Document:

Exhibit 10.11 

   

 GUARANTY AGREEMENT 

   

 THIS GUARANTY AGREEMENT
(the “Guaranty”), dated as of March 23, 2018, is made and entered into by Milton C. Ault III, an individual resident
of ___________ (the “Guarantor”) for the benefit of ______________, a _____________ limited liability company (the
“Lender”). (The Lender and the Guarantor are sometimes referred to in this Guaranty as the “Parties.”) 

   

 BACKGROUND 

   

 On the
date of this Guaranty, the Lender has agreed to make a loan to DPW Holdings, Inc., a Delaware corporation (the “Borrower”)
in the amount of $1,000,000 (the “Loan”) for business purposes only, as described in the related Purchase Agreement
and related documents of even date between Borrower and Lender (the “Transaction Documents”). 

   

 As
an inducement to the Lender providing the Loan to the Borrower, the Guarantor, the chief executive officer of the Borrower, has
agreed to execute and deliver this Guaranty to the Lender. 

   

 NOW,
THEREFORE, in consideration of the premises, and for other good and valuable consideration, the receipt of which is acknowledged
by the Guarantor, and as an inducement to the Lender to provide the Loan, intending to be legally bound, the Guarantor agrees
as follows: 

   

 Section 1. Representations and Warranties. 

   

 1.01.       The
Guarantor represents and warrants that the Guarantor has all requisite power and authority to execute and deliver this Guaranty,
and that this Guaranty constitutes the valid, binding and enforceable obligation of the Guarantor. 

   

 1.02.       The
Guarantor further represents and warrants that neither the execution and delivery of this Guaranty, the consummation of the transactions
contemplated hereby nor the fulfillment of or compliance with the terms or conditions of this Guaranty conflicts with or results
in a breach of any of the terms, conditions or provisions of any agreement to which the Guarantor or the Borrower is a party,
or by which the Guarantor or its property is bound. 

   

 Section 2. Covenants and Guaranties. 

   

 2.01.       The
Guarantor hereby absolutely and unconditionally guarantees to the Lender, for the Lender’s benefit, as and when due, of
all of the Borrower’s obligations under the Transaction Documents (collectively, the “Obligations”). 

   

 2.02.       The
Guarantor further agrees with the Lender that the Guarantor will pay all expenses and charges (including court costs and reasonable
attorneys’ fees) paid or incurred by the Lender in enforcing the obligations of the Guarantor under this Guaranty, whether
the same shall be enforced by suit or otherwise. 

   

    1

     

    

   

 2.03.       The
obligations of the Guarantor under this Guaranty shall be continuing, absolute and unconditional, and shall not be affected, modified
or impaired upon the happening from time to time of any event, including, without limitation, any of the following, whether or
not with notice to or the consent of any of the Guarantor: 

   

 (a)          The
compromise, settlement, release or termination of any of the obligations, covenants or agreements of the Lender, the Borrower
and the Guarantor (collectively, the “Transaction Parties”) under this Guaranty or any of the other Transaction Documents; 

   

 (b)          The
failure to give notice to the Guarantor of the occurrence of a default under the terms and provisions of this Guaranty or any
of the other Transaction Documents; 

   

 (c)          The
waiver of the payment, performance or observance by any Transaction Party of any of its obligations, covenants or agreements contained
in any of the Transaction Documents; 

   

 (d)          The
extension of the time for payment of any amount owing or payable under any of the Transaction Documents, or of the time for performance
of any other obligation, covenant or agreement under or arising out of any of the Transaction Documents, or the extension or the
renewal of any thereof; 

   

 (e)          The
modification or amendment (whether material or otherwise) of any obligation, covenant or agreement set forth in any of the Transaction
Documents; 

   

 (f)           Any
failure, omission, delay or lack on the part of the Lender to enforce, assert or exercise any right, power or remedy conferred
with respect to the Loan; 

   

 (g)          The
voluntary or involuntary liquidation, dissolution, partition, sale or other disposition of all or substantially all of the assets,
marshalling of assets and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition with creditors or readjustment of, or other similar proceedings affecting, the Borrower, or any allegation
or contest of the validity of this Guaranty or any of the other Transaction Documents in any proceeding; or 

   

 (h)          The
invalidity, irregularity, illegality or unenforceability or any defect in any of the Transaction Documents. 

   

 2.04.       No
set off, counterclaims, reductions, or diminution of obligation, or any defense of any kind or nature which the Guarantor has
or may have against the Lender or the Borrower shall affect, modify or impair the Guarantor’s obligations hereunder. It
is the intent of this Guaranty that the Guarantor shall be unconditionally and absolutely obligated to perform fully all of its
obligations, agreements and covenants under this Guaranty without set-off. 

   

 2.05.       If
the Borrower shall fail to make any payment required under the Transaction Documents, the Lender, in his sole discretion, shall
have the right to proceed first and directly against the Guarantor under this Guaranty without being required to proceed against
or exhaust any other remedies which it may have against the Borrower. 

   

 2.06.       The
Guarantor hereby expressly waives notice in writing, or otherwise, from the Lender of its acceptance and reliance on this Guaranty. 

   

 2.07.       This
Guaranty is entered into by the Guarantor for the benefit of the Lender, and the successors and assigns of the Lender. 

   

 2.09.      
The terms of this Guaranty may be enforced as to any one or more breaches either separately or cumulatively. 

   

    2

     

    

   

 Section  3. Extent of Liability; Suspension;
Termination. 

   

 3.01.       The
obligations of the Guarantor shall be with full recourse against the Guarantor, and the maximum liability of the Guarantor hereunder
shall equal the aggregate of: (a) the sum of (i) the unpaid principal amount of the Note, plus (ii) all premium, if any, payable
in respect of such principal amount, plus (iii) all interest accrued or to accrue, from time to time, in respect of such principal
amount, plus (iv) all late fees, default interest and, without limitation, any other fees and expenses payable under the terms
of the Note; and (b) all amounts for which the Guarantor may become obligated under Paragraph 2.02, above. 

   

 3.02.       This
Guaranty shall terminate only upon the full payment of the Borrower’s Obligations under the Loan, including principal, interest
and other charges under the Note or under Paragraph 2.02, above. 

   

 Section 4. Amendments, Remedies. 

   

 4.01.       No
amendment, change, modification, alteration or termination of any of the Transaction Documents shall be made which would in any
way increase the burden of any Guarantor’s obligations under this Guaranty without the prior written consent of the Guarantor. 

   

 4.02.       Without
the prior written consent of the Lender, which may not be unreasonably withheld, the Guarantor may not assign any of its obligations
hereunder to any other person or entity. The Lender may assign its rights hereunder to any successor in interest. 

   

 4.03.       No
remedy herein conferred upon or reserved to the Lender hereunder or under any applicable law is intended to be exclusive of any
other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other
remedy given under this Guaranty or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise
any right or power accruing upon any default, omission or failure of performance hereunder shall impair any such right or power
or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as
may be deemed expedient. In order to entitle the Lender to exercise any remedy reserved to it in this Guaranty, it shall not be
necessary to give any notice. If any provision contained in this Guaranty should be breached by any party and thereafter duly
waived by the other party so empowered to act, such waiver shall be limited to the particular breach so waived at that particular
time, and shall not be deemed to waive such breach at any other time or any other breach hereunder at any time. No amendment,
release or modification of this Guaranty shall be established by conduct, custom or course of dealing, but solely by an instrument
in writing duly executed by the parties thereunto duly authorized by this Guaranty. 

   

 Section 5.  Miscellaneous. 

   

 5.01.       This
Guaranty and the rights and obligations of the Parties shall be governed, construed and interpreted according to the laws of ______________,
other than its rules regarding the choice of law. 

   

 5.02.       This
Guaranty constitutes the entire agreement of the Parties regarding the subject matter hereof, and this Guaranty may be executed
in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 

   

    3

     

    

   

 5.03.       If
any provision of this Guaranty shall be held or deemed to be or shall, in fact, be inoperative or unenforceable as applied in
any particular case in any jurisdiction or jurisdictions or in all jurisdictions, or in all cases because it conflicts with any
other provision or provisions hereof or any constitution or statute or rule of public policy, or for any other reason, such circumstances
shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance,
or of rendering any other provision or provisions herein contained invalid, inoperative, or unenforceable to any extent whatever. 

   

 5.04.       This
Guaranty may be amended only by a written agreement signed by the Lender and the Guarantor. 

   

 5.05.       References
herein to attorney’s fees shall be deemed to include attorney’s fees through all proceedings, including, but not limited
to, negotiations, administrative hearings, trials, and appeals. 

   

 5.06.       All
notices or other communications to be given under this Guaranty shall be in writing, shall be sent by certified mail, postage
pre-paid and return receipt requested, or by any national courier service that provides proof of delivery, to the applicable address
of each Party, and shall be deemed given when delivered to such address. 

   

 IN WITNESS WHEREOF, intending
to be bound hereby, the Guarantor has executed this Guaranty as of the date and year first above written. 

   

   

    

	   	   
	 Milton C. Ault, III 	   

   

    4Exhibit 10.12 

 
 

 
 

 
 

 
 

 
 

 
 

 SHARE
EXCHANGE AGREEMENT 

 
 

 
 

 by
and among 

 
 

 
 

 AVALANCHE
INTERNATIONAL CORP., 

 
 

 
 

 MTIX,
LTD, 

 
 

 
 

 PRAVIN
MISTRY, 

 
 

 
 

 and 

 
 

 
 

 PAUL
JOHNSON and DANIEL JOHNSON 

 
 

 
 

 
 

 
 

 
 

 
 

 DATED
AS OF MARCH 3, 2017 

   

  

   

 EXHIBITS 

 
 

 
 

	 Exhibit
A 

	 Form of Note 

	 Exhibit
B 

	 Security Agreement 

	 Exhibit C 

	 Registration Rights Agreement 

	 Exhibit D 

	 Certificate of Designation
of the AIC Class B Preferred Stock 

	 Exhibit
E 

	 Employment
Agreement 

	 Exhibit
F 

	 2016 Stock
Incentive Plan 

	 Exhibit
G 

	 Stock Option
Agreement with Management Group 

	 Exhibit H 

	 Capitalization Table 

   

  

   

 SHARE
EXCHANGE AGREEMENT 

 
 

 This Share
Exchange Agreement (this “Agreement”)
is made and entered into as of the 3rd day of
March, 2017, by and among: Avalanche International Corp., a Nevada corporation (“AIC”);
MTIX, Ltd., a company formed under the laws of England and Wales (“MTIX”);
Pravin Mistry (the “Majority Shareholder”);
those additional persons who have executed this Agreement on the signature pages hereof under the heading “Minority Shareholders”
(collectively, the “Minority Shareholders”
and with the Majority Shareholder, the “MTIX
Shareholders.” AIC
and the MTIX Shareholders are referred to herein individually as a “Party”
and collectively as the “Parties.” 

 
 

 PREAMBLE 

 
 

 WHEREAS,
the MTIX Shareholders are the record and beneficial owners of 100% of the issued and outstanding capital stock of MTIX. 

 
 

 WHEREAS,
Majority Shareholder and such other persons as may be designated from time to time prior to or following the Closing by Majority
Shareholder constitute the management group of MTIX (collectively, the “MTIX Management Group” and with the
MTIX Management Group, the “ MTIX
Shareholders”). 

 
 

 WHEREAS,
AIC has proposed to acquire MTIX pursuant to an exchange transaction (the “Exchange”)
whereby, pursuant to the terms and subject to the conditions of this Agreement, all of the MTIX Shareholders shall exchange 100%
of the issued and outstanding Class A ordinary shares of MTIX, of £1 each (the “MTIX
Class A Shares”) and 100% of the issued and outstanding Class B ordinary shares of MTIX, of £1 each (the
“MTIX Class B Shares” and,
collectively with the MTIX Class A Shares, the “MTIX
Shares”), for (i) their pro rata portion of $9,500,000 in aggregate consideration in the form of notes, and (ii)
in the case of the Majority Shareholder, the grant to him of AIC Class B Preferred Stock more fully described in the Certificate
of Designation (as each such term is hereinafter defined) and a cash payment to him of $500,000.  The consideration evidenced
by debt instruments shall consist of a $9,500,000 7% Secured Convertible Note (the “Note”
or “Notes” as applicable). 
The Notes and the AIC Class B Preferred Stock are at times collectively referred to herein as the “Exchange
Securities.” 

 
 

 WHEREAS,
pursuant to the terms and conditions of this Agreement, AIC shall issue to the members of the MTIX Management Group options (the
“AIC Options”) entitling such
Persons to purchase shares of common stock of AIC, par value $0.001 per share (the “AIC
Common Stock”). 

 
 

 WHEREAS,
the obligation of the Parties to effect the Exchange is subject to the conditions set forth in Article V hereof. 

 
 

 WHEREAS,
the Parties are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by
the provisions of Section 4(a)(2) of the Securities Act of 1933, as amended  (the “Securities
Act”). 

 
 

 NOW,
THEREFORE, in consideration of the premises and the mutual covenants, representations and warranties contained herein,
the Parties hereto, intending to be legally bound, hereby agree as follows: 

 
 

 CERTAIN
DEFINITIONS 

 
 

 In
addition to the definitions contained in Schedule
1 annexed hereto, incorporated by reference herein and made a part hereof, as used in this Agreement, the following
additional terms shall have the meanings set forth below: 

 
 

 “Applicable
Law” means any domestic or foreign law, statute, regulation, rule, policy, guideline or ordinance applicable
to the businesses of the Parties, the Exchange and/or the Parties. 

 
 

 “Dollar”
and means lawful money of the United States of America. 

 
 

 “GAAP”
means generally accepted accounting principles in the United States of America as promulgated by the American Institute of Certified
Public Accountants and the Financial Accounting Standards Board or any successor institutes concerning the treatment of any accounting
matter. 

   

  

   

 “EBITDA”
means earnings before interest, taxes, depreciation and amortization. 

 
 

 “Fully-Diluted
MTIX Shares” means, at any applicable point in time, the issued and outstanding MTIX Shares, on a fully-diluted
basis, after giving effect to (a) all issued and outstanding MTIX Class A Shares, (b) all issued and outstanding shares of MTIX
Class B Shares, (c) all shares of MTIX Shares issuable upon exercise of any outstanding options, warrants or other rights to purchase
MTIX Shares, and/or (d) all shares of MTIX Shares issuable upon conversion of any outstanding notes, preferred stock, or other
securities convertible into or exchangeable for shares of MTIX Shares. 

 
 

 “Fully-Diluted
AIC Shares” means, at any applicable point in time, the issued and outstanding shares of AIC Common Stock, on a fully-diluted
basis, after giving effect to (a) all issued and outstanding shares of AIC Common Stock, (b) the conversion of all 50,000 shares
of Class A Preferred Stock of AIC (the “AIC Class A Preferred Stock”), (c) the conversion of 100,000 shares
of Class B 5% Participating Convertible Preferred Stock of AIC (the “AIC Class B Preferred Stock”) and (d)
all shares of AIC Common Stock issuable upon exercise of any outstanding options, warrants or other rights to purchase AIC capital
stock, and/or all shares of AIC Common Stock issuable upon conversion of any outstanding notes, preferred stock, or other securities
convertible into, exercisable for or exchangeable for shares of AIC Common Stock. 

 
 

 “MTIX
Shares” means, at any applicable point in time, the issued and outstanding shares of MTIX Class A Shares and
MTIX Class B Shares. 

 
 

 “Subsidiaries”
means the Restaurant Capital Group, LLC and Smith and Ramsay Brands, LLC. 

 
 

 ARTICLE
I 

 THE
EXCHANGE 

 
 

 1.1          Ownership
of the MTIX Shares.  The MTIX Class A Shares are owned of register and beneficially by the Majority Shareholder. 
The MTIX Class B Shares are owned of register and beneficially by the Minority Shareholders. 

 
 

 1.2          Transfer
of the MTIX Shares. Subject to the terms and conditions of this Agreement, at the Closing, the MTIX Shareholders hereby agree
to transfer, convey, assign, set over and deliver (“Transfer”) to AIC, with full title guarantee, and AIC shall
acquire and accept from the MTIX Shareholders, all and not less than all of the MTIX Shares (including the respectively held by
each of them, free and clear of all Encumbrances.  Each of the MTIX Shareholders do hereby waive all rights of preemption,
other restrictions on Transfer and rights of veto or otherwise, which have or may have been conferred on any or all of them, or
otherwise, in respect of the Transfer of the MTIX Shares to AIC under this Agreement. 

 
 

 1.3          Consideration
for Transfer of the MTIX Shares.  At the Closing and in sole consideration for the Transfer of the MTIX Shares, AIC shall
deliver, in exchange for the Transfer (the “Exchange”) to the Majority Shareholder and the Minority Shareholders
the Exchange Securities, consisting of (i) three Notes, which Notes shall be in the principal face amount of  $6,166,666
with respect to the Majority Shareholder and in the principal face amount of $1,666,667 with respect to each of the Minority Shareholders,
and (ii) the 100,000 shares of AIC Class B Preferred Stock issuable to the Majority Shareholder. Other than the principal amount
under the foregoing Notes, the Notes shall be in all respects identical to the Note. A form of the Note is attached hereto as
Exhibit A. 

 
 

 1.4          Capitalization
of AIC. At the Closing AIC shall be authorized by its articles of incorporation to issue an aggregate of 75,000,000 shares
of common stock, par value $0.001 per share (the “AIC Common Stock”) and an aggregate of 10,000,000 shares
of AIC Preferred Stock, $.001 par  value
per share, containing such rights, designations and privileges as the board of directors of AIC may from time to time designate
(the “AIC Preferred Stock”), of which (i) 50,000 shares have been designated as
AIC Class A Convertible Preferred Stock and (ii) 100,000 shares have been designated as AIC Class B Convertible Preferred Stock. 
At Closing, the 100,000 shares of AIC Class B Convertible Preferred Stock shall be issued to the Majority Shareholder as part
of his compensation package, but not in connection with the Exchange. 

 
 

 1.5          Summary
of the Rights and Privileges of AIC Class B Preferred Stock.  The AIC Class B Preferred Stock shall, subject to the terms
and conditions of the Certificate of Designation : 
 

 
 

 (a)          pay
an annual dividend (at the option of AIC, either in cash or in additional shares of AIC Common Stock), in an amount that shall
be the greater of (i) an annual rate of 5% of the Stated Value thereof per annum, or (ii) 5% of MTIX’s GAAP net income for
the fiscal year then ended; 

   

  
- 2 -

   

 (b)          vote
with AIC Common Stock on all matters as to which shareholders of AIC are entitled to vote, on an “as converted” basis,
as though all outstanding shares of AIC Class B Preferred Stock had been converted into AIC Common Stock immediately prior to
the taking of the record date for all shareholders entitled to vote at any regular or special meeting of shareholders of AIC; 

 
 

 (c)          commencing
two (2) years after the Closing Date, be convertible at any time at the option of the holder into AIC Common Stock (the “Preferred
Conversion Shares”), by dividing the Class B Stated Value of the portion of the shares of Class B Preferred Stock being
converted by: (i) if the aggregate market capital determined by multiplying AIC's shares of AIC Common Stock then outstanding
by the average market price of one share for the preceding ten (10) trading days (the “Market Cap”) is $35,000,000
or less, at a 25% discount to the market price, or (ii) if the Market Cap is greater than $35,000,000, at a 25% discount to the
market price, provided that such discount shall be increased by dividing it by the quotient that shall be obtained by dividing
$35,0000,000 by the Market Cap at the time of conversion.  However, any such adjustment to the discount to the market price
shall not exceed an aggregate 75% discount and in no event shall the conversion price be less than $0.35; and 

 
 

 (d)          contain
the respective rights, privileges and designations of the AIC Class B Preferred Stock as are set forth in the Certificate of Designation
for such AIC Class B Preferred Stock annexed hereto as Exhibit D and made a part hereof (the “Certificate
of Designation”). 

 
 

 1.6          Closing
and Effective Time. 

 
 

 (a)          The
Closing of the Transfer of MTIX Shares and the issuance by AIC of the Notes (the “Closing”) shall take place
at the offices of Sichenzia Ross Ference Kesner LLP not later than five days after all of the conditions to closing specified
in this Agreement (other than those conditions requiring the execution or delivery of a Document or the taking of some action
at the Closing) have been fulfilled or waived by the Party entitled to waive that condition; provided, however, that (a) the Parties
shall use their best efforts to effect the Closing by April 30, 2017, and (b) the Closing may take place by facsimile or other
means as may be mutually agreed upon in advance by the Parties. The date on which the Closing is held is referred to in this Agreement
as the “Closing Date.” 

 
 

 (b)          The
effective time of the Exchange (the “Effective Time”) shall occur upon the filing with the Secretary of State
of the State of Nevada of Articles of Exchange (the “Articles of Exchange”) executed in accordance with the
applicable provisions of the NRS, or at such later time as may be agreed to by AIC and MTIX and specified in the Articles of Exchange .   Provided
that this Agreement has not been terminated pursuant to Article VII, AIC will cause the Articles of Exchange to be filed as soon
as practicable after the Closing. 

 
 

 1.7          Deliveries
at Closing by MTIX Shareholders. At the Closing, subject to the terms and conditions of this Agreement, the MTIX Shareholders
shall execute and/or deliver (as applicable), or cause to be executed and/or delivered, to AIC: 

 
 

 (a)          certificates
representing all of the MTIX Shares, accompanied by duly executed stock transfer forms transferring
such MTIX Shares to AIC and otherwise in good form for Transfer, or if any MTIX Share certificates have been lost or destroyed,
an indemnity from such MTIX Shareholder in form and content  approved by AIC or its counsel before execution of this Agreement,
including a power of attorney coupled with an interest in favor of AIC entitling AIC to exercise all rights, whether voting or
otherwise, attaching to such MTIX Shares pending registration of share transfers; 

 
 

 (b)          a
registration rights agreement duly executed by each of the MTIX Shareholders in substantially the form of Exhibit C
(the “Registration Rights Agreement”) attached hereto; and 

 
 

 (c)          such
other Documents as may be reasonably requested by AIC and approved in good faith by the MTIX Shareholders and the MTIX Management
Group and their respective counsel, that are necessary to effect the Closing. 

 
 

 1.8          Deliveries
at Closing by AIC.  At the Closing, subject to the terms and conditions of this Agreement, AIC shall execute and deliver
or cause to be executed and delivered to the MTIX Shareholders and the MTIX Management Group (as applicable): 

 
 

 (a)          the
Notes in the principal face amount of $6,166,666 to the Majority Shareholder and in the principal face amount of $1,666,667 to
each of the Minority Shareholders; 

   

  
- 3 -

   

 (b)          a
certificate evidencing all 100,000 shares of AIC Class B Preferred Stock, duly registered in the name of the Majority Shareholder
(the “Class B Certificate”);

             

 (c)          a
three year employment agreement mutually agreed between MTIX and the Majority Shareholder (the “Employment Agreement”)
in substantially the form to be attached hereto as Exhibit E, providing for  salary
of $150,000 per annum; 

 
 

 (d)          payment
by wire or bank check to the Majority Shareholder in the amount of $450,000, which combined  with
the initial payment of $50,000 to the Majority Shareholder, represents $500,000 of the total exchange
consideration; 

 
 

 (e)          payment
by wire or bank check to Paul Johnson in the amount of £ 179,000; 

 
 

 (f)          a
copy of the Company’s 2016 Stock Incentive Plan for awards of securities of AIC (the “Plan”) in substantially
the form attached hereto as Exhibit F (the “Plan”); 

 
 

 (g)          stock
options to purchase an aggregate of 531,919 shares of AIC Common Stock to the members of the MTIX Management Group as set forth
on Schedule 1.8(g) hereto or as subsequently designated by Pravin Mistry, substantially in the form attached hereto as Exhibit
G attached hereto (the “MTIX Management Group Options”); 

 
 

 (h)          a
copy of a filing receipt or certified copy of the Certificate of Designation from the Secretary of State of Nevada, evidencing
the filing and recordation of the Certificate of Designation for AIC  Class
B Preferred Stock; 

   

 (i)          
the Registration Rights Agreement; 

   

 (j)          evidence
reasonably satisfactory to the MTIX Shareholders that any “toxic” currently outstanding notes have been converted,
paid off or any toxic provisions have been fully waived or eliminated. 

 
 

 1.9          Restrictions
on Resale.  Neither the Notes nor the Class B Certificate or the shares of AIC Common Stock into which each such security
is convertible (collectively, the “Securities”) will be registered under the Securities Act, or the securities
laws of any state, and cannot be transferred, hypothecated, sold or otherwise disposed of until; (i) a registration statement
with respect to such securities is declared effective under the Securities Act, or (ii) AIC
receives an opinion of counsel for the securityholder, reasonably satisfactory to counsel for AIC, that an exemption from the
registration requirements of the Securities Act is available. 

 
 

 The
Notes for which the MTIX Shares shall have been issued pursuant to this Agreement and the Class B Certificate shall contain a
legend substantially as follows: 

 
 

 “THE
SECURITIES WHICH ARE REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNTIL A REGISTRATION STATEMENT WITH RESPECT THERETO IS DECLARED
EFFECTIVE UNDER SUCH ACT, OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT IS AVAILABLE.” 

 
 

 1.10        Exchange
of Certificates. 

 
 

 (a)          After
the Closing Date and pursuant to a customary letter of transmittal or other instructional form provided by AIC to the MTIX Shareholders,
the MTIX Shareholders shall be required to surrender all their MTIX Shares to AIC, and the MTIX Shareholders shall be entitled
upon such surrender to receive in exchange therefor certificates representing the proportionate principal face amount in Notes
into which the MTIX Shares theretofore represented by the stock transfer forms so surrendered shall have been exchanged pursuant
to this Agreement.  Until so surrendered, each outstanding certificate which, prior to the Closing Date, represented MTIX
Shares shall be deemed for all corporate purposes, subject to the further provisions of this Article I, to evidence the ownership
of the number of whole Notes for which such MTIX Shares have been so exchanged. 

 
 

 (b)          All
Notes for which the MTIX Shares shall have been exchanged pursuant to this Article I shall be deemed to have been issued in full
satisfaction of all rights pertaining to the MTIX Shares. 

   

  
- 4 -

 
 

 (c)          All
certificates representing MTIX Shares converted into the right to receive Exchange Securities pursuant to this Article I shall
be furnished to AIC subsequent to delivery thereof to the Exchange Agent pursuant to this Agreement. 

 
 

 (d)          On
the Closing Date, the stock transfer book of MTIX shall be deemed to be closed and no transfer of MTIX Shares shall thereafter
be recorded thereon, 

 
 

 ARTICLE
II 

 REPRESENTATIONS
AND WARRANTIES OF AIC 

 
 

 Except as
set forth in the Disclosure Schedules in this Agreement, disclosure in any one of which shall apply to any and all representations
and warranties made by AIC in this Agreement, AIC hereby represents and warrants to the MTIX Shareholders, as of the date of this
Agreement and as of the Closing Date,
as follows:    

 
 

 2.1          Organization,
Standing and Power. AIC is a company duly incorporated, validly existing and in good standing under the laws of the State
of Nevada and has corporate power and authority to conduct its business as presently conducted by it and to enter into and perform
this Agreement and to carry out the transactions contemplated by this Agreement.   The
AIC Common Stock is currently quoted on the OTC Pink Sheets operated by the OTC Markets Group and
will as promptly as practicable be eligible for quotation on the OTCQB in the United States.  AIC is duly qualified
to do business as a foreign corporation doing business in each state in which it owns or leases real property and where the failure
to be so qualified and in good standing would have a Material Adverse Effect on AIC or its business.
Other than the Subsidiaries, AIC does not have an ownership interest in any corporation, partnership
(general or limited), limited liability company or other entity, whether foreign or domestic (collectively such ownership interests
including capital stock). 

 
 

 2.2          Capitalization. 

 
 

 (a)          On
or about the date of this Agreement, there are 85,000,000 shares of capital stock of AIC authorized, consisting of (i) 75,000,000
shares of AIC Common Stock and (ii) 10,000,000 shares of AIC Preferred Stock, of which (A) 50,000 shares have been designated
as AIC Class A Preferred Stock and (B) 100,000 shares have been designated as AIC Class B Preferred Stock. On or about the date
of this Agreement, there are (i) 5,092,254 AIC Common Stock issued and outstanding, (ii) 50,000 shares of AIC Class A Preferred
Stock issued and outstanding, (iii) no shares of AIC Class B Preferred Stock issued and outstanding, (iv) debt instruments convertible
into an aggregate of 7,404,152 shares of AIC Common Stock, and (iv) (A) warrants entitling the holder to  purchase
5,100,000 shares of AIC Common Stock at a weighted average exercise price of $0.34 per share and
(B) options, expiring on October 27, 2027, entitling the holders to purchase 3,000,000 shares of AIC Common Stock at a weighted
average exercise price of $ 0.16 per share. At Closing, AIC shall provide the MTIX Shareholders with Exhibit H,
which shall be true and accurate. 

 
 

 (b)          On
or about the date of this Agreement, Philou Ventures, LLC (the “AIC Principal Shareholder”) shall own of record
and beneficially 214,000 shares of AIC Common Stock and 50,000 shares of AIC Class A Preferred Stock.  Consequently, the
AIC Principal Shareholder is the record and beneficial owner of approximately 31.22% of the issued and outstanding AIC Common
Stock, as at the date of this Agreement. The balance of the AIC Common Stock issued and outstanding includes AIC Common Stock
in the public float and restricted AIC Common Stock.  Except as disclosed in Section 2.2(a) above, no shares of AIC Common
Stock have been reserved for issuance to any Person, and there are no other outstanding rights, warrants, options or agreements
for the purchase of AIC Common Stock except as provided in this Agreement.  All outstanding shares AIC Common Stock are validly
issued, fully paid, non-assessable, not subject to pre-emptive rights and have been issued in compliance with all state and federal
securities laws or other Applicable Law. 

 
 

 (c)          As
at the date of this Agreement and on the Closing Date, the Fully-Diluted AIC Shares shall be 52,128,325 Common Stock, assuming
that (i) the Notes are convertible into shares of AIC Common Stock at a conversion price of $0.50 per share, (ii) the shares of
AIC Class B Preferred Stock are convertible into shares of AIC Common Stock at a conversion rate of $0.50 per share and (iii)
the issuance of Stock Options to purchase an aggregate of 531,919 shares of AIC Common Stock to the members of the MTIX Management
Group. 

   

  
- 5 -

 
 

 2.3          Authority
for Agreement. The execution, delivery, and performance of this Agreement by AIC has been duly authorized by all necessary
corporate and shareholder action, and this Agreement, upon its execution by the Parties, will constitute the valid and binding
obligation of AIC enforceable against it in accordance with and subject to its terms, except as enforceability may be affected
by bankruptcy, insolvency or other laws of general application affecting the enforcement of creditors' rights.   The
execution, delivery and performance of this Agreement and compliance with its provisions by AIC will not violate any provision
of Applicable Law and will not conflict with or result in any breach of any of the terms, conditions, or provisions of, or constitute
a default under (whether with or without notice or lapse of time or both), AIC's Certificate of Incorporation or Bylaws, in each
case as amended, or, in any material respect, any indenture, lease, loan agreement or other agreement or instrument to which AIC
is a party or by which it or any of its properties are bound, or any decree, judgment, order, statute, injunction, charge, rule
or regulation or other restriction of any governmental agency applicable to AIC except to the extent that any breach or violation
of any of the foregoing would not constitute or result in a Material Adverse Effect on AIC.  Except as set forth in Schedule
2.3, no consent, filing with or notification to, or approval or authorization of any governmental, regulatory or other authority
is required on the part of AIC in connection with the execution, delivery and performance of this Agreement. 

 
 

 2.4          Issuance
of Notes and Note Conversion Shares.  The issuance of the Notes has been duly and validly authorized. The shares of AIC
Common Stock issuable upon conversion of the Notes (the “Note Conversion Shares” and with the Preferred Conversion
 Shares, the “Conversion
Shares”) issuable to the MTIX Shareholders as the holders of the MTIX Shares will, when issued pursuant to conversion
of the Notes, be duly and validly authorized and issued, fully paid and non-assessable. 

 
 

 2.5          Financial
Statements. 

 
 

 (a)          AIC
has made available to MTIX copies of its audited financial statements at November 30, 2014 and November 30, 2015 and for the two
fiscal years then ended, and the unaudited financial statement as at August 31, 2016 and for the nine months then ended (collectively,
“AIC Financial Statements”). 

 
 

 (b)          Each
set of financial statements (including, in each case, any related notes thereto) contained in the AIC Financial Statements was
prepared in accordance with GAAP applied on a consistent basis throughout the periods involved (except as may be indicated in
the notes thereto).  Such financial statements fairly present the consolidated financial position of AIC as at the dates
thereof and the consolidated results of their operations and their consolidated cash flows for the periods  then
ended, subject, in the case of unaudited interim financial statements, to normal, recurring year-end audit adjustments. 

   

 (c)          Except
as disclosed in the consolidated financial statements contained in the AIC Financial Statements or on Schedule 2.5(c) hereof,
there has been no material change in the financial condition, operations or business of AIC since August 31, 2016 (the “AIC
Balance Sheet Date”). 

 
 

 (d)          Except
as otherwise disclosed in the consolidated financial statements contained in the AIC Financial Statements, AIC does not have any
liabilities. 

 
 

 2.6          Absence
of Certain Changes or Events.  Since the AIC Balance Sheet Date: 

 
 

 (a)          there
has not been (i) any material adverse change in the business, operations, properties, assets, or condition of AIC or (ii) any
damage, destruction, or loss to AIC (whether or not covered by insurance) materially and adversely affecting the business, operations,
properties, assets, or condition of AIC; 

 
 

 (b)          AIC
has not (i) amended its articles of incorporation; (ii) declared or made, or agreed to declare or make, any payment of dividends
or distributions of any assets of any kind whatsoever to shareholders or purchased or redeemed, or agreed to purchase or redeem,
any outstanding capital stock; (iii) waived any rights of value which in the aggregate are extraordinary or material considering
the business of AIC; (iv) made any material change in its method of management, operation, or accounting; (v) entered into any
other material transaction; (vi) made any accrual or arrangement for payment of bonuses or special compensation of any kind or
any severance or termination pay to any present or former officer or employee; (vii) increased the rate of compensation payable
or to become payable by it to any of its officers or any of its employees whose monthly compensation exceeds $ 25,000;
or (viii) introduced or made any increase in any profit sharing, bonus, deferred compensation, insurance,
pension, retirement, or other employee benefit plan, payment, or arrangement made to, for, or with its officers, directors, or
employees; 

 
 

 (c)          AIC
has not (i) borrowed or agreed to borrow any funds or incurred, or become subject to, any material obligation or liability (absolute
or contingent) except liabilities incurred in the ordinary course of business or reflected in the most recent AIC Financial Statements;
(ii) paid any material obligation or liability (absolute or contingent) other than current liabilities reflected in or shown on
the most recent AIC balance sheet, and current liabilities incurred since that date in the ordinary course of business; (iii)
sold or transferred, or agreed to sell or transfer, any of its assets, properties, or rights (except assets, properties, or rights
not used or useful in its business which, in the aggregate have a value of less than $25,000), or cancelled, or agreed to cancel,
any debts or claims (except debts or claims which in the aggregate are of a value of less than $25,000); (iv) made or permitted
any amendment or termination of any contract, agreement, or license to which it is a party if such amendment or termination is
material, considering the business of AIC; or (v) issued, delivered, or agreed to issue or deliver any stock, bonds or other corporate
securities including debentures (whether authorized and unissued or held as treasury stock); and 

   

  
- 6 -

   

 (d)          to
the knowledge of AIC, AIC has not become subject to any law or regulation which materially and adversely affects, or in the future
may adversely affect, the business, operations, properties, assets, or condition of AIC. 

 
 

 2.7          Intellectual
Property and Intangible Assets.  AIC has full legal right, title and interest in and to all of the intellectual property
utilized in the operation of its business.  No rights of any other person are violated by the use by AIC of any intellectual
property.  None of the intellectual property utilized in the operation of the business of AIC has ever been declared invalid
or unenforceable, or is the subject of any pending or, to the knowledge of AIC, threatened action for opposition, cancellation,
declaration, infringement, or invalidity, unenforceability or misappropriation or like claim, action or proceeding. 

 
 

 2.8          Governmental
Consent.   No consent,
waiver, approval, order or authorization of, or registration, declaration or filing with, any court, administrative agency or
commission or other federal, state, county, local or other foreign governmental authority, instrumentality, agency or commission
or any third party, including a party to any agreement with AIC, is required by or with respect to AIC in connection with the
execution and delivery of this Agreement or the consummation of the transactions contemplated hereby, except for such consents,
waivers, approvals, orders, authorizations, registrations, declarations and filings as may be required under (i) applicable securities
laws, or (ii) the NRS. 

 
 

 2.9          Litigation.
There is no action, suit, investigation, audit or proceeding pending against, or to the knowledge of AIC threatened against or
affecting, AIC or any of its assets or properties   before
any court or arbitrator or any governmental or other body, agency or official in which an unfavorable outcome would materially
harm AIC’s financial positon. 

 
 

 2.10        Interested
Party Transactions.  Except as set forth in Schedule 2.10, AIC is not indebted to any officer or director of AIC
(except for compensation and reimbursement of expenses incurred in the ordinary course of business and payment of which is not
overdue), and no such person is indebted to AIC. 

 
 

 2.11        Compliance
with Applicable Laws.  The business of AIC has not been, and is not being, conducted in violation of any Applicable Law,
except for possible violations which both individually and also in the aggregate have not had and are not reasonably likely to
have a Material Adverse Effect.  No investigation or review by any governmental entity with respect to AIC is pending or,
to the knowledge of AIC after reasonable inquiry, threatened, nor has any governmental entity indicated an intention to conduct
the same, except for investigations or reviews which both individually and also in the aggregate would not have, nor be reasonably
likely to have, a Material Adverse Effect.  AIC has not been threatened or subject to delisting on any exchange on which
it is traded. 

 
 

 2.12        No
Undisclosed Liabilities. Except as set forth on Schedule 2.12, there are no liabilities
or debts of AIC of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, and there
is no existing condition, situation or set of circumstances which could reasonably be expected to result in such a liability or
debt. 

 
 

 2.13        Tax
Returns and Payment.  Except as set forth in Schedule 2.13, AIC has duly and timely filed all Tax Returns required
to be filed by it and has duly and timely paid all Taxes.   Except as disclosed in the AIC Financial Statements, there
is no claim for Taxes that is a lien against the property of AIC other than liens for Taxes not yet due and payable, none of which
Taxes is material.  AIC has not received notification of any audit of any Tax Return of AIC
being conducted or pending by a Tax authority, no extension or waiver of the statute of limitations on the assessment of any Taxes
has been granted by AIC which is currently in effect, and AIC is not a party to any agreement, contract or arrangement with any
Tax authority or otherwise, which may result in the payment of any amount in excess of the amount reflected on the AIC Financial
Statements. 

 
 

 2.14        Employee
Benefits.  There is no employee benefit plan (as defined in Section 3(3) of the Employee Retirement Income Security Act
of 1974, as amended (“ERISA”)), and (ii) no other benefit plan, program, contract or arrangement of any kind
whatsoever, covering the employees or consultants of AIC or which is sponsored, maintained or contributed to by AIC or to which
AIC has an obligation to contribute (all such employee benefit plans and other benefit plans, programs, contracts or arrangements
hereinafter individually and collectively called the “Employee Benefit Plan(s)”). 

   

  
- 7 -

 
 

 2.15        AIC
Public Filings.   All public filings by AIC under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), are true, correct and complete in all material respects, are not misleading and do not omit to state any material
fact which is necessary to make the statements contained in such public filings not misleading in any material respect. 
Except as set forth on Schedule 2.14, all AIC public filings under the Exchange Act have been timely made.  AIC is
not in violation of the listing requirements of the OTC Pink Sheets operated by the OTC Markets Group and does not reasonably
anticipate that the Common Stock will be delisted by the OTC Pink Sheets operated by the OTC Markets Group in the foreseeable
future, nor are the Company’s securities “chilled” by FINRA. AIC and its subsidiaries are unaware of any facts
or circumstances which might give rise to any of the foregoing. 

 
 

 2.16        Bad
Actor. No officer or director of AIC would be disqualified under Rule 506(d) of the Securities Act as amended on the basis
of being a "bad actor" as that term is established in the September 19, 2013 Small Entity Compliance Guide published by the Securities
and Exchange Commission. 

 
 

 2.17        Shell
Company.  AIC represents that it is not a “shell company.”  On March 18, 2015, it last filed its report
providing Form 10 type information. 

 
 

 ARTICLE
III 

 REPRESENTATIONS
AND WARRANTIES OF THE MTIX SHAREHOLDERS. 

 
 

 Except
as set forth in the Disclosure Schedules to
this Agreement, disclosure in any one of which shall apply to any and all representations and warranties made by the MTIX
Shareholders in this Agreement and for
purposes of Section 3.17, the   MTIX
Shareholders hereby jointly and severally represent and warrant
to AIC, as of the date of this Agreement and as of the Closing Date, as follows: 

 
 

 3.1         Organization,
Standing and Authority; Ownership of Shares. MTIX is a corporation duly organized, validly existing and in good standing under
the laws of England and Wales. MTIX has the full corporate power and corporate authority to execute, deliver and perform each
Transaction Document to which it is a party. MTIX is qualified to do business and is in good standing in each jurisdiction in
which the nature of its business or the properties owned or leased by it requires qualification.  Each of the MTIX Shareholders
has all right, power and authority to execute and deliver this Agreement and each Transaction Document to which he or it is a
party and to perform his or its obligations hereunder and thereunder.  The Majority Shareholder and the Minority Shareholders
are the registered and the beneficial owners of all of the MTIX Shares listed on Schedule 3.1, in each case free and clear
of Encumbrances of any type or description and there are no options, agreements or other Encumbrances of any other person, firm
or corporation in existence which could restrict or limit the respective MTIX Shareholder’s ability to transfer to AIC good
and marketable title to all of the MTIX Shares free and clear of all such Encumbrances. 

 
 

 3.2          Authorization
of Agreement.  The execution, delivery, and performance of this Agreement by each of the  MTIX Shareholders has
been duly authorized by all necessary corporate and shareholder action, and this Agreement, upon its execution by the Parties,
will constitute the valid and binding obligation of each of the MTIX Shareholders enforceable against each of them in accordance
with and subject to its terms, except as enforceability may be affected by bankruptcy, insolvency or other laws of general application
affecting the enforcement of creditors' rights.  The execution, delivery and performance of this Agreement and compliance
with its provisions by the MTIX Shareholders will not violate any provision of Applicable Law and will not conflict with or result
in any breach of any of the terms, conditions, or provisions of, or constitute a default under (whether with or without notice
or lapse of time or both), MTIX’s Memorandum of Association or Articles of Association, in each case as amended, or, in
any material respect, any indenture, lease, loan agreement or other agreement or instrument to which MTIX or any of the MTIX Shareholders
is a party or by which it or he or any of its or his properties are bound, or any decree, judgment, order, statute, injunction,
charge, rule or regulation or other restriction of any governmental agency applicable to MTIX and the MTIX Shareholders except
to the extent that any breach or violation of any of the foregoing would not constitute or result in a Material Adverse Effect
on AIC.  Except as set forth in Schedule 3.2, no consent, filing with or notification to, or approval or authorization
of any governmental, regulatory or other authority is required on the part of MTIX or any of the MTIX Shareholders in connection
with the execution, delivery and performance of this Agreement. 

 
 

 3.3          No
Conflict.  None of the execution, delivery or performance of this Agreement by any MTIX Shareholder, the consummation
of the Exchange or any other transaction contemplated by this Agreement, or compliance by MTIX or any MTIX Shareholder with any
of the provisions of this Agreement will (with or without notice or lapse of time, or both):  (a) conflict with or violate
any provision of Articles of Association of MTIX (the “MTIX Charter Documents”);
or (b) require any consent or approval under, violate, conflict with, result in any breach of or any loss of any benefit under,
or constitute a default under, or result in termination or give to others any right of termination, vesting, amendment, acceleration
or cancellation of, or result in the creation of a Encumbrance upon any of the respective properties or assets of MTIX pursuant
to any Contract or permit to which MTIX is a party or by which it or any of its properties or assets may be bound or affected,
except, with respect to clause (b), for any such conflicts, violations, consents, breaches, losses, defaults, other occurrences
or Encumbrances which, individually or in the aggregate, have not had a Material Adverse Effect on MTIX. 

   

  
- 8 -

 
 

 3.4          Financial
Statements. 

 
 

 (a)          Descriptions
of MTIX’s financial accounting policies and practices with respect to revenue recognition, inventory, recording and accrual
of expenses, write down of assets, and depreciation are set forth in Schedule 3.4 (the “Accounting
Principles”).  MTIX has provided to AIC true, complete and correct copies of its statutory balance sheet as at
May 31, 2016 and May 31, 2015, and the related statements of income (loss) and statements of cash flows for the two fiscal years
ended May 31, 2016 and the unaudited financial statements for the six months ended November 30, 2016 (the “MTIX Financial
Statements”).  The MTIX Financial Statements were prepared in accordance with the books and records of MTIX and
using the Accounting Principles consistently applied. 

 
 

 (b)          Prior
to Closing, the MTIX Financial Statements (including any related notes thereto) shall have been converted into financial statements
prepared in accordance with GAAP (the “MTIX GAAP Financial Statements”) applied on a consistent basis throughout
the periods involved (except as may be indicated in the notes thereto).  Such MTIX GAAP Financial Statements shall fairly
present the consolidated financial position of MTIX as at the dates thereof and the consolidated results of their operations and
their consolidated cash flows for the periods then ended, subject, in the case of unaudited interim financial statements, to normal,
recurring year-end audit adjustments. The MTIX GAAP Financial Statements shall, no later than ten (10) days prior to the Closing
Date, have been audited pursuant to and in  accordance
with US GAAS and delivered to AIC. 

 
 

 (c)          Except
as disclosed in the MTIX GAAP Financial Statements or on  Schedule
3.4(c) hereof, there has been no material change in the financial condition, operations or business
of MTIX since November 30, 2016 (the “MTIX Balance Sheet Date”). 

 
 

 (d)          Except
as otherwise disclosed in the MTIX GAAP Financial Statements or on Schedule 3.4(c) hereof,,
MTIX does not have any liabilities, except those incurred in the ordinary course of business since the MTIX Balance Sheet Date. 

 
 

 3.5          Absence
of Material Adverse Change; Distributions.   Except
as set out in Schedule 3.5, since the Balance Sheet Date, MTIX has operated only in the ordinary
course and since that date, there has not been any change in the business, operations, results of operations, assets or condition
(financial or otherwise) of MTIX that has had or might reasonably be expected to have a Material Adverse Effect. 
Without limiting the generality of the foregoing, except as set forth on Schedule 3.5 since
that date: 

 
 

 (a)          MTIX
has not, in a single transaction or a series of related transactions, sold, transferred, or disposed of any of its assets, tangible
or intangible, which, individually or in the aggregate, have a fair market value in excess of $5,000, other than sale of products
and services in the ordinary course of business; 

 
 

 (b)          MTIX
has not entered into any Material Contract; 

 
 

 (c)          no
Person (including MTIX and the MTIX Shareholders) has accelerated, terminated, modified, or cancelled any Material Contract; 

 
 

 (d)          MTIX
has not incurred any loans or borrowings in excess of US$ 25,000 or granted or suffered to exist any Encumbrance upon any of its
assets, tangible or intangible; 

 
 

 (e)          MTIX
has not made any capital expenditure (or series of related capital expenditures) either involving more than $100,000 or outside
the ordinary course of business; 

 
 

 (f)          MTIX
has not made any capital investment in,  any
loan to, or any acquisition of the securities or (otherwise than in the ordinary course of business) assets of, any other Person
(or series of related capital investments, loans, and (otherwise than in the ordinary course of business) acquisition in excess
of US$ 25,000; 

 
 

 (g)          MTIX
has not issued any note, bond, or other debt security or created, incurred, assumed, or guaranteed
or otherwise become liable for any indebtedness except in the ordinary course of business; 

   

  
- 9 -

 
 

 (h)          MTIX
has not cancelled, compromised, waived, or released any right or claim; 

 
 

 (j)        
  MTIX has not licensed, sold or otherwise
transferred any rights under or with respect to any Intellectual Property; 

 
 

 (k)          there
has been no change made or authorized in the MTIX Charter Documents; 

 
 

 (l)         
 MTIX has not issued any of its capital stock,
or granted any options, warrants, or other rights to purchase or obtain (including upon conversion, exchange, or exercise) any
of its capital stock; 

 
 

 (m)         MTIX
has not directly or indirectly, (i) made, paid or declared any dividend or distribution in respect of its capital stock, or repurchased
or redeemed any such capital stock (ii) paid any interest or principal in respect of, or otherwise made any payment in connection
with, any indebtedness, (iii) paid any management or other fees to the MTIX Shareholders or any of their respective Affiliates,
(iv) made any other payment in respect of any liability, obligation or commitment to the MTIX Shareholders or any of their respective
Affiliates, (v) assumed, guaranteed, or otherwise become liable (directly or contingently) for any liability or obligation of
the MTIX Shareholders or any of their respective Affiliates, or (vi) entered into any other transaction, commitment or understanding
with the MTIX Shareholders or any of their respective Affiliates or for the benefit of any of them; 

 
 

 (n)          MTIX
has not experienced any damage or destruction to or loss of (whether or not covered by insurance) to its property in excess of
$5,000 in the aggregate; 

 
 

 (o)          MTIX
has not entered into any employment contract or collective bargaining agreement, written or oral, or modified the terms of any
existing such contract or agreement; 

 
 

 (p)          MTIX
has not granted any increase in the base compensation of any of its directors, officers, or employees outside the ordinary course
of business; 

 
 

 (q)          MTIX
has not adopted, amended, modified, or terminated any bonus, profit-sharing, incentive, severance, or other plan, contract, or
commitment for the benefit of any of its directors, officers, or employees (or taken any such action with respect to any other
Employee Benefit Plan); 

 
 

 (r)          MTIX
has not made any other change in employment terms for any of its directors, officers, and employees outside the ordinary course
of business; 

 
 

 (s)          MTIX
has not made or pledged to make any charitable or other capital contribution; 

 
 

 (t)          there
has not been any other occurrence, event, incident, action, failure to act, or transaction outside the ordinary course of business
involving MTIX that would have a Material Adverse Effect; 

 
 

 (u)          MTIX
has not made an election with respect to Taxes that was not previously made, nor has it changed or revoked an election with respect
to Taxes that was previously made; and 

 
 

 (v)          MTIX
has not committed or agreed, orally or in writing, to any of the foregoing and the giving of notice by any Person or the passage
of time will not result in the occurrence of any of the foregoing. 

 
 

 3.6          Customer
and Suppliers. Schedule 3.6 sets forth, for the fiscal
periods ended May 31, 2016 and the six months ended November 30, 2016, the top ten major customers and the top ten major suppliers
of MTIX indicating materials and/or services supplied or purchased and a list identifying unwritten key arrangements with same,
including rebate and incentive arrangements. 

 
 

 3.7          Accounts
Receivable.  MTIX has provided to AIC a copy of the schedule of its accounts receivable as of May 31, 2016 and
November 30, 2016, together  with an aging
analysis. 

 
 

 3.8          No
Litigation; Compliance with Laws; Permits; Consents; Defaults. 

   

  
- 10 -

   

 (a)          Other
than as set forth on Schedule 3.8(a), there is no outstanding claim or other Proceeding pending by or against, or, to the knowledge
of the MTIX Shareholders, threatened by or against, MTIX (including at law or in equity or before or by any Governmental Authority
or arbitrator), or affecting or relating to, the MTIX Shares or the assets of MTIX in which an unfavorable outcome would have
a Material Adverse Effect on MTIX. 

 
 

 (b)          MTIX
is in compliance in all material respects with all applicable laws. Without limiting the generality of the foregoing, MTIX is
in compliance in all material respects with all laws relating to (i) employment, including any relating to workers’ compensation,
equal employment opportunity, nondiscrimination, immigration, wages, hours, benefits, collective bargaining, and the payment of
social security and similar taxes and (ii) the environment, health, and safety, in each case, applicable to MTIX, its business
and its assets and properties. 

 
 

 (c)          No
written notice has been received by the MTIX Shareholders or MTIX during the past three years alleging any violation of law by
MTIX. 

 
 

 (d)          MTIX
has all Permits, including without limitation all Permits that are required pursuant to environmental, health or safety laws for
the occupation of its facilities used or held for use by MTIX and the operation of its business, necessary for the conduct and
operation of its businesses as currently conducted, including owning and using the assets and properties of MTIX in the manner
MTIX currently owns and uses the same (“Material Permits”). The Material Permits are listed in Schedule 3.8 and
are valid and in full force and effect.  MTIX is in material compliance  with
the terms and conditions of all Material Permits. No Permit and no notice to any Governmental Authority is required on the part
of the MTIX Shareholders in connection with the execution, delivery and performance of this Agreement or any Transaction Document. 

 
 

 (e)          No
notification to and no authorization, consent, approval, license, registration, declaration, filing or order of any Governmental
Authority is required by or with respect to, MTIX and/or the MTIX Shareholders (collectively, the
“MTIX Parties”) in connection with the execution, delivery and performance of this Agreement and/or the Transaction
Documents by the signatories hereto.  No notice has been issued and no investigation, inquiry or review is pending or, to
the knowledge of any of the MTIX Parties, threatened by any Governmental Authority with respect to (i) any alleged violation by
MTIX of any law, ordinance, regulation, order, policy, guideline or any other Legal Requirement of any Governmental Authority,
or (ii) any alleged failure to have all permits, certificates, licenses, approvals and other authorizations required in connection
with the operation of the business of MTIX.  There are no defaults, and none of the MTIX Shareholders has any knowledge of
any reason why any default will occur hereafter, whether as a result of the consummation of the Exchange or the other transactions
contemplated hereby (the “Transactions”) or otherwise, in any obligation to be performed by any party to a
Contract to which MTIX is a party or by which it is bound which would have a Material Adverse Effect. 

 
 

 3.9          Taxes.  
Except as set forth in Schedule 3.9: 

 
 

 ( a)          MTIX
has filed with the appropriate Taxing Authorities all Tax returns that it was or is required to file. All such Tax returns were
correct and complete in all material respects. All Taxes owed by MTIX that are or have been due and payable have been paid. 
MTIX is not currently the beneficiary of any extension of time within which to file any Tax Return. In the past seven years, no
claim has ever been made by an authority in a jurisdiction where MTIX does not file Tax Returns that it is or may be subject to
taxation by that jurisdiction, and, to the knowledge of MTIX, there is no basis for such a claim.  There are no Encumbrances
on any of the assets of MTIX that relate to Taxes (other than Taxes not yet due and payable). 

 
 

 (b)          MTIX
has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee,
independent contractor, creditor, shareholder, or other third party. 

 
 

 (c)          There
is no dispute or claim concerning any Tax Liability of MTIX either (i) claimed or raised by any authority in writing to MTIX or
(ii) as to which MTIX has knowledge based upon personal contact with any agent of such authority. 

 
 

 (d)          MTIX
has not waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment
or deficiency. 

 
 

 The
unpaid Taxes of MTIX (i) did not, as of November 30, 2016, exceed its reserve for Tax Liability (rather than any reserve for deferred
Taxes established to reflect timing differences between book and Tax income) set forth on the face of the November 30, 2016 Balance
Sheet and (ii) will not exceed that reserve as adjusted for the passage of time through the Closing Date in accordance with the
past custom and practice of MTIX in filing its Tax Returns. 

   

  
- 11 -

 
 

 3.10        Material
Contracts.  Schedule 3.10 contains a true, complete and correct list of each Material Contract. 
The MTIX Shareholders have made available to AIC true complete and correct copies of all written Material Contracts. All Material
Contracts are in writing. To the knowledge of the MTIX Shareholders, each of the Material Contracts is valid and in full force
and effect.  Except for defaults that, individually or in the aggregate, have not had and will not have a Material Adverse
Effect (a) neither MTIX nor, to the knowledge of the MTIX Shareholders, any other party to any Material Contract is in default
under the terms thereof and (b) there has been no written claims of any material default. No party to any Material Contract has
notified the MTIX Shareholders of its intention to cease to perform any material obligations required to be performed by it thereunder
or withhold any material payment required to be made by it thereunder. 

 
 

 3.11        Labor
Matters.  During the past three years, there has not been, (a) any strike, slowdown, picketing or organized work stoppage
by any of the Employees, (b) any proceeding pending against or, to the knowledge of the MTIX Shareholders, threatened against,
MTIX relating to the alleged material violation of any law pertaining to labor relations or other employment matters, including
any charge or complaint filed by an employee or union with any Governmental Authority, (c) any application for certification of
a collective bargaining representative or other effort to organize any of its respective Employees for the purpose of forming
or joining a union, or (d) any lockout of any Employees by MTIX. 

 
 

 3.12        Employee
Benefit Plans and Benefit Arrangements.  MTIX has provided to AIC copies of all existing Employee Benefit Plans
and all such Employee Benefit Plans are listed on Schedule 3.12. 

 
 

 (a)          Each
Employee Benefit Plan (and each related trust, insurance contract, or fund) complies in form and in operation in all material
respects with the applicable requirements of the  applicable laws in England governing pensions and other Employee Benefit
Plans. 

 
 

 (b)          MTIX’s
execution of, and the consummation of the transactions contemplated by this Agreement will not (i) entitle any current or former
employee, officer, director, agent or consultant of MTIX to severance pay, unemployment compensation or any other payment, except
as expressly provided in this Agreement or (ii) accelerate the time of payment or vesting, or increase the amount of any compensation
or other benefit (whether under any Employee Benefit Plan or otherwise) to any such employee, officer, director, agent or consultant. 

 
 

 (c)          There
are no pending claims by or on behalf of any Employee Benefit Plan or by or on behalf of any individual participant or beneficiary
of an Employee Benefit Plan alleging breach of fiduciary duty or breach of any provision of the Employee Benefit Plan to pay benefits
on the part of MTIX or any of its officers, directors or employees, nor to the knowledge of the MTIX Shareholders, is there any
threatened claim or any basis for such a claim. 

 
 

 3.13        Personal
Property; Intellectual Property Rights. 

 
 

 (a)          All
of the property other than real property (other than Intellectual Property) reflected in the November 30, 2016 Balance Sheet is
in existence (except for dispositions made in the ordinary course of business since the date of the November 30, 2016 Balance
Sheet). MTIX has good and marketable title to all of its assets   and
properties, free and clear of all Encumbrances and
such assets and properties consist of all of the assets and properties required by MTIX to conduct its business consistent with
past practice. To the knowledge of the MTIX Shareholders, there are
no material defects, latent or patent, in its personal property. 

 
 

 (b)          Except
as set out in Schedule 3.13, which qualifies the whole of this Section 3.13(b), MTIX owns
or has the right to use pursuant to license, sublicense, agreement, or permission all Intellectual Property used for the operation
of MTIX’s business as presently conducted.  Each item of Intellectual Property owned or used by MTIX immediately prior
to the Closing hereunder will be owned or available for use by MTIX on identical terms and conditions immediately subsequent to
the Closing hereunder.  To the knowledge of Minority MTIX Shareholders, MTIX has taken
all necessary and desirable action to maintain and protect each item of Intellectual Property that it owns or uses, provided that
this representation shall be qualified, in the case of the Minority Shareholders, to their actual knowledge.  Schedule
3.14(b) sets forth a true, correct and complete list (together with description, registration number and registration date) of
each item of Intellectual Property owned by MTIX or used in the operation of MTIX business, and, to the extent registered with
any Governmental Authority, the name, date of registration and registration number of each such item. MTIX
has not interfered with, infringed upon, misappropriated, or violated any rights in Intellectual Property of third parties in
any material respect, and has not within the past six years received any claim, demand, or notice alleging any such interference,
infringement, misappropriation, or violation thereof, provided that this representation shall be qualified, in the case of the
Minority Shareholders, to their actual knowledge.  To the knowledge of the MTIX Shareholders, no third party has interfered
with, infringed upon, misappropriated, or violated in any material respect any Intellectual Property of MTIX.  The
Intellectual Property of MTIX constitutes all the Intellectual Property that is material to the conduct of the business of MTIX
as now conducted.  All software used or held for use by MTIX is owned by MTIX or used or held
for use in accordance with all applicable Contracts, and MTIX has paid all amounts required to be paid in connection therewith. 
MTIX has taken reasonable steps to protect its Confidential Information and trade secrets.  Each independent contractor
who has provided material services to MTIX, and each employee who has provided material services to MTIX otherwise than in the
normal course of his or her employment, has agreed to assign to MTIX all inventions developed in the course of such services. 

   

  
- 12 -

 
 

 3.14        Insurance. 
Schedule 3.14 contains a true, correct and complete list of all insurance policies pursuant to which MTIX is insured
excluding, however, any insurance policies related to Employee Benefit Plans or Benefit Arrangements .
All of MTIX’s insurance policies are current fully paid in accordance with their terms. Except for
routine non-material claims by Employees, there are no pending claims under such insurance policies. MTIX has not failed
to give any material notice or present any material claim under any such policy in a due and timely fashion. There
are no outstanding unpaid claims by MTIX under any such policy. MTIX has not received a notice of cancellation or non-renewal
of any such policy. 

 
 

 3.15        Employees. 
Schedule 3.15 contains a true, correct and complete list of the name, start date, current annual salary,
amount of any bonuses paid for the fiscal year ended May 31, 2016, expense accounts, other special benefits or perquisites (including
the use of an automobile), and the amounts of accrued sick days and vacation days of each Employee.  To the knowledge of
the MTIX Shareholders, no Employee recently has threatened to terminate his or her employment. Neither MTIX nor, to the knowledge
of the MTIX Shareholders, any Employee, is restricted, directly or indirectly, by any Contract, including any agreement regarding
confidentiality, from carrying on the business of MTIX anywhere in the world.  There are no claims pending or, to the knowledge
of the MTIX Shareholders, threatened regarding compensation (including but not limited to claims related to sales commissions,
minimum wage or overtime) or any other conditions or terms of employment or the termination thereof concerning the business of
MTIX.  There have been no promises or undertakings by MTIX to continue the employment of any employee or contractor for a
fixed or stated duration or to continue or increase the compensation of any employee or contractor (otherwise than as provided
in the relevant contract).  MTIX has no liability with respect to independent contractors who perform or have performed services
for MTIX under any Employee Benefit Plan or other benefit arrangements of any kind whatsoever or under applicable law.  MTIX
has kept complete and up-to-date employment records required by applicable law to be created and maintained in connection with
its business.  All of the individuals who provide services to MTIX are employees of MTIX. 

 
 

 3.16        Affiliated
Transactions.  

 
 

 (a)          MTIX
has directly and indirectly conducted or otherwise operated its business only through assets and properties owned or leased by
it. 

 
 

 (b)          Except
as set forth in Schedule 3.16, MTIX does not owe any amount to, or have any Contract with, (other than amounts reimbursable
for expenses and salary arising in the ordinary course of business to such individuals and consistent with past practices), any
member of the MTIX Shareholders or their Affiliates or any of its other directors, officers, employees or consultants. 

 
 

 (c)          Except
as set forth in Schedule 3.16, none of the MTIX Shareholders or their respective Affiliates owns any asset or property
used by MTIX. 

 
 

 3.17        Investment
Representations. Each of the MTIX Shareholders severally makes the following representations and warranties . 

 
 

 (a)          The
MTIX Shareholder is, and on each date on which the MTIX Shareholder continues to own restricted Securities will be, an “Accredited
Investor” as defined in Rule 501(a) under the Securities Act. In general, an “Accredited Investor” is deemed
to be an institution with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 (excluding the
value of such person’s principal residence) or annual income exceeding $200,000 or $300,000 jointly with his spouse. 
 

 
 

 (b)          The
MTIX Shareholder hereby acknowledges and represents that (a) the MTIX Shareholder has knowledge and experience in business and
financial matters, prior investment experience, including investment in securities that are non-listed, unregistered and/or not
traded on a national securities exchange or the MTIX Shareholder has employed the services of a “purchaser representative”
(as defined in Rule 501 of Regulation D), attorney and/or accountant to read all of the documents furnished or made available
by AIC to the MTIX Shareholder to evaluate the merits and risks of such an investment on the MTIX Shareholder’s behalf;
(b) the MTIX Shareholder recognizes the highly speculative nature of this investment; and (c) the MTIX Shareholder is able to
bear the economic risk that the MTIX Shareholder hereby assumes. 

   

  
- 13 -

 
 

 (c)          The
MTIX Shareholder hereby acknowledges receipt and careful review of this Agreement, and any documents which may have been made
available upon request as reflected therein (collectively referred to as the “Offering Materials ”)
and hereby represents that the MTIX Shareholder has been furnished by AIC all information regarding AIC and any additional information
that the MTIX Shareholder has requested or desired to know. 

 
 

 (d)          In
making the decision to acquire the Securities the MTIX Shareholder has relied solely upon the information provided by AIC in the
Offering Materials.   To the extent
necessary, the MTIX Shareholder has retained, at its own expense, and relied upon appropriate professional advice regarding the
investment, tax and legal merits and consequences of this Agreement and the acquisition of the Securities hereunder. The
MTIX Shareholder disclaims reliance on any statements made or information provided by any person or entity in the course of the
MTIX Shareholder’s consideration of an investment in the Securities other than the Offering Materials. 

 
 

 (e)          The
MTIX Shareholder hereby represents that
the MTIX Shareholder, either by reason of the MTIX Shareholder’s business or financial experience or the business or financial
experience of the MTIX Shareholder’s professional advisors (who are unaffiliated with and not, directly or indirectly, compensated
by AIC or any affiliate or selling agent of AIC), has the capacity to protect the MTIX Shareholder’s own interests in connection
with the transaction contemplated hereby. 

 
 

 (f)          The
MTIX Shareholder understands that the Securities have not been registered under the Securities Act
or under any state securities or “blue sky” laws and agrees not to sell, pledge, assign or otherwise transfer or dispose
of the Securities unless they are registered under the Securities Act and under any applicable state securities or “blue
sky” laws or unless an exemption from such registration is available. 

 
 

 (g)          The
MTIX Shareholder understands that the Securities have not been registered under the Securities Act by reason of a claimed exemption
under the provisions of the Securities Act that depends, in part, upon the MTIX Shareholder’s investment intention. 
In this connection, the MTIX Shareholder hereby represents that the MTIX Shareholder is acquiring the Securities for the MTIX
Shareholder’s own account for investment and not with a view toward the resale or distribution to others. Notwithstanding
the foregoing, however, by making the representations herein, such MTIX Shareholder does not agree, or make any representation
or warranty, to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities
at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act. 

 
 

 (h)          The
MTIX Shareholder understands that the AIC Common Stock is not currently traded or quoted on any national securities exchange and
that there is no market for the AIC Common Stock other than the OTC Pink Sheets operated by the OTC Markets Group on which the
AIC Common Stock is quoted under the symbol “AVLP.”  The MTIX Shareholder understands that even if a public
market develops for the Common Stock, Rule 144 (“Rule 144”) promulgated under the Securities Act requires for
non-affiliates, among other conditions, a six month holding period prior to the resale of securities acquired in a non-public
offering without having to satisfy the registration requirements under the Securities Act.  The MTIX Shareholder understands
and hereby acknowledges that AIC is under no obligation to register any of the Securities under the Securities Act or any state
securities or “blue sky” laws other than as set forth herein or under the Registration Rights Agreement. 

 
 

 (i)          The
MTIX Shareholder consents to the placement of a legend on any certificate or other document evidencing the Securities (and the
underlying Conversion Shares)  that such Securities have not been registered under the Securities Act or any state securities
or “blue sky” laws and setting forth or referring to the restrictions on transferability and sale thereof contained
in this Agreement.  The MTIX Shareholder is aware that AIC will make a notation in its records with respect to the restrictions
on the transferability of such Securities. The legend to be placed on each certificate shall be in a form substantially similar
to the following: 

 
 

 THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS.  SUCH SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES AND
MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FILED BY THE ISSUER WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION COVERING SUCH SECURITIES UNDER THE SECURITIES ACT
OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED. 

   

  
- 14 -

 
 

 (j)          The
MTIX Shareholder hereby represents that the address of the MTIX Shareholder furnished by MTIX Shareholder on the signature page
hereof is the MTIX Shareholder’s principal residence if MTIX Shareholder is an individual or its principal business address
if it is a corporation or other entity. 

 
 

 (k)          The
MTIX Shareholder represents that the MTIX Shareholder has full power and authority (corporate, statutory and otherwise) to execute
and deliver this Agreement and to acquire the Securities.  This Agreement constitutes the legal, valid and binding obligation
of the MTIX Shareholder, enforceable against the MTIX Shareholder in accordance with its terms. 

 
 

 (l)          
 If the MTIX Shareholder is a corporation, partnership,
limited liability company, trust, employee benefit plan, individual retirement account, Keogh Plan, or other tax-exempt entity,
it is authorized and qualified to invest in AIC and the person signing this Agreement on behalf of such entity has been duly authorized
by such entity to do so. 

 
 

 (m)         The
MTIX Shareholder represents that he is not a Registered Representative of a Financial Industry Regulatory Authority (“FINRA”)
member firm. 

 
 

 (n)          The
MTIX Shareholder acknowledges that at such time, if ever, as the Securities are registered, sales of the Securities will be subject
to state securities laws. 

 
 

 (o)          The
MTIX Shareholder agrees not to issue any public statement with respect to the MTIX Shareholder’s acquisition of shares of
AIC Common Stock or the terms of this Agreement or any other agreement or covenant between him and AIC without AIC’s prior
written consent, except such disclosures as may be required under applicable law or under any applicable order, rule or regulation. 

 
 

 (p)          The
MTIX Shareholder agrees to hold AIC and its directors, officers, employees, affiliates, controlling persons and agents and their
respective heirs, representatives, successors and assigns harmless and to indemnify them against all liabilities, costs and expenses
incurred by them as a result of (a) any sale or distribution of the Securities by the MTIX Shareholder in violation of the Securities
Act or any applicable state securities or “blue sky” laws; or (b) any false representation or warranty or any breach
or failure by the MTIX Shareholder to comply with any covenant made by the MTIX Shareholder in this Agreement (including the Confidential
Investor Questionnaire contained in Article VII herein) or any other document furnished by the MTIX Shareholder to any of the
foregoing in connection with this transaction. 

 
 

 3.18        Real
Property. 

 
 

 (a)          MTIX
does not own, directly or indirectly, any freehold interest in real property. 

 
 

 (b)          Schedule
3.19 sets forth a true and correct list of all real property leased or subleased to MTIX.  MTIX has delivered to AIC
correct and complete copies of the leases and subleases referred to in Schedule 3.19. With respect to each lease and sublease
listed in Schedule 3.19: 

 
 

 (i)
all facilities leased or subleased by MTIX has received all approvals of governmental authorities (including licenses and permits)
required in connection with the operation thereof and have been operated and maintained in accordance with applicable laws, rules,
and regulations; and 

 
 

 (ii)
all facilities leased or subleased thereunder are supplied with utilities and other services necessary for the operation of said
facilities. 

 
 

 3.19        Title
to the MTIX Shares.  The MTIX Shareholders are the true and lawful registered holders and beneficial owners, of the MTIX
Shares listed opposite the name of each of the MTIX Shareholders on Schedule 3.19, free and clear of all Encumbrances.
Upon the consummation of the Exchange, AIC will receive good and valid title to all of the MTIX Shares, free and clear of all
Encumbrances. Other than the rights and obligations arising under this Agreement, none of the MTIX Shares is subject to any rights
of any other Person to acquire the same. 

   

  
- 15 -

   

 3.20        Capital
Stock.  Except for this Agreement and the Transaction Documents, there exists no outstanding options, warrants, subscription
or other rights or arrangements relating to, or with respect to, any equity interest in MTIX. MTIX is not a participant in any
joint venture or partnership with any other Person. MTIX has no subsidiaries or any equity investment in any other Person. 
The authorized share capital of MTIX is set forth on Schedule 3.21, which also sets forth the name and address of each holder
of MTIX Shares, and the number of shares held, beneficially or of register, by each such Person. Except as set forth on Schedule
3.20, MTIX has not authorized or issued any preference shares. All of the issued shares in the capital of MTIX is duly authorized
and validly issued and fully paid.  None of such shares was issued in violation of any pre-emptive or preferential right. 

 
 

 3.21     
  Officers and Directors. 
Schedule 3.21 lists all of the officers and directors of MTIX as of the date of this Agreement. 

 
 

 3.22        Powers
of Attorney; Bank and Security Accounts.  MTIX has not given any power of attorney to any Person other than its officers
and directors in their capacities as such, including with respect to any of the assets or properties of MTIX. None of the MTIX
Shareholders has given any power of attorney to any Person in respect of any of the MTIX Shares. The only bank accounts and security
accounts of MTIX are those listed in Schedule 3.22. 

 
 

 3.23        Breach
of Warranty.  Each of the MTIX Shareholders severally warrants to the others that he is not aware of any fact, matter
or thing that is inconsistent with any of the statements set out in this Article III or which would render any such statement
false, inaccurate or misleading. 

 
 

 ARTICLE
IV 

 CERTAIN
COVENANTS AND AGREEMENTS 

 
 

 4.1          Covenants
of MTIX Shareholders.   Each of the MTIX Shareholders severally (not jointly and severally) covenants and agrees
that, during the period from the date of this Agreement until the earlier of the Closing Date or the date of termination of this
Agreement, he will take such steps as lie within his or its powers to procure that MTIX shall, other than as contemplated by this
Agreement or for the purposes of effecting the Exchange and Closing pursuant to this Agreement or other than to the extent no
Material Adverse Effect would be incurred, conduct its business and the business of MTIX, only as presently operated and solely
in the ordinary course, and consistent with such operation.  In addition to the foregoing and, in connection therewith, each
of the MTIX Shareholders severally (not jointly and severally) undertakes that he shall take such steps as lie within his or its
powers to procure that MTIX does not, without the prior written consent of AIC, do any of the following: 

 
 

 (a)          amend
the MTIX Charter Documents; 

 
 

 (b)          pay
or agree to pay to any employee, officer or director compensation that is in excess of the current compensation level of such
employee, officer or director other than salary increases or payments made in the ordinary course of business or as otherwise
provided in any contracts or agreements with any such employees; 

 
 

 (c)          merge
or consolidate with any other entity or acquire or agree to acquire any other entity; 

 
 

 (d)          sell,
transfer, or otherwise dispose of any material assets required for the operations of MTIX and MTIX’s business except in
the ordinary course of business, consistent with past practices; 

 
 

 (e)          create,
incur, assume, or guarantee any material indebtedness for money borrowed except in the ordinary course of business, or create
or suffer to exist any mortgage, lien or other encumbrance on any of  its material assets, except those in existence on the
date hereof or those granted pursuant to agreements in effect on the date of this Agreement or provided to or by AIC and/or any
of its Affiliates; 

 
 

 (f)     
     make any
material capital expenditure or series of capital expenditures except in the ordinary course of business; 

 
 

 (g)          declare
or pay any dividends on or make any distribution of any kind with respect to the MTIX Shares; 

 
 

 (h)          fail
to notify AIC immediately in the event of any material loss of or damage to any of MTIX and MTIX material assets; 

 
 

 (i)       
   fail to pay premiums
in respect of all present insurance coverage of the types and in the amounts as are in effect as of the date of this Agreement; 

   

  
- 16 -

 
 

 (j)          fail
to seek to preserve the present material employees, reputation and business organization of MTIX’s relationship with its
significant clients and others having business dealings with it; 

 
 

 (k)          issue
any additional MTIX Shares or share capital of MTIX or take any action affecting the capitalization of MTIX or the Fully-Diluted
MTIX Shares; 

 
 

 (l)        
  fail to use commercially
reasonable efforts to comply with and not be in default or violation under any known law, regulation, decree or order applicable
to MTIX’s business, operations or assets where such violation would have a Material Adverse Effect; 

 
 

 (m)          grant
any severance or termination pay to any director, officer or any other employees of MTIX, other than pursuant to agreements in
effect on the date of this Agreement or as otherwise disclosed in the documents delivered pursuant to this Agreement; 

 
 

 (n)          change
any of the accounting principles or practices used by it, except as may be required as a result of a change in law or in GAAP,
whether in respect of Taxes or otherwise; 

 
 

 (o)          terminate
or waive any material right of substantial value other than in the ordinary course of business; or 

 
 

 (p)          enter
into any material contract or commitment other than in the ordinary course of business. 

 
 

 4.2          Covenants
of AIC.  AIC covenants and agrees that, during the period from the date of this Agreement until the earlier of the Closing
Date or the date of termination of this Agreement, AIC shall, other than as contemplated by this Agreement or for the purposes
of effecting the Exchange and Closing pursuant to this Agreement, conduct its business as presently operated and solely in the
ordinary course, and consistent with such operation, and, in connection therewith, without the written consent of the Majority
Shareholder, AIC shall procure that AIC shall not do any of the following: 

 
 

 (a)          except
as otherwise contemplated by this Agreement, amend its Certificate of Incorporation or Bylaws; 

 
 

 (b)          pay
or agree to pay to any employee, officer or director compensation that is in excess of the current compensation level of such
employee, officer or director other than salary increases or payments made in the ordinary course of business or as otherwise
provided in any contracts or agreements with any such employees; 

 
 

 (c)          merge
or consolidate with any other entity or acquire or agree to acquire any other entity; 

 
 

 (d)          create,
incur, assume, or guarantee any indebtedness for money borrowed except in the ordinary course of business, or create or suffer
to exist any mortgage, lien or other Encumbrance on any of its assets, except those in existence on the date hereof or those granted
pursuant to agreements in effect on the date of this Agreement or provided to or by MTIX and MTIX and/or any of their respective
Affiliates; 

 
 

 (e)          make
any capital expenditure or series of capital expenditures except in the ordinary course of business; 

 
 

 (f)          declare
or pay any dividends on or make any distribution of any kind with respect to the AIC shares; 

 
 

 (g)          fail
to pay premiums in respect of all present insurance coverage of the types and in the amounts as are in effect as of the date of
this Agreement; 

 
 

 (h)          fail
to seek to preserve the present employees, reputation and business organization of AIC and AIC’s relationship with its clients
and others having business dealings with it; 

 
 

 (i)        
  except as contemplated by
this Agreement, change its outstanding capital stock or issue any  shares or take any action affecting the capitalization
of AIC; 

   

  
- 17 -

 
 

 (j)         
 fail to use commercially reasonable
efforts to comply with and not be in default or violation under any law, regulation, decree or order applicable to AIC’s
business or operations where such violation would have a Material Adverse Effect; 

 
 

 (k)          grant
any severance or termination pay to any director, officer or any other employees of AIC, other than pursuant to agreements in
effect on the date of this Agreement or as otherwise disclosed in the documents delivered pursuant to this Agreement; 

 
 

 (l)        
  change any of the accounting
principles or practices used by it, except as may be required as a result of a change in law or in GAAP, whether in respect of
Taxes or otherwise; 

 
 

 (m)         terminate
or waive any right of substantial value other than in the ordinary course of business; or 

 
 

 (n)          shall
not enter into any material contract or commitment other than in the ordinary course of business. 

 
 

 4.3          AIC
Actions at Closing. 

 
 

 (a)          Management
Team.  At Closing, MTIX shall commence paying salaries in arrears as set forth in   the
Employment Agreement and any other employment agreement entered into in connection with the Exchange. 

 
 

 (b)          Board
of Directors.  Provided that MTIX shall have delivered to AIC completed officer’s and  director’s
questionnaires by two individuals selected by the Majority Shareholder (the “MTIX Designees”) to AIC and its
counsel no later than five (5) business days prior to Closing, which questionnaires shall have been approved by AIC or its counsel,
AIC shall take all action necessary to have, effective immediately upon the Closing, the MTIX Designees
appointed as members of the board of directors of AIC.  The membership of the board of director of MTIX shall be the same
as the board of directors of AIC. 

 
 

 4.4          Additional
Covenants and Agreements.  The Parties hereto do hereby mutually covenant and agree as to the matters set forth in Sections
4.4 below: 

 
 

 (a)          Announcement. 
No Party shall issue any press release or otherwise make any public statement with respect to this Agreement or the transactions
contemplated hereby without the prior consent of the other Parties hereto (which consent shall not be unreasonably withheld or
delayed), except as may be required  by
Applicable Law or securities regulation.  Notwithstanding anything in this Section 4.4 to the
contrary, the Parties will, to the extent practicable, consult with each other before issuing, and provide each other the opportunity
to review and comment upon, any such press release or other public statements with respect to this Agreement and the transactions
contemplated hereby whether or not required by Applicable Law. 

 
 

 (b)          Notification
of Certain Matters.  Each of the MTIX Shareholders shall take such steps as lie within their respective powers to procure
that MTIX shall give prompt written notice to AIC, and AIC shall give prompt written notice to MTIX and the MTIX Shareholders,
of the relevant Party or Parties becoming aware of: 

 
 

 (i)          The
occurrence, or non-occurrence, of any event the occurrence, or non-occurrence, of which would be reasonably likely to cause any
representation or warranty contained in this Agreement to be untrue or inaccurate in any material respect at or prior to the Closing
Date; and 

 
 

 (ii)          Any
material failure of MTIX, on the one hand, or AIC, on the other hand, to comply with or satisfy any covenant, condition or agreement
to be complied with or satisfied by it hereunder. 

   

 (c)          Reasonable
Efforts.  Before Closing, upon the terms and subject to the conditions of this Agreement, the Parties agree to use their
respective reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary,
proper or advisable (subject to applicable laws) and with their respective policies to consummate and make effective the Exchange
and other transactions contemplated by this Agreement as promptly as practicable including, but not limited to: 

 
 

 (i)          The
preparation and filing of all forms, registrations and notices required to be filed to consummate the Exchange, including without
limitation, any approvals, consents, orders, exemptions or waivers by any third party or governmental entity; and 

   

  
- 18 -

 
 

 (ii)         The
satisfaction of the other Party's conditions precedent to Closing. 

 
 

 (d)          Access
to Information. 

 
 

 (i)          Inspection
by MTIX Shareholders.  AIC will make available for inspection by MTIX Shareholders and their advisers, during normal
business hours and in a manner so as not to interfere with normal business operations, all of AIC’s records (including tax
records), books of account, premises, contracts and all other documents in AIC’s possession or control that are reasonably
requested by MTIX Shareholders or their advisers to inspect and examine the business and affairs of AIC.  AIC will cause
its managerial employees and regular independent accountants to be available upon  reasonable
advance notice to answer questions of MTIX Shareholders concerning the business and affairs of AIC.  MTIX Shareholders will
treat and hold as confidential any information they receive from AIC in the course of the reviews contemplated by this Section
4.4(d).  No examination by MTIX Shareholders will, however, constitute a waiver or relinquishment by MTIX Shareholders of
its respective rights to rely on AIC’s covenants, representations and warranties made herein
or pursuant hereto. 

 
 

 (ii)         Inspection
by AIC.  MTIX Shareholders will make available for inspection by AIC, during normal business hours and in a manner so
as not to interfere with normal business operations, all of MTIX’s records (including tax records), books of account, premises,
contracts and all other documents in MTIX’s possession or control that are reasonably requested by AIC to inspect and examine
the business and affairs of MTIX.  MTIX will cause its managerial employees and regular independent accountants to be available
upon reasonable advance notice to answer questions of AIC concerning the business and affairs of MTIX.  AIC will treat and
hold as confidential any information it receives from MTIX in the course of the reviews contemplated by this Section  4.4(d). 
No examination by AIC will, however, constitute a waiver or relinquishment by AIC of its rights to
rely on MTIX’s and the MTIX Shareholders’ covenants, representations and warranties made herein or pursuant hereto. 

 
 

 (e)          Certificate
of Designation.  At the Closing Date of the Exchange, AIC shall cause to be filed with the Secretary of State of the
State of Nevada, the Certificate of Designation for the AIC Class B Preferred Stock. 

 
 

 (f)          AIC
Stock Option Plan. At the Closing Date of the Exchange, AIC shall have adopted the Plan in the form of Exhibit F annexed
hereto, and shall have issued 531,919 MTIX Management Group Options in the form of Exhibit G annexed hereto. 

 
 

 (g)          Notice
of Developments.  Each Party shall give prompt written notice to the others of any development causing a breach of any
of its representations and warranties contained in this Agreement.  No disclosure by any Party pursuant to this Section 4.4(g),
however, shall be deemed to amend or supplement the Disclosure Schedule or to prevent or cure any misrepresentation, breach of
warranty, or breach of covenant. 

 
 

 (h)          Non-Competition
and Other Restrictive Covenants Agreement. 

 
 

 (i)          During
the three (3) year period immediately following the Closing Date (the “Restrictive Period”), unless AIC shall
be in default  under this Agreement or
any of the other Transaction Documents, each of the MTIX Shareholders, either by being a Party
hereto, severally agrees with AIC for its own benefit and, separately, with MTIX, not to, directly or indirectly, and to cause
its Affiliates not to, directly or indirectly, whether as an owner, proprietor, shareholder, equity holder, partner, officer,
director, employee, manager or consultant or in any other capacity (collectively, “Capacity”), compete with
the business of MTIX. 

 
 

 (ii)         Unless
AIC shall be in default under this Agreement or any other Transaction Document, during the Restrictive Period, except as
may be for the sole and direct benefit of AIC, each MTIX Shareholder severally agrees not
to directly or indirectly, and to cause his Affiliates not to directly or indirectly, in any Capacity,
(i) solicit, induce, or attempt to induce (or assist or direct any Person to solicit, induce or attempt to induce) any customer
of MTIX (A) to cease doing business in whole or in part with or through AIC or MTIX, or (B) to do business with any other Person
that sells goods or performs services similar to or competitive with those provided by AIC or MTIX (collectively, a “Competitive
Business”); (ii) engage alone or with any other Person in any Competitive Business; (iii) realize any economic benefit
arising from or related to doing any Competitive Business in whole or in part with any current customers of MTIX, or (iv) manufacture,
sell, license, design or attempt to sell or license any Intellectual Property, technology, products, parts, assemblies or components
which could constitute a Competitive Business to or for any customer of MTIX.  At any time during the Restrictive Period,
the term “customer,” as used in this Section 4.4(h), includes any Person (x) who was during the Restrictive Period,
a customer of MTIX, and (y) who was a customer at
any time within the two year period immediately preceding such time. Notwithstanding the foregoing, the passive ownership by any
member of the MTIX Shareholders or their respective Affiliates of less than five percent (5%)
of the securities of any publicly traded entity shall not be deemed a breach of this Section 4.4(h). 

   

  
- 19 -

   

 (iii)        During
the Restrictive Period, each  MTIX Shareholder
severally agrees not to, directly or indirectly, and to cause his Affiliates not to, directly or
indirectly, in any Capacity, (a) make any use of or disclose any Confidential Information or (b) solicit or employ or attempt
to solicit or employ any employees of AIC or MTIX. 

 
 

 (iv)    
   Each MTIX  Shareholder
acknowledges and agrees that (i) each of the covenants set forth in this Section 4.4(h) is necessary for the protection of MTIX
and AIC and that the nature and scope of each such covenant is reasonable and that having regard to those facts those covenants
do not work harshly on him; (ii) there may be no adequate remedy at law for any breach of said covenants, and MTIX and/or AIC
shall therefore be entitled to injunctive relief without the necessity of posting any bond or showing any actual damages in the
event of a breach or threatened breach thereof by any MTIX Shareholder or any of their respective
Affiliates; (iii) to the extent any provisions of this Section 4.4(h) cannot be enforced in full, it shall be enforced to the
maximum extent permitted by law, and any unenforceable provision in whole or in part shall not impair any other provision hereunder;
(iv) without prejudice to the acknowledgement and agreement in (i) above, if any of the provisions of this Section 4.4(h), by
themselves or taken together, shall  be adjudged to go beyond what is reasonable in all the circumstances for the protection
of the legitimate interests of MTIX and AIC but would be adjudged reasonable if part or parts of the wording in this Section 4.4(h)
of words used in this Section 4.4(h) (in the case of those definitions, only to the extent of their application to this Section
4.4(h)) were deleted or amended or qualified or the periods thereof were reduced or the range of products dealt with were thereby
reduced in scope, then the relevant restriction or restrictions shall apply on the basis of such modification or modifications
to this Section 4.4(h) of the words used in this Section 4.4(h) (to the extent only of their application to this Section 4.4(h))
as may either be necessary or as may be reasonably required by either of MTIX or AIC to make it or them valid and effective;
and (v) each MTIX Shareholder acknowledges that he has had the opportunity to take independent advice
on the restrictions in this Section 4.4(h). 

 
 

 4.5          Additional
Covenants and Agreements of MTIX and the MTIX Shareholders.  Each of the MTIX Shareholders severally (not jointly and
severally) covenants and agrees that, during the period from the date of this Agreement until the earlier of the Closing Date
or the date of termination of this Agreement, he will take such steps as lie within his or its powers to procure that MTIX shall,
other than as contemplated by this Agreement or for the purposes of effecting the Exchange and Closing pursuant to this Agreement
or other than to the extent no Material Adverse Effect would be incurred, will: 

 
 

 (a)         
 No Shop .  
From the date of this Agreement until the earlier of (i) the Closing Date, or (ii) the termination of this Agreement, MTIX shall
not, and none of the MTIX Shareholders shall, take any action to solicit, initiate or encourage any offer or proposal or indication
of interest in a merger, consolidation or other business combination involving any equity interest in, or a portion of the assets
of MTIX, other than in connection with the transactions contemplated by this Agreement.  MTIX shall immediately advise the
AIC of the terms of any offer, proposal or indication of interest that it receives or otherwise becomes aware of. 

 
 

 (b)         
Form 8-K Information. MTIX shall   provide
AIC with the MTIX GAAP Financial Statements, pro forma financial information and all footnotes thereto and auditor’s letters
relating to its business as may be requested by AIC in order for AIC to comply with its reporting and disclosure obligations under
the rules and regulations of the Commission (the “Form 8-K Financial Information”), in connection with AIC’s
preparation of its Current Report on Form 8-K, and any amendments thereto, regarding the Closing (the “Closing Form 8-K”). 
MTIX shall, and the MTIX Shareholders shall cause MTIX to, provide such Form 8-K Financial Information promptly so as to allow
AIC and its independent registered public accounting firm (the “Firm”) to: (i) review all financial statements
relating to MTIX as shall be required to be included in said Closing Form 8-K, and (ii) timely file the Closing Form 8-K. 
The appropriate MTIX Shareholders shall in a prompt and timely manner provide the Firm with such management representations as
may be requested by the Firm in connection with its review of any financial statements for MTIX relating to the Closing Form 8-K. 
In addition, the MTIX Shareholders shall also provide to AIC such additional information regarding MTIX that would be reasonably
requested by AIC (the “Form 8-K Business Disclosures”). 

 
 

 (c)      
    Sale of MTIX.
The Parties hereto agree that any  sale
of MTIX or substantially all of its assets by AIC shall require the mutual consent of the holders
of the majority of each of the AIC Class A Preferred Stock and the AIC Class B Preferred Stock. 

 
 

 4.6          Over
the Counter Market.  AIC covenants and agrees with the MTIX Shareholders to have its shares quoted on the Over the Counter
Quotations Bureau Market in the United States prior to the Closing Date. 

   

  
- 20 -

   

 ARTICLE
V 

 CONDITIONS
OF CLOSING 

   

 5.1          Conditions
Precedent to Obligations of AIC.  Consummation of the acquisition of the MTIX Securities by AIC is subject to
the fulfillment by MTIX or waiver by AIC on or prior to the Closing Date of each of the following
conditions: 

 
 

 (a)          The   representations
and warranties contained in Article III hereof (with specific reference, inclusive of the Disclosure
Schedule) shall be true and correct at and as of the Agreement Date and shall be true and correct in all material respects at
and as of the Closing Date as if made on the Closing Date, provided that the representation and warranties that are qualified
as to materiality shall be true and correct in all respects at and as of the Closing Date as if made on the Closing Date. 

 
 

 (b)          The
MTIX Shareholders, the MTIX Management Group and MTIX shall each have performed or complied in all material respects with all
obligations, agreements and covenants required to be performed by them or it hereunder or under the Transaction Documents (as
appropriate) prior to or on the Closing Date, including all covenants and agreements on their part to be performed, as set forth
in Article IV above. 

 
 

 (c)          There
shall not have occurred since the MTIX Balance Sheet Date any Material Adverse Effect or any event which could reasonably be expected
to have a Material Adverse Effect on the business, operations, results of  operations,
condition, financial or otherwise, or prospects of MTIX or its assets and properties. 

 
 

 (d)          The
MTIX Shareholders shall have delivered and/or properly assigned to AIC at or prior to the Closing all of the documents, agreements
and instruments required to be delivered or assigned by any one or more of such Persons pursuant to Section 1.7 of this Agreement. 

 
 

 (e)          No
action, claim, suit, investigation, litigation or proceeding shall be pending or threatened before any court, or governmental
agency or other quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator
wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (i) prevent consummation of any of the transactions
contemplated by this Agreement, (ii) cause any of the transactions contemplated by this Agreement to be rescinded following the
Closing or later consummation thereof, (iii) affect adversely the right of AIC to own the MTIX Shares and to control MTIX and
its business, (iv) affect adversely the right of MTIX to own its assets and to operate its business or any portion thereof 
or (v) be reasonably likely to result in a Material Adverse Effect (and no such injunction, judgment, order, decree, ruling, or
charge shall be in effect). 

 
 

 (f)          all
outstanding options, warrants or other rights to purchase MTIX Shares, and/or all outstanding notes, preferred stock, or other
securities convertible into or exchangeable for shares of MTIX Shares shall (i) have been cancelled and be of no further force
and effect, or (ii) converted, exercised or exchanged for MTIX Shares. 

 
 

 5.2          Conditions
Precedent to Obligations of the MTIX Shareholders.  Consummation of the sale of the MTIX Shares by the
MTIX Shareholders and the requisite actions by the MTIX Shareholders is subject to  the
fulfillment by AIC or waiver by each of the MTIX Shareholders on or prior to the Closing Date of
each of the following conditions: 

 
 

 (a)          The
representations and warranties of AIC contained herein and in any Transaction Document shall be true and correct as of the date
hereof and shall be true and correct in all material respects as of the Closing Date, provided that the representation and warranties
that are qualified as to materiality shall be true and correct in all respects at and as of the Closing Date as if made on the
Closing Date. 

 
 

 (b)          AIC
shall have performed or complied in all material respects with all obligations, agreements and  covenants
required to be performed by them or it hereunder prior to or on the Closing Date, including all covenants and agreements on their
part to be performed, as set forth in Article IV above. 

 
 

 (c)          AIC
shall have delivered and/or properly assigned to the MTIX Shareholders at or prior to the Closing all of the documents, agreements
and instruments required to be delivered or assigned by any one or more of such Persons pursuant to Section 1.8 of this Agreement. 

   

  
- 21 -

 
 

 (d)          No
action, claim, suit, investigation, litigation or proceeding shall be pending or threatened before any court, or governmental
agency or other quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator
wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (i) prevent consummation of any of the transactions
contemplated by this Agreement, or (ii) cause any of the transactions contemplated by this Agreement to be rescinded following
the Closing or later consummation thereof or (iii) affect adversely the right of AIC to own the MTIX Shares and control MTIX and
its business. 

 
 

 (e)          There
shall not have occurred since the AIC Balance Sheet Date any Material Adverse Effect or any event which could reasonably be expected
to have a Material Adverse Effect on the business, operations, results of  operations,
condition, financial or otherwise, or prospects of AIC or its assets and properties. 

 
 

 (f)          Each
of the (i) the “Purchase and Profit Sharing Agreement,” which means an agreement for the sale and purchase of the
textile multi-laser enhancement technology system and a related profit sharing arrangement, and (ii) the related license agreement,
each of which shall have been mutually approved by AIC, MTIX and W.T. Johnson & Sons (Huddersfield) Limited, each party in
its sole and absolute discretion, prior to their execution, shall have been duly executed by (A) MTIX and (B) W.T. Johnson &
Sons (Huddersfield) Limited. 

 
 

 ARTICLE VI 

 INDEMNIFICATION 

 
 

 6.1          Indemnification
by the MTIX Shareholders.  Subject to the provisions of this Article VI, each of the MTIX Shareholders
hereby severally agrees to indemnify, defend and hold harmless each AIC Indemnified Party from and against any and all Losses
incurred or suffered arising out of any material breach of any warranty that is contained in Article III in this Agreement and
which is binding upon that MTIX Shareholder. 

 
 

 6.2          Indemnification
by AIC Subject to the provisions of this Article VI, AIC agrees to indemnify, defend and hold harmless each MTIX Shareholder
Indemnified Party from and against any and all Losses incurred or suffered arising out of any breach of any representation or
warranty in this Agreement and/or in any Transaction Document made or given by AIC. 

 
 

 6.3          Other
Indemnification Arrangements. 

 
 

 (a)          Notwithstanding
the other provisions of this Article VI, no Indemnitor shall be liable under this Article VI or otherwise for a
breach of representation or warranty unless the Indemnitee gives notice of a claim against such Indemnitor giving reasonable details
of the claim and the events which gave rise to the claim and, if practicable, the Indemnitee’s genuine pre-estimate of the
amount of the claim not later than 12 months (the “Claims Period”) after the Closing Date (and for the avoidance
of doubt, claims asserted in writing before such date shall be deemed timely made regardless of whether litigation or arbitration
proceedings are commenced by such date)  and proceedings in respect of any claim so notified are commenced (by the issue
and service of a claim form) within six months of such notification if the claim is not settled within such six month period. 
Such limitation shall not apply to Indemnifiable Claims arising out of an inaccuracy of a statement, or a breach of warranty,
as applicable, set forth in Section 3.24, which shall survive the Claims Period without limitation. 

 
 

 (b)          Indemnitee
agrees to give to the Indemnitor prompt written notice of any claim with respect to which it may be entitled to indemnity or damages
hereunder (but the obligations of Indemnitor under this Article 6.3 or otherwise shall not be impaired by failure to give such
notice except to the extent said failure actually causes Losses to, or prejudices the rights of Indemnitor). Indemnitor shall
have the right to (and shall upon the request of Indemnitee) assume, with counsel reasonably satisfactory to Indemnitee, the defense
of any such claim brought by a third party. After Indemnitor’s written confirmation of the assumption of the defense of
any such claim and its obligation to indemnify and hold harmless Indemnitee in respect thereof Indemnitor shall not be responsible
for the legal fees and expenses of counsel independently retained by Indemnitee during the continuance of such assumption (but
shall be liable for any such fees and expenses other than during the continuance of such assumption).  Indemnitor may effect
any settlement, adjustment or other compromise (collectively, “Settlement”) of any such claim without the consent
of Indemnitee if Indemnitor has paid, or made adequate provision for the payment of, the amount of such Settlement at the time
thereof and obtained a complete release respecting any such claims against the Indemnitee, as applicable, provided that before
entering into any Settlement that involves any remedy other than the payment of money by Indemnitor, Indemnitor shall obtain the
prior written consent of Indemnitee, which shall not be unreasonably withheld,  denied or delayed.  Indemnitee may,
at its election, employ counsel at its own expense in connection with the handling of any such claim. Indemnitee shall have the
right to enter into any Settlement of any such claim provided Indemnitee shall not be entitled to any indemnification or damages
hereunder in connection with the payment of any amounts pursuant to any Settlement agreed to by it unless such Settlement is consented
to in writing by Indemnitor, which consent shall not be unreasonably withheld, denied or delayed. The Parties agree to cooperate
with each other in connection with the defense, negotiation or Settlement of any claim of a third party. 

   

  
- 22 -

   

 (c)          The
Indemnitee shall not be entitled to claim more than once in respect of the same loss or damage.  The Indemnitee shall not
have any claim under this Agreement in respect of any matter to the extent that the facts which might result in a claim or possible
claim were fairly disclosed in the Disclosure Schedule or in this Agreement or the other documents referred to in this Agreement. 

 
 

 (d)          No
Indemnitor shall have a liability for a claim under this Agreement unless and until such claim reaches final determination, which
means: 

 
 

 (i)          the
relevant Indemnitor(s) and the Indemnitee agreeing a settlement in respect of the relevant claim or it being otherwise satisfied;
or 

 
 

 (ii)         an
order or a decree of a court of competent jurisdiction being given in proceedings in respect of a relevant claim and such order
or decree being final and not or no longer appealable. 

 
 

 (e)          If
any claim under this Agreement is based upon a liability that is contingent only an Indemnitor shall not be liable to make any
payment to an Indemnitee, unless and until such contingent liability becomes an actual liability and is discharged and in the
case of a claim under the warranties set out in Section 3 loss is proven. 

 
 

 (f)          Where
an Indemnitee is at any time entitled to recover from some other Person any sum in respect of any matter giving rise to a claim
under this Agreement the Indemnitee shall undertake all reasonable steps to enforce such recovery prior to taking any actions
(other than notifying the Indemnitor of the claim) against an Indemnitor and in the event that an Indemnitee or MTIX shall recover
any amount from such other Person the amount of the claim against an Indemnitor shall be reduced by the amount recovered less
the reasonable costs incurred by the Indemnitee or MTIX in recovering that sum from such other person. 

 
 

 (g)          If
an Indemnitor makes any payment to an Indemnitee in relation to any claim under this Agreement and the Indemnitee or MTIX subsequently
receives from a third party any amount referable to, or any benefit which would not have been received but for the circumstances
giving rise to, the subject matter of that claim, the Indemnitee shall, once it or MTIX has received such amount or benefit, immediately
repay or procure the repayment to the Indemnitor of either: 

 
 

 (i)          the
amount of such receipt (after deducting an amount equal to the reasonable costs of the Indemnitee or MTIX incurred in recovering
such receipt and any taxation payable on it); or if lesser, 

 
 

 (ii)         the
amount paid in respect of such claim by the Indemnitor together with any interest or repayment supplement paid to the Indemnitee
or MTIX in respect of it. 

 
 

 (h)          Nothing
in this Section shall in any way affect or prejudice the Indemnitee’s common law duty to mitigate its loss. 

 
 

 (i)          
AIC shall not be entitled to claim in respect of any
matter provided for in the MTIX Financial Statements. 

 
 

 (j)          
The MTIX Shareholders shall not be entitled to claim
in respect of any matters provided for in the AIC Financial Statements. 

 
 

 6.4          Maximum
Liability.  The aggregate liability of the Indemnitor in respect of all claims under this Agreement will not exceed an
amount equal to the consideration received by that Indemnitor under this Agreement.  The only remedy of the Indemnitee against
the Majority Shareholder shall be set-off against the Notes and the shares of AIC Class B Preferred
Stock held by the Majority Shareholder or the value of his AIC Common Stock at the time of Settlement of the claim, including
any proceeds derived from his sale of such shares.  The only remedy of the Indemnitee against each of the Minority Shareholders
shall be set-off against the Note held by the respective Minority Shareholder or the value of his respective shares of AIC Common
Stock at the time of the claim by AIC, including any proceeds derived from his sale of such shares. 

 
 

 6.5          Small
claims throw away.  An Indemnitor will not be liable for any claim unless the amount of the liability in respect of that
claim (excluding interest and costs) exceeds $5,000. 

   

  
- 23 -

 
 

 6.6          Threshold. 
A Indemnitor will not be liable for any claim unless and until the amount of the liability in respect of that claim, when aggregated
with the amount of the liability in respect of all other claims (excluding any amounts in respect of a claim for which the Indemnitor
has no liability because of Article 6.5), exceeds $50,000 in which event the Indemnitor will be liable for the whole amount of
such liability and not merely for the excess. 

 
 

 6.7          Fraud.
The limitations set out in this Article VI shall not apply to an Indemnitor in respect of
Liabilities arising from fraud or willful non-disclosure on the part of that Indemnitor, its agents or advisers. 

   

 ARTICLE
VIII 

 MISCELLANEOUS 

 
 

 7.1          Termination. 
The Parties may terminate this Agreement as provided below: 

 
 

 (a)          AIC
and the Majority Shareholder, acting on behalf of the MTIX Shareholders, may terminate this Agreement by mutual written agreement
at any time prior to the Closing. 

 
 

 (b)          AIC
may terminate this Agreement by giving written notice to the MTIX Shareholders at any time prior to the Closing (i) if any of
the MTIX Shareholders has breached any material representation, warranty, or covenant contained in this Agreement, AIC has notified
the MTIX Shareholders in writing of the breach, and the breach has continued without cure for a period of 15 days after the notice
of breach or (ii) if the Closing shall not have occurred on or before May 31, 2017 (the “Outside Closing Date”),
unless the failure results primarily from AIC breaching any material representation, warranty, or covenant on its or his part
to be observed or performed that is contained in this Agreement. 

 
 

 (c)          The
Majority Shareholder may terminate this Agreement by giving written notice to AIC at any time prior to the Closing (i) if AIC
has breached any material representation, warranty, or covenant contained in this Agreement, any  MTIX
Shareholder has notified AIC in writing of the breach, and the breach has continued without cure
for a period of 15 days after the notice of breach or (ii) if the Closing shall not have occurred on or before the Outside Closing
Date, unless the failure results primarily from any of the MTIX Shareholders wishing to exercise the right of termination themselves
breaching any representation, warranty, or covenant on their part to be observed or performed that is contained in this Agreement. 

   

 For the
purposes of Article 7, “material” shall mean a matter giving rise to a Liability or Loss in excess of $1,000,000. 

 
 

 7.2          Effect
of Termination. 

 
 

 (a)          If
any Party terminates this Agreement pursuant to Section 7.1, all rights and obligations of the Parties  hereunder
shall terminate without any Liability of any Party to any other Party (except for any Liability of any Party then in breach). 
Unless Closing occurs, the only remedy of AIC shall be termination such that no monetary compensation shall be due to AIC unless
Closing takes place. 

 
 

 (b)          As
a material inducement to AIC and the MTIX Shareholders entering into this Agreement, each such Party and each of the other Parties
hereby agrees that, notwithstanding anything contained elsewhere in this Agreement, if this Agreement is terminated prior to Closing
due to any Party’s breach, the non-breaching Parties’ sole remedy against the breaching Party shall be a suit for
monetary damages, and not for injunctive relief. 

 
 

 7.3          Entire
Agreement, Survival. 

 
 

 (a)          This
Agreement, and the documents referred to in it, constitute the entire agreement and understanding of the Parties and supersede
any previous agreements made or existing between the Parties or any of them before or simultaneously with this Agreement and relating
to the subject matter of this Agreement (all of which shall be deemed to have been terminated by mutual consent with effect from
the date of this Agreement). 

 
 

 (b)          Each
of the Parties acknowledges and agrees that on entering into this Agreement, and the documents referred to herein, does not rely
on, and shall have no remedy in respect of, any statement, representation, warranty or understanding (whether negligently or innocently
made) of any person (whether party to this Agreement or not) other than as expressly set out in this Agreement. 

 
 

 (c)          The
only remedy available to a Party for a breach of this Agreement shall be for breach of contract under the terms of this Agreement. 

   

  
- 24 -

 
 

 (d)          Nothing
in this Section 7.3 shall, however, operate to limit or exclude any liability for fraud. 

 
 

 (e)          Except
as otherwise permitted by this Agreement no change to its terms shall be effective unless it is in writing and signed by or on
behalf of each of the Parties. 

 
 

 7.4          Jurisdiction
and Governing Law; Jury Trial. 

 
 

 (a)          This
Agreement shall be governed by and construed solely and exclusively in accordance with the internal laws of the State of New York
without regard to the conflicts of laws principles thereof. The Parties hereto hereby expressly and irrevocably agree that any
suit or proceeding arising directly and/or indirectly pursuant to or under this Agreement shall be brought solely in a federal
or state court located in the City, County and State of New York. By its execution hereof, the Parties hereby covenant and irrevocably
submit to the in personam jurisdiction of the federal and state courts located in the City, County and State of New York and agree
that any process in any such action may be served upon any of them personally, or by certified mail or registered mail upon them
or their agent, return receipt requested, with the same full force and effect as if personally served upon them in New York City.
The Parties hereto expressly and irrevocably waive any claim that any such jurisdiction is not a convenient forum for any such
suit or proceeding and any defense or lack of in personam jurisdiction with respect thereto. In the event of any such action or
proceeding, the party prevailing therein shall be entitled to payment from the other party hereto of all of its reasonable counsel
fees and disbursements. 

 
 

 (b)          Each
of the Parties hereto acknowledges and agrees that irreparable damage would occur in the event that  any
of the provisions of this Agreement or any other Transaction Document was not performed
in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Parties shall be
entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement
and the other Transaction Documents to enforce specifically the terms and provisions hereof and thereof, this being in addition
to any other remedy to which any of them may be entitled by law or equity. 

 
 

 (c)          Each
of the Parties hereto hereby waives a trial by jury in any action, proceeding or counterclaim brought by either of the Parties
hereto against the other in respect of any matter arising out or in connection with this Agreement or any Transaction Document. 

 
 

 7.5          Schedules;
Tables of Contents and Headings.  Any section required to be attached and not attached to this Agreement
on the Agreement Date shall be deemed to have been attached thereto with the following thereon: “None.” The table
of contents and section headings of this Agreement and titles given to Schedules to this Agreement are for reference purposes
only and are to be given no effect in the construction or interpretation of this Agreement. All notices and other communications
under this Agreement shall be in writing and shall be  deemed
given when (a) delivered personally or (b)
delivered by a responsible overnight courier service, in each such case delivered or mailed to the Parties at the addresses set
forth below (or to such address as a Party may have specified by notice given to the other Parties pursuant to this provision). 

 
 

 7.6          Severability.       In
the event that any provision hereof would, under applicable law, be invalid or unenforceable in any respect (a) such provision
shall be enforced to the maximum extent permissible under applicable law, and (b) the invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain
in full force and effect. 

 
 

 7.7
Expenses.        Each
party shall pay the fees and expenses of its own advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution, delivery and performance of the Transaction Documents,
provided, however, that AIC shall cover any reasonable expenses above $10,000 incurred by MTIX as and when incurred in connection
with the transaction contemplated hereunder. 

 
 

 7.8
Notices.        .
All notices and other communications under this Agreement shall be in writing and shall be  deemed
given when (a) delivered personally or (b)
delivered by a responsible overnight courier service, in each such case delivered or mailed to the Parties at the addresses set
forth below (or to such address as a Party may have specified by notice given to the other Parties pursuant to this provision). 
The addresses for such communications shall be: 

 
 

 If to AIC, to: 

 Avalanche
International Corp. 

 5940
S. Rainbow Blvd. 

 Las
Vegas, NV 89118 

 Attention:
Philip Mansour, Chief Executive Officer 

   

  
- 25 -

            

 With a copy (which shall not
constitute notice) to: 

 
 

 Sichenzia
Ross Ference Kesner LLP 

 61
Broadway, 32nd Floor 

 New
York, NY 10006 

 Attention:
Marc J. Ross, Esq. 

 
 

 If
to the MTIX Shareholder(s), to its address   number
set forth on the Signature Page affixed hereto.  Each party shall provide five (5) days’ prior written notice to the
other party of any change in address . 

 
 

 7.9          Miscellaneous
Provisions. 

 
 

 (a)          Subject
and without prejudice to Section 7.2(a), all rights and remedies of any Party under any provision of this Agreement shall be in
addition to any other rights and remedies provided for by any law of any kind (including all forms of legal and equitable relief,
including specific performance), all rights and remedies contemplated in the preceding part of this sentence shall be independent
and cumulative, and may, to the extent permitted by law, be exercised concurrently or separately, and the exercise of any one
right or remedy shall not be deemed to be an election of such right or remedy or to preclude or waive the exercise of any other
right or remedy. 

 
 

 (b)          Any
Party may waive compliance by another with any of the provisions of this Agreement provided that (i) no waiver of any provision
shall be construed as a waiver of any other provision, (ii) any waiver must be in writing and shall be strictly construed, and
(iii) a waiver in any one instance shall not be deemed a waiver in any subsequent instance. 

 
 

 (c)          This
Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. 
Except as contemplated by Article VI, the provisions of this Agreement (i) are for the sole benefit of the Parties, and (ii) shall
not create or be deemed to create any third party beneficiary rights in any Person not a party to this Agreement and consequently
no term of this Agreement is enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 by any person who is not
a party to it.  No assignment of this Agreement or of any rights or obligations hereunder, and no declaration of trust in
respect of any such rights or the benefit of this Agreement, may be made by any Party (by operation of law or otherwise) without
the prior written consent of the other Parties and any attempted assignment or declaration of trust without the required consent
shall be void; provided, that (i) no such consent shall be required for AIC to assign part or all of its rights under this Agreement
to one or more of its  Affiliates, but
no such assignment shall relieve AIC of any of its obligations under this Agreement as a primary
obligor and (ii) AIC shall have the right, without consent, to assign this Agreement and any agreements or other documents relating
hereto, as collateral security for AIC’s obligations to its lenders, and such lenders shall have the right, without consent,
to assign their rights in and to this Agreement and any such agreements, certificates or other documents, to any purchaser or
assignee of such lender’s rights, whether by foreclosure or otherwise, but no such assignment shall relieve AIC of any of
its obligations under this Agreement as a primary obligor or foreclose any defenses or rights the MTIX Shareholders may have.
AIC shall give the MTIX Shareholders prior notice of any assignment. 

 
 

 (d) This
Agreement may be executed via fax and or other electronic transmission in counterparts, each of which shall be an original, but
which together shall constitute one and the same Agreement. 

 
 

 (e) 
Each Party (severally) shall indemnify and hold harmless the other Parties from and against any and all claims for investment
bankers, brokers, finders or similar
commissions (“Third Party Commission”) made by any Person as a result of this Agreement and the transactions
contemplated hereunder to the extent that any such Third Party Commission was incurred, or alleged to have been incurred, by or
through that Party. 

 
 

 [Signature
page follows] 

   

  
- 26 -

 
 

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

   

   

 	   	  AVALANCHE
INTERNATIONAL CORP. 

	   	   	   
	   	   	   
	   	 By: 

	 /s/
Philip E, Mansour 

	   	 Name: 

	 Philip Mansour 

	   	 Title: 

	 Chief Executive
Officer 

	   	   	   
	   	   	   
	   	 MTIX,
LTD. 

	   	   	   
	   	   	   
	   	 By: 

	 /s/
Pravin Mistry 

	   	 Name: 

	 Pravin Mistry 

	   	 Title: 

	 President &
CEO 

	   	   	   
	   	   	   
	   	 MAJORITY
SHAREHOLDER 

	   	   	   
	   	   	   
	   	 By: 

	 /s/
Pravin Mistry 

	   	 Name: 

	 Pravin Mistry 

	   	 Title: 

	 an Individual 

	   	   	   
	   	   	   
	   	 MINORITY
SHAREHOLDERS 

	   	   	   
	   	   	   
	   	 By: 

	  /s/
Paul Johnson 

	   	 Name: 

	 Paul Johnson 

	   	 Title: 

	 an Individual 

	   	   	   
	   	   	   
	   	 By: 

	 /s/
Daniel Johnson 

	   	 Name: 

	 Daniel Johnson 

	   	 Title: 

	 an Individual 

   

  
- 27 -

   

 SCHEDULE
1 

 DEFINITIONS 

 In addition
to the other terms defined in the Agreement, the following terms shall have the following meanings when used in this Agreement: 

 
 

 “Affiliate”
means, as to any Person, any other Person which, directly or indirectly, alone or together with other Persons, controls
or is controlled by or is under common control with such Person. “Control,” “controlled by” and “under
common control with,” as and with respect to any Person, means the power, directly or indirectly, to direct or cause the
direction of the management and policies of such Person. 

 
 

 “Agreement
Date” means the date of this Agreement. 

 
 

 “Benefit
Arrangements” means life and health insurance, hospitalization, savings, bonus, deferred compensation,
incentive compensation, holiday, vacation, severance pay, sick pay, sick leave, disability, educational assistance, tuition refund,
service award, company car, scholarship, relocation, fringe benefit, contracts and policies or practices of MTIX providing employee
or executive compensation or benefits to Employees, whether written or unwritten, other than Employee Benefit Plans. 

 
 

   “Confidential
Information” means information with respect to MTIX relating to customers, suppliers, pricing information,
other financial information, techniques and capabilities, product information, market information, processes, formulae, trade
secrets, advertising and marketing plans, current strategies and contractual relations; provided, that Confidential Information
does not mean information (i) that is or becomes part of the public domain through no fault of the MTIX Shareholders, a Person
party to or contract with MTIX relating to confidential or proprietary information of MTIX or any Affiliate, agent or representative,
or (ii) that may be required to be disclosed by law or by any Governmental Authority. 

 
 

 “Consents”
means consents, authorization, approvals, actions, waivers and similar writings. 

 
 

 “Contract”
means any contract, mortgage, indenture, lease, sublease, note, bond,  deed of trust, license, sublicense, purchase
order, sales order, undertaking, understanding, plan, commitment, arrangement, instrument,  or other agreement, oral or written,
formal or informal. 

 
 

 “Disclosure
Schedule” is defined in the introduction to Article III. 

 
 

 “Document”
means any Contract, financial statement, registration, certificate (including officer’s certificates), application,
other writing or other document. 

 
 

 “Employee
Benefit Plans” means: (i) each “employee benefit plan,” (for AIC’s purposes, as
defined in Section 3(3) of ERISA), including any Multiemployer Plan, and (ii) all other pension,
retirement, supplemental retirement, deferred compensation, excess benefit, profit sharing, bonus, incentive, stock purchase,
stock ownership, stock option, stock appreciation right or other equity-based incentive, severance, salary continuation, supplemental
unemployment benefits, termination, change-of-control, health, life, disability,  vacation, holiday and fringe benefit plan,
program, contract or arrangement (whether written or unwritten, qualified or nonqualified, funded or unfunded and including any
that have been frozen or terminated) sponsored, maintained, contributed to, or required to be contributed to, by MTIX, or under
which  MTIX has or could have any Liability. 

 
 

 “Employees”
means all employees of MTIX, including employees on approved leaves of absence (whether family leave, workers compensation,
medical leave or otherwise). 

 
 

 “Encumbrance”
means any mortgage, pledge, lien, charge, encumbrance, lease, security interest, license, easement, restriction, encroachment,
condition, covenant, claim, exception, option, equity, right, other interest or other encumbrance of any kind or nature (whether
absolute, accrued, disputed, contingent or otherwise). 

   

  
- 28 -

   

 “Financial
Statements” means each of the Balance Sheets and the annual and interim statements of operations, changes
in cash flow and changes in shareholders equity. 

 
 

 “Governmental
Authority” means any United Kingdom, United States and/or foreign federal, state, local
or other governmental authority of any kind or nature, including any department, subdivision, commission, board, bureau, regulatory
agency, agency or instrumentality thereof, any court and any administrative agency, and any comparable body performing any governmental
functions. 

 
 

 “Indemnifiable
Claim” means any claim or other Proceeding with respect to which an Indemnitee may be
entitled to indemnification or damages under this Agreement. 

 
 

 “Indemnitee”
means the Party or other Person seeking indemnification or damages pursuant to this Agreement. 

 
 

 “Indemnitor”
means the Party that is required or requested to provide indemnification or damages pursuant to this Agreement. 

 
 

 “Intellectual
Property” means all (i) patent and patent rights, trademarks and trademark rights, trade names
and trade name rights, copyrights and copyright rights, service marks and service mark rights, and all pending applications for
and registrations of the same; (ii) brand names, trade dress, business and product names, logos and slogans, and (iii) proprietary
technology, including all know-how, trade secrets, quality control standards, reports (including test reports), designs, processes,
market research and other data, computer software and programs (including source codes and related documentation), formulae, inventions
and other ideas, methodologies, and technical information, (iv) claims of the owner of any intellectual property for infringement
of its rights by a third party, no matter when arising, and (v) other intellectual property. 

 
 

 “Law”
means, as to any Person, the certificate of incorporation and by-laws, and any statute, rule, regulation, ordinance,
code, guideline, law, judicial decision, determination, order (including any injunction, judgment, writ, award or decree) or Consent
of a court, other Governmental Authority or arbitrator, in each case applicable to or binding upon such Person, including the
conduct of its business, or any of its assets or revenues or to which such Person or any of its assets or revenues are subject. 

 
 

 “Liabilities”
means any liabilities, commitments or other obligations of any kind or nature whatsoever, accrued, fixed, contingent
or otherwise, liquidated or unliquidated, direct or indirect, choate or inchoate, determined, determinable or non-determinable,
due or to become due. 

 
 

 “Losses”
means any and all Liabilities, losses, claims (including allegations), demands, other Proceedings, damages, deficiencies,
assessments, judgments, fines, penalties, reasonable costs (including remediation, renewal or response costs, and costs of investigation),
and reasonable expenses (including reasonable legal fees and expenses, including reasonable legal fees and expenses incurred in
the enforcement of the obligations under Section 6.1 or Section 6.2). 

 
 

 “Material
Adverse Effect” means a material adverse effect upon the businesses, operations, results of operations, assets,
condition (financial or otherwise) of MTIX or AIC (when taken as a combined whole). 

 
 

  “Material
Contract” means any (i) Contract to which MTIX is a party or by which any of its assets or properties is bound or
subject that (a) requires an expenditure by or payment to MTIX of more than $15,000 for such Contract or a series of related Contracts
(whether or not performed in part); (b) requires performance or payment to or by MTIX after December 31, 2016; (c) materially
restricts MTIX from engaging in its business or in using any of its assets or properties; (d) is a collective bargaining agreement
or a similar type of agreement; (e) relates to any Real Property; (f) is a loan or credit agreement, capital lease or other agreement
for borrowed money of over $15,000; (g) is a guaranty,
letter of credit or other surety arrangement given by MTIX; (h) creates an Encumbrance on any of the assets or properties of MTIX;
(i) is a license, distribution or supply agreement (other than a “shrink-wrap” software license agreement); (j) is
a customer agreement (other than a purchaser order entered into in the ordinary course of business); (k) is an agreement for the
purchase of assets or stock or related to any business combination entered into outside the ordinary course of business;
or (l) otherwise is material to MTIX or, (ii)
a Contract to which any of the MTIX Shareholders is a party or by which any of his assets or properties is bound or subject
that encumbers or otherwise relates to the Shares. 

 
 

 “NRS”
means the Nevada Revised Statutes of the State of Nevada, United States of America 

 
 

 “Permits”
means all authorizations, licenses, registrations, franchises, variances, consents, clearances, waivers, certificates,
other approvals and similar writings granted or issued by any Governmental Authority. 

   

  
- 29 -

   

 “Person”
means any individual, corporation, partnership, limited liability company, trust, association, Governmental Authority
or any other entity. 

 
 

 “Proceedings”
means any claims, controversies, demands, actions, lawsuits, investigations, proceedings or other disputes, formal
or informal, including any by, involving or before any arbitrator or any Governmental Authority. 

 
 

 “Real
Property” means all of the real property owned and/or leased by MTIX, including any portion thereof, listed
in Schedule 3.19 and more particularly described in the Lease. 

 
 

 “Transaction
Documents” means this Agreement, any documents appended hereto as an Exhibit and all agreements, documents
and instruments executed and delivered pursuant thereto 

 
 

 “Taxation
Authority” means the HMR&C or any other statutory,
governmental, federal, state, provincial or local government authority, body or official. 

 
 

 “Taxes”
means any and all taxes or assessments of any kind or nature whatsoever, whether imposed in the United Kingdom,
the United States or elsewhere in the world, including any and all income, franchise, gross receipts, sales, alternative, add-on,
minimum, employment, real property, personal property, business, capital stock, use and occupancy, ad
valorem, transfer, license, excise, stamp, other transfer, estimated, withholding, service, payroll and recording taxes
and any related penalties, charges, interest and other additions thereto. 

 
 

 “To
the knowledge of the MTIX Shareholders” (and reasonably similar terms) means “to the best of the knowledge
and belief of the MTIX Shareholders after reasonable inquiry of the management of MTIX.” 

   

  
- 30 -

   

 Exhibit
A 

 
 

 FORM
OF NOTE 

   

 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 AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT,
THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE CORPORATION. 

   

 Original Issue Date: [__________],
2017 

   

 Principal Amount:  [$9,500,000] 

 
 

 AVALANCHE
INTERNATIONAL CORP. 

 7% SECURED
CONVERTIBLE PROMISSORY NOTE 

 
 

 THIS 7%
SECURED CONVERTIBLE PROMISSORY NOTE is one of a series of duly authorized and validly issued 7% Secured Convertible Notes of Avalanche
International Corp., a Nevada corporation, (the “Corporation”),
having its principal place of business at 5940 S. Rainbow Blvd., Las Vegas, NV 89118, designated as its 7% Secured Convertible
Note due ___________ __, 2022 (this promissory note, the “Note”
and, collectively with the other promissory notes of like tenor, the “Notes”).
This Note is being issued pursuant to the Exchange Agreement (as defined below) among the Corporation and the original holders
of the Notes. By its acceptance of this Note, each Holder agrees to be bound by the terms of the Exchange Agreement. The
Notes are secured obligations
of the Corporation, to the extent provided for in the Security Agreement dated as of the date of the Exchange Agreement (the “Security
Agreement”) entered into among the Corporation and the holders of the Note.
This Note is a direct obligation
of the Corporation and ranks pari passu in right of payment with all other Notes now or hereafter issued in accordance
with the Exchange Agreement under the terms set forth herein. 

 
 

 FOR VALUE
RECEIVED, the Corporation promises to pay to                                     
or its registered assigns (the “Holder”),
or shall have paid pursuant to the terms hereunder, the principal sum of $                        
on ____________ __, 2022 (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, (a) capitalized terms not otherwise
defined herein shall have the meanings set forth in the Exchange Agreement and (b) the following terms shall have the following
meanings: 

 
 

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

 
 

  “Bankruptcy
Event” means any of the following events: (a) the Corporation 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 Corporation, (b) there is commenced against the Corporation any such case
or proceeding that is not dismissed within 90days after commencement, (c) the Corporation is adjudicated insolvent or bankrupt
or any order of relief or other order approving any such case or proceeding is entered, (d) the Corporation 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 30 calendar
days after such appointment, (e) the Corporation makes a general assignment for the benefit of creditors or (f) the
Corporation calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts. 

 
 

 “Beneficial
Ownership Limitation” shall have the meaning set forth in Section 4(e). 

 
 

 “Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States
or any day on which banking institutions in the State of New York 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 (a) 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 Corporation, by contract or otherwise)
of in excess of 50% of the voting securities of the Corporation (other than by means of conversion or exercise of the Notes and
the Securities issued together with the Notes), (b) the Corporation merges into or consolidates with any other Person, or
any Person merges into or consolidates with the Corporation and, after giving effect to such transaction, the stockholders of
the Corporation immediately prior to such transaction own less than 50% of the aggregate voting power of the Corporation or the
successor entity of such transaction, (c) the Corporation sells or transfers all or substantially all of its assets to another
Person and the stockholders of the Corporation immediately prior to such transaction own less than 50% of the aggregate voting
power of the acquiring entity immediately after the transaction, (d) a replacement at one time or within a three year period
of more than one-half of the members of the Board of Directors which is not approved by a majority of those individuals who are
members of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board
of Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of
Directors who are members on the date hereof), or (e) the execution by the Corporation of an agreement to which the Corporation
is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above. 

 
 

 “Collateral”
has the meaning given in the Security Agreement. 

 
 

 “Common
Stock Equivalents” means any securities of the Corporation which entitle the holder thereof to acquire at any
time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is
at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock. 

 
 

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

 
 

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

 
 

 “Conversion
Schedule” means the Conversion Schedule in the form of Schedule
1 attached hereto. 

 
 

 “Conversion
Shares” means, collectively, the shares of Common Stock issuable upon conversion of this Note in accordance with
the terms hereof. 

 
 

 “Effectiveness
Period” shall have the meaning set forth in the Registration Rights Agreement. 

 
 

 “Equity
Conditions” means, during the period in question, (a) the Corporation shall have duly honored all conversions
and redemptions required to have been effected by virtue of one or more valid Notices of Conversion of the Holder, if any, (b)
all of the Conversion Shares issuable pursuant to the Notes may be resold pursuant to Rule 144 without volume or manner-of-sale
restrictions and the Corporation is in compliance with any applicable current public information requirements as determined by
the counsel to the Corporation as set forth in a written opinion letter to such effect, addressed and acceptable to the Transfer
Agent and the Holder (and the Corporation believes, in good faith, that such compliance will continue uninterrupted for the foreseeable
future), (c) the Common Stock is trading on a Trading Market and all of the shares issuable pursuant to the Notes are listed or
quoted for trading on such Trading Market, (d) there is a sufficient number of authorized but unissued and otherwise unreserved
shares of Common Stock for the issuance of all of the shares then issuable upon conversion of the Notes contemplated to be converted,
(e) there is no existing Event of Default and no existing event which, with the passage of time or the giving of notice, would
constitute an Event of Default, and (f) the applicable Holder is not in possession of any information provided by the Corporation
that constitutes, or may constitute, material non-public information. 

 
 

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

 
 

 “Exchange
Agreement” means the Share Exchange Agreement, dated as of March 3, 2017 by and among the Corporation and the
original Holders, as amended, modified or supplemented from time to time in accordance with its terms. 

 
 

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

   

  
- 2 -

   

 “Indebtedness”
means (x) any liabilities for borrowed money or amounts owed in excess of $100,000 (other than trade accounts payable, accrued
expenses or deferred revenue  incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent
obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Corporation’s
consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection
or similar transactions in the ordinary course of business) and (z) the present value of any lease payments in excess of $100,000
due under leases required to be capitalized in accordance with GAAP; provided, further, however, that in no event shall the term
Indebtedness include the capital stock surplus, retained earnings, minority interests in the common stock of subsidiaries, operating
lease obligations, amounts payable for license fees, royalties and similar items as may be incurred by the Corporation, reserves
for deferred income taxes and investment credits, other deferred credits or reserves. 

 
 

 “Interest
Payment Date” shall have the meaning set forth in Section 2(a). 

 
 

 “Issuable
Maximum” shall have the meaning set forth in Section 4(f). 

 
 

 “Liens”
means a lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other restriction, other
than restrictions imposed by securities laws. 

 
 

 “Majority
in Interest” means, at any time of determination, fifty-one percent (51%) in interest (based on then-outstanding
principal amounts of Notes at the time of such determination) of the holders of Notes. 

 
 

 “Mandatory
Default Amount” means the sum of (a) 100% of the outstanding principal amount of this Note, plus 100% of accrued
and unpaid interest hereon, and (b) all other amounts, costs, expenses and liquidated damages due in respect of this Note. 

 
 

 “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 Notes, regardless of any transfers of any Note and regardless
of the number of instruments which may be issued to evidence such Notes. 

 
 

 “Permitted
Indebtedness” “Permitted Indebtedness” means (a) Indebtedness incurred by the Corporation that is
made expressly subordinate in right of payment to the Indebtedness evidenced by the Notes; (b) Indebtedness secured by Permitted
Liens, including without limitation Indebtedness incurred in connection with arrangements contemplated by clause (h) of the definition
of the term “Permitted Liens” subject to the lienholder’s entering into an attornment agreement in form satisfactory
to Holder; (c) Indebtedness to trade creditors or for professional services incurred in the ordinary course of business; (d) all
capital lease obligations and other obligations or liabilities created or arising under any conditional sale or other title retention
agreement with respect to property used or acquired by the subject Person, even if the rights and remedies of the lessor, seller
or lender thereunder are limited to repossession of such property and the present value of lease payments due under synthetic
leases; (e) obligations of such Person in respect of letters of credit or similar instruments issued or accepted by banks and
other financial institutions for the account of such Person in the ordinary course of the business of such Person; (f) purchase
money financing and equipment financing facilities covering existing and newly-acquired property, plant or equipment; (g) Indebtedness
of any amount outstanding immediately prior to the execution of this Agreement; and (h) extensions, refinancings and renewals
of any items of Permitted Indebtedness described above, provided that the principal amount is not increased or the terms modified
to impose more burdensome terms upon the Corporation or its Subsidiaries, as the case may be. Permitted Indebtedness shall include,
without limitation, (i) the principal amount of such Indebtedness, (ii) unpaid accrued interest thereon, and (iii) all other obligations
of the Corporation arising out of the Permitted Indebtedness now existing or hereafter arising, together with all costs of collecting
such obligations (including attorneys’ fees), including, without limitation, all interest accruing after the commencement
by or against the Corporation of any bankruptcy, reorganization or similar proceeding. 

   

 “Permitted
Liens” shall have the meaning ascribed thereto in the Security Agreement. 

   

 “Registration
Rights Agreement” means the Registration Rights Agreement, dated as of the date of the Exchange Agreement, among
the Corporation and the original Holders, in the form attached to the Exchange Agreement. 

 
 

 “Registration
Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement
and covering the resale of the Registrable Securities (as such term is defined in the Registration Rights Agreement) by each Holder
as provided for in the Registration Rights Agreement. 

   

  
- 3 -

   

 “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(d)(ii). 

 
 

 “Shareholder
Approval” means such approval as may be required by the applicable rules and regulations of any national securities
exchange upon which the shares of Common Stock may be traded, if any, from the shareholders of the Corporation with respect to
the transactions contemplated by the Transaction Documents, including the issuance of all of the Underlying Shares in excess of
19.99% of the issued and outstanding Common Stock on the Closing Date. 

 
 

 “Subsidiary”
or “Subsidiaries” of any Person
means (i) any corporation with respect to which more than 50% of the issued and outstanding voting equity interests of such corporation
is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its Subsidiaries or
by one or more of such Peron’s other Subsidiaries, or (ii) any partnership or limited liability company in which such Person
and/or one or more Subsidiaries of such Person shall have an interest (whether in the form of voting or participation in profits
or capital contribution) of more than 50% of which any such Person is a general partner or may exercise the powers of a general
partner. 

 
 

 “Successor
Entity” shall have the meaning set forth in Section 5(d). 

 
 

 “Trading
Day” means a day on which the principal Trading Market is open for trading. 

   

 “Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading
on the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange or the OTC Markets Inc. (or any successors to any of the foregoing). 

 
 

 “Transaction
Documents” means the Exchange Agreement, the Notes, the Certificate of Designation, the Registration Rights Agreement,
the Security Agreement, the Escrow Agreement, all exhibits and schedules thereto and hereto and any other documents or agreements
executed in connection with the transactions contemplated hereunder. 

 
 

 “Underlying
Shares” means the shares of Common Stock issued and issuable upon conversion of the Notes and the Class B Preferred
Stock. 

 
 

 Section 2.             
Interest. 

 
 

 (a)       
   Payment of Interest. The Corporation
shall pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at the rate of
7% per annum, payable in arrears on (i) each date on which any principal amount of this Note is being converted (as to that
principal amount being converted), (ii) at the option of the Holder, on the first day of each calendar quarter after the Original
Issue Date by issuing and delivering that number of shares of Common Stock determined by dividing the interest accrued for such
quarter by the average price per share for the ten (10) trading days immediately preceding the determination date as reported
by Bloomberg, L.P. and (iii) on the Maturity Date (each such date, an “Interest Payment Date”) (if any Interest
Payment Date is not a Business Day, then the applicable payment shall be due on the next succeeding Business Day), in cash. 

 
 

 (b)           Interest
Calculations. Interest shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar day periods, and
shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding principal, has been made. 

   

 (c)      
    Prepayment. 
Commencing two (2) years from the Original Issue Date (the “Commencement
Date”), the Corporation may prepay any portion of the principal amount of this Note without the prior written
consent of the Holder, provided, however, that (i) the Corporation shall provide the Holder with 90 days’ notice of such
prepayment, and (ii) any prepayment is done on a pro rata basis on all Notes then outstanding. 

   

 (d)      
    Sale of Principal. The
Majority Shareholder may sell in a private sale $50,000 per month of principal under the Notes until MTIX receives purchase orders
for 4 machines; thereafter he may sell $100,000 per month of principal under its Note until an aggregate of twelve successive
principal payments have been made. Alternatively, the Majority Shareholder may require repayment of principal by the Corporation
under his Note in amounts of up to $50,000 per month. The Holder shall provide the Corporation with thirty (30) days’ notice
of his intention to sell or require repayment of principal and the Corporation shall use its commercially reasonable efforts to
obtain, if necessary, an opinion of counsel regarding such intended sale as promptly as practicable. Upon receipt of a notice
from the Majority Shareholder of his: (i) sale of a portion of the Note to a third party, or (ii) election to require a repayment
of principal, the Corporation will pay down principal in the applicable amount.  Upon wither the Majority Shareholder’s
sale of a portion of the Note to a third party or the Corporation’s repayment of any dollar amount provided for hereunder,
the principal amount under the of shall be reduced commensurately upon such payment. 

   

  
- 4 -

   

 Section 3.           
  Registration of Transfers, Exchanges,
Set-off. 

   

 (a)         
 Different Denominations. This Note
is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder
surrendering the same. No service charge or other cost will be payable by the Holder for such registration of transfer or exchange. 

   

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

   

 (c)          Reliance
on Note Register. Prior to due presentment for transfer to the Corporation of this Note, the Corporation and any agent
of the Corporation 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 Corporation nor any such agent shall be affected by notice to the contrary. 

 
 

 (d)          Register. 
The Corporation shall keep a register of Holders which is available to view free of charge by Holders. 

 
 

 (e)          Enforcement. 
The Corporation covenants with each of the Noteholders to perform and observe the obligations in this instrument to the intent
that this instrument shall enure for the benefit of all persons for the time being registered as holders of any Notes, each of
whom may sue for the performance and observance of the provisions of this instrument so far as his holding is concerned. 

 
 

 (f)      
    Set-off.  Each Noteholder
shall be recognized by the Corporation as entitled to the Notes registered in his name free from any equity, defense, set-off
or cross-claim on the part of the Corporation against the original, or any intermediate, Noteholder. 

 
 

 Section 4.          
 Conversion. 

   

 (a)          Voluntary
Conversion.  At any time after the Original Issue Date until this Note is no longer outstanding, this Note shall
be convertible, in whole or in part, into shares of Common Stock at the option of the Holder, at any time and from time to time
(subject to the conversion limitations set forth in Section 4(e) and Section 4(f) hereof). The Holder shall effect conversions
by delivering to the Corporation a Notice of Conversion, the form of which is attached hereto as Annex
A (each, 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. No ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other
type of guarantee or notarization) of any Notice of Conversion form be required. To effect conversions hereunder, the Holder shall
not be required to physically surrender this Note to the Corporation unless the entire principal amount of this Note 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 Corporation shall maintain records showing the principal amount(s) converted
and the date of such conversion(s). The Corporation may deliver an objection to any Notice of Conversion within two (2) Business
Days of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records of the Corporation 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)          Mandatory
Conversion. Notwithstanding anything herein to the contrary, beginning on the Commencement Date, the Corporation may, within
5 Trading Days thereof deliver a written notice to the Holder (a “Mandatory Conversion Notice” and the date
such notice is delivered to the Holder, the “Mandatory Conversion Notice Date”) to cause the Holder to convert
all or part of the then outstanding principal amount of this Note plus accrued but unpaid interest, liquidated damages and other
amounts owing to the Holder under this Note (“Mandatory Conversion”), it being agreed that the “Conversion
Date” for purposes of Section 4 shall be deemed to occur on the third Trading Day following the Mandatory Conversion Notice
Date (such third Trading Day, the “Mandatory Conversion Date”).  Any Mandatory Conversion will be done
on a pro rata basis on all Notes then outstanding.  The Corporation may not deliver a Mandatory Conversion Notice, and any
Mandatory Conversion Notice delivered by the Corporation shall not be effective, unless all of the Equity Conditions are met (unless
waived in writing by the applicable Holder) during 20 of the 30 Trading Days preceding Commencement Date; further, the Corporation
may only issue a Mandatory Conversion Notice to any one Holder to the extent that such Holder’s beneficial ownership of
the Common Stock would not exceed 9.99% of the number of shares of Common Stock outstanding immediately following the Mandatory
Conversion.  Any Mandatory Conversion shall, subject to the preceding sentence, be applied ratably to all Holders based on
their initial acquisitions of Notes pursuant to the Exchange Agreement, provided that any voluntary conversions by a Holder shall
be applied against the Holder’s pro rata allocation, thereby decreasing the aggregate amount mandatorily converted hereunder
if only a portion of this Note is mandatorily converted. 

   

  
- 5 -

   

 (c)          Conversion
Price. The conversion price in effect on any Conversion Date shall be equal to either (i) if the aggregate market capital
of the Corporation on the Conversion Date (the “Market Cap”) is $35,000,000 or less, at a 25% discount to the
Market Price, or (ii) if the Market Cap is greater than $35,000,000, at a 25% discount to the Market Price, provided that such
discount shall be increased by dividing it by the quotient that shall be obtained by dividing $35,0000,000 by the Market Cap at
the time of conversion, provided, however, any increase in the discount to the Market Price shall not result in a discount that
is greater than a 75%  discount (the “Conversion Price”). For purposes hereof,
the term “Market Price” shall mean the average trading price of the Common Stock as quoted by Bloomberg L.P.
for the ten (10) trading days immediately preceding the Conversion Date (subject to adjustment as provided in Section 6(d) below). 

   

 (d)          Mechanics
of Conversion. 

   

 (i)         
 Conversion Shares Issuable Upon Conversion
of Principal Amount. The number of Conversion Shares issuable upon a conversion of the principal amount of this Note
shall be equal to the quotient obtained by dividing (x) the outstanding principal amount of this Note to be converted by
(y) the Conversion Price. 

   

 (ii)          Delivery
of Certificate Upon Conversion. Not later than ten (10) Trading Days after each Conversion Date (the “Share
Delivery Date”), the Corporation shall deliver, or cause to be delivered, to the Holder (A) a certificate
or certificates representing the number of Conversion Shares being acquired upon the conversion of this Note and (B) a bank
check in the amount of accrued and unpaid interest.  On or after the later of (i) the six month anniversary of the Original
Issue Date or (ii) the Effective Date (as defined in the Exchange Agreement), the Corporation shall use its reasonable best
efforts to deliver any certificate or certificates required to be delivered by the Corporation under this Section 4(c) electronically
through The Depository Trust Corporation (“DTC”)
or another established clearing corporation performing similar functions. 

   

 (iii)          Corporation’s
Failure to Timely Convert. If the Corporation shall fail, for any reason or for no reason, to issue to the Holder within
ten (10) Trading Days after the Corporation’s receipt of a Conversion Notice (whether via facsimile or otherwise),
a certificate for the number of shares of Common Stock to which the Holder is entitled and register such shares of Common Stock
on the Corporation’s share register or to credit the Holder’s or its designee’s balance account with DTC for
such number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion of any Conversion Amount
(as the case may be) (a “Conversion Failure”),
then, in addition to all other remedies available to the Holder, (1) the Corporation shall pay in cash to the Holder on each day
after such tenth (10th) Trading Day that the
issuance of such shares of Common Stock is not timely effected an amount equal to 0.5% of the product of (A) the sum of the number
of shares of Common Stock not issued to the Holder on a timely basis and to which the Holder is entitled multiplied by (B) the
Closing Sale Price of the Common Stock on the Trading Day immediately preceding the last possible date which the Corporation could
have issued such shares of Common Stock to the Holder without violating Section 4(c)(ii) and (2) the Holder, upon written notice
to the Corporation, may void its Conversion Notice with respect to, and retain or have returned (as the case may be) any portion
of this Note that has not been converted pursuant to such Conversion Notice, provided that the voiding of a Conversion Notice
shall not affect the Corporation’s obligations to make any payments which have accrued prior to the date of such notice
pursuant to this Section 4(d)(iii) or otherwise. The Holder agrees, however, that the maximum aggregate damages payable to a Holder
hereunder for a Conversion Failure shall be 2% of the amount determined pursuant to the formula set forth in the immediately preceding
sentence. In addition to the foregoing, if within ten (10) Trading Days after the Corporation’s receipt of a Conversion
Notice (whether via facsimile or otherwise), the Corporation shall fail to issue and deliver a certificate to the Holder and register
such shares of Common Stock on the Corporation’s share register or credit the Holder’s or its designee’s balance
account with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion hereunder
(as the case may be), and if on or after such tenth (10th)
Trading Day the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction
of a sale by the Holder of shares of Common Stock issuable upon such conversion that the Holder anticipated receiving from the
Corporation, then, in addition to all other remedies available to the Holder, the Corporation shall, within ten (10) Business
Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal
to the Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the
shares of Common Stock so purchased (the “Buy-In
Price”), at which point the Corporation’s obligation to deliver such certificate (and to issue such shares
of Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates
representing such shares of Common Stock or credit the Holder’s balance account with DTC for the number of shares of Common
Stock to which the Holder is entitled upon the Holder’s conversion hereunder (as the case may be) and pay cash to the Holder
in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock multiplied
by (B) the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the Conversion Date. 

   

  
- 6 -

   

 (iv)          Obligation
Absolute. The Corporation’s obligations to issue and deliver the Conversion Shares upon conversion of this Note
in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce
the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action
to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the
Holder or any other Person of any obligation to the Corporation or any violation or alleged violation of law by the Holder or
any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Corporation to
the Holder in connection with the issuance of such Conversion Shares; provided,
however, that such delivery shall not
operate as a waiver by the Corporation of any such action the Corporation may have against the Holder. Nothing herein shall limit
a Holder’s right to pursue actual damages or declare an Event of Default pursuant to Section 8 hereof for the Corporation’s
failure to deliver Conversion Shares within the period specified herein and the Holder shall have the right to pursue all remedies
available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive
relief. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section
hereof or under applicable law. 

 
 

         (v)          Reservation
of Shares Issuable upon Conversion. The Corporation covenants that it will at all times reserve and keep available out of
its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Note, free from preemptive
rights or any other actual contingent purchase rights of Persons other than the Holder (and the other holders of the Notes), not
less than 125% of such aggregate number of shares of the Common Stock as shall (subject to the terms and conditions set forth
in the Exchange Agreement) be issuable (taking into account the adjustments and restrictions of Section 5) upon the conversion
of the then outstanding principal amount of this Note. The Corporation covenants that all shares of Common Stock that shall be
so issuable shall, upon issue, be duly authorized, validly issued, fully paid and non-assessable and, if the Registration Statement
is then effective under the Securities Act, shall be registered for public resale in accordance with such Registration Statement
(subject to such Holder’s compliance with its obligations under the Registration Rights Agreement). 

   

 (vi)         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 the Holder would otherwise be entitled to purchase upon such conversion, the Corporation shall
round up such fractional share to the next whole share. 

   

 (vii)        Transfer
Taxes and Expenses. The issuance of certificates for shares of the Common 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 Corporation 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 so converted and the Corporation 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 Corporation the amount of such tax or shall have
established to the satisfaction of the Corporation that such tax has been paid. The Corporation shall pay all Transfer Agent fees
required for processing of any Notice of Conversion. 

   

  
- 7 -

   

 (e)          Holder’s
Conversion Limitations. Except with respect to a Mandatory Conversion, as set forth above, the Corporation shall not effectuate
any conversion of this Note, and a Holder shall not have the right to convert any portion of this Note, to the extent that after
giving effect to the conversion set forth on the applicable Notice of Conversion, the Holder (together with the Holder’s
Affiliates, and any Persons acting as a group together with the Holder or any of the Holder’s Affiliates) would beneficially
own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the
number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common
Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number
of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted principal amount of this Note
beneficially owned by the Holder or any of its Affiliates and (ii)  conversion of the unconverted portion of any other securities
of the Corporation, which are subject to a limitation on conversion analogous to the limitation contained herein (including, without
limitation, any other Notes or the Class B Preferred Stock) beneficially owned by the Holder or any of its Affiliates. Except
as set forth in the preceding sentence, for purposes of this Section 4(d), beneficial ownership shall be calculated in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation
contained in this Section 4(d) applies, the determination of whether this Note is convertible (in relation to other securities
owned by the Holder together with any Affiliates) and of which principal amount of this Note is convertible shall be in the sole
discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder’s determination
of whether this Note may be converted (in relation to other securities owned by the Holder together with any Affiliates) and which
principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance
with this restriction, the Holder will be deemed to represent to the Corporation each time it delivers a Notice of Conversion
that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Corporation shall have no
obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated
above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder. For purposes of this Section 4(d), in determining the number of outstanding shares of Common Stock, the Holder
may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the Corporation’s
most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement
by the Corporation, or (iii) a more recent written notice by the Corporation or the Corporation’s transfer agent setting
forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Corporation shall
within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In
any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Corporation, including this Note, by the Holder or its Affiliates since the date as of which such number
of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of
the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
issuable upon conversion of this Note held by the Holder, provided, however, that a Holder may, at any time, by written notice
to the Corporation, waive the preceding provisions of this paragraph, but any such waiver will not be effective until the sixty-first
(61st) day after such notice is delivered to the Company, nor will any such waiver affect any other Holder. The rights and obligations
of the Holders are several and not joint and that no action taken by a Holder pursuant to the Notes shall be deemed to create
a group or create a presumption that the Holders are in any way acting in concert.  The Beneficial Ownership Limitation provisions
of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4(d)
to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership
Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation.
The limitations contained in this paragraph shall apply to a successor holder of this Note. 

 
 

 (f)         
  Issuance Limitations. Notwithstanding
anything herein to the contrary, if the shares of Common Stock shall be traded on a national securities exchange and the Corporation
has not obtained Shareholder Approval, then the Corporation may not issue, upon conversion of either the principal amount of,
or Interest thereon, this Note, a number of shares of Common Stock which, when aggregated with any shares of Common Stock issued
on or after the Original Issue Date and prior to such Conversion Date (i) in connection with the conversion of any Notes
issued pursuant to the Exchange Agreement, and (ii) in connection with the conversion of the Class B Preferred Stock, would
exceed 19.99% of the number of shares of Common Stock outstanding on the Trading Day immediately preceding the Original Issue
Date (subject to adjustment for forward and reverse stock splits, recapitalizations and the like) (such number of shares, the
“Issuable Maximum”). Each Holder shall be entitled to a portion of the Issuable Maximum equal to the quotient
obtained by dividing (x) the original principal amount of the Holder’s Note by (y) the aggregate original principal
amount of all Notes issued on the Original Issue Date to all Holders. In addition, each Holder may allocate its pro-rata portion
of the Issuable Maximum among Notes and shares of Class B Preferred Stock held by it in its sole discretion. Such portion shall
be adjusted upward ratably in the event a Holder no longer holds any Notes or shares of Class B Preferred Stock and the amount
of shares issued to the Holder pursuant to the Holder’s Notes and shares of Class B Preferred Stock was less than the Holder’s
pro-rata share of the Issuable Maximum.  The Corporation will use best efforts to obtain Shareholder
Approval and the Holder understands and agrees that shares of Common Stock issued to and then held by the Holder as a result of
conversions of Notes shall not be entitled to cast votes on any resolution to obtain Shareholder Approval pursuant hereto. 

 
 

 (g)          Floor
Price.  Notwithstanding the provisions of this Section 4, no adjustment made in accordance with this Section 4 shall
cause the Conversion Price to be less than $0.35 (the “Floor Price”). 

   

  
- 8 -

   

 Section 5.           
Certain Adjustments. 

   

 (a)          Stock
Dividends and Stock Splits. If the Corporation, at any time while this Note is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions payable in shares of Common Stock on shares of Common Stock or any Common Stock
Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Corporation upon conversion
of the Notes or upon the exercise of any options or warrants), (ii) subdivides outstanding shares of Common Stock into a
larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into
a smaller number of shares or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of
capital stock of the Corporation, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be
the number of shares of Common Stock (excluding any treasury shares of the Corporation) outstanding immediately before such event,
and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment
made pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled
to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision,
combination or re-classification. 

   

 (b)          Fundamental
Transaction. If, at any time while this Note is outstanding, (i) the Corporation, directly or indirectly, in one
or more related transactions effects any merger or consolidation of the Corporation with or into another Person, (ii) the
Corporation, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of
all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase
offer, tender offer or exchange offer (whether by the Corporation or another Person) is completed pursuant to which holders of
Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted
by the holders of more than 50% of the outstanding Common Stock, (iv) the Corporation, directly or indirectly, in one or
more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory
share exchange pursuant to which the shares of Common Stock of the Corporation are effectively converted into or exchanged for
other securities, cash or property, or (v) the Corporation, directly or indirectly, in one or more related transactions consummates
a business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of
Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock or share Exchange Agreement or other business combination)
(each 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 (without
regard to any limitation in Section 4(e) and Section 4(f) on the conversion of this Note), the number of
shares of Common Stock of the successor or acquiring corporation or of the Corporation, if it is the surviving corporation, and
any additional consideration (the “Alternate
Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of
Common Stock for which this Note is convertible immediately prior to such Fundamental Transaction (without regard to any limitation
in Section 4(e) and Section 4(f) on the conversion of this Note). 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 Common Stock in such Fundamental Transaction, and the Corporation 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 Common 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. The Corporation shall cause any successor
entity in a Fundamental Transaction in which the Corporation is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the Corporation under this Note and the other Transaction
Documents in accordance with the provisions of this Section 5(b).  Upon the occurrence of any such Fundamental Transaction,
the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction,
the provisions of this Note and the other Transaction Documents referring to the “Corporation” shall refer instead
to the Successor Entity), and may exercise every right and power of the Corporation and shall assume all of the obligations of
the Corporation under this Note and the other Transaction Documents with the same effect as if such Successor Entity had been
named as the Corporation herein. 

   

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

   

 (d)          Notice
to the Holder. 

   

  
- 9 -

   

 (i)       
   Adjustment to Conversion Price.
Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5, the Corporation shall promptly deliver
to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts
requiring such adjustment. 

   

 (ii)          Notice
to Allow Conversion by Holder. If (A) the Corporation shall declare a dividend (or any other distribution in whatever
form) on the Common Stock, (B) the Corporation shall declare a special nonrecurring cash dividend on or a redemption of the
Common Stock, (C) the approval of any stockholders of the Corporation shall be required in connection with any reclassification
of the Common Stock, any consolidation or merger to which the Corporation is a party, any sale or transfer of all or substantially
all of the assets of the Corporation, or any compulsory share exchange whereby the Common Stock is converted into other securities,
cash or property or (D) the Corporation shall authorize the voluntary or involuntary dissolution, liquidation or winding
up of the affairs of the Corporation, then, in each case, the Corporation shall cause to be filed at each office or agency maintained
for the purpose of conversion of this Note, and shall cause to be delivered to the Holder at its last address as it shall appear
upon the Note Register, at least ten (10) calendar days prior to the applicable record or effective date hereinafter specified,
a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption,
rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled
to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it
is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities,
cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided
that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the
corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains,
material, non-public information regarding the Corporation, the Corporation shall not be required to provide such notice until
such time as it makes public disclosure of such event, at which point it shall simultaneously with its public disclosure, provide
notice to the Holder. The Holder shall remain entitled to convert this Note during the period commencing on the date of such notice
through the effective date of the event triggering such notice except as may otherwise be expressly set forth herein. 

 
 

 Section 6.           
 Corporation Representations and Affirmative
Covenants 

 
 

 (a)          Prior
to the Closing Date, the Corporation will not be in violation of the listing requirements of the Over-the-Counter Quotations Bureau
(the “OTCQB”) and does not reasonably anticipate that the Common Stock will be delisted by the OTCQB in the
foreseeable future, nor are the Corporation’s securities “chilled” by Financial Industry Regulatory Authority
(“FINRA”). The Corporation and its subsidiaries are unaware of any facts or circumstances which might give
rise to any of the foregoing. 

 
 

 (b)          No
officer or director of the Corporation would be disqualified under Rule 506(d) of the Securities Act as amended on the basis of
being a "bad actor" as that term is established in the September 19, 2013 Small Entity Compliance Guide published by the Securities
and Exchange Commission (the “Commission”). 

 
 

 (c)          The
Corporation represents that it is not a “shell” issuer and has never been a “shell” issuer or that if
it previously has been a “shell” issuer that at least 12 months have passed since the Corporation has reported form
10 type information indicating it is no longer a “shell issuer. Further, the Corporation will instruct its counsel to either
(i) write a 144 opinion to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel. 

 
 

 (d)          The
Corporation shall promptly secure the quotation of the Conversion Shares upon the OTCQB or other automated quotation system and,
so long as the Holder owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so quoted,
such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Corporation will obtain and,
so long as the Holder owns any of the Securities, maintain the trading of its Common Stock on the OTCQB or any equivalent replacement
medium, but excluding any national securities exchange, and will comply in all respects with the Corporation’s reporting,
filing and other obligations under the bylaws or rules of the OTC Markets Group, Inc. The Corporation shall promptly provide to
the Holder copies of any notices it receives from the OTCQB and any other quotation systems on which the Common Stock is then
quoted regarding the continued eligibility of the Common Stock for quotation on such exchanges and quotation systems. 

 
 

 Section 7.           
 Negative Covenants. As long as any portion
of this Note remains outstanding, unless the holders of a Majority in Interest shall have otherwise given prior written consent,
the Corporation shall not, and shall not permit any of the Subsidiaries to, directly or indirectly: 

   

  
- 10 -

   

 (a)          other
than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money
of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter
acquired or any interest therein or any income or profits therefrom; 

 
 

 (b)          other
than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of
its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom; 

 
 

 (c)          
repay, repurchase or offer to repay, repurchase or otherwise
acquire more than a de minimis number of shares of its Common Stock or Common Stock Equivalents other than as to (i) the
Conversion Shares as permitted or required under the Transaction Documents and (ii) repurchases of Common Stock or Common
Stock Equivalents pursuant to employee, director or consultant repurchase plans or similar agreements; or 

 
 

 (d)          prepay
any Indebtedness, other than the Notes if on a pro-rata basis. 

   

 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 this Note or (B) 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 is not cured within 90 days; 

 
 

 (ii)          the
entry by a court of (i) a decree, order, judgment or other similar document in respect of the Corporation or any Subsidiary of
a voluntary or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization
or other similar law or (ii) a decree, order, judgment or other similar document adjudging the Corporation or any Subsidiary as
bankrupt or insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment
or composition of or in respect of the Corporation or any Subsidiary under any applicable federal, state or foreign law or (iii)
a decree, order, judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator
or other similar official of the Corporation or any Subsidiary or of any substantial part of its property, or ordering the winding
up or liquidation of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such
other decree, order, judgment or other similar document unstayed and in effect for a period of sixty (60)  consecutive days; 

   

 (iii)          the
suspension from trading or the failure of the Common Stock to be trading or listed (as applicable) on the Trading Market for a
period of five (5) consecutive days, which default is not cured within 90 days, provided, however, that if such suspension or
cessation of trading occurs as a result of any action taken by the Commission, then the cure period shall be 180 days; 

   

 (iv)          The
Corporation shall not be “current” in its filings with the Commission, which default is not cured within 90 days;
or 

   

 (v)          any
Event of Default contained in the Security Agreement. 

   

 (b)          Cross
default.  The Company’s obligations under the terms of this Note, the other Transaction Documents and all documents
executed in connection herewith and/or therewith shall be cross-defaulted with all financing and other obligations of the Company
that are senior to the Note, so that a default under any senior financing accommodations extended by any lender, shall be an Event
of Default hereunder. 

   

  
- 11 -

   

 (c)          Remedies
upon Event of Default. If any Event of Default occurs, the outstanding principal amount of this Note, plus any Late Fees and
liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become, at the election
of Holders of fifty-one percent (51%) of the outstanding aggregate principal amount of Notes, immediately due and payable in cash
at the Mandatory Default Amount.  Such amounts shall become immediately due and payable in cash at the Mandatory Default
Amount at the election of the Holder.  Commencing 5 days after the occurrence of and during the continuance of any Event
of Default that results in the eventual acceleration of this Note, this Note shall accrue interest at a rate equal to the lesser
of 12% per annum or 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 Corporation.  In connection with such acceleration
described herein, the Holder need not provide, and the Corporation 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
the election of Holders of fifty-one percent (51%) of the outstanding aggregate principal amount of Notes.  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(c).  No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon. 

   

 (d)          Class
B Preferred Stock.  Upon the occurrence of an Event of Default and the subsequent payment of the Mandatory Default Amount,
each share of Class B Preferred Stock shall immediately be cancelled and be of no further force or effect. In addition, in the
event that such Event of Default shall occur prior to the date that shall be two (2) years from the Closing Date and results in
the foreclosure of the Intellectual Property (as such term is defined in the Security Agreement), then (i) if any portion of the
shares of Class B Preferred Stock shall have been converted into Conversion Shares, then such Conversion Shares shall immediately
be cancelled and be of no further force or effect, or (ii) if any Conversion Shares shall have been sold, then the Majority Shareholder
shall within two (2) days return to the Corporation all proceeds derived from such sale. 

   

 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 or sent by a nationally recognized overnight
courier service, addressed to the Corporation, at the address set forth above, or such other facsimile number or address as the
Corporation may specify for such purposes by notice to the Holder delivered in accordance with this Section 9(a). Any and
all notices or other communications or deliveries to be provided by the Corporation hereunder shall be in writing and delivered
personally, by facsimile 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 Corporation, or if no such facsimile number or address appears on
the books of the Corporation, at the principal place of business of such Holder, as set forth in the Exchange Agreement. Any notice
or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto
prior to 5:30 p.m. (New York City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice
or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day
that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii)  the second Trading Day
following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt
by the party to whom such notice is required to be given. 

   

 (b)          Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of
the Corporation, 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 Corporation. 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 Corporation 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 Corporation. 

   

  
- 12 -

   

 (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 New York, 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 any of the Transaction Documents (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 City of New York, Borough of Manhattan (the “New
York Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York 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 any of the Transaction Documents), 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 New York
Courts, or such New York 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. 

   

 (e)         
 Waiver. Any waiver by the Corporation 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 Corporation 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 on any other occasion. Any waiver
by the Corporation 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. 

   

 (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)          
Secured Obligation. The obligations of the Corporation
under this Note are secured by certain assets of the Corporation and one of its Subsidiaries pursuant to the Security Agreement,
dated as of the date of the Exchange Agreement, between the Corporation and the Secured Parties (as defined therein). 

 
 

 (j)       
   Dispute Resolution. In the
case of a dispute as to the determination of the, Conversion Price, the Corporation or the Holder (as the case may be) shall submit
the disputed determinations or arithmetic calculations (as the case may be) via facsimile (i) within two (2) Business Days after
receipt of the applicable notice giving rise to such dispute to the Corporation or the Holder (as the case may be) or (ii) if
no notice gave rise to such dispute, at any time after the Holder learned of the circumstances giving rise to such dispute. If
the Holder and the Corporation are unable to agree upon such determination or calculation within two (2) Business Days of such
disputed determination or arithmetic calculation (as the case may be) being submitted to the Corporation or the Holder (as the
case may be), then the Corporation shall, within two (2) Business Days, submit via facsimile (a) the disputed determination of
the Conversion Price to an independent, reputable investment bank selected by the Corporation and approved by the Holder or (b)
the disputed arithmetic calculation of the Conversion Price to an independent, outside accountant selected by the Corporation.
The Corporation shall cause at its expense the investment bank or the accountant (as the case may be) to perform the determinations
or calculations (as the case may be) and notify the Corporation and the Holder of the results no later than ten (10) Business
Days from the time it receives such disputed determinations or calculations (as the case may be). Such investment bank’s
or accountant’s determination or calculation (as the case may be) shall be binding upon all parties absent demonstrable
error. 

 
 

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

 
 

 (Signature
Page Follows)   

   

  
- 13 -

   

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

   

 	   	   	   
	   	 AVALANCHE
INTERNATIONAL CORP. 

	   	   	   
	   	   	   
	   	 By: 

   

	   

	   	   	   
	   	   	 Name:
Philip Mansour 

	   	   	   
	   	   	 Title:  
Chief Executive Officer 

	   	   
	   	 Facsimile No. for delivery
of Notices:                     

   

  
- 14 -

   

 ANNEX A 

 
 

 NOTICE OF
CONVERSION 

 
 

 The undersigned
hereby elects to convert principal under the 7% Secured Convertible Note due February __, 2022 of Avalanche International Corp.,
a Nevada corporation (the “Corporation”),
into shares of common stock (the “Common Stock”),
of the Corporation according to the conditions hereof, as of the date written below. If shares of Common 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 Corporation 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 Corporation that its ownership of the Common Stock
does not exceed the amounts specified under Section 4 of this Note, 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 Common Stock. 

 
 

 Conversion calculations: 

   

	   	 Date to Effect Conversion:
_________________________________________ 

   

 Principal Amount of Note to be Converted:
_______________________ 

   

 Number of shares of Common
Stock to be issued: _______________________ 

	   	   
	   	 Signature: ______________________________________________________ 

	   	   
	   	 Name: _________________________________________________________ 

	   	   
	   	 Address for Delivery of Common
Stock Certificates: ________________________________________________________________ 

	   	   

 ________________________________________________________________ 

	   	   

 Or 

	   	   
	   	 DWAC Instructions: 

	   	   
	   	 Broker No: ________________________________________________ 

	   	   
	   	 Account No: _____________________________________________ 

      

  
- 15 -

 
 

 Schedule
1 

 
 

 CONVERSION
SCHEDULE 

 
 

 The 7% Secured Convertible
Note due on ________ __, 2022 in the original principal amount of $            
is issued by Avalanche International Corp. This Conversion Schedule reflects conversions made under Section 4
of the above referenced Note. 

 
 

	   	 Dated: ________________________ 

	   

   

	 Date of Conversion 

 (or for first entry, 

 Original Issue Date) 

	   

	 Amount of 

 Conversion 

	   

	 Aggregate 

 Principal 

 Amount 

 Remaining 

 Subsequent to 

 Conversion 

 (or original 

 Principal 

 Amount) 

	   

	 Corporation Attest 

	   	   	   	   	   	   	   
	   	   	   	   	   	   	   
	   	   	   	   	   	   	   
	   	   	   	   	   	   	   
	   	   	   	   	   	   	   
	   	   	   	   	   	   	   
	   	   	   	   	   	   	   
	   	   	   	   	   	   	   
	   	   	   	   	   	   	   
	   	   	   	   	   	   	   

      

  
- 16 -

   

 Exhibit
B 

 
 

 FORM
OF SECURITY AGREEMENT 

 
 

 This Security
Agreement (the “Agreement”)
is made and entered into by way of deed on  ____________, 2017 by Avalanche International Corp., a Nevada corporation (the
“Corporation”), MTIX Ltd,
a company formed under the laws of England and Wales (“MTIX”) 
and Pravin Mistry of Bridge Cottage, Eastgate, Honley, West Yorkshire HP9 6PA (the “Collateral
Agent”) as trustee for the holders for the time being (each, a “Secured
Party” and together, the “Secured
Parties”) of the Corporation’s 7% Secured Convertible Promissory Notes (the “Notes”)
issued pursuant to the Exchange Agreement (as defined below). This Agreement is being executed and delivered by the Corporation
and the Secured Parties in connection with that certain Share Exchange Agreement, dated as of the date first set forth above (the
“Exchange Agreement”), by
and among the Corporation and the Secured Parties. Capitalized terms used but not otherwise defined herein shall have the respective
meanings set forth in the Exchange Agreement. 

 
 

 W I T
N E S S E T H: 

 
 

 WHEREAS,
pursuant to the terms of the Exchange Agreement, the Secured Parties have agreed to acquire from the Corporation, and the Corporation
has agreed to issue to the Secured Parties, the Notes, pursuant to the terms of the Exchange Agreement; 

 
 

 WHEREAS,
the Corporation shall derive substantial direct and/or indirect benefits from the transactions contemplated by the Exchange Agreement;
and 

 
 

  WHEREAS,
in order to induce the Secured Parties to enter into the Exchange Agreement MTIX has agreed to execute and deliver to the Secured
Parties this Agreement and to grant the security interests described herein to secure the prompt payment, performance and discharge
in full of all of the Corporation’s obligations under the Notes. 

 
 

 NOW,
THEREFORE, in consideration of the foregoing, the covenants set forth herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, each Secured Party, MTIX and the Corporation hereby agree as follows. 

 
 

 SECTION I 

 INTERPRETATION 

 
 

 Section 1(a).      
  Certain Definitions. As used in this
Agreement, the following terms shall have the meanings set forth in this Section 1.  Terms used but not otherwise defined
in this Agreement that are defined in Article 9 of the UCC (such as “account,” “chattel paper,” “commercial
tort claim,” “deposit account,” “document,” “equipment,” “fixtures,” “general
intangibles,” “goods,” “instruments,” “inventory,” “investment property,”
“letter-of-credit rights,” “proceeds” and “supporting obligations”) shall have the respective
meanings given such terms in Article 9 of the UCC. 

 
 

 (a)       
   “Collateral” means
the collateral in which the Collateral Agent as trustee for the Secured Parties is granted a security interest by this Agreement
and which consists of the following property of MTIX, whether presently owned or existing or hereafter acquired or coming into
existence, wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all
proceeds, products and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral
and of insurance covering the same and of any tort claims in connection therewith: 

 
 

 (i)            Those
assets of MTIX that comprise its Intellectual Property, including but not limited to its multi-laser surface enhancement technology
and process (“MLSE”), wherever
situated, together with all documents of title and documents representing the same and all improvements thereto; and all contract
rights and other general intangibles forming part of or ancillary to its Intellectual Property, including, without limitation,
all licenses, computer software (whether “off-the-shelf,” licensed from any third party or developed by MTIX),
computer software development rights, goodwill, trademarks, service marks, trade styles, trade names, patents, patent applications,
copyrights and other rights to Intellectual Property used in connection with MLSE; and proceeds of all of the foregoing Collateral
set forth above. 

      

  

   

 (ii)        
  Those assets of MTIX described below, which
MTIX now owns or shall hereafter acquire or create, immediately upon acquisition or creation, wherever located, and includes,
but is not limited to, any items listed on any schedule or list attached to this Agreement: 

 
 

 1)          Accounts. 
All Accounts, Receivables, Documents, Chattel Paper, Instruments, and General Intangibles, including any rights to any tax refunds
from any governmental authority (all of which are hereinafter individually and collectively referred to as "Accounts"); 

 
 

 2)          Inventory. 
All Inventory and Goods including, but not limited to, raw materials, work in process, finished goods, tangible property, stock
in trade, wares and merchandise used in, sold by, or stopped in transit by MTIX; 

 
 

 3)          Equipment. 
All Equipment and Fixtures, including all machinery and vehicles, and all substitutions, improvements, replacements and additions
thereto; 

 
 

 4)          Investment
Property.  All certificated and uncertificated securities, security entitlements, securities accounts, commodity contracts
and commodity accounts; 

 
 

 5)          Intangibles. 
All ownership interests of any kind, whether stock, membership or partnership or joint venture interests, all contracts and all
other intangibles of any kind; 

 
 

 6)          All
Assets.  All of MTIX’s other fixed assets, current assets and personal property not described in Paragraphs (1)
through (5) above. 

 
 

 (iii)          Notwithstanding
the foregoing, none of the following items will be included in the Collateral: (a) assets if the granting of a security interest
in such asset would (I) be prohibited by applicable law, or (II) be prohibited by contract; (b) any property and assets, the pledge
of which would require approval, license or authorization of any governmental body, unless and until such consent, approval, license
or authorization shall have been obtained or waived provided that the Corporation has used commercially reasonable  efforts
to obtain or waive such consent, approval, license or authorization; provided, however, that to the extent permitted
by applicable law, this Agreement shall create a valid security interest in such asset and, to the extent permitted by applicable
law, this Agreement shall create a valid security interest in the proceeds of such asset. 

 
 

 (b)          “Event
of Default” has the meaning given in Section V of this Agreement, and (unless the context otherwise requires) means
an Event of Default which has not been waived or remedied. 

 
 

 (c)          “Indebtedness”
means (x) any liabilities for borrowed money or amounts owing (other than trade accounts payable, accrued expenses or deferred
revenue incurred in the ordinary course of business), (y) all guaranties, bonds, letters of credit, bills of exchange, endorsements
and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in MTIX’s
balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business; and (z) the present value of any finance lease payments due under leases
required to be capitalized in accordance with UK accounting principles and practices applicable to MTIX; provided, further,
however, that in no event shall the term Indebtedness include the capital stock surplus, retained earnings, minority interests
in the common stock of subsidiaries, operating lease obligations, reserves for deferred income taxes and investment credits, other
deferred credits or reserves. 

 
 

 (d)          
“Intellectual Property” means the
collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under UK, multinational
or foreign laws or otherwise, including, without limitation, (i) all copyrights arising under the laws of the UK, any other country
or any political subdivision thereof, whether registered or unregistered and whether published or unpublished, all registrations
and recordings thereof, and all applications in connection therewith, including, without limitation, all registrations, recordings
and applications in the UK Intellectual Property Office, (ii) all letters patent in the UK or any other country or any political
subdivision thereof, all reissues and extensions thereof, and all applications for letters patent in the UK or any other country
and all divisions, continuations and continuations-in-part thereof, (iii) all trademarks, trade names, corporate names, company
names, business names, fictitious business names, trade dress, service marks, logos, domain names and other source or business
identifiers, and all goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings
thereof, and all applications in connection therewith, whether in the UK or any other country or any political subdivision thereof,
or otherwise, and all common law rights related thereto, (iv) all trade secrets arising under the laws of the UK, any other country
or any political subdivision thereof, (v) all rights to obtain any reissues, renewals or extensions of the foregoing, (vi) all
licenses for any of the foregoing, and (vii) all causes of action for infringement of the foregoing and including, without limitation,
all know-how relating to MLSE. 

     

  
- 2 -

   

 (e)          
“Insolvency Act” means the Insolvency
Act 1986. 

 
 

 (f)          
“Insurances” means all contracts
or policies of insurance of whatever nature. 

 
 

 (g)          
“Liens” means any lien, mortgage,
charge, security interest, assignment, encumbrance, right of first refusal, preemptive right or other restriction (in each case)
having the effect of security for the payment of money, other than restrictions imposed by securities laws. 

 
 

 (h)          
“LPA” means the Law of Property Act
1925. 

 
 

 (i)          
“Majority in Interest” shall mean
the holders of fifty-one percent (51%) or more of the then outstanding principal amount of all then outstanding Notes at the time
of such determination. 

 
 

 (j)          
“Material Adverse Effect” shall have
the meaning ascribed to such term in the Exchange Agreement. 

 
 

 (k)          
“Notes” means the Notes as issued
on the date of this Agreement (and for the avoidance of doubt does not include any other notes which may at any time be issued
(whether or not on the same terms as the Notes), any stock or other securities issued or created upon conversion of the Notes
or otherwise in respect of the Notes, or any amounts borrowed or reborrowed by MTIX from the Secured Parties or any other person
upon redemption of or otherwise in respect of the Notes). 

 
 

 (l)      
     “Obligations”
means (i) the principal amount of the Notes for the time being remaining unpaid, and (ii) interest on the Notes in accordance
with their terms for the time being accrued but unpaid, limited to a maximum of one year’s accrual of interest ($70,000.00
or, if lower, 7% of the principal amount of the Notes remaining unpaid when the interest accrues); and (iii) any and all costs
incurred by the Collateral Agent or the Secured Parties from time to time if and to the extent that the Corporation or MTIX expressly
covenants to pay or reimburse such costs under with the terms of this Agreement or the Notes and remaining unpaid, provided that
the total amount of all such unpaid costs forming part of the Obligations is limited to $50,000, and (iv) all amounts (including
but not limited to post-petition interest) in respect of the Obligations listed in (i) to (iii) that would be payable but for
the fact that the obligations to pay such amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization
or similar proceeding involving the Corporation.. In no circumstances can the total amount of the Obligations exceed $10,120,000. 

 
 

 (m)          “Permitted
Liens” means: (a) Liens for taxes not yet due or delinquent or being contested in good faith and by appropriate proceedings,
for which adequate reserves have been established; (b) Liens in respect of property or assets imposed by law which were incurred
in the ordinary course of business, such as carriers’, warehousemen’s, materialmen’s and mechanics’ Liens
and other similar Liens arising in the ordinary course of business which are not delinquent or remain payable without penalty
or which are being contested in good faith and by appropriate proceedings; (c) Liens incurred or deposits made in the ordinary
course of business in connection with workers’ compensation, unemployment insurance and other types of social security,
and other Liens to secure the performance of tenders, statutory obligations, contract bids, government contracts, performance
and return of money bonds and other similar obligations, incurred in the ordinary course of business, whether pursuant to statutory
requirements, common law or consensual arrangements; (d) Liens in favor of the Collateral Agent or the Secured Parties; (e) Liens
in favor of customs and revenue authorities arising as a matter of law to secure payments of customs duties in connection with
the importation of goods; (f) Liens which constitute rights of setoff of a customary nature or banker’s liens, whether arising
by law or by contract; (g) leases or subleases and licenses or sublicenses granted in the ordinary course of MTIX’s business
assigned by way of security in favor of the Collateral Agent or the Secured Parties; (h) Liens in the ordinary course of business
(A) upon or in any equipment acquired or held by MTIX (or any of its Subsidiaries) to secure the purchase price of such equipment
or Indebtedness incurred solely for the purpose of financing the acquisition or lease of such equipment, or (B) existing on such
equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired and improvements
thereon, and the proceeds of such equipment, assigned by way of security in favour of the Collateral Agent or the Secured Parties;
(i) Liens in existence prior to the execution of this Agreement; (j) Liens secured by assets of MTIX that are not within the definition
of Collateral as set forth in this Agreement; (k) Liens that are expressly subordinated to the Liens granted pursuant to this
Agreement; and (l) Liens incurred in connection with the extension, renewal or refinancing of the Indebtedness secured by Liens
of the type described above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered
by the existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced does not increase. Permitted
Liens shall include any Liens permitted under section 2.11 below, or by any documents required or permitted under section 2.11
below, any Liens ranking in terms of priority behind the Security Interest and any preferential debt or cost of winding-up or
other liability or cost payable by law out of the Collateral or the proceeds of its realization. 

      

  
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 (n)          
“Receiver” means a receiver or receiver
and manager or administrative receiver of the whole or part of the Collateral. 

 
 

 (o)          
“Subsidiary” means, in respect of
any Person, any corporation, association, partnership or other business entity of which more than 50% of the total voting power
of shares of capital stock or other interests (including partnership interests) entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers, general partners or trustees thereof is at the time owned or
controlled, directly or indirectly, by (i) such Person; (ii) such Person and one or more Subsidiaries of such Person;
or (iii) one or more Subsidiaries of such Person. 

 
 

 (p)          
“UCC” means the Uniform Commercial
Code of the State of Nevada.   

 

Section 1(b).         Third
party rights 

 Unless expressly provided to
the contrary in this Agreement, a person who is not a party to this Agreement has no right under the Contracts (Rights of Third
Parties) Act 1999 to enforce or enjoy the benefit of any term of this Agreement. Notwithstanding any term of this Agreement, the
consent of any person who is not a party to this Agreement is not required to rescind or vary this Agreement at any time. Any
Receiver may, subject, to this Section 1(b) and that Act, rely on any provision of this Agreement which expressly confers a right
on him. The Secured Parties are parties to this Agreement only for the purposes of consenting to the terms of this Agreement,
giving certain undertakings to the Corporation or MTIX, of appointing (and undertaking to replace if required) the Collateral
Agent and authorizing the Collateral Agent and of regulating the rights and obligations of the Collateral Agent and the Secured
Parties inter se and the Secured Parties shall not have any direct rights (otherwise than through the Collateral Agent) to enforce
any term of this Agreement against the Corporation or MTIX or to make any claim under this Agreement against the Corporation and
MTIX. The Corporation is a party to this Agreement solely for the purposes of consenting to the terms of this Agreement and taking
the benefit of certain undertakings in this Agreement and (other than its joining in the further assurance in section 2.6) shall
not have any obligations under this Agreement, without prejudice to its Obligations under the Notes. 

    

   

 SECTION II 

 COLLATERAL;
OBLIGATIONS SECURED 

 
 

 Section 2.1    
      Grant and Description.
MTIX, as principal debtor and not just as surety, covenants with the Collateral Agent to pay or discharge on demand the Obligations
if the Corporation fails itself to discharge the Obligations when due in accordance with their terms. In order to secure the full
and complete payment and performance of the Obligations when due, MTIX hereby grants to the Collateral Agent (as trustee for the
benefit of the Secured Parties), subject to the Permitted Liens as beneficial owner, (a) a first fixed charge over all the assets
forming part of the Collateral described in paragraph (a)(i) of Section 1(a) above (Intellectual Property) and (b) by way of floating
charge, all the Collateral other than any part of the Collateral which is for the time being effectively charged hereunder by
way of fixed charge pursuant to (a) above (“Floating Charge Property”) (together the “Security Interest”) for
the benefit of the Secured Parties, all upon and subject to the terms and conditions of this Security Agreement. If the grant,
pledge, or collateral transfer or assignment of any specific item of the Collateral is expressly prohibited by any contract or
by law, then the Security Interest created hereby nonetheless remains effective to the extent allowed by such contract or other
applicable laws, but is otherwise limited by that prohibition. 

 
 

 Section 2.2       
   Conversion of Floating Charge.
The Collateral Agent may at any time after an Event of Default and after payment of the Obligations has been demanded from
MTIX, by notice in writing to MTIX convert the floating charge hereby created into a fixed charge in respect of such part of the
Floating Charged Property as may be specified in such notice and the ability of the Corporation or MTIX to deal in any manner
with such part of the Floating Charged Property shall thereupon cease except to the extent otherwise agreed by the Collateral
Agent.  A floating charge will automatically crystallise and convert into a fixed charge over the relevant Floating Charge
Property if a liquidator, administrative receiver, Receiver, administrator or other similar officer is appointed in respect of
MTIX or all or a material part of its assets.  No floating charge created under this Agreement will automatically crystallise
and convert into a fixed charge solely by reason of a moratorium being obtained under section 1A of Schedule A1 of the Insolvency
Act (or anything being done with a view to obtaining a moratorium). 

      

  
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 Section 2.3    
      Continuing Security. 
The Security created by this Agreement is continuing security for the payment and discharge of the Obligations.  The
provisions of this Agreement will apply at all times: 

      

 (a)          
regardless of the date on which any of the Obligations
were incurred; 

      

 (b)          in
respect of the full amount of the Obligations at the relevant time (subject to the limits in the definition of the Obligations)
even if the amount of the Obligations had previously been less than that amount. 

 
 

 The Security created by this
Agreement is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by the
Secured Parties. 

 
 

 Section 2.4        
  Security Interest.  MTIX shall,
promptly upon request by the Collateral Agent at any time: 

 (a)          deposit
with the Collateral Agent all documents of title or other evidence of ownership, together with such deeds, certificates and documents
as the Collateral Agent may require, relating to the Collateral for the time being subject to a fixed charge; and 

 
 

 (b)          provide
the Collateral Agent with all information it may reasonably request in relation to the Collateral. 

 
 

 Section 2.5        
  Intellectual Property.  Promptly
following the request of the Collateral Agent, MTIX shall procure that an entry is made in each relevant public register of its
Intellectual Property to record (where such recordal is possible) the existence of this Agreement and the restrictions imposed
by it. 

 
 

 Section 2.6       
   Further assurance.  The
Corporation and MTIX shall promptly take all such actions within their respective power and control, including executing all such
documents, notices and instructions in such form as the Collateral Agent may reasonably require: 

 
 

 (a)       
   to create, perfect, protect and (if
necessary) maintain the security created or intended to be created over any of its assets under this Agreement or for the exercise
of any rights, powers and remedies of the Collateral Agent provided by or under this Agreement or by law or regulation; 

 
 

 (b)      
    to confer on the Collateral
Agent security interests in or over any of its assets located in any jurisdiction other than England and Wales equivalent or similar
to the security created or intended to be created by this Agreement; and 

 
 

 (c)        
  to facilitate the realization of the assets
which are, or are intended to be, the subject of the security created by this Agreement after an Event of Default. 

 
 

 Section 2.7       
   Power to remedy.  If MTIX
fails to comply with any of its obligations under this Agreement, the Collateral Agent (or its nominee) may (at MTIX’s expense)
take such action as is reasonably necessary to protect any assets against the consequences of such non-compliance and to ensure
compliance with such obligations. 

 
 

 Section 2.8       
   Power of attorney. 

 
 

 (a)    
      As security for
the performance of its obligations under this Agreement, MTIX irrevocably and severally appoints the Collateral Agent and each
Receiver to be its attorney, with full power of substitution. 

 
 

 (b)     
     The attorney may, in the
name of the MTIX and on its behalf and at its expense, do anything which MTIX is obliged to do under this Agreement but has failed
to do or which is necessary in connection with the exercise of any of the rights, powers, authorities or discretions of the Collateral
Agent in relation to the Collateral under this Agreement or any law or regulation. 

 
 

 (c)    
      MTIX each ratify
and confirms anything properly done by any attorney under this Section.  MTIX agrees to indemnify the attorney against all
actions, claims, demands and proceedings taken or made against it and all costs, damages, expenses, liabilities and losses incurred
by the attorney as a result of anything lawfully done by it under or in connection with this power of attorney. 

      

  
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 Section 2.9     
     Collateral Agent. 

 
 

 (a)      
    The Secured Parties hereby:
(i) irrevocably designate the Collateral Agent as their agent to act on behalf of the Secured Parties as their representative
and on their behalf  for the purposes of all the terms of this Security Agreement and the Notes; (ii) agree and consent that
the Collateral Agent be named as the sole secured party on any and all security documents, filings or notices executed or filed
pursuant to or in respect of this Security Agreement; and (iii) agree that the Collateral Agent is authorized to file any and
all terminations of such documents, filings or notices at such time or times as it determines is appropriate. 

 
 

 (b)          As
soon as practicable following the execution and delivery of this Agreement, the Collateral  Agent shall deliver this Security
Agreement for registration at the Companies Registry. 

 
 

 (c)     
     Until the Obligations
are paid and performed in full, MTIX covenants and agrees that it will, at its own expense and upon the request of the Collateral
Agent, but in all cases subject to the rights of the grantees of the Permitted Liens: (i) after an Event of Default, file
or cause to be filed such applications and take such other actions as the Majority in Interest or a duly appointed Collateral
Agent may reasonably request to obtain the consent or approval of any governmental authority to the rights of the Secured Parties
and the Collateral Agent hereunder, including, without limitation, the right to sell all the Collateral upon an Event of Default
without additional consent or approval from such governmental authority; (ii) from time to time, either before or after an
Event of Default, promptly execute and deliver to the duly appointed Collateral Agent all such other assignments, certificates,
supplemental documents, and do all other acts or things as the Collateral Agent may reasonably request in order to more fully
create, evidence, perfect, continue, and preserve the priority of the Security Interest and to carry out the provisions of this
Agreement; and (iii) either before or after an Event of Default, pay all filing fees in connection with any financing, continuation,
or termination statement or other instrument with respect to the Security Interest. 

 
 

 Section 2.10         Priority
as between Secured Parties. The Secured Parties and Collateral Agent hereby covenant and agree with MTIX that MTIX has granted
and may subsequently
grant, from time to time, Permitted Liens and that as between all Secured Parties, the Security Interest granted to each Secured
Party under this Agreement is pari passu with the Security Interests of the other Secured Parties according to the principal
amount of Notes owed to them respectively. The priorities specified herein are applicable irrespective of the time, order or method
of attachment or perfection of security interests or the time or order of filing of financing statements. The Collateral Agent
and the Secured Parties agree not to seek to challenge, to avoid, to subordinate or to contest or directly or indirectly to support
any other Person in challenging, avoiding, subordinating or contesting in any judicial or other proceeding, including, without
limitation, any proceeding involving the Corporation, the priority, validity, extent, perfection or enforceability of any Senior
Permitted Liens in all or any part of the Collateral. The Collateral Agent and the Secured Parties further covenant and agree
that they shall not, and the Secured Parties shall not instruct, authorize or otherwise permit or consent to allowing the Collateral
Agent to, take any action that is in violation of, or inconsistent with, the provisions of this section. 

 
 

 Section 2.11         Priority
of Senior Lender. Notwithstanding any other term of this Agreement, the Secured Parties and the Collateral Agent consent (for
the purposes of this Agreement and of any relevant term of the Notes) to the grant to any Senior Lender by the Company of such
Liens in or over the assets of MTIX (including the Collateral) as the Senior Lender may require to secure any borrowings or Indebtedness
of MTIX or the Corporation or any members of their group (including liabilities under guaranties of such borrowings or Indebtedness
of other members of the group) and agrees that such Liens shall rank in all respects (or to the extent required by the Senior
Lender) in priority to the Security Interest created by this Agreement. The Collateral Agent (for himself and on behalf of the
Secured Parties, at the cost and expense of MTIX) shall enter into such postponement, priority or inter-creditor agreements and
shall make such filings as the Senior Lender and the Corporation may from time to time require for the purpose of giving effect
to this Section 2.11, which may include restrictions on the Collateral Agent’s ability to enforce the Security Interest
or any term of this Agreement or the Notes without the consent of the Senior Lender and/or obligations to grant consents, waivers
of releases as required by the Senior Lender, and other ancillary provisions. In this section 2.11 “borrowing”
includes any form of financial facilities provided by or guaranteed by a Senior Lender for the bona fide purpose of financing
the business and assets of MTIX or the Corporation or any members of their group, or of refinancing such borrowing. In this section
2.11 “Senior Lender” means a bank or other financial institution (or more than one, whether in
a syndicate or acting separately) providing borrowings or Indebtedness on commercial terms to MTIX or the Corporation or any members
of their group. 

      

  
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 SECTION III

COVENANTS 

 
 

 Section 3.1          Duties
MTIX Regarding Collateral. At all times from and after the date hereof and the Obligations have been discharged in full MTIX
agrees to use all its powers (save with the prior written consent of the Collateral Agent) to: 

 
 

 (a)          Preserve
the Equipment in good condition and order (ordinary wear and tear excepted) and not permit it to be abused or misused; 

 
 

 (b)          Maintain
good and complete title to the Collateral subject only to Permitted Liens, save as permitted by exceptions in other paragraphs
of this section 3.1; 

 
 

 (c)          Keep
the Collateral free and clear at all times of all Liens ranking in priority to the Security Interest other than Permitted Liens; 

 
 

 (d)          Take
or cause to be taken such acts and actions as shall be necessary or appropriate to assure that each Secured Party’s security
interest in the Collateral not become subordinate to or on parity with the Liens or claims of any other Person other than by way
of Permitted Liens or in accordance with section 2.11 above; 

 
 

 (e)          Except
in the ordinary course of business (in the case of Floating Charge Property only), or by way of Permitted Lien, not transfer,
pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral; 

 
 

 (f)       
   Maintain, at the place where MTIX
is entitled to receive notices under the Notes, a current record of where all material Collateral is located, permit representatives
of the duly appointed Collateral Agent at any time, upon reasonable prior written notice during normal business hours to inspect
and make abstracts from such records (provided, that so long as no Event of Default exists, the Collateral Agent shall
conduct such inspections no more frequently than semi-annually); 

 
 

 (g)          Promptly
notify each Secured Party upon becoming aware that any Event of Default (as hereinafter defined) occurs; and 

 
 

 (h)          In
accordance with prudent business practices, endeavor to collect or cause to be collected from each account debtor under its accounts,
as and when due, any and all amounts owing under such accounts. 

 
 

  For
purposes of clarity, nothing in this Agreement shall be construed as restricting MTIX or the Corporation and its Subsidiaries
from (I) granting licenses or sublicenses to any of the Collateral which constitutes Intellectual Property; (II) from licensing,
selling, leasing or renting, directly or indirectly, any inventory or other property sold or disposed of in the ordinary course
of business and on ordinary business terms); (III) from engaging in joint ventures, strategic alliances or other similar arrangements
for bona fide business purposes consistent with industry practices; (IV) from utilizing the cash generated from MTIX or the Corporation’s
business operations in accordance with the business judgment of management or the board of directors; or (V) from entering into
transactions contemplated by the definition of Permitted Liens or section 2.11 above. 

 
 

 Section 3.2    
      Duties with Respect
to Intellectual Property.  At all times from and after the date hereof and until the Obligations have been discharged
in full, MTIX agrees to procure so far as it is able (save with the prior written consent of the Collateral Agent) by the exercise
of its powers to: 

 
 

  (a)           Except
to the extent that failure to act cannot reasonably be expected to have a Material Adverse Effect, take all commercially reasonable
steps necessary to (x) maintain the validity and enforceability of any Collateral that constitutes Intellectual Property
in full force and effect and (y) pursue the application, obtain the relevant registration and maintain the registration of
each of its patents, trademarks and copyrights that is part of the Collateral, including, without limitation, by the payment of
required fees and taxes, the filing of responses to office actions issued by the U.S. Patent and Trademark Office, the U.S. Copyright
Office or any similar office or agency of the United States, any State thereof or similar offices in the UK and Europe, any other
country or any political subdivision thereof, or other governmental authorities, the filing of applications for renewal or extension,
the filing of affidavits, the filing of divisional, continuation, continuation-in-part, reissue and renewal applications or extensions
and the payment of maintenance fees. MTIX shall give prompt notice to the Collateral Agent no later
than thirty (30) days prior to any filing deadline that may result in an expiration or other erosion of any such Intellectual
Property.  Additionally, MTIX will maintain, or, if such patents have not been filed, shall seek to obtain, foreign patents
for the Intellectual Property as well as for improvements patents and new patents according to a proportionate stategy to protect
Intellectual Property in a cost-effective manner.  MTIX shall bear all the cost of patent prosecution and maintenance. 
MTIX alone will be responsible for choosing patent counsel. MTIX shall provide proof of payment of all necessary fees to the Collateral
Agent upon request. 

     

  
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 (b)           Except
to the extent that failure to act cannot reasonably be expected to have a Material Adverse Effect, not do or permit any act or
knowingly omit to do any act whereby any of its Intellectual Property that is part of the Collateral may lapse, be terminated,
or become invalid or unenforceable or placed in the public domain (or in case of a trade secret, lose its competitive value). 

 
 

 (c)           Except
to the extent that failure to act cannot reasonably be expected to have a Material Adverse Effect, take all commercially reasonable
steps to preserve and protect each item of its Intellectual Property that is part of the Collateral, including, without limitation,
maintaining the quality of any and all products or services used or provided in connection with any of the trademarks, consistent
with the quality of the products and services as of the date hereof, and taking all commercially reasonable steps necessary to
ensure that all licensed users of any of the Trademarks abide by the applicable license’s terms with respect to the standards
of quality. 

 
 

 Notwithstanding
the foregoing provisions of this Section 3.2 or anything to the contrary elsewhere in this Security Agreement, nothing in
this Security Agreement shall prevent MTIX or the Corporation or its Subsidiaries from discontinuing the use or maintenance of
any of its Intellectual Property, the enforcement of its license agreements or the pursuit of actions against infringers, if they
determine in its reasonable business judgment that such discontinuance is desirable in the conduct of its business. 

 
 

 Section 3.3       
   Other Encumbrances.  At
all times after the date hereof and until the Obligations have been discharged in full, MTIX shall, subject to the rights of the
holders of the Permitted Liens: (i) defend its title to the Collateral against all claims, and (ii) take any action necessary
to remove any encumbrances on the Collateral other than Permitted Liens. 

 
 

 SECTION IV

REPRESENTATIONS AND WARRANTIES 

 
 

 MTIX warrants
to each Secured Party that at the date of this Agreement: 

 
 

 Section 4.1      
    Title to Collateral. 
MTIX holds the Collateral as beneficial owner free from Liens other than Permitted Liens. 

 
 

 Section 4.2     
     No Other Encumbrances. 
Other than the Permitted Liens or under section 2.11 above, MTIX has not granted a security interest in the Collateral to any
other individual or entity, and to the actual knowledge of MTIX, the Collateral is free and clear of any mortgage, pledge, lease,
trust, bailment, lien, security interest, encumbrance, charge or other arrangement, other than the Permitted Liens. 

 
 

 Section 4.3      
    Authority; Enforceability.
The execution, delivery and performance of this Agreement by MTIX does not: (i) violate any of the provisions of the Articles
of Association of MTIX or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable
law, rule or regulation applicable to MTIX; or (ii) conflict with, or constitute a default (or an event that with notice or lapse
of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing MTIX’s
debt or otherwise) or other understanding to which MTIX is a party or by which any property or asset of MTIX is bound or affected. 
MTIX has the authority and capacity to perform its obligations hereunder, and this Agreement is the valid and binding obligation
of MTIX enforceable against MTIX in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency or other similar laws of general application affecting the enforcement of creditors' rights or general equitable
principles, whether applied in law or equity. 

 
 

 Section 4.5       
   Perfection; Security Interest.
This Agreement creates in favor of the Collateral Agent, for the benefit of the Secured Parties, a valid security interest in
the Collateral, subject only to Permitted Liens and the terms of this Agreement and compliance with legal requirements as to registration,
securing the payment and performance of the Obligations. 

      

  
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 SECTION V

EVENTS OF DEFAULT 

 
 

 Section 5.1          Events
of Default Defined.  The occurrence of any of the following events prior to discharge in full of the Obligations (without
the consent in writing of the Collateral Agent) shall (unless waived by the Collateral Agent) constitute an event of default under
this Agreement (each, an “Event of Default”): 

 
 

 		 (a) 	 A legally binding moratorium becomes effective in
respect of the debts of the Corporation including the Obligations.  If a such moratorium occurs, the ending of the moratorium
will not remedy any Event of Default caused by that moratorium; 

 
 

 		 (b) 	 The Corporation goes into bankruptcy, winding-up
or dissolution; 

 
 

 		 (c) 	 MTIX goes into winding-up, dissolution or administration; 

 
 

 		 (d) 	 the appointment of a liquidator, receiver, administrative
receiver, administrator, compulsory manager or other similar officer in respect of MTIX or any material part of its assets or
any analogous procedure or step is taken in any jurisdiction in which MTIX has material assets; 

 
 

 		 (e) 	 the Corporation fails to pay to the Secured Parties
when due in accordance with the express terms of the Notes as originally issued (and without reference to any acceleration of
its payment obligations under the terms of the Notes, by law or otherwise) any principal sum (specifically excluding any interest,
costs or other sums payable other than the principal amount) repayable under the terms of the Notes, and does not remedy the failure
by paying the amount due within 90 days after the due date or, if later, 90 days after payment shall have been demanded in writing
by the Person entitled to it. 

 
 

 Notwithstanding
the foregoing paragraphs of this section 5.1: 

 
 

 		 (f) 	 No debt owing by MTIX to the Corporation or any
member of its group shall be deemed due or owing or suspended unless the Corporation or the relevant member of its group takes
any steps to enforce payment; and 

 
 

 		 (g) 	 Nothing done or omitted to be done by the Secured
Parties or the Collateral Agent in his or their capacity as directors or employees of MTIX shall be or give rise to an Event of
Default. 

 
 

 		 (h) 	 Any such process as is described in paragraphs (a)
to (d) above shall not constitute an Event of Default if MTIX or the Corporation notifies the Collateral Agent that such process
is contested by MTIX or the Corporation on reasonable grounds and it is in fact reversed or cancelled within 90 days of its commencement. 

 
 

 Section 5.2     
     Rights and Remedies
Upon Default.  The Security created by this Agreement is enforceable at any time while an Event of Default is continuing. 
If an Event of Default exists and is continuing, the Collateral Agent shall, at its election (but subject to Section 7
below and section 2.11 above), exercise any and all rights available to a secured party, in addition to any and all other
rights afforded by this Agreement, at law, in equity, or otherwise, including, without limitation, (a) requiring MTIX to
assemble all or part of the Collateral and make it available to the Collateral Agent at a place to be designated by the Collateral
Agent which is reasonably convenient to the Collateral Agent and the Corporation, (b) surrendering any policies of insurance
on all or part of the Collateral and receiving and applying any refunded premiums as a credit on the Obligations, (c) appoint
a receiver for all or part of the Collateral, (d) exercise any of the powers, authorisations or discretions conferred on mortgagees,
administrators or receivers under the LPA, the Insolvency Act or other legislation, (e) applying to the Obligations any cash
held by the Collateral Agent under this Security Agreement, and (f) as legally permissible, selling, reselling, assigning and
delivering or granting a license to use or otherwise dispose of the Collateral or any part thereof, in one or more parcels at
public or private sale, at any of the Collateral Agent's offices or elsewhere, for cash, on credit or for future delivery, and
upon such other terms as the Collateral Agent may at its discretion choose; and (g) take such further action as the Collateral
Agent sees fit to enforce all or part of the security created by this Agreement. 

      

  
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 Section 5.3           Rights
in relation to a Receiver.  The Collateral Agent may remove any Receiver appointed under this Agreement, appoint another
person as Receiver or appoint additional Receivers.  Each Receiver will be deemed to be the agent of MTIX (as the case may
be) who alone will be responsible for the acts and defaults of the Receiver and for any liabilities incurred by the Receiver. 
The Collateral Agent may fix the remuneration of a Receiver which will be payable by MTIX and form part of the Obligations, subject
to the limit on recoverable costs in the definition of Obligations. 

 
 

 Section 5.4   
       Redemption
of prior Security.  Where there is any security created over any of the Collateral which ranks in priority to the security
created by this Agreement and: 

 
 

 		 (a) 	 the security created by this Agreement becomes enforceable;
and 

 
 

 		 (b) 	 the holder of such other security takes any steps
to enforce that security, 

 
 

 the Collateral Agent or any
Receiver may, at its sole discretion and at the cost and expense of MTIX, redeem, take a transfer of and repay the indebtedness
secured by such other security.  All amounts paid by MTIX or a Receiver under this Section will form part of the Secured
Obligations. 

 
 

 Section 5.5        
  Demands.  Any demand for payment
made by the Collateral Agent shall be valid and effective even if it contains no statement of the relevant Obligations or an inaccurate
or incomplete statement of them. 

 
 

 	 Section
5.6 	 General
powers.   Any Receiver in England and Wales will have: 

 
 

 (a)          the
rights, powers, privileges and immunities conferred on receivers, receivers and managers and mortgagees in possession under the
LPA; 

 
 

 (b)          the
rights, powers, privileges and immunities conferred on administrative receivers (whether or not that Receiver is an administrative
receiver) under Schedule 1 of the Insolvency Act; and 

 
 

 (c)          all
other rights, powers, privileges and immunities conferred by law or regulation on receivers, receivers and managers, mortgages
in possession and administrative receivers. 

 
 

 Section 5.7          Specific
powers.  The rights, powers and remedies provided in this Agreement are in addition to any rights powers and remedies
under law or regulation.  Any Receiver will have the following additional powers: 

 
 

 (a)          the
power to do or omit to do anything which MTIX could do or omit to do in relation to the Collateral which is the subject of the
appointment; 

 
 

 (b)          the
power to do all other acts and things which the Receiver may consider desirable or necessary for realizing any of the Collateral
or incidental or conducive to any of the rights, powers and discretions conferred on a Receiver under this Agreement or by law
or regulation; and 

 
 

 (c)          the
power to use the name of MTIX for all the above purposes. 

 
 

 Section 5.8          Variation
of statutory powers.  The following English statutory provisions do not apply to this Agreement or any Security created
by this Agreement: 

 
 

 		 (a) 	 the restriction on the consolidation of mortgages
in section 93 of the LPA; 

 
 

 (b)          the
restrictions on the power to grant or accept the surrender of leases in sections 99 and 100 of the LPA; 

 
 

 (c)          the
conditions to the exercise of a power of sale in section 103 of the LPA; 

 
 

 (d)          the
restrictions on the application of proceeds by a mortgagee or receiver in sections 105, 107(2) and 109(8) of the LPA; and 

 
 

 (e)          the
restrictions on the appointment of a receiver in section 109(1) of the LPA and the provisions regarding a receiver’s remuneration
in section 109(6) of the LPA. 

  
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 Section 5.9      
    Notice. Reasonable notification
of the time and place of any public sale of the Collateral, or reasonable notification of the time after which any private sale
or other intended disposition of the Collateral is to be made, shall be sent to MTIX, the Corporation and the holders of Permitted
Liens. It is agreed that notice sent or given not less than ten (10) calendar days prior to the taking of the action to which
the notice relates is reasonable notification and notice for the purposes of this subparagraph. 

 
 

 Section 5.10          Application
of Proceeds.  The Collateral Agent or Receiver shall apply the proceeds of any sale or other disposition of the Collateral
hereunder in the following order: first, to the payment of all expenses of the Collateral Agent or Receiver incurred in
enforcing, retaking, holding, and preparing any of the Collateral for sale(s) or other disposition, in arranging for such sale(s)
or other disposition, and in actually selling or disposing of the same (all of which are part of the Obligations, subject to the
limit on such costs in the definition of Obligations); and second, toward payment of the balance of the Obligations pro
rata to the amounts owing to each Secured Party. Any surplus remaining shall be delivered to MTIX or the other person entitled
to them (as appropriate) or as a court of competent jurisdiction may direct. If the proceeds are insufficient to pay the Obligations
in full, then MTIX shall remain liable for any deficiency. 

 
 

 SECTION VI

ADDITIONAL REMEDIES 

 
 

 Section 6.1     
     Additional Remedies.
If an Event of Default exists and is continuing, MTIX shall: 

 
 

 (a)    
      Endorse any and
all documents evidencing any Collateral (other than any Collateral if and to the extent subject to the Permitted Liens) in accordance
with the instructions provided by the Collateral Agent, and notify any payor that said documents have been so endorsed and that
all sums due and owing pursuant to them should be paid directly to such Secured Party, or as otherwise instructed by the Collateral
Agent; 

 
 

 (b)       
   Turn over to the Collateral Agent,
or as otherwise instructed by the Collateral Agent, copies of all documents evidencing any right to collection of any sums due
to MTIX arising from or in connection with any of the Collateral; 

 
 

 (c)        
  Keep all of its books, records, documents
and instruments relating to the Collateral in such manner as the Collateral Agent may require. 

 
 

 SECTION VII

COLLATERAL AGENT 

 
 

 Section 7.1          Appointment. The
Collateral Agent declares that it holds the Collateral on trust for the Secured Parties and will act on any instructions of the
Secured Parties given by Majority in Interest. The power of appointment of a new Collateral Agent and trustee to fill any vacancy
(following a resignation of the Collateral Agent or otherwise) shall be exercisable by the Majority in Interest and shall be sufficient
in all respects to rightfully appoint the Collateral Agent hereunder. Each Secured Party (whether or not a signatory hereto) shall
be deemed irrevocably (a) to appoint and consent to the appointment of the Collateral Agent as his agent hereunder, (b) to
confirm that the Collateral Agent shall have the authority to act as the exclusive agent of such Secured Party for the enforcement
of any provisions of this Agreement or of the Notes against the Corporation or MTIX, the exercise of remedies hereunder or under
the Notes and the giving or withholding of any consent or approval hereunder or under the Notes relating to any Collateral or
the Corporation or MTIX’s obligations with respect thereto, and to exercise any powers, authorities or discretions on behalf
of the Secured Parties in respect of the Notes and this Agreement (including but limited to granting any waiver, time or other
indulgence or agreeing to any variation of the obligations of the Corporation or MTIX or restructuring or compromising any of
the Obligations or releasing (in whole or in part) any of the security created by this Agreement), (c) to agree that it shall
not take any action to enforce any provisions of this Agreement or of the Notes against the Corporation or MTIX, to exercise any
remedy hereunder or under the Notes or to give any consents or approvals hereunder or under the Notes except as expressly provided
in this Agreement or in the Notes and (d) to agree to be bound by the terms of this Agreement or the Notes. The appointment
of the Collateral Agent shall continue until the death or resignation of the Collateral Agent, at which time a Majority in Interest
shall appoint a new Collateral Agent. The Collateral Agent may perform any of its duties hereunder or under the Notes by or through
its agents or employees. The Collateral Agent may exercise his powers, authorities and discretions (and those of the Secured Parties)
at his sole discretion and without any obligation to consult the Secured Parties. Each of the Secured Parties irrevocably and
severally appoints the Collateral Agent to be his attorney, with full power of substitution. The attorney may, in the name of
the Secured Parties (or any of them) do anything which is authorized under this section 7.1 or which is necessary in connection
with the exercise of any of the rights, powers, authorities or discretions of the Collateral Agent in relation to the Collateral
under this Agreement or any law or regulation. 

     

  
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 Section 7.2          Nature
of Duties.  The Collateral Agent shall have no duties or responsibilities except those expressly set forth
in this Agreement or in another agreement entered into among MTIX, the Majority in Interest and such Collateral Agent. Neither
the Collateral Agent nor any of its partners, members, shareholders, officers, directors, employees or agents shall be liable
to the Secured Parties for any action taken or omitted by it as such under the Agreement or the Notes or in connection herewith,
be responsible to the Secured Parties for the consequence of any oversight or error of judgment or answerable to the Secured Parties
for any loss, unless caused solely by its or their gross negligence or willful misconduct as determined by a final judgment (not
subject to further appeal) of a court of competent jurisdiction.   

 
 

 Section 7.3          Lack
of Reliance on the Collateral Agent.  The Collateral Agent shall have no duty or responsibility, either initially or
on a continuing basis, to provide any Secured Party with any credit, market or other information with respect thereto, whether
coming into its possession before any Obligations are incurred or at any time or times thereafter.   

 
 

 Section 7.4          Certain
Rights of the Collateral Agent.  The Collateral Agent shall have the right to take any action with respect to the
Collateral permitted by this Agreement, on behalf of all of the Secured Parties.  To the extent practical, the Collateral
Agent may (but shall not be obliged to) request instructions from the Secured Parties with respect to any material act or action
(including failure to act) in connection with the Agreement or the Notes, and shall be entitled to act or refrain from acting
in accordance with the instructions of a Majority in Interest; if such instructions are not provided despite the Collateral Agent’s
request therefor, the Collateral Agent shall be entitled to refrain from such act or taking such action, and if such action is
taken, shall be entitled to appropriate indemnification from the Secured Parties in respect of actions to be taken by the Collateral
Agent; and the Collateral Agent shall not incur liability to any person or entity by reason of so refraining.  Without
limiting the foregoing, (a) no Secured Party shall have any right of action whatsoever against the Collateral Agent as a result
of the Collateral Agent acting or refraining from acting hereunder in accordance with the terms of the Agreement or any other
Transaction Document, and MTIX shall have no right to question or challenge the authority of, or the instructions given to, the
Collateral Agent pursuant to the foregoing and (b) the Collateral Agent shall not be required to take any action which the Collateral
Agent believes (i) could reasonably be expected to expose him to personal liability or (ii) is contrary to this Agreement, the
Notes or applicable law. Nothing in this Agreement shall release the Collateral Agent from liability for fraud. 

 
 

 Section 7.5          Reliance.  The
Collateral Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, statement,
certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message signed,
sent or made by the proper person or entity, and, with respect to all legal matters pertaining to the Agreement and the other
Transaction Documents and its duties thereunder, upon advice of counsel selected by it and upon all other matters pertaining to
this Agreement and the other Transaction Documents and its duties thereunder, upon advice of other experts selected by it.  Anything
to the contrary notwithstanding, the Collateral Agent shall have no obligation whatsoever to any Secured Party to assure that
the Collateral exists or is owned by MTIX or is cared for, protected or insured or that the liens granted pursuant to the Agreement
have been properly or sufficiently or lawfully created, perfected, or enforced or are entitled to any particular priority. 

     

 Section 7.6          Resignation
by the Collateral Agent. 

 
 

 (a)          The
Collateral Agent may resign from the performance of all its functions and duties under the Agreement and the other Transaction
Documents at any time by giving 30 days' prior written notice (as provided in the Agreement) to the Corporation and the Secured
Parties.  Such resignation shall take effect upon the appointment of a successor Collateral Agent pursuant to clauses
(b) and (c) below. 

 
 

 (b)          Upon
any such notice of resignation, or if there is otherwise a vacancy as Collateral Agent, the Secured Parties, acting by a Majority
in Interest, shall appoint a successor Collateral Agent hereunder. 

 
 

 (c)          If
a successor Collateral Agent shall not have been so appointed within said 30-day period, the Collateral Agent, or if none or if
he fails to act the Corporation, shall then appoint a successor Collateral Agent who shall serve as Collateral Agent until such
time, if any, as the Secured Parties appoint a successor Collateral Agent as provided above.  If a successor Collateral
Agent has not been appointed within such 30-day period, the Collateral Agent, the Corporation or MTIX may petition any court of
competent jurisdiction or may interplead the Secured Parties in a proceeding for the appointment of a successor Collateral Agent,
and all fees, including, but not limited to, extraordinary fees associated with the filing of interpleader and expenses associated
therewith, shall be payable by the Secured Parties on demand. 

      

  
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 Section 7.7          Rights
with respect to Collateral.  Each Secured Party agrees with all other Secured Parties and the Collateral
Agent (i) that it shall not, and shall not attempt to, independently exercise any rights with respect to its Security Interest
in the Collateral, or take or institute any action against the Corporation, MTIX, the Collateral Agent or any of the other Secured
Parties in respect of the Collateral or its rights hereunder (other than any such action arising from the breach of this Agreement
by the Collateral Agent or any of the other Secured Parties) and (ii) that such Secured Party has no other rights with respect
to the Collateral other than as set forth in this Agreement and the other Transaction Documents.  Upon the acceptance
of any appointment as Collateral Agent hereunder by a successor Collateral Agent, such successor Collateral Agent shall thereupon
succeed to and become vested with all the Security Interests and rights, powers, privileges and duties of the retiring Collateral
Agent and the retiring Collateral Agent shall be discharged from its duties and obligations under the Agreement.  After any
retiring Collateral Agent’s resignation or removal hereunder as Collateral Agent, the provisions of the Agreement shall
inure to its benefit as to any actions taken or omitted to be taken by it while it was Collateral Agent. 

 
 

 SECTION VIII

MISCELLANEOUS 

 
 

 Section 8.1          Termination
and Release. This Agreement, and the Liens created by this Agreement shall automatically terminate in all respects and be
released upon the full discharge of the Obligations. Conversion of the Notes into shares of capital stock of the Corporation,
in accordance with the terms of the Notes, shall constitute discharge of the principal amount of Notes and interest converted,
for all the purposes of this Agreement. Further, the Liens created by this Agreement on any of the Collateral shall be automatically
released if MTIX disposes of such Collateral pursuant to a transaction permitted by the Notes or this Agreement or otherwise consented
by the Collateral Agent in writing.  In connection with any termination and release pursuant to this Section 8.1, the Collateral
Agent and the Secured Parties shall promptly execute and deliver to MTIX all documents, and shall make all filings, that MTIX
or the Corporation shall reasonably request to evidence such termination and release. 

 
 

 Section 8.2          Severability.
In the event that any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable
or void, this Agreement shall continue in full force and effect without said provision; provided, that in such case the
parties shall negotiate in good faith to replace such provision with a new provision which is not illegal, unenforceable or void,
as long as such new provision does not materially change the economic benefits of this Agreement to the parties. 

 
 

 Section 8.3          Continuing
Security Interest; Successors. This Agreement creates a continuing security interest in the Collateral and shall (i) remain
in full force and effect until the Obligations are discharged in full and (ii) inure to the benefit of Collateral Agent and
his successors, transferees, and assigns. Each Secured Party may, if permitted by the Exchange Agreement, assign its rights hereunder
in connection with any private sale or transfer of its Note in accordance with the terms of the Note and applicable law, in which
case the term “Secured Party” shall be deemed to refer to such transferee as though such transferee was an
original signatory hereto in place of and to the exclusion of any Secured Party who has ceased to hold any Notes. 

 
 

 Section 8.4          Governing
Law; Jurisdiction.  This Agreement shall be governed by and construed under the laws of England and Wales. The courts
of England and Wales have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including
a dispute regarding the existence, validity or termination of this Agreement) and any non-contractual obligations arising out
of or in connection with it (a “Dispute”).  The parties to this Agreement agree that the courts of England
and Wales are the most appropriate and convenient courts to settle any Dispute and accordingly no party to this Agreement will
argue to the contrary. 

 
 

 Section 8.5          Headings. 
The headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this
Agreement. 

 
 

 Section 8.6          Notices.  Any
notice any party shall be given to the Person, and in the manner set forth in, the Exchange Agreement. Either party may, by notice
given in accordance with the Exchange Agreement, change the address to which notices, demands and requests shall be sent to such
party. Any notice to be given by the Corporation to the Collateral Agent shall be given in the manner provided for in the Exchange
Agreement, and delivered to such address as the Corporation is instructed by the Collateral Agent. No notice given to or received
by the Collateral Agent or any Secured Party (as an officer or employee of MTIX or otherwise), or delivered to any office of MTIX,
shall constitute good notice to MTIX until the notice is actually received by an officer of the Corporation. 

      

  
- 13 -

   

 Section 8.7          Entire
Agreement; Amendments; Waivers.  This Agreement constitutes the entire agreement between the parties with regard to the
subject matter hereof and thereof, superseding all prior agreements or understandings, whether written or oral, between or among
the parties.  Except as expressly provided herein, neither this Agreement nor any term hereof may be amended except pursuant
to a written instrument executed by Corporation, MTIX and the Collateral Agent, and no provision hereof may be waived other than
by a written instrument signed by the party against whom enforcement of any such waiver is sought (or by the Collateral Agent
in the case of a waiver by Secured Parties). The Collateral Agent and the Secured Parties shall not, by any act, any failure to
act or any delay in acting be deemed to have (i) waived any right or remedy under this Agreement, or (ii) acquiesced in any Event
of Default or in any breach of any of the terms and conditions of this Agreement. No failure to exercise, nor any delay in exercising,
any right, power or privilege of the the Collateral Agent or Secured Parties under this Agreement shall operate as a waiver of
any such right, power or privilege.  No single or partial exercise of any right, power or privilege under this Agreement
shall preclude any other or further exercise of any other right, power or privilege. A waiver by a Secured Party of any right
or remedy under this Agreement on any one occasion shall not be construed as a bar to any right or remedy that such Secured Party
would otherwise have on any future occasion. 

 
 

 Section 8.8          Multiple
Counterparts. This Agreement has been executed in a number of identical counterparts, each of which shall be deemed an original
for all purposes and all of which constitute, collectively, one agreement; but, in making proof of this Agreement, it shall not
be necessary to produce or account for more than one such counterpart. 

 
 

 Section 8.9          Cumulative
Remedies.  The rights and remedies provided in this Agreement are cumulative, may be exercised singly or concurrently,
and are not exclusive of any other rights or remedies provided by law. 

 
 

 Section 8.10        Immediate
Recourse.  The Corporation and MTIX acknowledge that the Obligations arose out of a commercial transaction and hereby
knowingly waives any right to require the Collateral Agent or Secured Parties to (i) proceed against any person or entity
(including. for the avoidance of doubt, in the case of MTIX, the Corporation), (ii) proceed against any other collateral
under any other agreement, (iii) pursue any other remedy available to the Collateral Agent or Secured Parties, or (iv) make presentment,
dishonor, notice of dishonor, acceleration and/or notice of non-payment. 

 
 

 Section 8.11        Release. 
No transfer or renewal, extension, assignment or termination of this Agreement or of any instrument or document executed and delivered
by the Corporation and/or MTIX to the Collateral Agent or the Secured Parties, nor additional advances made by the Secured Parties
to the Corporation and/or MTIX, nor the taking of further security, nor the retaking or re-delivery of the Collateral by the Collateral
Agent or Secured Parties nor any other act of the Collateral Agent or Secured Parties shall release the Corporation and/or MTIX
from any Obligations, except a release or discharge executed in writing by the Majority in Interest or Collateral Agent with respect
to such Obligations, or an automatic release under section 8.1. At such time the Obligations have been discharged in full, the
Majority in Interest or Collateral Agent (as appropriate) shall execute and deliver to the Corporation and/or MTIX all assignments
and other instruments as may be reasonably necessary or proper to terminate the Security Interest in the Collateral, subject to
any disposition of the Collateral that may have been made by or on behalf of the Collateral Agent or Secured Parties
pursuant to this Agreement. 

 
 

 Section 8.12        Deferral
of Obligors’ rights.  While any Event of Default is continuing and until all Obligations have been irrevocably
discharged in full and unless the Collateral Agent otherwise directs, neither the Corporation or MTIX may exercise any rights
which it may have by reason of performance by it of its obligations under the Notes or this Agreement or by reason of any amount
being payable, or liability arising, under the Notes or this Agreement: 

 
 

 		 (a) 	 to be indemnified by the other; 

 
 

 		 (b) 	 to claim any contribution from the other or any
guarantor of any Obligations. 

   

   

 [Signature Pages to Follow] 

   

  
- 14 -

   

 IN WITNESS
WHEREOF, the Corporation, MTIX, the Collateral Agent and the Secured Parties have duly executed this Agreement as a deed on the
date first written above. 

 
 

	   	 Executed
as a deed by AVALANCHE INTERNATIONAL CORP. 

	   	   
	   	   
	   

	 By: 

	 _________________________ 	   

	   

	   

	 Name: Philip
Mansour 

	   

	   

	   

	 Title:  
Chief Executive Officer 

	   

 
 

	   	 Executed
as a deed by MTIX, Ltd. 

	   	   
	   	   
	   

	 By: 

	 _________________________ 	   

	   

	   

	 Name: Pravin Mistry 

	   

	   

	   

	 Title:   Chief Executive
Officer/Director 

	   

	   	   	   	   
	   	 in the presence of: 

   

 Witness signature: 

   

 Witness name: 

   

 Witness address: 

	   

 
 

 
 

 
 

 Signature
Page to Security Agreement 

    

  

   

 Signature
Page to Security Agreement by each secured party 

 
 

	   

	 Executed
as a deed by PRAVIN MISTRY 

	   

	   

	   

	   

	   

	   

	   

	 _________________________ 	   

	   

	 Name: Pravin
Mistry 

	   

	   

	   

	 in the presence
of: 

	   

	   

	   

	 Witness signature: 

	   

	   

	   

	   

	   

	 Witness name: 

	   

	   

	   

	   

	   

	 Witness address: 

	   

	   

	   

	   

	   

	   

	   

	 Executed
as a deed by PAUL JOHNSON 

	   

	   

	   

	   

	   

	 _________________________ 	   

	   

	 Name: Paul
Johnson 

	   

	   

	   

	   

	   

	 in the presence
of: 

	   

	   

	   

	 Witness signature: 

	   

	   

	   

	   

	   

	 Witness name: 

	   

	   

	   

	   

	   

	 Witness address: 

	   

	   

	   

	   

	   

	   

	   

	 Executed
as a deed by DANIEL JOHNSON 

	   

	   

	   

	   

	   

	 _________________________ 	   

	   

	 Name: Daniel
Johnson 

	   

	   

	   

	 in the presence
of: 

	   

	   

	   

	 Witness signature: 

	   

	   

	   

	   

	   

	 Witness name: 

	   

	   

	   

	   

	   

	 Witness address: 

	   

	   

	   

	 Signature
Page to Security Agreement by Collateral Agent 

     

  
- 2 -

   

 Executed
as a deed by COLLATERAL AGENT: 

 
 

   

	   	   	   
	   	   
	 By: 

	   

	   

	 Name: 

	   

	   
	 Title: 

	   

	   

   

 
 

	   

	 in the presence of: 

	   

	   

	   

	 Witness signature: 

	   

	   

	   

	   

	   

	 Witness name: 

	   

	   

	   

	   

	   

	 Witness address: 

    

  
- 3 -

       

 Exhibit
C 

 
 

 FORM OF REGISTRATION
RIGHTS AGREEMENT 

 
 

 
 

 REGISTRATION
RIGHTS AGREEMENT 

 
 

 This Registration
Rights Agreement (this “Agreement”)
is made and entered into as of February __, 2017, between Avalanche International Corp., a Nevada corporation (the “Corporation”),
and each of the several Noteholders signatory hereto (each such signatory, a “Noteholder”
and, collectively, the “Noteholders”). 

 
 

 This Agreement
is made pursuant to the Share Exchange Agreement, dated as of the date hereof, between the Corporation, each Noteholder and the
other signatories thereto (the “Exchange Agreement”). 

 
 

 The Corporation
and each Noteholder hereby agrees as follows: 

 
 

 Section 1.            Definitions.
Capitalized terms used and not otherwise defined herein that are defined in the Exchange Agreement shall have the meanings given
such terms in the Exchange Agreement. As used in this Agreement, the following terms shall have the following meanings: 

 
 

 “Advice”
shall have the meaning set forth in Section 3(B)(d). 

 
 

 “Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the 90th
calendar day following the Filing Date (or, in the event of a “full review” by the Commission, the 120th
calendar day following the Filing Date) and with respect to any additional Registration Statements which may be required
pursuant to Section 2(c) or Section 3(c), the 90th
calendar day following the date on which an additional Registration Statement is required to be filed hereunder (or, in
the event of a “full review” by the Commission, the 120th
calendar day following the date such additional Registration Statement is required to be filed hereunder); provided,
however, that in the event the Corporation
is notified by the Commission that one or more of the above Registration Statements will not be reviewed or is no longer subject
to further review and comments, the Effectiveness Date as to such Registration Statement shall be the fifth Trading Day following
the date on which the Corporation is so notified if such date precedes the dates otherwise required above, provided, further,
if such Effectiveness Date falls on a day that is not a Trading Day, then the Effectiveness Date shall be the next succeeding
Trading Day. 

 
 

 “Effectiveness
Period” shall have the meaning set forth in Section 2(a). 

 
 

 “Event”
shall have the meaning set forth in Section 2(d). 

 
 

 “Event
Date” shall have the meaning set forth in Section 2(d). 

 
 

 “Filing
Date” means, (i) with respect to the Initial Registration Statement required hereunder, the day that shall be
eighteen (18) months from the Closing Date (twenty-four months in the case of Class B Preferred Stock) and, (ii) with respect
to any additional Registration Statements which may be required pursuant to Section 2(c) or Section 3(c), the earliest
practical date on which the Corporation is permitted by SEC Guidance to file such additional Registration Statement related to
the Registrable Securities. 

 
 

 “Holder”
or “Holders” means the holder
or holders, as the case may be, from time to time of Registrable Securities. 

 
 

 “Indemnified
Party” shall have the meaning set forth in Section 5(c). 

 
 

 “Indemnifying
Party” shall have the meaning set forth in Section 5(c). 

 
 

 “Initial
Registration Statement” means the initial Registration Statement filed pursuant to this Agreement. 

 
 

 “Losses”
shall have the meaning set forth in Section 5(a). 

 
 

 “Plan
of Distribution” shall have the meaning set forth in Section 2(a). 

      

  

   

 “Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
by the Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments
and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to
be incorporated by reference in such Prospectus. 

 
 

 “Registrable
Securities” means, as of any date of determination, (a) all of the shares of Common Stock then issued and
issuable upon conversion in full of the Notes (assuming on such date the Notes are converted in full without regard to any conversion
limitations therein), (b) all of the shares of Common Stock then issued and issuable upon conversion in full of the Class B Convertible
Preferred Stock (the “Class B Preferred Stock”
assuming on such date the Class B  Preferred Stock is converted in full without regard to any conversion limitations therein)
(the shares described under (a) and (b) the “Conversion Shares”), and (c)  any securities issued or then
issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing;
provided, however,
that any such Registrable Securities shall cease to be Registrable Securities (and the Corporation shall not be required to maintain
the effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for so long as (i) a Registration
Statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities
Act and such Registrable Securities have been disposed of by the Holder in accordance with such effective Registration Statement,
(ii) such Registrable Securities have been previously sold in accordance with Rule 144, or (iii) such securities become
eligible for resale without volume or manner-of-sale restrictions and without current public information pursuant to Rule 144
as set forth in a written opinion letter to such effect, addressed, delivered and acceptable to the Transfer Agent and the affected
Holders (assuming that such securities and any securities issuable upon conversion of which, or as a dividend upon which, such
securities were issued or are issuable, were at no time held by any Affiliate of the Corporation, as reasonably determined by
the Corporation, upon the advice of counsel to the Corporation). 

 
 

 “Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and
any additional registration statements contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus,
amendments and supplements to any such registration statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in any such registration
statement. 

 
 

 “Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended
or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the
same purpose and effect as such Rule. 

 
 

 “Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended
or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the
same purpose and effect as such Rule. 

 
 

 “Selling
Stockholder Questionnaire” shall have the meaning set forth in Section 3(a). 

 
 

 “SEC
Guidance” means (i) any publicly-available written or oral guidance of the Commission staff, or any comments,
requirements or requests of the Commission staff and (ii) the Securities Act. 

 
 

 Section 2.         
   Required Registration. 

 
 

 (a)          On
or prior to each Filing Date, the Corporation shall prepare and file with the Commission a Registration Statement covering the
resale of all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering
to be made on a continuous basis pursuant to Rule 415. The number of Registrable Securities that the Corporation will include
in the Initial Registration Statement shall cover the Initial Required Registration Amount, which is 125% of the maximum number
of shares of Common Stock issuable upon conversion of the Notes at the initial conversion price thereof, all subject to adjustment
as provided in Section 2(c).  Each Registration Statement filed hereunder shall be on Form S-3 (except if the Corporation
is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on
Form S-1 or another appropriate form in accordance herewith, subject to the provisions of Section 2(e)) and shall contain
(unless otherwise directed by at least a Majority in Interest of the Holders) substantially the “Plan of Distribution”
attached hereto as Annex A. Subject to the terms of this Agreement, the Corporation shall use its commercially reasonable
efforts to cause a Registration Statement filed under this Agreement (including, without limitation, under Section 3(c))
to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event no later
than the applicable Effectiveness Date, and shall use its commercially reasonable efforts to keep such Registration Statement
continuously effective under the Securities Act until the earlier of (i) the date that all Registrable Securities covered by such
Registration Statement no longer constitute Registrable Securities or (ii) the two year anniversary of the date of this Agreement
(the “Effectiveness Period”). The Corporation shall telephonically request effectiveness of a Registration
Statement as of 5:00 p.m. Eastern Time on a Trading Day. The Corporation shall promptly notify the Holders via facsimile or by
e-mail of the effectiveness of a Registration Statement on the same Trading Day that the Corporation telephonically confirms effectiveness
with the Commission, which shall be the date requested for effectiveness of such Registration Statement. The Corporation shall,
by 9:30 a.m. Eastern Time on the Trading Day after the effective date of such Registration Statement, file a final Prospectus
with the Commission as required by Rule 424. 

  
- 2 -

   

 (b)          Notwithstanding
the registration obligations set forth in Section 2(a), if the Commission informs the Corporation that all of the Registrable
Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration
statement, the Corporation agrees to promptly inform each of the Holders thereof and use its commercially reasonable efforts to
file amendments to the Initial Registration Statement as required by the Commission, covering the maximum number of Registrable
Securities permitted to be registered by the Commission, on Form S-3 or such other form available to register for resale the Registrable
Securities as a secondary offering, subject to the provisions of Section 2(e); with respect to filing on Form S-3 or other
appropriate form; provided, however, that prior to filing such amendment, the Corporation shall be obligated to
use diligent efforts to advocate with the Commission for the registration of all of the Registrable Securities in accordance with
the SEC Guidance, including without limitation, Compliance and Disclosure Interpretation 612.09. 

 
 

 (c)          Notwithstanding
any other provision of this Agreement, if the Commission or any SEC Guidance sets forth a limitation on the number of Registrable
Securities permitted to be registered on a particular Registration Statement as a secondary offering (and notwithstanding that
the Corporation used diligent efforts to advocate with the Commission for the registration of all or a greater portion of Registrable
Securities), unless otherwise (i) directed in writing by a Holder as to its Registrable Securities, or (ii) directed by the Commission
as to the limitations or restrictions that it would require, the number of Registrable Securities to be registered on such Registration
Statement will be reduced as follows: 

   

 		 a. 	 First, the Corporation shall
reduce or eliminate any securities to be included by any Person other than a Holder; 

   

   

 		 b. 	 Second, the Corporation shall
reduce or eliminate Registrable Securities contemplated by clause (c) of the definition of Registrable Securities (applied, in
the case that only some such Registrable Securities may be registered, to the Holders on a pro rata basis based on the total number
of such unregistered Registrable Securities held by such Holders); and 

   

   

 		 c. 	 Third, the Corporation shall
reduce Registrable Securities represented by Conversion Shares (applied, in the case that some Conversion Shares may be registered,
to the Holders on a pro rata basis based on the total number of unregistered Conversion Shares held by such Holders). 

   

 
 

 In the event
of a cutback hereunder, the Corporation shall give the Holder at least five (5) Trading Days prior written notice along with
the calculations as to such Holder’s allotment. In the event the Corporation amends the Initial Registration Statement in
accordance with the foregoing, or determines to file an additional Registration Statement, the Corporation will use its commercially
reasonable efforts to file with the Commission, as promptly as allowed by Commission or SEC Guidance provided to the Corporation
or to registrants of securities in general, one or more Registration Statements on Form S-3 or such other form available to register
for resale those Registrable Securities that were not registered for resale on the Initial Registration Statement, as amended,
as a result of any cutback of Registrable Securities of the Holders or any Registrable Securities not included in the Initial
Registration Statement.  In any additional Registration Statement filed because of a cutback in the number of Registrable
Securities included in the Initial Registration Statement, all holders of shares of Common Stock included in such additional Registration
Statement shall be subject to any additional cutbacks that may be required by the Commission on a pro
rata basis. 

      

  
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 (d)          If:
(i) the Initial Registration Statement is not filed on or prior to its Filing Date (if the Company files a Registration Statement
without affording the Holders the opportunity to review and comment on the same as required by Section 3A(a) herein, the Company
shall be deemed to have not satisfied this clause (i)), or (ii) the Company fails to file with the Commission a request for acceleration
of a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant to the Securities Act, within five
(5) Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that
such Registration Statement will not be “reviewed” or will not be subject to further review, o (iii) prior to the
effective date of a Registration Statement, the Company fails to file a pre-effective amendment and otherwise respond in writing
to comments made by the Commission in respect of such Registration Statement within thirty (30) Business Days after the receipt
of comments by or notice from the Commission that such amendment is required in order for such Registration Statement to be declared
effective (any such failure or breach being referred to as an “Event”, and for purposes of clauses (i) and
(iv), the date on which such Event occurs, and for purpose of clause (ii) the date on which such five (5) Trading Day period is
exceeded, and for purpose of clause (iii) the date which such twenty (20) day period is exceeded, and for purpose of clause (v)
the date on which such fifteen (15) or thirty (30) calendar day period, as applicable, is exceeded being referred to as “Event
Date”), then, in addition to any other rights the Holders may have hereunder or under applicable law, on each such Event
Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date)
until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as partial liquidated damages and
not as a penalty, equal to one-half percent (0.5%) of the aggregate principal balance of the Notes or Stated Value of the Class
B Preferred held by such Holder pursuant to the Exchange Agreement for the Registrable Securities held by Holder on each such
Event Date. The maximum aggregate liquidated damages payable to a Holder pursuant to this Section 2(d) shall be 1% of the aggregate
principal balance of the Notes or Stated Value of the Class B Preferred held by such Holder pursuant to the Exchange Agreement.
If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven days after the date payable,
the Company will pay interest thereon at a rate of 16% per annum (or such lesser maximum amount that is permitted to be paid by
applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts, plus all
such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro
rata basis for any portion of a month prior to the cure of an Event. 

 
 

 (e)          No
liquidated damages shall accrue as to any Registrable Securities that are subject to a cut-back pursuant to Section 2(c) (“Cut
Back Shares”) until such date as the Corporation is able to effect the registration of such Cut Back Shares in accordance
with any restrictions required by the Commission.  From and after the date that such restrictions are terminated, all of
the provisions of this Section 2 (including the obligation to register the Registrable Securities and the liquidated damages provisions)
shall again be applicable to such Cut Back Shares; provided, however, that the Filing Date and Effectiveness Date for the Registration
Statement including such Cut Back Shares shall be based on the termination date of such restrictions. 

 
 

 (f)          If
Form S-3 is not available for the registration of the resale of Registrable Securities hereunder, the Corporation shall (i) register
the resale of the Registrable Securities on another appropriate form and (ii) undertake to register the Registrable Securities
on Form S-3 as soon as such form is available, if at all, during the Effectiveness Period; provided that the Corporation
shall only be required to maintain the effectiveness of the Registration Statement then in effect until the earlier of (A) such
time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective by the Commission
or (B) the expiration of the Effectiveness Period. 

 
 

 Section 3.       
      Registration Procedures. 

 
 

 (A)          Corporation
Obligations.  In connection with the Corporation’s registration obligations hereunder, the Corporation shall: 

 
 

  (a)          Not
less than five (5) Trading Days prior to the filing of each Registration Statement and not less than two (2) Trading
Days prior to the filing of any related Prospectus or any amendment or supplement thereto (including any document that would be
incorporated or deemed to be incorporated therein by reference), the Corporation shall (i) furnish to each Holder copies
of all such documents proposed to be filed, which documents (other than those incorporated or deemed to be incorporated by reference)
will be subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent registered
public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to each
Holder, to conduct a reasonable investigation within the meaning of the Securities Act. Notwithstanding the above, the Corporation
shall not be obligated to provide the Holders advance copies of any universal shelf registration statement registering securities
in addition to those required hereunder, or any Prospectus prepared thereto. The Corporation shall not file a Registration Statement
or any such Prospectus or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities
shall reasonably object in good faith, provided that, the Corporation is notified of such objection in writing no later than three
(3) Trading Days after the Holders have been so furnished copies of a Registration Statement or one (1) Trading Day
after the Holders have been so furnished copies of any related Prospectus or amendments or supplements thereto. 

      

  
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 (b)          (i)
Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the
Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and,
as so supplemented or amended, to be filed pursuant to Rule 424, (iii) respond as promptly as reasonably possible to any
comments received from the Commission with respect to a Registration Statement or any amendment thereto and provide as promptly
as reasonably practicable to the Holders of the Registrable Securities true and complete copies of all correspondence from and
to the Commission relating to a Registration Statement (provided that the Corporation shall excise any information therein, which
would constitute material non-public information regarding the Corporation or any of its Subsidiaries), and (iv) comply in
all material respects with the applicable provisions of the Securities Act and the Exchange Act with respect to the disposition
of all Registrable Securities covered by a Registration Statement during the applicable period in accordance (subject to the terms
of this Agreement) with the intended methods of disposition by the Holders thereof set forth in such Registration Statement as
so amended or in such Prospectus as so supplemented. 

 
 

 (c)       
   If during the Effectiveness Period,
the number of Registrable Securities at any time exceeds 100% of the number of shares of Common Stock then registered in a Registration
Statement, then the Corporation shall file as soon as reasonably practicable, but in any case prior to the applicable Filing Date
(which date shall be subject to any applicable SEC Guidance or limitation required by the Commission), an additional Registration
Statement covering the resale by the Holders of not less than the number of such Registrable Securities. 

 
 

 (d)     
     Notify the Holders of
Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be accompanied
by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably possible
(i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement has been filed,
(B) when the Commission notifies the Corporation whether there will be a “review” of such Registration Statement,
and (C) with respect to a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of
any request by the Commission or any other federal or state governmental authority for amendments or supplements to a Registration
Statement or Prospectus or for additional information, in each case, after the such Registration Statement has been declared effective,
(iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending
the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings
for that purpose, (iv) of the receipt by the Corporation of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening
of any Proceeding for such purpose, (v) of the occurrence of any event or passage of time that makes the financial statements
included in a Registration Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus
or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires
any revisions to a Registration Statement, Prospectus or other documents so that, in the case of a Registration Statement or the
Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading, and (vi) of the occurrence or existence of any pending corporate development with respect to the Corporation
that the Corporation believes may be material and that, in the determination of the Corporation, makes it not in the best interest
of the Corporation to allow continued availability of a Registration Statement or Prospectus, provided, however,
in no event shall any such notice contain any information which would constitute material, non-public information regarding the
Corporation or any of its Subsidiaries. 

 
 

 (e)          Use
its commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping
or suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment. 

 
 

 (f)          Furnish
to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto, including
financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent
requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated
by reference) promptly after the filing of such documents with the Commission; provided, that any such item which is available
on the EDGAR system (or successor thereto) need not be furnished. Subject to the terms of this Agreement, the Company hereby consents
to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering
and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto, except after the giving
of any notice pursuant to Section 3(d). 

      

  
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 (g)          The
Corporation shall provide reasonable cooperation with any broker-dealer through which a Holder proposes to resell its Registrable
Securities in effecting a filing with the FINRA Corporate Financing Department pursuant to FINRA Rule 5110, as requested by any
such Holder. 

 
 

 (h)          Prior
to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate
with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification)
of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within
the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom)
effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition
in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that, the Corporation shall
not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Corporation
to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in
any such jurisdiction. 

 
 

 (i)     
     If requested by a Holder,
cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities
to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free, to the extent permitted
by the Exchange Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and
registered in such names as any such Holder may request. 

 
 

 (j)      
    Upon the occurrence of any event
contemplated by clause (v) or (vi) of Section 3(A)(d), as promptly as reasonably possible under the circumstances
taking into account the Corporation’s good faith assessment of any adverse consequences to the Corporation and its stockholders
of the premature disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration
Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference,
and file any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will
contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were made, not misleading. If the Corporation notifies
the Holders in accordance with clauses (iii) through (vi) of Section 3(A)(d) above to suspend the use of any Prospectus
until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus. The Corporation
will use its commercially reasonable efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. 

 
 

 (k)     
     Comply with all applicable
rules and regulations of the Commission. 

 
 

 (l)       
    The Corporation may require
each selling Holder to furnish to the Corporation a certified statement as to the number of shares of Common Stock beneficially
owned by such Holder and the natural persons thereof that have voting and dispositive control over the shares. During any periods
that the Corporation is unable to meet its obligations hereunder with respect to the registration of the Registrable Securities
solely because any Holder fails to furnish such information within three Trading Days of the Corporation’s request, any
liquidated damages that are accruing at such time shall be tolled and any Event that may otherwise occur solely because of such
delay shall be suspended until such information is delivered to the Corporation. 

 
 

 B.       
    Obligations of the Holders. 

 
 

 (a)    
      Each Holder agrees
to furnish to the Corporation a completed questionnaire in the form attached to this Agreement as Annex B (a “Selling
Stockholder Questionnaire”) on a date that is not less than ten (10) days prior to the Filing Date or by the end
of the fourth (4 th ) Trading
Day following the date on which such Holder receives draft materials in accordance with this Section. Each Holder shall furnish
in writing to the Corporation such additional information regarding itself, the Registrable Securities held by it and the intended
method of disposition of the Registrable Securities held by it, as shall be reasonably required to effect the registration of
such Registrable Securities and shall execute such documents in connection with such registration as the Corporation may reasonably
request.  A Holder shall provide such information to the Corporation at least two (2) Business Days prior to the first anticipated
filing date of such Registration Statement if such Holder elects to have any of the Registrable Securities included in the Registration
Statement. The Corporation shall not be required to include the Registrable Securities of a Holder in a Registration Statement
and shall not be required to pay any liquidated or other damages hereunder to such Holder who fails to furnish to the Corporation
a fully completed Selling Stockholder Questionnaire at least ten (10) Business Days prior to the Filing Date. 

      

  
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 (b)          Each
Holder agrees to cooperate with the Corporation as reasonably requested by the Corporation in connection with the preparation
and filing of a Registration Statement hereunder, unless such Holder has notified the Corporation in writing of its election to
exclude all of its Registrable Securities from such Registration Statement. 

 
 

 (c)          Each
Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it (unless an exemption therefrom is available) in connection with sales of Registrable Securities pursuant to a Registration
Statement. 

 
 

 (d)          Each
Holder agrees that, upon receipt of any notice from the Corporation of either (i) the commencement of an Allowed Delay or (ii)
the happening of an event pursuant to Section 3(A)(d)(iii) – (vi) hereof, such Holder will immediately discontinue disposition
of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities, until it is advised in
writing (the “Advice”) by the Corporation that the use of the applicable Prospectus (as it may have been supplemented
or amended) may be resumed. The Corporation will use its commercially reasonable efforts to ensure that the use of the Prospectus
may be resumed as promptly as is practicable. 

 
 

 Section 4.             Registration
Expenses. All fees and expenses incident to the performance of, or compliance with, this Agreement by the Corporation shall
be borne by the Corporation whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses of the Corporation’s counsel and independent registered public accountants)
(A) with respect to filings made with the Commission, (B) with respect to filings required to be made with any Trading
Market on which the Common Stock is then listed for trading, and (C) in compliance with applicable state securities or Blue
Sky laws reasonably agreed to by the Corporation in writing (including, without limitation, fees and disbursements of counsel
for the Corporation in connection with Blue Sky qualifications or exemptions of the Registrable Securities), (ii) printing
expenses (including, without limitation, expenses of printing certificates for Registrable Securities), (iii) messenger,
telephone and delivery expenses of the Corporation, (iv) fees and disbursements of counsel for the Corporation, (v) Securities
Act liability insurance, if the Corporation so desires such insurance, and (vi) fees and expenses of all other Persons retained
by the Corporation in connection with the consummation of the transactions contemplated by this Agreement. In no event shall the
Corporation be responsible for any broker or similar commissions of any Holder or, except to the extent provided for in the Transaction
Documents, any legal fees or other costs of the Holders. 

 
 

 Section 5.             Indemnification. 

 
 

 (a)          Indemnification
by the Corporation. The Corporation shall, notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities
as principal as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees
of the Corporation, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) and the officers, directors, members, stockholders, partners, agents, investment advisors and employees of
each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims,
damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”),
as incurred, arising out of or relating to (1) any untrue or alleged untrue statement of a material fact contained in a Registration
Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus,
or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which
they were made) not misleading or (2) any violation or alleged violation by the Corporation of the Securities Act, the Exchange
Act or any state securities law, or any rule or regulation thereunder, in connection with the performance of its obligations under
this Agreement, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely
upon information regarding such Holder furnished in writing to the Corporation by such Holder expressly for use therein, or to
the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement, such
Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto
for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi),
the use by such Holder of an outdated, defective or otherwise unavailable Prospectus after the Corporation has notified such Holder
in writing that the Prospectus is outdated, defective or otherwise unavailable for use by such Holder and prior to the receipt
by such Holder of the Advice contemplated in Section 3(B)(d). The Corporation shall notify the Holders promptly of the institution,
threat or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which
the Corporation is aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf
of such indemnified person and shall survive the transfer of any Registrable Securities by any of the Holders in accordance with
Section 6(e). 

      

  
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 (b)          Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Corporation, its directors, officers,
agents and employees, each Person who controls the Corporation (within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest
extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon:
(x) such Holder’s failure to comply with any applicable prospectus delivery requirements of the Securities Act through
no fault of the Corporation or (y) any untrue or alleged untrue statement of a material fact contained in any Registration
Statement, any Prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating
to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein
(in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading
(i) to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished
in writing by such Holder to the Corporation expressly for inclusion in such Registration Statement or such Prospectus or (ii) to
the extent, but only to the extent, that such information relates to such Holder’s proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement (it
being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or in any amendment
or supplement thereto or (iii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi),
to the extent, but only to the extent, related to the use by such Holder of an outdated, defective or otherwise unavailable Prospectus
after the Corporation has notified such Holder in writing that the Prospectus is outdated, defective or otherwise unavailable
for use by such Holder and prior to the receipt by such Holder of the Advice contemplated in Section 3(B)(d). In no event
shall the liability of any selling Holder under this Section 5(b) be greater in amount than the dollar amount of the net
proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation, except
in the case of fraud or willful misconduct by such Holder. 

 
 

 (c)          Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought
(the “Indemnifying Party”) in writing, and the Indemnifying Party shall have the right to assume the defense
thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all reasonable
fees and expenses incurred in connection with defense thereof; provided, that, the failure of any Indemnified Party to give such
notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only)
to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to
appeal or further review) that such failure shall have materially and adversely prejudiced the Indemnifying Party.  An Indemnified
Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume
the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding,
or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and
the Indemnifying Party, and counsel to the Indemnified Party shall reasonably believe that a material conflict of interest is
likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such
Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying
Party, the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of no
more than one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable
for any settlement of any such Proceeding effected without its written consent. No Indemnifying Party shall, without the prior
written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified
Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims
that are the subject matter of such Proceeding. Subject to the terms of this Agreement, all reasonable fees and expenses of the
Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing
to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred,
within thirty (30) calendar days of written notice thereof to the Indemnifying Party; provided, that, the Indemnified Party
shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for which
such Indemnified Party is finally determined by a court of competent jurisdiction (which determination is not subject to appeal
or further review) not to be entitled to indemnification hereunder. 

      

  
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 (d)          Contribution.
If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified
Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified
Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection
with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether
any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of
a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party,
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement
or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations
set forth in this Agreement, any reasonable attorneys’ or other fees or expenses incurred by such party in connection with
any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided
for in this Section was available to such party in accordance with its terms. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method
of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute pursuant to this Section 5(d),
in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Holder from the sale
of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. 

   

 Section 6.         
   Miscellaneous. 

 
 

 (a)          Remedies.
In the event of a breach by the Corporation or by a Holder of any of their respective obligations under this Agreement, each Holder
or the Corporation, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement,
including recovery of damages, shall be entitled to specific performance of its rights under this Agreement. Each of the Corporation
and each Holder agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach
by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance
in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be adequate. 

 
 

 (b)          Piggy-Back
Registrations. If, at any time during the Effectiveness Period, there is not an effective Registration Statement covering
all of the Registrable Securities and the Corporation shall determine to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities,
other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity
securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection
with the Corporation’s stock option or other employee benefit plans, then the Corporation shall deliver to each Holder a
written notice of such determination and, if within fifteen days after the date of the delivery of such notice, any such Holder
shall so request in writing, the Corporation shall include in such registration statement all or any part of such Registrable
Securities such Holder requests to be registered. 

 
 

 (c)          Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing
and signed by the Corporation and the Holders of 51% or more of the then outstanding Registrable Securities (for purposes of clarification,
this includes any Registrable Securities issuable upon exercise or conversion of any Security). If a Registration Statement does
not register all of the Registrable Securities pursuant to a waiver or amendment done in compliance with the previous sentence,
then the number of Registrable Securities to be registered for each Holder shall be reduced pro rata among all Holders and each
Holder shall have the right to designate which of its Registrable Securities shall be omitted from such Registration Statement.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of a Holder or some Holders and that does not directly or indirectly affect the rights of other Holders
may be given only by such Holder or Holders of all of the Registrable Securities to which such waiver or consent relates; provided,
however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the
provisions of the first sentence of this Section 6(c). No consideration shall be offered or paid to any Person to amend or
consent to a waiver or modification of any provision of this Agreement unless the same consideration also is offered to all of
the parties to this Agreement. 

   

 (d)          Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as
set forth in the Exchange Agreement. 

 
 

 (e)          Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of each Holder. The Corporation may not assign (except by merger) its rights or
obligations hereunder without the prior written consent of all of the Holders of the then outstanding Registrable Securities.
Each Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under the Exchange Agreement. 

      

  
- 9 -

   

 (f) 
         Execution
and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered
by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid
and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as
if such facsimile or “.pdf” signature page were an original thereof. 

 
 

 (g)          Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined
in accordance with the provisions of the Exchange Agreement. 

 
 

 (h)          Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law. 

 
 

 (i)        
   Severability. If any term,
provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void
or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter
declared invalid, illegal, void or unenforceable. 

 
 

 (j)      
     Headings. The headings
in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to limit or affect
any of the provisions hereof. 

 
 

 (l)        
   Independent Nature of Holders’
Obligations and Rights. The obligations of each Holder hereunder are several and not joint with the obligations of any other
Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder.
Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Holder pursuant
hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind
of group or entity, or create a presumption that the Holders are in any way acting in concert or as a group or entity with respect
to such obligations or the transactions contemplated by this Agreement or any other matters, and the Corporation acknowledges
that the Holders are not acting in concert or as a group, and the Corporation shall not asset any such claim, with respect to
such obligations or transactions. Each Holder shall be entitled to protect and enforce its rights, including without limitation
the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party
in any proceeding for such purpose. The use of a single agreement with respect to the obligations of the Corporation contained
was solely in the control of the Corporation, not the action or decision of any Holder, and was done solely for the convenience
of the Corporation and not because it was required or requested to do so by any Holder. 

 
 

 
 

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

 
 

 (Signature
Pages Follow) 

      

  
- 10 -

 
 

 IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above. 

   

	   	 AVALANCHE
INTERNATIONAL CORP. 

	   	   	   
	   	   	   
	   	 By: 

	   

	   	   
	   	   	   

	 Name: Philip Mansour 

	   	   	   	   
	   	   	   

	 Title: President and CEO 

      

     

      
 

     
 

     
 

      
 

 [SIGNATURE PAGE OF HOLDERS FOLLOWS] 

      

  
- 11 -

   

 [SIGNATURE PAGE OF HOLDERS] 

 
 

 
 

 
 

 Name
of Holder: ________________________________________________________________________________ 

 
 

 
 

 
 

 Signature
of Authorized Signatory of Holder: _________________________________________________________ 

 
 

 
 

 
 

 Name
of Authorized Signatory: _______________________________________________________________________________ 

 
 

 
 

 
 

 Title
of Authorized Signatory: ________________________________________________________________________________ 

      

      

     

     

     

     

 [SIGNATURE PAGES CONTINUE] 

      

  
- 12 -

      
 

 Annex
A 

 
 

 Plan of
Distribution 

 
 

 Each Selling
Stockholder (the “Selling Stockholders”)
of the securities and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their
securities covered hereby on the principal Trading Market or any other stock exchange, market or trading facility on which the
securities are traded or in private transactions. These sales may be at fixed or negotiated prices. A Selling Stockholder may
use any one or more of the following methods when selling securities: 

   

 		 • 	 ordinary brokerage transactions and transactions
in which the broker-dealer solicits Noteholders; 

     

       

 		 • 	 block trades in which the broker-dealer will attempt
to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction; 

      

      

 		 • 	 purchases by a broker-dealer as principal and resales
by the broker-dealer for its account; 

      

      

 		 • 	 an exchange distribution in accordance with the
rules of the applicable exchange; 

      

      

 		 • 	 privately negotiated transactions; 

      

      

 		 • 	 settlement of short sales; 

      

      

 		 • 	 in transactions through broker-dealers that agree
with the Selling Stockholders to sell a specified number of such securities at a stipulated price per security; 

      

      

 		 • 	 through the writing or settlement of options or
other hedging transactions, whether through an options exchange or otherwise; 

      

     

 		 • 	 a combination of any such methods of sale; or 

       

        

 		 • 	 any other method permitted pursuant to applicable
law. 

   

 The Selling
Stockholders may also sell securities under Rule 144 under the Securities Act of 1933, as amended (the “Securities
Act”), if available, rather than under this prospectus. 

 
 

 Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the Noteholder of securities,
from the Noteholder) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of
an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of
a principal transaction a markup or markdown in compliance with FINRA IM-2440. 

    

    
 

 In connection
with the sale of the securities or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions
they assume. The Selling Stockholders may also sell securities short and deliver these securities to close out their short positions,
or loan or pledge the securities to broker-dealers that in turn may sell these securities. The Selling Stockholders may also enter
into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities
which require the delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which
securities such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended
to reflect such transaction). 

      

  
- 13 -

   

 The Selling
Stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters”
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each Selling Stockholder has informed the Corporation that it does not have any written or oral agreement
or understanding, directly or indirectly, with any person to distribute the securities. 

 
 

 The Corporation
is required to pay certain fees and expenses incurred by the Corporation incident to the registration of the securities. The Corporation
has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities
under the Securities Act. 

 
 

 Because
Selling Stockholders may be deemed to be “underwriters” within the meaning of the Securities Act, they will be subject
to the prospectus delivery requirements of the Securities Act including Rule 172 thereunder. In addition, any securities covered
by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than
under this prospectus. The Selling Stockholders have advised us that there is no underwriter or coordinating broker acting in
connection with the proposed sale of the resale securities by the Selling Stockholders. 

 
 

 We agreed
to keep this prospectus effective until the earlier of (i) the date on which the securities may be resold by the Selling
Stockholders without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without
the requirement for the Corporation to be in compliance with the current public information under Rule 144 under the Securities
Act or any other rule of similar effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule
144 under the Securities Act or any other rule of similar effect. The resale securities will be sold only through registered or
licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale securities
covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption
from the registration or qualification requirement is available and is complied with. 

 
 

 Under applicable
rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously
engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation
M, prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions
of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases
and sales of securities of the common stock by the Selling Stockholders or any other person. We will make copies of this prospectus
available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each Noteholder
at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act). 

     

  
- 14 -

     

 Annex B 

 
 

 Selling
Stockholder Notice and Questionnaire 

 
 

 The undersigned
beneficial owner of common stock (the “Registrable
Securities”) of Avalanche International Corp., a Nevada corporation (the “Corporation”),
understands that the Corporation has filed or intends to file with the Securities and Exchange Commission (the “Commission”)
a registration statement (the “Registration
Statement”) for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement (the
“Registration Rights Agreement”)
to which this document is annexed. A copy of the Registration Rights Agreement is available from the Corporation upon request
at the address set forth below. All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in
the Registration Rights Agreement. 

 
 

 Certain
legal consequences arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly,
holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the
consequences of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus. 

 
 

 NOTICE 

 
 

 The undersigned
beneficial owner (the “Selling Stockholder”)
of Registrable Securities hereby elects to include the Registrable Securities owned by it in the Registration Statement. The undersigned
hereby provides the following information to the Corporation and represents and warrants that such information is accurate: 

 
 

 QUESTIONNAIRE 

   

	   	   	   	   	   
	 1. 

	    

	 Name. 

	    

	   
	   	   	   
	   	    

	 (a) 

	    

	 Full Legal Name of Selling
Stockholder 

	   	   	   
	   	    

	   	    

	   

	   	   	   
	   	    

	 (b) 

	    

	 Full Legal Name of Registered
Holder (if not the same as (a) above) through which Registrable Securities are held: 

	   	   	   
	   	    

	   	    

	   

	   	   	   
	   	    

	 (c) 

	    

	 Full Legal Name of Natural
Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the
securities covered by this Questionnaire): 

	   	   	   
	   	    

	   	    

	   

	   
	 2. Address
for Notices to Selling Stockholder: 

	   
	   

	   
	   

	   
	   

 
 

	   	   	   	   	   
	   	   
	 Address: 

	    

	   

	   
	   

	   
	   

      

  
- 15 -

   

	 Telephone: 

	    

	   

 
 

	   	   	   	   	   
	   	   
	 Email: 

	    

	   

 
 

	   	   	   	   	   
	   	   
	 Fax: 

	    

	   

 
 

	   	   	   	   	   
	   	   
	 Contact Person: 

	    

	   

 
 

 3. Broker-Dealer
Status: 

   

	   

	 (a) 

	 Are you a broker-dealer? 

 
 

 Yes    ☐              
 No    ☐ 

   

	   

	 (b) 

	 If “yes” to Section 3(a),
did you receive your Registrable Securities as compensation for investment banking services to the Corporation? 

 
 

 Yes    ☐           
    No    ☐ 

   

 
 

	   

	 Note:     

	 If “no” to Section 3(b),
the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement. 

   

	   

	 (c) 

	 Are you an affiliate of a broker-dealer? 

 
 

 Yes    ☐            
   No    ☐ 

   

	   

	 (d) 

	 If you are an affiliate of
a broker-dealer, do you certify that you purchased the Registrable Securities in the ordinary course of business, and at the time
of the purchase of the Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly, with
any person to distribute the Registrable Securities? 

 
 

 Yes    ☐              
 No    ☐ 

   

	   

	 Note:     

	 If “no” to Section 3(d),
the Commission’s staff has indicated that you should be identified as an underwriter in the Registration Statement. 

   

	   	   	   	   	   
	 4. 

	    

	 Beneficial
Ownership of Securities of the Corporation Owned by the Selling Stockholder. 

   

 Please state the number of
securities of the Corporation beneficially owned by the Selling Stockholder, regardless of the time acquired or the source from
which derived. 

   

	   	    

	 (a) 

	    

	 Number of shares of Common
Stock beneficially owned: 

	   	   	   
	   	    

	   	    

	   

	   	   	   
	   	    

	 (b) 

	    

	 Number of shares of Common
Stock beneficially owned to be registered pursuant to the Registration Statement (if not the same as 4(a) above): 

	   	   	   
	   	    

	   	    

	   

      

  
- 16 -

   

 “Beneficial
ownership” of a security means a person’s ability, directly or indirectly through any contract, arrangement, understanding,
relationship or otherwise, to exercise alone or together with others: 

   

 		 • 	 voting power, which includes the power to vote,
or to direct the voting of, a security; or 

   

 		 • 	 investment power, which includes the power to dispose,
or to direct the disposition, of a security. 

      

    

 This
term also includes having the right to acquire beneficial ownership of a security within 60 days, including any right to acquire
the security through the exercise of any option, warrant or right, through the conversion of a security, pursuant to the power
to revoke a trust, discretionary account or similar arrangement or pursuant to the automatic termination of a trust, discretionary
account or similar arrangement. 

 
 

 The above definition of beneficial
ownership is very broad and may include, for example, securities held in the name of another person, such as any relative living
in your home, custodians, brokers, or pledgees for your account, or any partnership, trust estate or closely-held corporation
in which you have an interest or are an officer or director. You are also the beneficial owner of securities if you, directly
or indirectly, create or use a trust, proxy, power of attorney, pooling arrangement or any other contract, arrangement or device
with the purpose or effect of divesting yourself of beneficial ownership of such securities or preventing the vesting of such
beneficial ownership. 

 
 

 5. Voting
and Investment Power (to be completed only if the Selling Stockholder is not a natural person): 

   

	   

	 (a) 

	 Please name each person or
persons who have voting or investment power over the Common Stock beneficially owned by the Selling Stockholder. As described
in Question 4 above, please note that for purposes of answering this Question 5: 

   

	   

	 (1) 

	 Voting power includes the power
to vote, or to direct the voting of, such security; and 

   

	   

	 (2) 

	 Investment power includes the
power to dispose, or to direct the disposition, of such security. 

   

 	   

	   

   

	   

   

	   	   	   	   	   	   	   
	   	   	   
	   	   

	                 (b) 

	    

	 For each person named above
in this Question 5, please state the number of shares of Common Stock beneficially owned by the Selling Stockholder in which that
person has sole voting power, shared voting power, sole investment power and/or shared investment power. 

   

	   	   	   
	   

 Beneficial Ownership 

	    

	 Number of

Shares 

	 Total
number of shares as to which the person has sole voting 

 power 

	    

	   
	 Total
number of shares as to which the person has shared voting 

 power 

	    

	   
	 Total
number of shares as to which the person has sole investment 

 power 

	    

	   
	 Total
number of shares as to which the person has shared investment 

 power 

	    

	   

      

  
- 17 -

   

	   	   	   	   	   	   	   
	   	   	   
	   	   

	   	    

	 If necessary, use the blank
page attached hereto as Exhibit B. 

	   	   	   
	   	   

	                 (c) 

	    

	 Do you have any reason to believe
that the ownership of the Common Stock of the registered holder identified in response to Question 1 above should be aggregated
with the ownership of any other registered holder of the Common Stock, for purposes of describing the beneficial ownership of
those shares of Common Stock in the Registration Statement? Ownership could be aggregated where there is a relationship that,
as a factual matter, confers on a person a significant ability to affect how voting power or investment power over the shares
will be exercised. 

	   	   	   
	   	   

	   	    

	 ☐ Yes ☐ No 

	   	   	   
	   	   

	   	    

	 If “yes,” please
explain below: 

	   	   	   
	   	   

	   	    

	   

	   	   	   
	   	   

	   	    

	   

	   	   	   
	   	   

	   	    

	   

	   	   	   	   
	   	   

	                 6. 

	    

	 Relationships
with the Corporation: 

	    

	   
	   	   	   
	   	   

	   	    

	 Except
as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners
of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship
with the Corporation (or its predecessors or affiliates) during the past three years. 

	   	   	   
	   	   

	   	    

	 State any exceptions here: 

	   	   	   
	   	   

	   	    

	   

	   	   	   	   	   
	   	   	   	   	   
	   	   	   	   	   

   

 
 

 “Affiliate” means
a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control
with, a specified person. 

 
 

 “Control” means
the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity,
whether through the ownership of voting securities, by contract or otherwise. 

   

 The undersigned
agrees to promptly notify the Corporation of any inaccuracies or changes in the information provided herein that may occur subsequent
to the date hereof at any time while the Registration Statement remains effective. 

 
 

 By signing
below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and
the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements thereto.
The undersigned understands that such information will be relied upon by the Corporation in connection with the preparation or
amendment of the Registration Statement and the related prospectus and any amendments or supplements thereto. 

       

  
- 18 -

    

 IN
WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed
and delivered either in person or by its duly authorized agent. 

 
 

   

	   	   	   	   	   	   	   	   	   	   	   	   	   
	   	   

	   	   

	   	   

	   	   

	   	   

	   
	   	   	   	   	   	   	   
	 Date:                             
                                

	   

	   	   

	   	   

	   	   

	   	   

	 Beneficial Owner: 

	   

	   

	   	   	   	   	   	   	   	   	   	   	   	   	   

 
 

	   	   	   	   	   	   	   
	   	   	   	   
	   	   

	   	   

	 By: 

	   

	   

	   	   

	   	   

	   	   

	 Name: 

	   	   	   	   	   	   	   
	   	   

	   	   

	   	   

	 Title: 

 
 

 PLEASE FAX
A COPY (OR EMAIL A .PDF COPY) OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL,
TO: 

      

  
- 19 -

 

  

 Exhibit
D 

 FORM OF CERTIFICATE
OF DESIGNATION OF THE AIC CLASS B PREFERRED STOCK 

 AVALANCHE
INTERNATIONAL CORPORATION 

 
 

 
 

 AVALANCHE
INTERNATIONAL CORP., a corporation organized and existing under the laws of the State of Nevada (the “Corporation”) 

 
 

  DOES
HEREBY CERTIFY: 

 
 

 That pursuant
to authority conferred upon the Board of Directors of the Corporation (the “Board”)
by the Articles of Incorporation of said Corporation, and pursuant to the provisions of Section 78.1955 of the Nevada Revised
Statutes (“NRS”), the Board
has duly determined that one hundred thousand (100,000) shares of preferred stock, par value $0.001 per share, shall be designated
“Class B Convertible Preferred Stock,” and to that end the Board has adopted a resolution providing for the designations,
preferences and relative, participating, optional or other rights, and the qualifications, limitations and restrictions, of the
Class B Convertible Preferred Stock, which resolution is as follows: 

 
 

  RESOLVED,
that the Certificate of Designations, Preferences, Rights and Limitations of Class B Convertible Preferred Stock (the “Certificate
of Designations”) dated [ ], 2017 (the “Effective
Date”) be, and hereby is, authorized and approved, which Certificate of Designations shall be filed with the
Secretary of State of the State of Nevada in the form as follows: 

 
 

 Section
1.            Designation
and Amount. One hundred thousand (100,000) shares of the preferred stock of the Corporation, par value $0.001 per share, shall
constitute a class of preferred stock designated as “Class B Convertible Preferred Stock” (the “Class B Preferred
Stock”).  The relative rights, preferences and limitations of the Class B Preferred Stock shall be in all respects
identical, share for share, to the Common Stock of the Corporation, except as otherwise provided herein. 

 
 

 Section 2.          
  Certain Definitions.  
The following terms shall have the meanings defined in this Section 2: 

 
 

 “Affiliate”
means, as to any Person, any other Person which, directly or indirectly, alone or together with other Persons, controls or is
controlled by or is under common control with such Person. “Control”, “controlled by” and “under
common control with,” as and with respect to any Person, means the power, directly or indirectly, to direct or cause the
direction of the management and policies of such Person. 

 
 

 “Business
Day” means any day,
other than a Saturday or Sunday or a day on which banking institutions in the State of New York are authorized or
obligated by law, regulation, or executive order to close. 

 
 

 “Capital
Stock” means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents
of or interest in (however designated) capital stock. 

 
 

 “Change
of Control Event” shall mean the occurrence of any of the following in one or a series of related transactions: 

 
 

 (i)          one
or more acquisitions after the date hereof by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1)
under the Exchange Act), resulting in a majority or more of the voting rights or equity interests in the Corporation being transferred
to such Persons or their Affiliates; 

 
 

 (ii)          a
replacement of more than a majority of the members of the Board that is not approved by those individuals who are members of the
Board on the date hereof (or other directors previously approved by such individuals); 

 
 

 (iii)          a
merger or consolidation of the Corporation or any one or more Subsidiaries owning a majority of the consolidated assets of the
Corporation and all Subsidiaries, or a sale of all or substantially all of the assets of the Corporation and its consolidated
Subsidiaries in one or a series of related transactions, unless following such transaction or series of transactions, the Holders
of the Corporation’s securities immediately prior to the first such transaction continue to hold at least a majority of
the voting rights and equity interests in the surviving entity or acquirer of such assets; 

 
 

 (iv)          a
recapitalization, reorganization or other transaction involving the Corporation or any Subsidiary that constitutes or results
in a transfer of a majority or more of the voting rights or equity interests in the Corporation to any Persons; or 

 
 

 (v)          the
execution by the Corporation or its controlling stockholders of an agreement providing for any of the foregoing events. 

   

 “Charter
Documents” means the Corporation’s Articles of Incorporation and Bylaws. 

      

  

   

 “Commission”
means the United States Securities and Exchange Commission. 

 
 

 “Common
Stock” means (i) the common stock, par value of $0.001 per share, of the Corporation and (ii) any capital stock
into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock. 

 
 

 “Common
Stock Equivalents” means any securities of the Corporation or the Subsidiaries which would entitle the holder
thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant
or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder
thereof to receive, Common Stock. 

 
 

 “Contracts”
means any and all contracts, agreements, commitment, franchises, understandings, arrangements, leases, licenses, registrations,
authorizations, easements, servitudes, rights of way, mortgages, bonds, notes, guaranties, Encumbrances, evidence of indebtedness,
approvals or other instruments or undertakings to which such person is a party or to which or by which such person or the property
of such person is subject or bound, whether written or oral and whether or not entered into in the ordinary and usual course of
the Person’s business, excluding any Permits, provided that each such Contract shall provide for the payment of no less
than $5,000. 

 
 

 “Conversion
Date” shall have the meaning set forth in Article 6(b)(ii). 

 
 

 “Conversion
Price” shall have the meaning set forth in Article 6(a). 

 
 

 “EBITDAS”
shall mean earnings before interest, taxes, depreciation, amortization, and stock-based compensation. 

 
 

 “Effective
Date” shall have the meaning provided in the second paragraph of this Certificate of Designations. 

 
 

 “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission thereunder,
all as in effect at the time. 

 
 

 “Governmental
Authority” means any nation or country (including but not limited to the United States) and any commonwealth,
territory or possession thereof and any government or governmental or regulatory, legislative, executive authority thereof, or
commission, department or political subdivision thereof, whether federal, state, regional, municipal, local or foreign, or any
department, board, bureau, agency, instrumentality or authority thereof, or any court or arbitrator (public or private), including,
but not limited to, the Commission and FINRA. 

 
 

 “Holder”
or “Holders” shall mean each
holder of shares of Class B Preferred Stock. 

 
 

 “Junior
Securities” shall have the meaning set forth in Section 4(a). 

 
 

 “Legal
Requirements” means any and all laws (statutory, judicial or otherwise), ordinances, regulations, judgments,
orders, directives, injunctions, writs, decrees or awards of, and any Contracts with, any Governmental Authority, in each case
as and to the extent applicable to such person or such person’s business, operations or Properties. 

 
 

 “Liens”
means any and all claims, liabilities and obligations and any and all liens, pledges, charges, mortgages, security interests,
restrictions, leases, licenses, easements, liabilities, claims, encumbrances, preferences, priorities or rights of others of every
kind and description. 

 
 

 “Liquidation”
shall have the meaning set forth in Article 4(b). 

 
 

 “Majority
Holders” means any Holder(s) of a majority of the then outstanding shares of Class B Preferred Stock. 

 
 

 “Notice
of Conversion” shall have the meaning set forth in Article 6(b). 

 
 

 “Parity
Securities” shall have the meaning set forth in Article 4(a). 

 
 

 “Person”
means an individual, a corporation, a partnership, an association, a limited liability company, an unincorporated business organization,
a trust or other entity or organization, and any government or political subdivision or any agency or instrumentality thereof. 

 
 

 “Properties”
means any and all properties and assets (real, personal or mixed, tangible or intangible) owned or used by the Corporation. 

     

  
- 2 -

   

 “Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission thereunder,
all as in effect at the time. 

 
 

 “Senior
Securities” shall have the meaning set forth in Article 4(a). 

 
 

 “Share
Delivery Date” shall have the meaning set forth in Article 6(b)(ii). 

 
 

 “Stated
Value” means $50.00 per share of Class B Preferred Stock. 

 
 

 “Subsidiary”
or “Subsidiaries” of any Person
means (i) any corporation with respect to which more than 50% of the issued and outstanding voting equity interests of such corporation
is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries
or by one or more of such Person’s other Subsidiaries, or (ii) any partnership or limited liability company in which such
Person and/or one or more Subsidiaries of such Person shall have an interest (whether in the form of voting or participation in
profits or capital contribution) of more than 50% or of which any such Person is a general partner or may exercise the powers
of a general partner. 

 
 

 “Trading
Day” means any day on which the principal United States securities exchange or trading market where the Common
Stock is then listed or traded, is open for trading. 

 
 

 Section
3. Dividends. 

 
 

 (a)      
    From after the Effective 
Date, the Holders shall be entitled to receive, on a quarterly basis with payments to occur no later than 75 days in arrears from
each reporting period (each, a “Dividend Payment Date”), subject to a year-end reconciliation, out of funds
legally available therefor, dividends on each share of Class B Preferred Stock at a rate per annum equal to the greater of (A)
five percent (5%) of GAAP net income of the MTIX operating business calculated for a particular calendar year, and (B) a $2.50
per share of Class B Preferred Stock (in either case, the “Dividend Percentage”).  All dividends provided
for in clause (i) above shall be cumulative, whether or not earned or declared, accruing on an annual basis from the Effective
Date. 

 
 

 In the event
that the Corporation shall not have funds legally available for, or is otherwise prohibited by the NRS, or any other applicable
law, from paying any amounts under this Section 3(a), the obligation to pay such amounts shall be carried forward and fulfilled
when such funds are legally available and the Corporation is permitted to do so under the NRS or any other applicable law. 

 
 

 (b)          All
dividends paid with respect to shares of the Class B Preferred Stock pursuant to Section 3(a) shall be paid pro rata to the Holders
entitled thereto. 

 
 

 (c)    
      (i)       
   No full dividends shall be declared by the Board of Directors or paid or set apart for payment by the Corporation
on any Parity Securities for any period unless full cumulative dividends have been or contemporaneously are declared and paid
in full, or declared and a sum in cash set apart sufficient for such payment, on the Class B Preferred Stock for all periods terminating
on or prior to the date of payment of such full dividends on such Parity Securities.  If any dividends are not so paid in
full, all partial dividends declared upon shares of the Class B Preferred Stock and any Parity Securities shall be declared pro
rata so that the amount of dividends declared per share on the Class B Preferred Stock and such Parity Securities shall in all
cases bear to each other the same ratio that accrued dividends per share on the Class B Preferred Stock and such Parity Securities
bear to each other. 

 
 

 (ii)      
    So long as any share of the
Class B Preferred Stock is outstanding, the Corporation shall not declare, pay or set apart for payment any dividend on any of
the Junior Securities, or make any payment on account of, or set apart for payment money for a sinking or other similar fund for,
the purchase, redemption or other retirement of, any of the Junior Securities or any warrants, rights, calls or options exercisable
for or convertible into any of the Junior Securities, whether in cash, obligations or shares of the Corporation or other property,
and shall not permit any corporation or other entity directly or indirectly controlled by the Corporation to purchase or redeem
any of the Junior Securities or any such warrants, rights, calls or options (other than in exchange for Junior Securities) unless
full cumulative dividends determined in accordance herewith on the Class B Preferred Stock have been paid in full for all periods
ended prior to the date of such. 

 
 

 (iii)          
So long as any share of the Class B Preferred Stock
is outstanding, the Corporation shall not (except with respect to dividends as permitted by Section 3(c)(i)) make any payment
on account of, or set apart for payment money for a sinking or other similar fund for, the purchase, redemption or other retirement
of, any of the Parity Securities or any warrants, rights, calls or options exercisable for or convertible into any of the Parity
Securities, whether in cash, obligations or shares of the Corporation or other property, and shall not permit any corporation
or other entity directly or indirectly controlled by the Corporation to purchase or redeem any of the Parity Securities or any
such warrants, rights, calls or options. 

      

  
- 3 -

   

 (d)          Dividends
payable on the Class B Preferred Stock for any period less than a year shall be computed on the basis of a 360-day year of twelve
30-day months and, for periods not involving a full calendar month, the actual number of days elapsed (not to exceed 30 days). 

 
 

 (e)          Dividends
payable on the Class B Preferred Stock shall be payable in cash or in Common Stock at the discretion of the Corporation. In the
event that the Corporation elects to pay the dividends in Common Stock, it shall issue that number of shares of Common Stock determined
by dividing the amount of the dividend by the average price per share for the ten (10) trading days immediately preceding the
determination date as reported by Bloomberg, L.P. 

 
 

 Section
4.             Rank. 

 
 

 (a)          Rank.
All shares of Class B Preferred Stock shall rank (i) senior to (A) all classes of Common Stock, and (B) any other class or series
of capital stock of the Corporation hereafter created that specifically subordinates such class or series to the Class B Preferred
Stock (collectively with the Common Stock, “Junior Securities”), and (ii) pari passu with
any class or series of capital stock of the Corporation hereafter created specifically ranking, by its terms, on parity with the
Class B Preferred Stock (the “Parity Securities”).  Without the prior written consent of the Majority
Holders, the Corporation shall not create or issue any class or series of capital stock specifically ranking, by its terms, senior
to the Class B Preferred Stock (collectively, the “Senior Securities”), as to distribution of assets upon liquidation,
dissolution or winding up of the Corporation, whether voluntary or involuntary. 

 
 

 (b)          Upon
the occurrence of a foreclosure of the Intellectual Property by a party or parties other than the Secured Parties (as such terms
are defined in the contemporaneous Security Agreement by and among the Corporation, Pravin Mistry, Paul Johnson and Daniel Johnson)
that leads directly to the voluntary or involuntary dissolution or winding up of the Corporation (a “Liquidation”),
then out of the assets of the Corporation available for distribution to its shareholders whether from capital, surplus or earnings,
the Holders of Class B Preferred Stock shall be entitled to receive, prior and in preference to any distribution to the Holders
of the Common Stock or any other class of the Corporation’s capital stock, whether now existing or hereafter created, for
each share of Class B Preferred Stock held by such Holders, an amount equal to the Stated Value.  If upon any Liquidation,
the assets of the Corporation available for distribution to its stockholders are insufficient to pay all Holders of Class B Preferred
Stock the full preference amount to which they shall be entitled, the Holders of Class B Preferred Stock shall share pro rata
in any distribution of assets in accordance with their applicable full preference amounts.  No other liquidation preference
shall be payable with respect to the Class B Preferred Stock. 

 
 

 Section
5.             Voting
Rights.  

 
 

 (a)          Voting
Generally. Until the shares of Class B Preferred Stock shall become convertible, the Holders of the Class B Preferred Stock
have no voting power whatsoever, except as otherwise provided by the NRS or in this Section 5.  After the shares of Class
B Preferred Stock shall have become convertible, the Holders of the Class B Preferred Stock shall vote with the holders of Common
Stock on an “as converted” basis. 

 
 

 (b)          Election
of Directors. In the election of directors to the Corporation, for so long as the Holders own in the aggregate at least 100,000
shares of Class B Preferred Stock, the Holders, voting as a separate class, shall be entitled to elect by majority vote (with
each share of Class B Preferred Stock entitled to one vote) two (2) individuals to the Board (each such individual, a “Class
B Director”). A Class B Director may be removed at any time as a director on the Board (with or without cause) upon,
and only upon, the written request of the holders of the outstanding shares of Class B Preferred Stock (voting as a separate class
by a 2/3 majority vote with each share of Class B Preferred Stock entitled to one vote). In the event that a vacancy is created
on the Board at any time due to the death, disability, retirement, resignation or removal of a Class B Director, then the Holders
(voting as a separate class by majority vote with each share of Class B Preferred stock entitled to one vote) shall have the right
to designate an individual to fill such vacancy. In the event that the Holders shall fail to designate in writing a representative
to fill the vacant Class B Director seat on the Board, and such Board seat shall remain vacant until such time as the Holders
elect an individual to fill such seat in accordance with this Section 5(b), and during any period where such seat remains vacant,
the Board nonetheless shall be deemed duly constituted. 

 
 

 Section
6.             Conversion
of Class B Preferred Stock. 

 
 

 (a)          Optional
Conversion; Conversion Price. The Stated Value of each share of Class B Preferred Stock shall, commencing two (2) years from
the Effective Date be convertible into such number of fully paid and non-assessable shares of Common Stock determined as follows:
(i) if the aggregate market capital (the “Market Cap”) is $35,000,000 or less, at a 25% discount to the Market
Price (as hereinafter defined), or (ii) if the Market Cap is greater than $35,000,000, at a 25% discount to the Market Price,
provided that such discount shall be increased by dividing it by the quotient that shall be obtained by dividing $35,0000,000
by the Market Cap at the time of conversion (in either case, the “Conversion Price”) provided, however, that
any such adjustment to the discount to the market price shall not exceed a discount of 75% and further provided, further, that
in no event shall the Holder be entitled to convert any number of shares of Class B Preferred Stock in excess of that number of
shares of Class B Preferred Stock 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 shares of Class B Preferred Stock or the unexercised or unconverted portion of any other security
of the Corporation 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 shares of Class B Preferred Stock 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 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 Corporation, 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). 

      

  
- 4 -

   

 The Conversion
Price shall be subject to adjustment
as provided in Section 6(d) below. 

 
 

 For
purposes hereof, the term “Market Price”
shall mean the average trading price of the Common Stock as quoted by Bloomberg L.P. for the ten (10) trading days immediately
preceding the Conversion Date (subject to adjustment as provided in Section 6(d) below). 

 
 

 The
Class B Preferred Stock may be converted in whole or in part. 

 
 

 (b)          Mechanics
of Conversion. 

 
 

 (i)      
    Before any Holder
of  Class B Preferred
Stock shall be entitled to convert the same into shares of Common Stock pursuant to Section 6(a) hereof, such Holder shall give
written notice to the Corporation at its principal corporate office of the election to convert shares of Class B Preferred
Stock, the number of shares of Class B Preferred Stock to be converted, the number of
shares of Class B Preferred Stock owned subsequent to the conversion at issue, and the name or names
in which the certificate or certificates for shares of Common Stock are to be issued (each, a “Notice of Conversion”).
No ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or
notarization) of any Notice of Conversion form be required. The calculations and entries set forth in the Notice of
Conversion shall control in the absence of manifest or mathematical error. To effect conversions of shares of Class B Preferred
Stock, a Holder shall not be required to surrender the certificate(s) representing the shares of Class B Preferred Stock to the
Corporation unless all of the shares of Class B Preferred Stock represented thereby are so converted, in which case such Holder
shall deliver the certificate representing such shares of Class B Preferred Stock promptly following the Conversion Date at issue. 

 
 

 (ii)          Shares
of Class B Preferred Stock converted into Common Stock or redeemed in accordance with the terms hereof shall be canceled and shall
not be reissued. The Corporation shall, as soon as practicable after delivery of the Notice of Conversion, and as soon as practicable
after delivery of the certificate(s) evidencing the Class B Preferred Stock, and in any event within three (3) Business Days thereafter
(the “Share Delivery Date”), issue and deliver or cause to be delivered to such Holder or Holders of Class
B Preferred Stock, or to the nominee or nominees thereof, a certificate or certificates representing the number of validly issued,
fully paid and non-assessable shares of Common Stock to which such Holder or Holders shall be entitled as aforesaid.  Conversion
under this Section 6 shall be deemed to have been made immediately prior to the close of business on the date of delivery of the
Notice of Conversion, unless a later date is specified in the Notice of Conversion, and the Person or Persons entitled to receive
the shares of Common Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of
such shares of Common Stock as of such date (such date, the “Conversion Date”). If, in the case of any conversion
of the Class B Preferred Stock pursuant to Section 6, such shares of Common Stock are not delivered to or as directed by the applicable
Holder by the Share Delivery Date, the Holder shall be entitled to elect by written notice to the Corporation at any time on or
before its receipt of such shares of Common Stock, to rescind such conversion, in which event the Corporation shall promptly return
to the Holder any original Class B Preferred Stock certificate delivered to the Corporation and the Holder shall promptly return
 to the Corporation the shares of Common
Stock issued to such Holder pursuant to the rescinded conversion. 

 
 

 (iii)          The
Holder of Class B Preferred Stock will be given prior written notice of any Change of Control Event such that a Notice of Conversion
can be delivered prior to any such Change of Control Event. 

 
 

 		 (c) 	 Fractional
Shares; Computation Certificates. 

 
 

 (i)    
      No
fractional shares shall be issued upon conversion of the  Class
B Preferred Stock into shares of Common Stock and the number of shares of Common Stock to be issued
shall be rounded to the nearest whole share for any shares in excess of one-half (1/2). 

 
 

 (ii)          Upon
the occurrence of each adjustment of the Conversion Price of  Class
B Preferred Stock pursuant to this Section 6, the Corporation, at its expense, shall promptly compute
such adjustment in accordance with the terms hereof and prepare and furnish to each Holder of Class B Preferred
Stock no less than ten (10) calendar days prior to such adjustment a statement setting forth such adjustment and showing in reasonable
detail the facts upon which such adjustment is based.  The Corporation shall, upon the written request at any time of any
Holder of Class B Preferred Stock, furnish or cause to be furnished to such Holder a like certificate
setting forth (A) such adjustment, (B) the Conversion Price for such Class B Preferred Stock
at the time in effect, and (C) the number of shares of Common Stock and the amount, if any, of other property which at
the time would be received upon the conversion of a share of such Class B Preferred Stock. 

      

  
- 5 -

   

 (d)          Adjustments
of the Conversion Price.  The Conversion Price of the Class B Preferred Stock shall be subject to adjustment from time
to time as follows: 

 
 

 (i)          Adjustments
for Recapitalization.  If at any time or from time to time there shall be a recapitalization of the Common Stock (other
than a subdivision, combination or merger or sale of assets transaction provided for elsewhere in this Section 6), provision shall
be made so that the Holders of the Class B Preferred Stock shall thereafter be entitled to receive upon conversion of the Class
B Preferred Stock the number of shares of stock or other securities or property of the Corporation or otherwise, to which a holder
of Common Stock deliverable upon conversion would have been entitled on such recapitalization. In any such case, appropriate adjustment
shall be made in the application of the provisions of this Section 6 with respect to the rights of the Holders of the Class B
Preferred Stock after the recapitalization to the end that the provisions of this Section 6 (including, without limitation, provisions
for adjustments of the Conversion Price and the number of shares of Common Stock issuable upon conversion of the Class B Preferred
Stock) shall be applicable after that event as nearly equivalent as may be practicable. 

 
 

 (ii)          Adjustment
for Stock Splits and Combinations.  If the Corporation shall at any time or from time to time after the Effective Date
effect a subdivision of the outstanding Common Stock, the Class B Conversion Price in effect immediately before that subdivision
shall be proportionately decreased so that the number of shares of Common Stock issuable on conversion of each share of such series
shall be increased in proportion to such increase in the aggregate number of shares of Common Stock outstanding.  If the
Corporation shall at any time or from time to time after the Effective Date combine the outstanding shares of Common Stock, the
Class B Conversion Price in effect immediately before the combination shall be proportionately increased so that the number of
shares of Common Stock issuable on conversion of each share of such series shall be decreased in proportion to such decrease in
the aggregate number of shares of Common Stock outstanding.  Any adjustment under this subsection shall become effective
at the close of business on the date the subdivision or combination becomes effective. 

 
 

 (iii)          Adjustment
for Certain Dividends and Distributions.  In the event the Corporation at any time or from time to time after the Effective
Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend
or other distribution payable on the Common Stock in additional shares of Common Stock, then and in each such event the Class
B  Conversion Price in effect immediately before such event shall be decreased as of the time of such issuance or, in the
event such a record date shall have been fixed, as of the close of business on such record date, by multiplying the Conversion
Price then in effect by a fraction: 

 
 

 (1)          the
numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of
such issuance or the close of business on such record date, and 

 
 

 (2)          the
denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time
of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of
such dividend or distribution. 

 
 

 Notwithstanding
the foregoing (a) if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not
fully made on the date fixed therefor, the Conversion Price shall be recomputed accordingly as of the close of business on such
record date and thereafter the Conversion Price shall be adjusted pursuant to this subsection as of the time of actual payment
of such dividends or distributions; and (b) that no such adjustment shall be made if the Holders simultaneously receive a dividend
or other distribution of shares of Common Stock in a number equal to the number of shares of Common Stock as they would
have received if all outstanding shares of Class B Preferred Stock had been converted into Common Stock on the date of such event. 

 
 

 (iv)          Adjustments
for Other Dividends and Distributions.  In the event the Corporation at any time or from time to time after the Effective
Date shall make or issue, or fix a record date for the determination of holders of Common Stock entitled to receive, a dividend
or other distribution payable in securities of the Corporation (other than a distribution of shares of Common Stock in respect
of outstanding shares of Common Stock) or in other property, then and in each such event the Holders shall receive, simultaneously
with the distribution to the holders of Common Stock, a dividend or other distribution of such securities or other
property in an amount equal to the amount of such securities or other property as they would have received if all outstanding
shares of Class B Preferred Stock had been converted into Common Stock on the date of such event. 

      

  
- 6 -

   

 (v)           Adjustment
for Reorganization or Reclassification.  If any capital reorganization or reclassification of the capital stock of the
Corporation or a Change of Control Event, shall be effected while any shares of Class B Preferred Stock are outstanding in such
a manner that holders of shares of Common Stock shall be entitled to receive stock, securities or assets with respect to or in
exchange for Common Stock, then, as a condition of such reorganization, reclassification, or Change of Control Event, lawful and
adequate provision shall be made whereby each Holder who has not received the amounts to be distributed to such holder in accordance
with this Certificate of Designation shall thereafter have the right to receive, upon the basis and upon the terms and conditions
specified herein, and in lieu of the shares of Common Stock immediately theretofore receivable upon conversion of Class B Preferred
Stock, such shares of stock, securities or assets as may be issued or payable with respect to or in exchange for a number of outstanding
shares of such Common Stock equal to the number of shares of such Common Stock immediately theretofore so receivable had such
reorganization, reclassification or Change of Control Event not taken place, and in such case appropriate provision shall be made
with respect to the rights and interests of the Holders of Class B Preferred Stock to the end that the provisions hereof (including,
without limitation, provisions for adjustments of the Conversion Price, and the number of shares of Common Stock issuable upon
conversion of the Class B Preferred Stock) shall thereafter be applicable, as nearly as may be possible, in relation to any shares
of stock, securities or assets thereafter deliverable upon the conversion of such shares of Class B Preferred Stock. Prior to
or simultaneously with the consummation of any such reorganization, reclassification or Change of Control Event, the survivor
or successor corporation (if other than the Corporation) resulting from such reorganization, reclassification or Change of Control
Event shall assume by written instrument executed and mailed or delivered to each Holder of Class B Preferred Stock, the obligation
to deliver to such Holders of Class B Preferred Stock such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such Holder of Class B Preferred Stock may be entitled to receive, and containing the express assumption by such successor
corporation of the due and punctual performance and observance of every provision of this Certificate of Designations to be performed
and observed by the Corporation and of all liabilities and obligations of the Corporation hereunder with respect to the Class
B Preferred Stock. 

 
 

 (e)          Certificate
as to Adjustments.  Upon the occurrence of each adjustment or readjustment of the Class B  Conversion Price pursuant
to this Section 6, the Corporation at its expense shall, as promptly as reasonably practicable but in any event not later than
five (5) days thereafter, compute such adjustment or readjustment in accordance with the terms hereof and furnish to each holder
of Class B Preferred Stock a certificate setting forth such adjustment or readjustment (including the kind and amount of securities,
cash or other property into which the Class B Preferred Stock is convertible) and showing in detail the facts upon which such
adjustment or readjustment is based.  The Corporation shall, as promptly as reasonably practicable after the written request
at any time of any holder of Class B Preferred Stock (but in any event not later than five (5) days thereafter), furnish or cause
to be furnished to such holder a certificate setting forth (i) the Conversion Price then in effect, and (ii) the number of shares
of Common Stock and the amount, if any, of other securities, cash or property which then would be received upon the conversion
of Class B Preferred Stock. 

 
 

 (f)          Notice
of Record Taking.  In the event of any taking by the Corporation 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) or other
distribution, any right to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other securities
or property, or to receive any other right, the Corporation shall mail to each Holder of Class B Preferred Stock, at least ten
(10) days prior to the date specified therein, a notice specifying the date on which any such record is to be taken for the purpose
of such dividend, distribution or right, and the amount and character of such dividend, distribution or right. 

 
 

 (g)          Status
of Shares.  All shares of Common Stock that may be issued in connection with the conversion provisions set forth herein
will, upon issuance by the Corporation, be validly issued, fully paid and non-assessable and free from all taxes, liens or charges
with respect thereto. 

 
 

 (h)          Notice. 
Any notice required by the provisions of this Section 6 to be given to the Holders of shares of Class B Preferred Stock shall
be deemed given upon hand delivery, one (1) Business Day after the notice is sent by overnight courier or three (3) Business Days
after the notice is deposited in the United States mail, postage prepaid, and addressed to each holder of record at his address
appearing on the stock books of the Corporation.  The
Corporation shall provide each Holder of Class B Preferred Stock with prompt written notice
of all actions taken pursuant to the terms of this Certificate of Designations, including in reasonable detail a description of
such action and the reason therefor. Without limiting the generality of the foregoing, the Corporation shall give written notice
to each Holder (i) ten (10) calendar days prior to any adjustment of the Conversion Price, setting forth in reasonable detail,
and certifying, the calculation of such adjustment and (ii) at least ten (10) days prior to the date on which the Corporation
closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with respect to
any grant, issuances, or sales of any Common Stock, Common Stock Equivalents, assets or other property to all holders of shares
of Common Stock as a class or (C) for determining rights to vote with respect to any matter on which the holders of Common Stock
shall have the right to vote. 

 
 

 (i)          Cancellation
of Class B Preferred Stock. In the event any shares of Class B Preferred Stock shall be converted pursuant to Section 6 hereof
or otherwise reacquired by the Corporation, the shares so converted or reacquired shall be canceled and may not be reissued. The
Articles of Incorporation of the Corporation may be appropriately amended from time to time to effect the corresponding reduction
in the Corporation’s authorized capital stock. 

 
 

 (j)          Conversion
Disputes.  In the case of any dispute with respect to a conversion, the Corporation shall promptly issue such number
of shares of Common Stock in accordance with subparagraph (b) above as are not disputed.  If such dispute involves the calculation
of the Conversion Price, and such dispute is not promptly resolved by discussion between the relevant Holder and the Corporation,
the Corporation shall submit the disputed calculations to an independent outside accountant within ten (10) Business Days of receipt
of notice of such dispute. The accountant, at the Corporation’s sole expense, shall promptly audit the calculations and
notify the Corporation and the Holder of the results no later than ten (10) Business Days from the date it receives the disputed
calculations.  The accountant’s calculation shall be deemed conclusive, absent manifest error.  The Corporation
shall then issue the appropriate number of shares of Common Stock in accordance with subparagraph (a) above.  If the accountant
determines the Corporation’s calculations are correct, the Holder shall reimburse the Corporation for the accountant’s
expense. 

      

  
- 7 -

   

 (k)          Floor
Price.  Notwithstanding the provisions of this Section 6, no adjustment made in accordance with  this
Section 6 shall cause the Conversion Price of the Class B Preferred Stock to be less than $0.50 (the “Floor Price”). 

 
 

 Section 7.          Negative
Covenants.  For so long as the Holders of Class B Preferred Stock shall continue to hold at least twenty five percent
(25%) of the shares of Class B Preferred Stock issued on the date any such shares were first issued to the Holder (the “Issuance
Date”), without  (a) the affirmative consent or approval of the Majority Holders of the shares of Class B Preferred
Stock then outstanding, or (b) the written consent of the Class B Directors, the Corporation shall not, whether directly or indirectly,
by amendment, merger, consolidation or otherwise, and shall not permit any Subsidiary to: 

 
 

 (a)          in
any manner alter or change the designations, powers, preferences or rights, or the qualifications, limitations or restrictions
of the Class B Preferred Stock; 

 
 

 (b)          in
any manner alter or change the designations, powers, preferences or rights, qualifications or limitations or restrictions of any
other shares of capital stock of the Corporation in any manner materially adversely affecting the Class B Preferred Stock; 

 
 

 (c)          issue
any additional shares of Class B Preferred Stock issued on the Issuance Date; 

 
 

 (d)          set
aside assets for a sinking or other similar fund for the purchase, redemption, or retirement of, or redeem, purchase, retire,
or otherwise acquire any shares of the Common Stock or of any other capital stock of the Corporation, whether now or hereafter
outstanding, except for the repurchase from employees of the Corporation, pursuant to the provisions of the Corporation’s
2016 Stock Incentive Plan, upon such employees’ termination of employment with the Corporation, of shares of Common Stock
issued pursuant to stock option exercises by or underlying stock option grants to such employees pursuant to the terms of stock
option agreements between the Corporation and such employees; 

 
 

 (e)          take
any action to amend, modify, alter or repeal any provision of its Charter Documents which would have an adverse effect on the
Class B Preferred Stock taken as a whole; 

 
 

 (f)          reclassify
the shares of Common Stock or any other shares or any class or series of capital stock hereafter created junior to the Class B
Preferred Stock into shares of any class or series of capital stock (A) ranking, either as to payment of dividends, distribution
of assets or redemptions, senior to or pari passu with the Class B Preferred Stock, or (B) which in any manner adversely affects
the Holders of Class B Preferred Stock; 

 
 

 (g)          create,
or authorize the creation of, or issue or obligate itself to issue shares of, any additional class or series of capital stock
unless the same ranks junior to the Series B Preferred Stock with respect to the distribution of assets on the liquidation,
dissolution or winding up of the Corporation, the payment of dividends and rights of redemption, or increase the authorized number
of shares of Series B Preferred Stock or increase the authorized number of shares of any additional class or series of capital
stock unless the same ranks junior to the Series B Preferred Stock with respect to the distribution of assets on the liquidation,
dissolution or winding up of the Corporation, the payment of dividends and rights of redemption; or 

 
 

 (h)          Enter
into an agreement to do any of the things described in clauses (a) through (g) of this Section 7. 

 
 

 Section 8.        
   Restriction and Limitations. 
Except as expressly provided herein or as required by law so long as any shares of Class B Preferred Stock remain outstanding,
the Corporation shall not, without the vote or written consent of the holders of at least a majority of the then outstanding shares
of the Class B Preferred Stock, take any action which would adversely and materially affect any of the preferences, limitations
or relative rights of the Class B Preferred Stock. 

 
 

 Section 9.       
    Waiver.  Any right
or privilege of the Class B Preferred Stock may be waived (either generally or in a particular instance and either retroactively
or prospectively) by and only by the written consent of the Corporation and the Majority Holders
and any such waiver shall be binding upon each holder of Class B Preferred Stock or other securities exercisable for or convertible
into Class B Preferred Stock. No failure or delay on the part of a 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 privilege. 

 
 

 Section 10.      
    Lost or Stolen Certificates. 
Upon receipt by the Corporation of evidence reasonably satisfactory to the Corporation of the loss, theft, destruction or mutilation
of any certificates representing Class B Preferred Stock (as to which a written certification and the indemnification contemplated
below shall suffice as such evidence), and, in the case of loss, theft or destruction, of an indemnification undertaking by the
applicable Holder to the Corporation in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation
of the certificate(s), the Corporation shall execute and deliver new certificate(s) of like tenor and date. 

      

  
- 8 -

   

 Section 11.           Transfer
of Class B Preferred Stock. A Holder may transfer some or all of its shares of Class B Preferred Stock without the consent
of the Corporation. 

 
 

 Section 12.       
   Register.  The Corporation
shall maintain at its principal executive offices (or such other office or agency of the Corporation as it may designate by notice
to the Holders), a register for the shares of Class B Preferred Stock, in which the Corporation shall record the name, address
and facsimile number of the Persons in whose name the shares of Class B Preferred Stock have been issued, as well as the name
and address of each transferee. The Corporation may treat the Person in whose name any shares of Class B Preferred Stock is registered
on the register as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary, but in all events
recognizing any properly made transfers. 

 
 

 Section 13.           Amendment.
This Certificate of Designations or any provision hereof may be amended by obtaining the affirmative vote at a meeting duly called
for such purpose, or by written consent without a meeting in accordance with the NRS, of the Majority Holders, voting separately
as a single class, and with such other shareholder approval, if any, as may then be required pursuant to the NRS and the Corporation’s
Articles of Incorporation and Bylaws. 

 
 

 Section 14.          Severability. 
If any provision of this Certificate of Designations is invalid, illegal or unenforceable, the balance of this Certificate of
Designations 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. 

 
 

 Section 15.          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. 

 
 

 Section 16.          Headings. 
The headings contained herein are for convenience only, do not constitute a part of this Certificate of Designations and shall
not be deemed to limit or affect any of the provisions hereof. 

 
 

 [Signature
Page Follows] 

      

  
- 9 -

   

 IN
WITNESS WHEREOF, the undersigned has executed this Certificate of Designations as of this [          ],
2017. 

     

 	   	 AVALANCHE INTERNATIONAL
CORPORATION 

	   	   
	   	   
	   

	 By: 

	 ___________________________ 

	   

	   

	 Name: 

	 Philip Mansour 

	   

	   

	 Title:   

	 Chief Executive
Officer 

	   

      

  
- 10 -

   

 FORM OF CONVERSION
NOTICE 

 
 

 To:          AVALANCHE
INTERNATIONAL CORPORATION 

 
 

 
 

 The undersigned
owner of this Class B Convertible Preferred Stock (the “Class
B Preferred Stock”) issued by Avalanche International Corporation (the “Corporation”)
hereby irrevocably exercises its option to convert __________ shares of the Class B Preferred Stock into shares of the common
stock, $0.001 par value (“Common Stock”),
of the Corporation in accordance with the terms of the Corporation’s Class B Convertible Certificate of Designations (the
“Certificate of Designations”). 
The undersigned hereby instructs the Corporation to convert the number of shares of the Class B Preferred Stock specified above
into shares of Common Stock issued at conversion in accordance with the provisions of Article 6 of the Certificate of Designations. 
The undersigned directs that the Common Stock issuable and certificates therefor deliverable upon conversion and the recertificated
Class B Preferred Stock, if any, not being surrendered for conversion hereby, be issued in the name of and delivered to the undersigned
unless a different name has been indicated below.  All capitalized terms used and not defined herein have the respective
meanings assigned thereto in the Certificate of Designations.  So long as the Class B Preferred Stock shall have been surrendered
for conversion hereby, the conversion pursuant hereto shall be deemed to have been effected at the date and time specified below,
and at such time the rights of the undersigned as a Holder of the Class B Preferred Stock shall cease and the Person or Persons
in whose name or names the Common Stock issued at conversion shall be issuable shall be deemed to have become the holder or holders
of record of the shares of Common Stock represented thereby and all voting and other rights associated with the beneficial ownership
of such shares of Common Stock shall at such time vest with such Person or Persons. 

 
 

 Date and time: _____________________________ 

 
 

 
 

 __________________________________________ 

 Signature 

 
 

 Please print name and address
(including zip code number): 

 
 

 __________________________________________ 

 
 

 __________________________________________ 

 
 

 __________________________________________

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