the
Holder’s election, immediately due and payable in cash at the Mandatory Default Amount. After the occurrence of any Event
of Default, the interest rate on this Note shall accrue at an interest rate equal to the maximum rate permitted under applicable
law. Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly surrender this Note to or as directed
by the Company. In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives,
any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace
period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such
acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights
as a holder of the Note until such time, if any, as the Holder receives full payment pursuant to this Section 8(b). No such rescission
or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

Section
9.           Miscellaneous.

 

a)          Notices.
Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation,
any Notice of Conversion, shall be in writing and delivered personally, by facsimile, by email, or sent by a nationally recognized
overnight courier service, addressed to the Company, at the address set forth above, or such other facsimile number, email address
or mailing address as the Company may specify for such purpose by notice to the Holder delivered in accordance with this Section
9. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered
personally, by facsimile, by email or sent by a nationally recognized overnight courier service addressed to each Holder at the
facsimile number or address of the Holder appearing on the books of the Company, or if no such facsimile number or address appears,
at the principal place of business of the Holder. Except as may otherwise be provided herein, any notice or other communication
or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of receipt, if such notice or communication
is delivered via facsimile or by email prior to 5:30 p.m. (Houston, Texas time) (ii) the date of receipt, if sent by U.S. nationally
recognized overnight courier service, or (iii) upon actual receipt by the party to whom such notice is required to be given. The
address, facsimile and email address for such notices and communications shall be as set forth on the signature pages.

 

b)          Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this
Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the
Company. This Note ranks pari passu with all other Notes now or hereafter issued under the terms set forth herein.

 

c)          Lost
or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed
Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence
of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.

 

    	 	5	 

     

    

 

d)          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by
and construed and enforced in accordance with the internal laws of the State of Texas, without regard to the principles of conflict
of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions
contemplated by this document (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders,
employees or agents) shall be commenced in the state and federal courts sitting in the County of Harris (the “Texas Courts”).
Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Texas Courts for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to
the enforcement of this document), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of such Texas Courts, or such Texas Courts are improper or inconvenient
venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating
to this Note or the transactions contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions
of this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable
attorney’s fees and other costs and expenses reasonably incurred in the investigation, preparation and prosecution of such
action or proceeding.

 

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

 

f)           Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any
provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances.
If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury,
the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under
applicable law. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead,
or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would
prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Note as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture,
and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants
that it will not, by resort to any such law, hinder, delay or impeded the execution of any power herein granted to the Holder,
but will suffer and permit the execution of every such as though no such law has been enacted.

 

g)          Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day.

 

h)          Headings.
The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit
or affect any of the provisions hereof.

 

i)           Assumption. 
Any successor to the Company or any surviving entity in a Fundamental Transaction shall (i) assume, prior to such Fundamental
Transaction, all of the obligations of the Company under this Note and the other documents pursuant to written agreements in form
and substance satisfactory to the Holder (such approval not to be unreasonably withheld or delayed) and (ii) issue to the Holder
a new Note of such successor entity evidenced by a written instrument substantially similar in form and substance to this Note,
including, without limitation, having a principal amount and interest rate equal to the principal amount and the interest rate
of this Note and having similar ranking to this Note, which shall be satisfactory to the Holder (any such approval not to be unreasonably
withheld or delayed).  The provisions of this Section 9(i) shall apply similarly and equally to successive Fundamental Transactions
and shall be applied without regard to any limitations of this Note.

 

j)           Usury.
This Note shall be subject to the anti-usury limitations in the state of Texas.

 

 

*********************

 

    	 	6	 

     

    

 

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

 

	 	SIONIX
    CORPORATION    
	 	 
	 	By:	/s/
    Henry W. Sullivan
	 	 	Name:  Henry
    W. Sullivan
	 	 	Title:
                                            President & Chief Executive Officer

        

 

	 	Steelworks
    investments, limited    
	 	 
	 	By: 	/s/
    Jeffrey C. Leo
	 	 	Name:  Jeffrey
    C. Leo
	 	 	Title:    President
    & Director

 

    	 	7	 

     

    

 

ATTACHMENT
A

 

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert principal under the 12% Convertible Note due December 4, 2020 of Sionix Corporation, a Nevada
corporation (the “Company”), into shares of Preferred stock (the “Preferred Stock”), of
the Company according to the conditions hereof, as of the date written below. If shares of Preferred Stock are to be issued in
the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and
is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will
be charged to the holder for any conversion, except for such transfer taxes, if any.

 

By
the delivery of this Notice of Conversion the undersigned represents and warrants to the Company that its ownership of the Preferred
Stock does not exceed the amounts specified, as determined in accordance with Section 13(d) of the Exchange Act.

 

The
undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with
any transfer of the aforesaid shares of Preferred Stock pursuant to any prospectus.

 

	Conversion
    calculations:	 
	 	Date
    to Effect Conversion:                                                                       
	 	 
	 	Principal
    Amount of Note to be Converted:                                           
	 	 
	 	Number
    of shares of Preferred Stock to be issued:                                
	 	 
	 	Signature:
                                                                                                        
	 	 
	 	Name:
                                                                                                                
	 	 
	 	Address
    for Delivery of Preferred Stock Certificates:                               
	 	 
	 	                                                                                                                            
	 	 
	 	                                                                                                                         
	 	 
	 	Or
	 	 
	 	DWAC
    Instructions:
	 	 
	 	Broker
    No:                              
	 	 
	 	Account
    No:Exhibit 10.4

 

CERTIFICATE OF DESIGNATIONS, PREFERENCES
AND

RIGHTS OF SERIES A CONVERTIBLE PREFERRED
STOCK

 

The undersigned President
and Secretary of SIONIX CORPORATION, a Nevada corporation (the “Company”), certifies effective as of this 3rd
day of September, 2013, that pursuant to authority granted to and vested in the Board of Directors of the Company by the provisions
of the Articles of Incorporation and in accordance with the provisions of the Nevada Revised Statutes, its Board of Directors has
duly adopted the following resolutions creating the Series A Convertible Preferred Stock:

 

RESOLVED, that pursuant
to the authority vested in the Board of Directors of the Company by Article 4-Capital Stock of the Company’s Articles of
Incorporation, as amended, a series of preferred stock of the Company be, and it hereby is, created out of the authorized but unissued
shares of the capital stock of the Company, such series to be designated Series A Convertible Preferred Stock (the “SACPS”),
to consist of Five Hundred Thousand (500,000) shares of Preferred Stock, $.0001 par value, with a stated value of Twenty dollars
($20.00) per share (the “Stated Value”), of which the preferences and relative and other rights, and the qualifications,
limitations or restrictions thereof, shall be (in addition to those set forth in the Company’s Articles of Incorporation)
as follows:

 

1.           Dividends and Distributions.

 

a.         Holders of the SACPS shall be entitled
to receive cumulative preferential dividends equal to 10% per annum of the Stated Value per share of the SACPS. Dividends shall
be payable in arrears when and as declared by the Board of Directors. Dividends shall accrue quarterly on the last day of every
March, June, September and December and shall compound on December 31 of each calendar year, in each case whether or not there
are profits, surplus or other funds of the Company legally available for the payment of dividends from the date of original issuance
of such shares. The shares of SACPS are expected to be issued in exchange for Twenty dollars ($20.00) per share, for a minimum
of One Hundred Thousand dollars ($100,000.00) per unit. Dividends may be paid in cash or in kind with Common Stock; at the discretion
of the Company’s Board of Directors.

 

b.         All accrued but unpaid dividends
shall become immediately due and payable upon an underwritten public offering of Common Stock of the Company registered pursuant
to the Securities Act of 1933 (the “Securities Act”) and resulting in gross cash proceeds (before discounts
and commissions) of at least $25 million to the Company and a post-offering market capitalization of the Company of at least
$100 million (a “Qualified Public Offering”).

 

c.         So long as any shares of the SACPS
are outstanding and unless otherwise approved by the holders of a majority of the outstanding shares of SACPS, no dividends shall
be declared or paid or set apart for payment or other distribution declared or made upon any equity securities, including any rights
or options exercisable for or convertible into any such securities of the Company, including the Common Stock (collectively the
“Junior Securities”), nor shall any Junior Securities be redeemed, purchased or otherwise acquired for any consideration
(or any moneys be paid to or made available for a sinking fund for the redemption of any shares of any Junior Securities) by the
Company, directly or indirectly.

 

2.           Voting Rights. In addition to
the voting rights of the SACPS required by law, each holder of shares of SACPS shall be entitled to the number of votes equal in
the aggregate to the number of votes to which the number of whole shares of Common Stock into which such shares of SACPS held by
such holder are convertible would be entitled, at each meeting of the shareholders of the Company (and for purposes of written
actions of shareholders in lieu of meetings) with respect to any and all matters presented to the shareholders of the Company for
their action or consideration, and shall be entitled to notice of any shareholders’ meeting in accordance with the bylaws
of the Company. Except as otherwise provided herein or required by law, holders of shares of SACPS shall vote with the holders
of shares of Common Stock and any other class of stock entitled to vote and not as a separate class. Except as otherwise provided
herein and required by applicable law, any class vote shall be determined by the holders of a majority of the shares of capital
stock of such class voting as of the applicable record date.

 

3.           Certain Transactions. Without
the written consent of a majority of the outstanding shares of SACPS or the vote of holders of a majority of the outstanding shares
of SACPS at a meeting of the holders of SACPS called for such purpose and subject to any other contractual obligations of the Company,
the Company will not (i) merge, consolidate or liquidate, or sell, exchange or convey all or substantially all of the assets, property
or business of the Company; (ii) enter into any transaction that results in a deemed liquidation, dissolution or winding up of
the Company pursuant to Section 5b; or (iii) enter into any transaction or agreement with any affiliate of the Company
that is not in the ordinary course of the Company’s business or that is on terms different than would be achieved in an arm’s
length negotiation of such agreement or transaction.

 

4.           Redemption. The SACPS are not
redeemable.

 

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5.           Liquidation Preference.

 

a.         In the event of any liquidation,
dissolution or winding up of the Company, whether voluntary or involuntary, before any payment or distribution of the assets of
the Company (whether capital or surplus) shall be made to or set apart for the holders of any Junior Securities, the holders of
the shares of SACPS shall be entitled to receive (i) first, an amount in cash equal to any accrued and unpaid dividends to
the date of distribution and (ii) second, the greater of (1) the Stated Value of each share of SACPS or (2) an amount
equal in the aggregate to the payments or distributions to which such holder would be entitled if such holder had converted such
shares of SACPS into the number of whole shares of Common Stock into which such shares of SACPS are convertible (as adjusted from
time to time pursuant to Section 6 hereof). Unless otherwise agreed to by holders of a majority of the outstanding shares
of SACPS, any accrued or unpaid dividends payable upon the liquidation, dissolution or winding up of the Company shall be payable
in cash only. Except as provided in the preceding sentence, holders of shares of SACPS shall not be entitled to any distribution
in the event of liquidation, dissolution or winding up of the affairs of the Company. If, upon any liquidation, dissolution or
winding up of the Company, the assets of the Company, or proceeds thereof, distributable among the holders of the shares of SACPS
shall be insufficient to pay in full the preferential amount aforesaid and liquidating payments on any equity security issued by
the Company providing for a liquidation preference on parity with the SACPS, then such assets, or the proceeds thereof, shall be
distributed among the holders of shares of SACPS and any such equity security ratably in accordance with the respective amounts
that would be payable on such shares of SACPS and any such equity security if all amounts payable thereon were paid in full.

 

b.         For the purposes
of this Section 5, each of (i) a merger, consolidation, reorganization, share exchange or similar transaction
(other than a merger, consolidation or conversion solely for the purpose of changing the domicile of the Company and in which the
holders of equity securities of the surviving entity are comprised solely of the holders of equity securities of the Company immediately
prior to such transaction), (ii) the sale, exchange, conveyance, lease or license of all or substantially all of the assets
of the Company, or (iii) any transaction or series of transactions that result in a “person” or “group”
within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, other than any person or group comprised
solely of the original signatories to the Shareholders Agreement, has become the beneficial owner, by way of merger, consolidation
or otherwise, of 51% or more of the voting power of all classes of voting securities of the Company, shall be deemed to be a liquidation,
dissolution or winding up, voluntary or involuntary of the Company.

 

c.         Subject to the rights of the holders
of any other securities above, after payment shall have been made in full to the holders of the SACPS, as provided in this Section 5,
any other series or class or classes of equity securities shall, subject to the respective terms and provisions (if any) applying
thereto, be entitled to receive any and all assets remaining to be paid or distributed, and the holders of the SACPS shall not
be entitled to share therein.

 

6.           Conversion.

 

a.         Conversion Procedure.

 

		(i)	Any holder of shares of SACPS may convert all or any portion of the shares of SACPS (including
any fraction of a share) held by such holder into a number of shares of Common Stock for 5,000 shares of Common Stock for each
share of SACPS at an initial conversion price per Share of $0.004 (the “Conversion Price”).

 

		(ii)	Subdivision or Combination of Common Stock. If the Company at any time subdivides (by any stock
split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater
number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced, and if
the Company at any time combines (by reverse stock split or otherwise) one or more classes of its outstanding shares of Common
Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately
increased.

 

		(iii)	Each conversion of shares of SACPS will be deemed to have been effected as of the close of business
on the date on which the certificate or certificates representing the shares of SACPS to be converted, together with properly executed
conversion instructions or stock powers, have been surrendered for conversion at the principal office of the Company. At such time
as such conversion has been effected, the rights of the holder of such shares of SACPS as such holder will cease and the person
or persons in whose name or names any certificate or certificates for shares of Common Stock are to be issued upon such conversion
will be deemed to have become the holder or holders of record of the shares of Common Stock represented thereby.

 

    2

     

    

 

		(iv)	Subject to Section 10, as soon as possible after a conversion has been effected (but in any event
within ten business days in the case of subsections (a) and (b) below), the Company will deliver to the converting
holder:

 

		(a)	a certificate or certificates representing the number of shares of Common Stock issuable by reason
of such conversion in such name or names and such denomination or denominations as the converting holder has specified;

 

		(b)	a certificate representing any shares of SACPS that were represented by the certificate or certificates
delivered to the Company in connection with such conversion but that were not converted; and

 

		(c)	cash in payment of accrued unpaid dividends or payment
in kind with Common Stock.

 

		(v)	The issuance of certificates for shares of Common Stock upon conversion of shares of SACPS will
be made without charge to the holders of such shares of SACPS for any issuance tax in respect thereof or other cost incurred by
the Company in connection with such conversion and the related issuance of shares of Common Stock. Upon conversion of each share
of SACPS, the Company will take all such actions as are necessary in order to insure that the Common Stock issuable with respect
to such conversion will be validly issued, fully paid and nonassessable.

 

		(vi)	If any fractional interest in a share of Common Stock would, except for the provisions of this
subsection (v), be deliverable upon any conversion of shares of SACPS, the Company, in lieu of delivering the fractional
share therefor, will pay an amount to the holder thereof equal to the fair market value of such fractional interest as of the date
of conversion, as determined in good faith by the board of directors of the Company.

 

		(vii)	All accrued but unpaid dividends on shares of SACPS to be converted shall be payable upon conversion
of such shares in cash.

 

b.         Conversion Price.

 

		(i)	Each share of SACPS will initially be convertible into 5,000 shares of Common Stock of the Company
at a conversion price of $0.004 per share (the “Conversion Price”).

 

c.         Automatic Conversion.
All shares of SACPS shall automatically convert, without any action on the part of the holder thereof, into shares of Common Stock
immediately following the consummation of a Qualified Public Offering and the payment of accrued but unpaid dividends pursuant
to Section 1a and 1b hereof.

 

d.         Company Conversion.
The Company can convert all shares of SACPS, without any action on the part of the holder thereof, into shares of Common Stock
at any time following; (i) the calendar quarter in which the SACPS has been issued and outstanding for two years or (ii) the calendar
quarter after which the Company has generated positive cash flow for two fiscal quarters; and the payment of accrued but unpaid
dividends pursuant to Section 1a and 1b hereof.

 

7.           Notices of Record Date. In the
event of any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders
thereof who are entitled to receive any dividend (other than a cash dividend which is the same as cash dividends paid in previous
periods) or other distribution, the Company shall mail to each holder of SACPS at least ten (10) days prior to such record date
a notice specifying the date on which any such record is to be taken for the purpose of such dividend or distribution.

 

8.           Registration of Transfers. The
Company will keep at its principal office a register for the registration of shares of SACPS. Upon the surrender of any certificate
representing shares of SACPS at such place, the Company will, at the request of the record holder of such certificate, execute
and deliver (at the Company’s expense) a new certificate or certificates in exchange therefor representing in the aggregate
the number of shares of SACPS represented by the surrendered certificate. Each such new certificate will be registered in such
name and will represent such number of shares of the appropriate series of SACPS as is requested by the holder of the surrendered
certificate and will be substantially identical in form to the surrendered certificate, and dividends will accrue on the shares
of SACPS represented by such new certificate from the date to which dividends have been fully paid on such shares of SACPS represented
by the surrendered certificate.

 

    3

     

    

 

9.           Replacement. Upon receipt of evidence
reasonably satisfactory to the Company (an affidavit of the registered holder will be satisfactory) of the ownership and the loss,
theft, destruction or mutilation of any certificate evidencing shares of SACPS, and in the case of any such loss, theft or destruction,
upon receipt of indemnity reasonably satisfactory to the Company or, in the case of any mutilation, upon surrender of such certificate
the Company will (at its expense) execute and deliver in lieu of such certificate a new certificate of like kind representing the
number of shares of the appropriate series of SACPS represented by such lost, stolen, destroyed or mutilated certificate, and dividends
will accrue on the shares of SACPS represented by such new certificate from the date to which dividends have been fully paid on
such lost, stolen, destroyed or mutilated certificate.

 

10.         Reservation
of Shares; Status of Shares. As of the date of this Certificate, the Company does not have sufficient shares of Common Stock
to allow for the issuance of, or have sufficient shares to satisfy the conversion privileges of the SACPS. The Company agrees that
as soon as practicable it will cause its Articles of Incorporation to be amended to provide for such shares to satisfy the conversion
privileges of the SACPS. Subject to the immediately preceding sentence, the Corporation shall, at all times when any of the SACPS
shall remain outstanding, reserve and keep available out of its authorized but unissued stock, for the purpose of effecting the
conversion of the SACPS, such number of its duly authorized shares of Common Stock as shall from time to time be sufficient to
effect the conversion of all outstanding SACPS. All shares of SACPS which shall have been surrendered for conversion as herein
provided shall no longer be deemed to be outstanding and all rights with respect to such shares shall immediately cease and terminate
on the applicable conversion date, except only the right of the holders thereof to receive shares of Common Stock in exchange therefor.
Any shares of SACPS so converted shall be retired and canceled and shall not be reissued, and the Corporation may from time to
time take such appropriate action as may be necessary to reduce the authorized SACPS accordingly.

11.          Certain Taxes. The Company shall
pay any issue or transfer taxes payable in connection with the issuance or redemption of the SACP 

 

 

4

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