Document:

AMENDMENT
TO SECURED CONVERTIBLE
PROMISSORY NOTE

 

This
Amendment to Secured
Convertible Promissory Note
(this "Amendment
") is entered into
as of January
22, 2016 (the "Effective Date"),
by and between TYPENEX Co INVESTMENT, LLC, a Utah limited liability company ("Lender"),
and AVALANCHE INTERNATIONAL, CORP., a Nevada
corporation ("Borrower"). Capitalized
terms used in this Amendment without definition shall have
the meanings given to them in the Note
(as defined below).

 

A.                
Borrower previously
issued to Lender
a Secured Convertible
Promissory  Note dated May
29, 2015 in
the original principal
amount of $252,500.00 (the "Note," and together with all other
documents entered into in
conjunction therewith, the "Transaction Documents").

 

		B.	Borrower
                                         has requested
                                         to amend
                                         the Note
                                         as set
                                         forth herein.

 

C.                
Lender has agreed,
subject to the terms,
amendments, conditions and understandings
expressed in this
Amendment, to make
such amendments to the
Note.

 

NOW,
THEREFORE, for good
and valuable consideration,
the receipt and
sufficiency of which is hereby
acknowledged, the parties
agree as follows:

 

1.                 
Recitals. Each
of the parties
hereto acknowledges and
agrees that the
recitals set forth above
in this Amendment
are true and
accurate and are hereby incorporated
into and made a part of this Amendment.

 

2.                 
Limitations  on 
Conversions.  From  and 
after  the  Effective 
Date  of  this
Amendment, and  for 
a period of ninety (90) days 
thereafter  (the  "Conversion
Limitation Period"), Lender agrees that the aggregate Conversion Amount of
all Lender Conversions made by Lender during (a) the first thirty (30)
days of the Conversion Limitation Period, (b) the second thirty
(30) days of the Conversion Limitation
Period, and (c) the third thirty (30) days of
the Conversion Limitation Period (each such thirty (30) day period, a "Conversion
Limitation Month") (and, for the avoidance of doubt, Lender may 
submit any number of  Lender Conversion 
Notices during  any  Conversion
Limitation Month so long as the aggregate Conversion Amount in all such Lender Conversion
Notices submitted during such Conversion
Limitation Month does not
exceed the applicable Maximum Monthly Conversion Amount (as defined hereafter)),
determined based on the date(s)
any Lender Conversion Notices are delivered to Borrower, will
not exceed an amount equal to ten percent (10%) of the Conversion Eligible Outstanding Balance of
the Note as of the date of this Amendment (the "Maximum Monthly
Conversion Amount"); provided, however, that if the aggregate
Conversion Amount for all
Lender Conversion Notices submitted by Lender
in a Conversion Limitation Month is less
than the Maximum Monthly Conversion  Amount for the 
applicable Conversion  Limitation Month, then in the following Conversion Limitation
Month or Conversion Limitation Months the Maximum Monthly Conversion Amount shall increase
by an amount
equal to the difference between
the Maximum Monthly Conversion Amount for the Conversion 
Limitation Month in which Lender's aggregate Conversion Amounts  were less than
the  Maximum  Monthly Conversion Amount
and  the  aggregate of Lender's Conversion
Amounts submitted  for

    	 	 	 

     

    

 

Conversion
during such Conversion
Limitation Month. For
illustration purposes only,
if the Maximum Monthly
Conversion Amount were
$25,000.00 for a given Conversion Limitation
Month and the aggregate of all Conversion Amounts submitted by Lender during such
Conversion Limitation Month were $20,000.00, then the Maximum Monthly Conversion Amount
for the next Conversion Limitation Month would
increase to $30,000.00. Notwithstanding the foregoing, Lender's obligations set forth in this Section 2 shall immediately
and automatically terminate upon the earlier of (x) the conclusion of the Conversion Limitation Period,
(y) the occurrence of an Event of Default under the Note or Borrower's breach
of this Amendment or the Transaction Documents at any time after the Effective Date
of this Amendment, or (z) Borrower's failure to comply with its covenants set forth in Section 4 below.

 

3.                 
Prepayment. Notwithstanding anything
to the contrary in
the Note, Borrower
and Lender acknowledge and
agree that Borrower
may at any time
on or after the Effective
Date for so long as the Note remains
outstanding prepay the
Outstanding Balance of the Note in
accordance with the provisions set forth
in Section 1 of the Note.

 

4.                 
Filing Obligations. Borrower
covenants and agrees
that on or
before January 27, 2016,
it shall have
filed all reports
required to be filed with
the United States Securities and Exchange Commission pursuant to Sections 13
or 15(d) of the Securities Exchange Act of 1934,
as amended, and shall have ensured that
adequate current public information with respect to Borrower, as required
in accordance with Rule 144 of the Securities Act of 1933, as amended, is publicly
available.

 

5.                 
Affirmation  of  Conversion 
Eligible  Outstanding  Balance.
 The  Conversion
Eligible Outstanding Balance
of the Note
as of the
Effective Date of this Amendment is hereby deemed and affirmed to be
equal to $125,000.00. For the avoidance of doubt, the foregoing Conversion Eligible
Outstanding Balance includes application of
the Default Effect with respect to two (2) Major Defaults. Accordingly, Borrower and
Lender further acknowledge and confirm
that Lender may still apply the Default Effect with respect
to one (1) Major Default and three (3) Minor Defaults following the Effective
Date.

 

6.                 
Conditionality  of  Amendment. Borrower
 understands  and 
agrees  that  the
limitation on Lender
Conversions set forth
in Section 2 above and all other
amendments to the Note set forth in
this Amendment are conditioned on and subject to Borrower's compliance with its covenant
set forth in Section 4 above as well
as Borrower's continued compliance with the
terms of the Note and the other Transaction Documents. Borrower further understands
and agrees that such amendment shall immediately
and automatically terminate (and be deemed
to be void ab initio for all purposes) and all of the original terms of the Note
shall be immediately restored as if the Note was
never amended by this Amendment if Borrower fails to file all required reports
on or before January 27, 2016,
as set forth in more detail in Section
4 above, or upon the occurrence of any Event of Default under the Note
or any other Transaction Document after the date hereof.
Notwithstanding the foregoing, the affirmation of the Conversion Eligible
Outstanding Balance set forth in Section 5 above shall survive any termination of this
Amendment.

    	 	2	 

     

    

7.                 
Representations  and 
Warranties.  In order 
to  induce  Lender 
to  enter  into 
this Amendment,  Borrower, 
for  itself,  and 
for  its  affiliates, successors
and  assigns, hereby acknowledges, represents, warrants and
agrees as follows:

 

(a)              
Borrower has full
power and authority
to enter into
this Amendment and to
incur and perform
all obligations and
covenants contained herein, all
of which have been duly authorized by all proper
and necessary action. No consent,
approval, filing or registration with or notice to any governmental
authority is required as a condition to the validity
of this Amendment or the performance of any of the obligations of Borrower
hereunder.

 

(b)              
There is no
fact known to
Borrower or which
should be known
to Borrower which Borrower has not
disclosed to Lender on or
prior to the date of this
Amendment which would or could materially
and adversely affect the understanding of Lender
expressed in this Amendment or any representation, warranty, or recital contained
in this Amendment.

 

(c)               
Except as expressly
set forth in
this Amendment, Borrower
acknowledges and agrees that neither
the execution and
delivery of this Amendment nor
any of the terms, provisions, covenants, or agreements contained in
this Amendment shall in any manner release, impair, lessen,
modify, waive, or otherwise affect the liability and obligations of Borrower
under the terms of the Transaction Documents.

 

(d)              
Borrower has
no defenses, affirmative
or otherwise, rights
of setoff, rights
of recoupment, claims,
counterclaims, actions or
causes of action of any
kind or nature whatsoever against Lender, directly or
indirectly, arising out of, based upon, or in
any manner connected with, the transactions
contemplated hereby, whether known or unknown, which occurred,
existed, was taken, permitted,
or begun prior to the
execution of this
Amendment and occurred, existed, was taken, permitted or begun in accordance
with, pursuant to, or by
virtue of any of the terms or
conditions of the Transaction
Documents. To the extent any such
defenses, affirmative
or otherwise, rights of setoff,
rights of recoupment, claims, counterclaims,
actions or causes of action exist or
existed, such defenses, rights, claims, counterclaims, actions and causes of action
are hereby waived, discharged and released. Borrower hereby
acknowledges and agrees that the
execution of this Amendment
by Lender shall not constitute an acknowledgment of
or admission by Lender of the existence
of any claims or of liability for any matter or
precedent upon which any claim
or liability may be asserted.

 

(e)               
Borrower represents
and warrants that
as of the
date hereof no
Events of Default or
other material breaches
exist under the Transaction Documents or have occurred prior to the date hereof.

 

8.                 
Certain Acknowledgments.
Each of the
parties acknowledges and
agrees that no property
or cash consideration
of any kind
whatsoever has been
or shall be given by Lender
to Borrower in connection with any amendment to the Note granted herein.

 

9.                 
Other Terms
Unchanged. The Note,
as amended by
this Amendment, remains
and continues in full
force and effect,
constitutes legal, valid, and
binding obligations of each of
the parties, and is in all respects
agreed to, ratified, and confirmed.
Any reference to the Note after the date of this Amendment is deemed to be a reference to the Note as amended by this Amendment.
If there is a conflict between the terms of this
Amendment and the Note, the terms of this
Amendment shall control. No forbearance
or waiver may be
implied by this Amendment. Except
as expressly set forth herein, the execution, delivery, and performance of this Amendment shall
not operate as a waiver of, or
as an amendment to, any right, power,
or remedy of Lender under
the Note, as
in effect prior to the date hereof.

 

    	 	3	 

     

    

 

10.             
No Reliance. Borrower
acknowledges and agrees
that neither Lender
nor any of
its officers, directors,
members, managers, equity
holders, representatives or
agents has made any representations
or warranties to Borrower or any of its agents, representatives, officers, directors,
or employees except as expressly set
forth in this Amendment and
the Transaction Documents and, in making
its decision to enter into the transactions contemplated by
this Amendment, Borrower is not relying on any representation, warranty, covenant
or promise of Lender or its officers,
directors, members, managers, equity holders, agents
or representatives other than as set forth in this Amendment.

 

11.              
Counterparts. This Amendment may
be executed in
any number of
counterparts, each of which
shall be deemed an
original, but all
of which together
shall constitute one instrument. The parties hereto confirm that any electronic
copy of another party's executed counterpart of this Amendment (or
such party's signature page thereof) will
be deemed to be an executed original
thereof.

 

12.             
Further Assurances. Each
party shall do
and perform or
cause to be
done and performed, all
such further acts
and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents,
as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Amendment and
the consummation of the transactions contemplated hereby.

 

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    	 	4	 

     

    

 

 

IN
WITNESS WHEREOF, the
undersigned have executed
this Amendment as
of the date set
forth above.

 

		BORROWER:

         

        AVALANCHE
        INTERNATIONAL, CORP.

         

         

        By:
        /s/ Phillip Mansour

        Name:
        Phillip Mansour

        Title:
        CEO

		 

        LENDER:

         

        TYPENEX
        CO-INVESTMENT, LLC

         

        By:
        Red Cliffs Investments, Inc., its Manager

         

        By:
        /s/ John M. Fife

        John
        M. Fife, President

 

 

[Signature
Page to Amendment
to Secured Convertible
Promissory Note]

    	 	5FIRST
AMENDMENT TO 8%
CONVERTIBLE REDEEMABLE NOTE

 

 

For
good and valuable
consideration , AVALANCHE INTERNATIONAL,
CORP., a Nevada
corporation, (the "Company"),
and LG CAPITAL FUNDING, LLC (the "Holder") hereby agree that the 8%
Convertible Redeemable Note issued from the Company to
the Holder and dated November 3, 2014 (the "Note") shall be amended as follows:

 

1.                
Beginning on the
date hereof and
for a period
of ninety (90)
days thereafter, Holder shall,
in any thirty (30)
day period, convert no more than
ten percent (10%) of  the principal amount of
the Note due and owing on the date
hereof to common stock of  the Company .

 

2.                 
At any time
after the expiration
of the ninety
(90) day period
described above, the Company
may repay the
Note in accordance with the terms,
requirements,  and premiums for such
payment, as set forth
in Section 4(c) of the Note, which
are applicable to a repayment made between
91 to 180 days after issuance of the Note.

 

3.                 
In consideration for
the above, the
Company shall issue to the
Holder a 3 year warrant 
to purchase  75,000
share of Common Stock at an exercise
price of $0.30 per share. The warrant  shall
contain cashless exercise provisions and be subject to forward and reverse stock splits. Upon receipt of the warrant by the 
Holder and s1gnature on  this Agreement by the Holder. this Agreement this
Agreement shall take effect.

 

All
other terms of
the Note not
modified by the
terms of this
Amendment shall remain in full
force and effect.

 

IN
WITNESS WHEREOF, this
First Amendment to 8%
Convertible Redeemable Note has
been executed effective
January 20, 2016.

 

"Company":

AVALANCHE
INTERNATIONAL, CORP.

 

 

By:
/s/ Phillip Mansour

Its:
President

Print
Name: Phillip Mansour

 

 

“Holder”:

LG
CAPITAL FUNDING, LLC

 

 

By:
/s/ Joseph Lerman

Its:
Manager

Print
Name: Joseph Lerman

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