Document:

Exhibit 4.3

 

 

NEITHER THIS
NOTE NOR THE SECURITIES THAT MAY BE ISSUED BY THE COMPANY UPON CONVERSION HEREOF (COLLECTIVELY, THE “SECURITIES”)
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION. NEITHER THE SECURITIES NOR ANY INTEREST OR PARTICIPATION THEREIN MAY BE OFFERED FOR SALE, SOLD,
TRANSFERRED OR ASSIGNED: (i) IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT, OR
APPLICABLE STATE SECURITIES LAWS; OR (ii) IN THE ABSENCE OF AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE ISSUER,
THAT REGISTRATION IS NOT REQUIRED UNDER THE 1933 ACT OR; (iii) UNLESS SOLD, TRANSFERRED OR ASSIGNED PURSUANT TO RULE 144
UNDER THE 1933 ACT.

 

12% CONVERTIBLE
PROMISSORY NOTE

 

Maturity
Date of May 8, 2020 *The “Maturity Date”

 

$61,000
May 8, 2019 *the “Issuance Date”

 

Principal
Amount: $61,000

Purchase
Price: $58,000

 

FOR VALUE RECEIVED,
NanoFlex Power Corporation, a Florida Corporation (the “Company’) doing business in Florida, hereby promises
to pay to the order of JSJ Investments Inc an accredited investor and Texas Corporation, or its assigns (the “Holder”),
the principal amount of Sixty-One Thousand Dollars ($61,000) (“Note”), on demand of the Holder at any time
on or after May 8, 2020 (the “Maturity Date”), and to pay interest on the unpaid principal balance hereof at
the rate of Twelve Percent (12%) per annum (the “Interest Rate”) commencing on the date hereof (the “Issuance
Date”).

 

The Principal Amount is Sixty-One
Thousand Dollars ($61,000) and the consideration paid by the Holder is Fifty-Eight Thousand Dollars ($58,000) (the “Consideration”);
there exists an due-diligence fee of $3,000 (the “DDF”)).

 

		1.	Payments of Principal and Interest.

 

		a.	Pre-Payment and Payment of Principal and Interest. The Company may pay this Note in
                                                                                                                      full, together with any and all accrued and unpaid interest, plus any applicable pre-payment premium set forth herein and
                                                                                                                      subject to the terms of this Section 1.a, at any time on or prior to the date which occurs 180 days after the Issuance Date
                                                                                                                      hereof (the “Prepayment Date”). In the event the Note is not prepaid in full on or before the Prepayment Date, it
                                                                                                                      shall be deemed a “Pre-Payment Default” hereunder. Until the Ninetieth (90th) day after the Issuance Date the
                                                                                                                      Company may pay the principal at a cash redemption premium of 135%, in addition to outstanding interest, without the
                                                                                                                      Holder’s consent; from the 91st day to the One Hundred and Twentieth (120th) day after the Issuance Date, the
                                                                                                                      Company may pay the principal at a cash redemption premium of 140%, in addition to outstanding interest, without the
                                                                                                                      Holder’s consent; from the 121st day to the Prepayment Date, the Company may pay the principal at a cash redemption
                                                                                                                      premium of 145%, in addition to outstanding interest, without the Holder’s consent. After the Prepayment Date up to the
                                                                                                                      Maturity Date this Note shall have a cash redemption premium of 150% of the then outstanding principal amount of the Note,
                                                                                                                      plus accrued interest and Default Interest, if any, which may only be paid by the Company upon Holder’s prior written
                                                                                                                      consent. At any time on or after the Maturity Date, the Company may repay the then outstanding principal plus accrued
                                                                                                                      interest and Default Interest (defined below), if any, to the Holder.

 

		b.	Demand of Repayment. The principal and interest
balance of this Note shall be paid to the Holder hereof on demand by the Holder at any time on or after the Maturity Date. The
Default Amount (defined herein), if applicable, shall be paid to Holder hereof on demand by the Holder at any time such Default
Amount becomes due and payable to Holder.

 

		c.	Interest.
                                         This Note shall bear interest (“Interest”)
                                         at the rate of Twelve Percent (12%) per annum from the Issuance Date until the
                                         same is paid, or otherwise converted in accordance with Section 2 below, in full and
                                         the Holder, at the Holder’s sole discretion, may include any accrued but unpaid
                                         Interest in the Conversion Amount, Interest shall commence accruing an the Issuance Date,
                                         shall be computed on the basis of a 365-day year and the actual number of days elapsed
                                         and shall accrue daily and, after the Maturity Date, compound quarterly. Upon an Event
                                         of Default, as defined in Section 10 below, the Interest Rate shall increase to Eighteen
                                         Percent (18%) per annum for so long as the Event of Default is continuing (“Default
                                         Interest”).

 

		d.	General Payment Provisions. This Note shall
be paid in lawful money of the United States of America by check or wire transfer to such account as the Holder may from time
to time designate by written notice to the Company in accordance with the provisions of this Note. Whenever any amount expressed
to be due by the terms of this Note is due on any day which is not a Business Day (as defined below), the same shall instead be
due on the next succeeding day which is a Business Day and, in the case of any interest payment date which is not the date on
which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes of determining
the amount of interest due on such date. For purposes of this Note, “Business Day” shall mean any day other
than a Saturday, Sunday or a day on which commercial banks in the State of Texas are authorized or required by law or executive
order to remain closed.

 

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		2.	Conversion of Note. At any time after the Pre-Payment
Date, the Conversion Amount (see Paragraph 2(a)(i)) of this Note shall be convertible into shares of the Company’s common
stock (the “Common Stock”)according to the terms and conditions set forth in this Paragraph 2.

 

		a.	Certain Defined Terms. For purposes of this
Note, the following terms shall have the following meanings:

 

		i.	“Conversion Amount” means the sum
of (a) the principal amount of this Note to be converted with respect to which this determination is being made, (b) Interest;
and (c) Default Interest, if any, if so included at the Holder’s sole discretion.

 

		ii.	“Conversion
                                         Price” means: i) $0.25 per share until the Pre-Payment Date, or ii) upon the
                                         occurrence of a Pre-payment Default or an Event of Default, a 42% discount to the lowest
                                         trading price during the previous twenty (20) trading days to the date of a Conversion
                                         Notice.

 

		iii.	“Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government
or any department or agency thereof.

 

		iv.	“Shares” means the Shares of the
Common Stock of the Company into which any balance on this Note may be converted upon submission of a “Conversion Notice”
to the Company substantially in the form attached hereto as Exhibit 1.

 

		b.	Holder’s Conversion Rights. At any time
after the Pre-Payment Date, the Holder shall be entitled to convert all of the outstanding and unpaid principal and accrued interest
of this Note into fully paid and non-assessable shares of Common Stock in accordance with the stated Conversion Price. The Holder
shall not be entitled to convert on a Conversion Date that amount of the Note in connection with that number of shares of Common
Stock which would be in excess of the sum of the number of shares of Common Stock issuable upon the conversion of the Note with
respect to which the determination of this provision is being made on a Conversion Date, which would result in beneficial ownership
by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock of the Company on such Conversion
Date. For the purposes of the provision to the immediately preceding sentence, beneficial ownership shall be determined in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder. Subject to the foregoing,
the Holder shall not be limited to aggregate conversions of 4.99% (“Conversion Limitation 1”). The Holder shall have
the authority to determine whether the restriction contained in this Section 2(b) will limit any conversion hereunder,
and accordingly, the Holder may waive the conversion limitation described in this Section 2(b), in whole or in part, upon
and effective after 61 days prior written notice to the Company to increase or decrease such percentage to any other amount as
determined by Holder in its sole discretion (“Conversion Limitation 2”).

 

		c.	Fractional Shares. The Company shall not issue
any fraction of a share of Common Stock upon any conversion; if such issuance would result in the issuance of a fraction of a
share of Common Stock, the Company shall round such fraction of a share of Common Stock up to the nearest whole share except in
the event that rounding up would violate the conversion limitation set forth in section 2(b) above,

 

		d.	Conversion Amount. The Conversion Amount shall
be converted pursuant to Rule 144(b)(1)(ii) and Rule 144(d)(1)(ii) as promulgated by the Securities and Exchange Commission under
the Securities Act of 1933, as amended, into unrestricted shares at the Conversion Price.

 

		e.	Mechanics of Conversion. The conversion of this
Note shall be conducted in the following manner:

 

		i.	Holder’s Conversion Requirements. To
convert this Note into shares of Common Stock on any date set forth in the Conversion Notice by the Holder (the “Conversion
Date”), the Holder shall transmit by email, facsimile or otherwise deliver, for receipt on or prior to 11:59 p.m., Eastern
Time, on such date or on the next business day, a copy of a fully executed notice of conversion in the form attached hereto as
Exhibit 1 to the Company.

 

		ii.	Company’s Response. Upon receipt by the
Company of a copy of a Conversion Notice, the Company shall as soon as practicable, but in no event later than one (1) Business
Day after receipt of such Conversion Notice, send, via email, facsimile or overnight courier, a confirmation of receipt of such
Conversion Notice to such Holder indicating that the Company will process such Conversion Notice in accordance with the terms
herein. Within two (2) Business Days after the date the Conversion Notice is delivered, the Company shall have issued and electronically
transferred the shares to the Broker indicated in the Conversion Notice; should the Company be unable to transfer the shares electronically,
it shall, within two (2) Business Days after the date the Conversion Notice was delivered, have surrendered to an overnight courier
for delivery the next day to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder,
for the number of shares of Common Stock to which the Holder shall be entitled.

 

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		iii.	Record
                                         Holder. The person or persons entitled to receive the shares of Common Stock issuable
                                         upon a conversion of this Note shall be treated for all purposes as the record holder
                                         or holders of such shares of Common Stock on the Conversion Date.

 

		iv.	Timely Response
                                         by Company. Upon receipt by Company of a Conversion Notice, Company shall respond
                                         within one business day to Holder confirming the details of the Conversion, and provide
                                         within two business days the Shares requested in the Conversion Notice.

 

		v.	Liquidated
                                         Damages for Delinquent Response. If the Company fails to deliver for whatever reason
                                         (including any neglect or failure by, e.g., the Company, its counsel or the transfer
                                         agent) to Holder the Shares as requested in a Conversion Notice within three (3) business
                                         days of the Conversion Date, the Company shall be deemed in “Default of Conversion.”
                                         Beginning on the fourth (4th) business day after the date of the Conversion
                                         Notice, after the Company is deemed in Default of Conversion, there shall accrue liquidated
                                         damages (the “Conversion Damages”) of $2,000 per day for each day
                                         after the third business day until delivery of the Shares is made, and such penalty will
                                         be added to the Note being converted (under the Company’s and Holder’s expectation
                                         and understanding that any penalty amounts will tack back to the Issuance Date of the
                                         Note). The Parties agree that, at the time of drafting of this Note, the Holder’s
                                         damages as to the delinquent response are incapable or difficult to estimate and that
                                         the liquidated damages called for is a reasonable forecast of just compensation.

 

		vi.	Liquidated
                                         Damages for Inability to Issue Shares. If the Company fails to deliver Shares requested
                                         by a Conversion Notice due to an exhaustion of authorized and issuable common stock such
                                         that the Company must increase the number of shares of authorized Common Stock before
                                         the Shares requested may be issued to the Holder, the discount set forth in the Conversion
                                         Price will be increased by 5 percentage points (i.e. from 42% to 47%) for the Conversion
                                         Notice in question and all future Conversion Notices until the outstanding principal
                                         and interest of the Note is converted or paid in full. These liquidated damages shall
                                         not render the penalties prescribed by Paragraph 2(e)(v) void, and shall be applied in
                                         conjunction with Paragraph 2(e)(v) unless otherwise agreed to in writing by the Holder.
                                         The Parties agree that, at the time of drafting of this Note, the Holder’s damages
                                         as to the inability to issue shares are incapable or difficult to estimate and that the
                                         liquidated damages called for is a reasonable forecast of just compensation.

 

		vii.	Rescindment
                                         of Conversion Notice. If: (i) the Company fails to respond to Holder within one business
                                         day from the date of delivery of a Conversion Notice confirming the details of the Conversion,
                                         (ii) the Company fails to provide the Shares requested in the Conversion Notice within
                                         three business days from the date of the delivery of the Conversion Notice, (iii) the
                                         Holder is unable to procure a legal opinion required to have the Shares issued unrestricted
                                         and/or deposited to sell for any reason related to the Company’s standing with
                                         the SEC or FINRA, or any action or inaction by the Company, (iv) the Holder is unable
                                         to deposit the Shares requested in the Conversion Notice for any reason related to the
                                         Company’s standing with the SEC or FINRA, or any action or inaction by the Company,
                                         (v) if the Holder is informed that the Company does not have the authorized and issuable
                                         Shares available to satisfy the Conversion, or (vi) if OTC Markets changes the Company’s
                                         designation to ‘Limited Information’ (Yield), ‘No Information’
                                         (Stop Sign), ‘Caveat Emptor’ (Skull and Crossbones), or ‘OTC, ‘Other
                                         OTC’ or ‘Grey Market’ (Exclamation Mark Sign) on the day of or any
                                         day after the date of the Conversion Notice, the Holder maintains the option and sole
                                         discretion to rescind the Conversion Notice (“Rescindment”) by delivering
                                         a notice of rescindment to the Company in the same manner that a Conversion Notice is
                                         required to be delivered to the Company pursuant to the terms of this Note.

 

		viii.	Transfer
                                         Agent Fees and Legal Fees. The issuance of the certificates shall be without charge
                                         or expense to the Holder. The Company shall pay any and all Transfer Agent fees, legal
                                         fees, and advisory fees required for execution of this Note and processing of any Notice
                                         of Conversion, including but not limited to the cost of obtaining a legal opinion with
                                         regard to the Conversion. The Holder will deduct $2,000 from the principal payment of
                                         the Note solely to cover the cost of obtaining any and all legal opinions required to
                                         obtain the Shares requested in any given Conversion Notice. These fees do not make provision
                                         for or suffice to defray any legal fees incurred in collection or enforcement of the
                                         Note as described in Paragraph 13. All expenses incurred by Holder, for the issuance
                                         and clearing of the Common Stock into which this Note is convertible into, shall immediately
                                         and automatically be added to the balance of the Note at such time as the expenses are
                                         incurred by Holder.

 

		ix.	Conversion
                                         Right Unconditional. If the Holder shall provide a Notice of Conversion as provided
                                         herein, the Company’s obligations to deliver Common Stock shall be absolute and
                                         unconditional, irrespective of any claim of setoff, counterclaim, recoupment, or alleged
                                         breach by the Holder of any obligation to the Company.

 

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		3.	Other Rights of Holder: Reorganization, Reclassification,
Consolidation, Merger or Sale. Any recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially
all of the Company’s assets to another Person or other transaction which is effected in such a way that holders of Common
Stock are entitled to receive (either directly or upon subsequent liquidation) stock, securities, cash or other assets with respect
to or in exchange for Common Stock is referred to herein as “Organic Change.” Prior to the consummation of
any (i) Organic Change or (ii) other Organic Change following which the Company is not a surviving entity, the Company will secure
from the Person purchasing such assets or the successor resulting from such Organic Change (in each case, the “Acquiring
Entity”)a written agreement (in form and substance reasonably satisfactory to the Holder) to deliver to Holder in exchange
for this Note, a security of the Acquiring Entity evidenced by a written instrument substantially similar in form and substance
to this Note, and reasonably satisfactory to the Holder. Prior to the consummation of any other Organic Change, the Company shall
make appropriate provision (in form and substance reasonably satisfactory to the Holder) to ensure that the Holder will thereafter
have the right to acquire and receive in lieu of or in addition to (as the case may be) the shares of Common Stock immediately
theretofore acquirable and receivable upon the conversion of the Note, such shares of stock, securities, cash or other assets
that would have been issued or payable in such Organic Change with respect to or in exchange for the number of shares of Common
Stock which would have been acquirable and receivable upon the conversion of the Note as of the date of such Organic Change (without
taking into account any limitations or restrictions on the convertibility of the Note set forth in Section 2(b) or otherwise).
All provisions of this Note must be included to the satisfaction of Holder in any new Note created pursuant to this section.

 

		a.	Adjustment Due to Distribution. If the Company
shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend,
stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Company’s shareholders
in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”),
then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders
entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to
the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the
record date for the determination of shareholders entitled to such Distribution.

 

		4.	Representations and Warranties of the Company.
In connection with the transactions provided for herein, the Company hereby represents and warrants to the Holder the following;

 

		a.	Organization, Good Standing and Qualification. The
Company is a corporation duly organized, validly existing and in good standing under the laws of the state of its incorporation
and has all requisite corporate power and authority to carry on its business as now conducted. The Company is duly qualified to
transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse
effect on its business or properties.

 

		b.	Authorization. All corporate action has been
taken on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery
of this Agreement. The Company has taken all corporate action required to make all of the obligations of the Company reflected
in the provisions of this Agreement, valid and enforceable obligations. The shares of capital stock issuable upon conversion of
the Note have been authorized or will be authorized prior to the issuance of such shares,

 

		c.	Fiduciary Obligations. The Company hereby represents
that it intends to use the proceeds of the Note primarily for the operations of its business and not for any personal, family,
or household purpose. The Company hereby represents that its board of directors, in the exercise of its fiduciary duty, has approved
the execution of this Agreement based upon a reasonable belief that the proceeds of the Note provided for herein is appropriate
for the Company after reasonable inquiry concerning its financial objectives and financial situation,

 

		5.	Covenants of the Company.

 

		a.	So long as the Company shall have any obligations under
this Note, the Company shall not without the Holder’s prior written consent pay, declare or set apart for such payment any
dividend or other distribution (Whether in cash, property, or other securities) on shares of capital stock solely in the form
of additional shares of Common Stock

 

		b.	So long as the Company shall have any obligations under
this Note. the Company shall not without the Holder’s prior written consent redeem, repurchase, or otherwise acquire (whether
for cash or in exchange for property or other securities) in any one transaction or series of transactions any shares of capital
stock of the Company or any warrants, rights, or options to acquire any such shares.

 

		c.	So long as the Company shall have any obligations under
this Note, the Company shall not without the Holder’s prior written consent sell, lease, or otherwise dispose of a significant
portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may be conditioned
upon a specified use of the proceeds thereof.

 

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		6.	Reservation of Shares. The Company shall at
all times, so long as any principal amount of the Note is outstanding, reserve and keep available out of its authorized and unissued
shares of Common Stock, solely for the purpose of effecting the conversion of the Note, eight times the number of shares of Common
Stock as shall at all times be sufficient to effect the conversion of all of the principal amount, plus Interest and Default Interest,
if any, of the Note then outstanding (“Share Reserve”), unless the Holder stipulates otherwise in the “Irrevocable
Letter of Instructions to the Transfer Agent.” The calculation to determine the amount of reserve shares necessary to
be maintained shall be based on a 42% discount to the lowest trading price during the previous twenty (20) trading days to the
date in which a “Share Reserve Increase Letter” is submitted to the Company. For the avoidance of doubt, there shall
be no consideration given to the 0.25 share price when calculating the share reserve requirement. So long as this Note is outstanding,
upon written request of the Holder or via telephonic communication, the Company’s Transfer Agent shall furnish to the Holder
the then-current number of common shares issued and outstanding, the then-current number of common shares authorized, the then-current
number of unrestricted shares, and the then-current number of shares reserved for third parties,

 

		7.	Voting Rights. The Holder of this Note shall
have no voting rights as a note holder, except as required by law, however, upon the conversion of any portion of this Note into
Common Stock, Holder shall have the same voting rights as all other Common Stock holders with respect to such shares of Common
Stock then owned by Holder.

 

		8.	Reissuance of Note. In the event of a conversion
or redemption pursuant to this Note of less than all of the Conversion Amount represented by this Note, the Company shall promptly
cause to be issued and delivered to the Holder, upon tender by the Holder of the Note converted or redeemed, a new note of like
tenor representing the remaining principal amount of this Note which has not been so converted or redeemed and which is in substantially
the same form as this Note, as set forth above.

 

		9.	Default and Remedies

 

		a.	Event of Default.
                                         For purposes of this Note, an “Event of Default” shall occur upon;

 

		i.	the Company’s default in the payment of the
outstanding principal, Interest or Default nterest of this Note when due, whether at Maturity, acceleration or otherwise;

		ii.	the occurrence of a Default of Conversion as set forth
in Section 2(e)(v);

		iii.	the failure by the Company for ten (10) days after
notice to it to comply with any material provision of this Note not included in this Section 10(a);

		iv.	the Company’s breach of any covenants, warranties,
or representations made by the Company herein;

		v.	any of the information in the DRF is false or misleading
in any material respect;

		vi.	the default by the Company in any Other Agreement
entered into by and between the Company and Holder, for purposes hereof “Other Agreement” shall mean, collectively,
all agreements and instruments between, among or by: (1) the Company, and, or for the benefit of, (2) the Holder and any affiliate
of the Holder, including without limitation, promissory notes;

		vii.	the cessation of operations of the Company or a material
subsidiary;

		viii.	the Company pursuant to or within the meaning of any
Bankruptcy Law; (a) commences a voluntary case; (b) consents to the entry of an order for relief against it in an involuntary
case; (c) consents to the appointment of a Custodian of it or for all or substantially all of its property; (d) makes a general
assignment for the benefit of its creditors; or (e) admits in writing that it is generally unable to pay its debts as the same
become due;

		ix.	court of competent jurisdiction entering an order
or decree under any Bankruptcy Law that: (a) is for relief against the Company in an involuntary case; (b) appoints a Custodian
of the Company or for all or substantially all of its property; or (c) orders the liquidation of the Company or any subsidiary,
and the order or decree remains unstayed and in effect for thirty (30) days;

		x.	the Company files a Form 15 with the SEC;

		xi.	the Company’s failure to timely file all reports
required to be filed by it with the Securities and Exchange Commission;

		xii.	the Company’s failure to timely file all reports
required to be filed by it with OTC Markets to remain a ‘Current Information” designated company;

		xiii.	the Company sells securities after the Issuance Date that do not have a fixed conversion price;

                                                                                

	 	xiv. 	the Company’s Common Stock is reported as “No Inside’ by OTC Markets at any time while any principal, Interest or Default Interest under the Note remains outstanding;

		xv.	the Company’s failure to maintain the required
Share Reserve pursuant to the terms of the Irrevocable Letter of Instructions to the Transfer Agent;

		xvi.	the Company
                                         directs its transfer agent not to transfer, or delays, impairs, or hinders its transfer
                                         agent in transferring or issuing (electronically or in certificated form) any certificate
                                         for Shares of Common Stock to be issued to the Holder upon conversion of or otherwise
                                         pursuant to this Note as and when required by this Note, or fails to remove (or directs
                                         its transfer agent not to remove or impairs, delays and/or hinders its transfer agent
                                         from removing) any restrictive legend (or to withdraw and stop transfer instructions)
                                         on any certificate for any Shares of Common Stock issued to the Holder upon conversion
                                         of or otherwise pursuant to this Note as and when required by this Note (or makes any
                                         written announcement, statement or threat that it does not intend to honor its obligations
                                         pursuant to a Conversion Notice submitted by the Holder) and any such failure shall continue
                                         uncured for three (3) Business Days after the Conversion Notice has been delivered to
                                         the Company by Holder;

 

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		xvii.	the Company’s failure to remain current in its
billing obligations with its transfer agent and such delinquency causes the transfer agent to refuse to issue Shares to Holder
pursuant to a Conversion Notice;

		xviii.	the Company effectuates a reverse split of its Common
Stock and fails to provide twenty (20) days prior written notice to Holder of its intention to do so; or
		xix.	OTC Markets changes the Company’s designation
to ‘No Information’ (Stop Sign), ‘Caveat Emptor’ (Skull and Crossbones), or ‘OTC’, ‘Other
OTC’ or ‘Grey Market’ (Exclamation Mark Sign).

		xx.	“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 Securities Exchange Act of 1934) of effective control (whether through
legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of 40% of the voting securities
of the Company, (b) the Company merges into or consolidates with any other Person, as that term is defined in the Securities Act
of 1933, as amended, or any Person merges into or consolidates with the Company and, after giving effect to such transaction,
the stockholders of the Company immediately prior to such transaction own less than 60% of the aggregate voting power of the Company
or the successor entity of such transaction, (c) the Company sells or transfers all or substantially all of its assets to another
Person and the stockholders of the Company immediately prior to such transaction own less than 60% 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 Issuance 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 Company of an agreement to which the Company is a party or by which it
is bound.

		xxi.	Altering the conversion terms of any notes that are
currently outstanding.

 

The Term “Bankruptcy
Law” means Title 11, U.S. Code, or any similar Federal or State Law for the relief of debtors. The term “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

		b.	Remedies. If an Event of Default occurs, the
Holder may in its sole discretion determine to request immediate repayment of all or any portion of the Note that remains outstanding;
at such time the Company will be required to pay the Holder the Default Amount (defined herein) in cash. For purposes hereof,
the “Default Amount’ shall mean: the product of (A) the then outstanding principal amount of the Note, plus
accrued Interest and Default Interest, divided by (B) the Conversion Price as determined on the Issuance Date, multiplied by (C)
the highest price at which the Common Stock traded at any time between the Issuance Date and the date of the Event of Default.
If the Company fails to pay the Default Amount within five (5) Business Days of written notice that such amount is due and payable,
then Holder shall have the right at any time, so long as the Company remains in default (and so long and to the extent there are
a sufficient number of authorized but unissued shares), to require the Company, upon written notice, to immediately issue,
in lieu of the Default Amount, the number of shares of Common Stock of the Company equal to the Default Amount divided by the
Conversion Price then in effect.

 

		10.	Vote to Change the Terms of this Note. This Note and any provision hereof may only be
                                                                                   amended by an instrument in writing signed by the Company and the Holder.

 

		11.	Lost or Stolen Note. Upon receipt by the Company
of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of loss,
theft or destruction, of an indemnification undertaking by the Holder to the Company in a form reasonably acceptable to the Company
and, in the case of mutilation, upon surrender and cancellation of the Note, the Company shall execute and deliver a new Note
of like tenor and date and in substantially the same form as this Note; provided, however, the Company shall not be obligated
to re-issue a Note if the Holder contemporaneously requests the Company to convert such remaining principal amount, plus accrued
Interest and Default Interest, if any, into Common Stock.

 

		12.	Payment of Collection, Enforcement and Other Costs.
If: (i) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through
any legal proceeding; or (ii) an attorney is retained to represent the Holder of this Note in any bankruptcy, reorganization,
receivership or other proceedings affecting creditors’ rights and involving a claim under this Note, then the Company shall
pay to the Holder all reasonable attorneys’ fees, costs and expenses incurred in connection therewith, in addition to all
other amounts due hereunder.

 

		13.	Cancellation. After all principal, accrued Interest and Default Interest, if any, at
                                                                                   any time owed on this Note has been paid in full or otherwise converted in full, this Note shall automatically be deemed
                                                                                   canceled, shall be surrendered to the Company for cancellation and shall not be reissued.

 

		14.	Waiver of Notice. To the extent permitted by
law, the Company hereby waives demand, notice, protest and all other demands and notices in connection with the delivery, acceptance,
performance, default or enforcement of this Note.

 

    6

     

    

 

 

		15.	Governing Law. This Note shall be construed and enforced in accordance with, and all
                                                                                   questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the laws
                                                                                   of the State of Texas, without giving effect to provisions thereof regarding conflict of laws. Each party hereby irrevocably
                                                                                   submits to the non-exclusive jurisdiction of the state and federal courts sitting in Texas for the adjudication of any
                                                                                   dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, 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 any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the
                                                                                   venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process
                                                                                   and consents to process being served in any such suit, action or proceeding by sending, through certified mail or overnight
                                                                                   courier, a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service
                                                                                   shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
                                                                                   in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT
                                                                                   MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
                                                                                   ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

		16.	Remedies, Characterizations, Other Obligations,
Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative and in addition to all other remedies
available under this Note, at law or in equity (including a decree of specific performance and/or other injunctive relief), and
no remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein
shall limit the Holder’s right to pursue actual damages for any failure by the Company to comply with the terms of this
Note. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly
provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation
thereof) shall be the amounts to be received by the Holder thereof and shall not, except as expressly provided herein, be subject
to any other obligation of the Company (or the performance thereof).

 

		17.	Specific Shall Not Limit General; Construction.
No specific provision contained in this Note shall limit or modify any more general provision contained herein. This Note
shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against any person as the drafter
hereof.

 

		18.	Failure or Indulgence Not Waiver. No failure
or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such power, right or privilege preclude further exercise thereof or of any other
right, power or privilege.

 

		19.	Partial Payment. In the event of partial payment
by the Holder, the principal sum due to the Holder shall be prorated based on the consideration actually paid by the Holder such
that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded portion of
this Note, with the exception of any OID contemplated herein.

 

		20.	Entire Agreement. This Agreement constitutes
the full and entire understanding and agreement between the parties with regard to the subjects herein. None of the terms of this
Agreement can be waived or modified, except by an express agreement signed by all Parties hereto.

 

		21.	Additional Representations and Warranties. The
Company expressly acknowledges that the Holder, including but not limited to its officer, directors, employees, agents, and affiliates,
have not made any representation or warranty to it outside the terms of this Agreement. The Company further acknowledges that
there have been no representations or warranties about future financing or subsequent transactions between the parties.

 

		22.	Notices. All notices and other communications given or made to the Company pursuant
                                                                                   hereto shall be in writing (including facsimile or similar electronic transmissions) and shall be deemed effectively given:
                                                                                   (i) upon personal delivery, (ii) when sent by electronic mail or facsimile, as deemed received by the close of business on
                                                                                   the date sent, (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage
                                                                                   prepaid or (iv) one (1) day after deposit with a nationally recognized overnight courer, specifying next day delivery. All
                                                                                   communications shall be sent either by email, or fax, or to the email address or facsimile number set forth on the signature
                                                                                   page hereto, The physical address, email address, and phone number provided on the signature page hereto shall be considered
                                                                                   valid pursuant to the above stipulations; should the Company’s contact information change from that listed on the
                                                                                   signature page, it is incumbent on the Company to inform the Holder.

 

		23.	Severability. If one or more provisions of
this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the
rest of the Agreement shall be enforceable in accordance with its terms.

 

		24.	Usury. If
                                         it shall be found that any interest or other amount deemed interest due hereunder violates
                                         the applicable law governing usury, the applicable rate of interest due hereunder shall
                                         automatically be lowered to equal the maximum rate of interest permitted under applicable
                                         law, The Company covenants (to the extent that it may lawfully do so) that it will not
                                         seek to claim or take advantage of any law that would prohibit or forgive the Company
                                         from paying all or a portion of the principal, Interest or Default Interest on this Note.

 

		25.	Successors and Assigns. This Agreement shall
be binding upon all successors and assigns hereto.

 

— SIGNATURE
PAGE TO FOLLOW —

    7

     

    

  

 

IN WITNESS WHEREOF, the Company
has caused this Note to be signed by its CEO, on and as of the Issuance Date.

 

	COMPANY	 
	 	 
	Signature:	/s/ Dean L. Ledger	 
	 	 	 
	By:	DEAN LEDGER	 
	 	 	 
	Title:	CEO	 
	 	 	 
	Address:	15333 N. PIMA Rd., Suite 305	 
	 	Scottsdale, AZ 85260	 
	 	 	 
	 	 	 
	Email:	DLEDGER@NANOFLEXPOWER.COM	 
	 	 	 
	Phone:	480-585-4200	 
	 	 	 
	Facsimile:	480-718-7802	 

  

	JSJ Investments Inc.	 
	 	 
	Signature:	 
	 	 
	/s/ Sameer Hirji	 
	Sameer Hirji, President	 
	JSJ Investments Inc.	 
	10830 North Central Expressway, Suite 152	 
	Dallas TX 75231	 
	888-503-2599	 

 

    8

     

    

 

 

Exhibit 1

 

Conversion
Notice

 

Reference is made to the 12%
Convertible Note issued by NanoFlex Power Corporation (the “Note”), dated May 8, 2019 in the principal amount of $61,000 with
12% interest. This note currently holds a principal balance of $61,000. The features of conversion stipulate a Conversion Price
equal to i) $0.25 per share until the Pre-Payment Date, or ii) upon the occurrence of a Pre-payment Default or an Event of Default,
a 42% discount to the lowest trading price during the previous twenty (20) trading days to the date of a Conversion Notice.

 

In accordance with
and pursuant to the Note, the undersigned hereby elects to convert $          
of the principal/interest

balance of the Note, indicated
below into shares of Common Stock (the “Common Stock”), of the Company, by tendering the Note specified as of the date
specified below.

 

Date of Conversion: ___________

 

Please confirm the following information:

 

Conversion Amount: $ _____________

 

Conversion Price: $
_____________ ( ____% discount from $  _____________)

 

Number of Common Stock to be
issued:   ____________________________________________________

 

Current Issued/Outstanding: ____________________________________________________________

 

If the Issuer is DWAC eligible, please issue the
Common Stock into which the Note is being converted in the name of the Holder of the Note and transfer the shares electronically
to:

 

[BROKER INFORMATION]

 

	
        Holder Authorization:

         

        JSJ Investments Inc.

        10830 North Central Expressway, Suite 152

 Dallas,
        TX 75231

        888-503-2599

         

        Tax ID: 20-2122354

         

        Sameer Hirji, President

         

        [DATE]
	

*Do not send certificates to this address

 

[CONTINUED ON NEXT PAGE]

 

    9

     

    

 

 

PLEASE BE ADVISED,
pursuant to Section 2(e)(ii) of the Note, “Upon receipt by the Company of a copy of the Conversion Notice, the Company
shall as soon as practicable, but in no event later than one (1) Business Day after receipt of such Conversion Notice, SEND,
VIA EMAIL, FACSIMILE OR OVERNIGHT COURIER, A CONFIRMATION OF RECEIPT OF SUCH CONVERSION NOTICE TO SUCH HOLDER INDICATING THAT
THE COMPANY WILL PROCESS SUCH CONVERSION NOTICE in accordance with the terms herein. Within two (2) Business Days after the
date of the Conversion Confirmation, the Company shall have issued and electronically transferred the shares to the Broker indicated
in the Conversion Notice; should the Company be unable to transfer the shares electronically, they shall, within two (2) Business
Days after the date of the Conversion Confirmation, have surrendered to FedEx for delivery the next day to the address as specified
in the Conversion Notice, a certificate, registered in the name of the Holder, for the number of shares of Common Stock to which
the Holder shall be entitled.”

 

	Signature:	 
	 	 
	/s/ Dean L. Ledger	 
	Dean L. Ledger	 
	CEO	 
	NanoFlex Power Corporation	 

 

 

10Exhibit 4.4

 

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

 

	Principal Amount: US$125,000.00	Issue Date: May 10, 2019
	Purchase Price: US$125,000.00	 

 

CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED,
NANOFLEX POWER CORPORATION, a Florida corporation (hereinafter called the “Borrower”), hereby promises to pay
to the order of AUCTUS FUND, LLC, a Delaware limited liability company, or registered assigns (the “Holder”)
the sum of US$125,000.00 together with any interest as set forth herein, on February 15, 2020 (the “Maturity Date”),
and to pay interest on the unpaid principal balance hereof at the rate of twelve percent (12%) (the “Interest Rate”)
per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon
acceleration or by prepayment or otherwise. This Note may not be prepaid in whole or in part except as otherwise explicitly set
forth herein with the written consent of the Holder which may be withheld for any reason or for no reason. Any amount of principal
or interest on this Note which is not paid when due shall bear interest at the rate of the lesser of (i) twenty-four percent (24%)
per annum and (ii) the maximum amount permitted under law from the due date thereof until the same is paid (the “Default
Interest”). Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis
of a 360-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock,
$0.0001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money
of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower
by written notice made in accordance with the provisions of this Note. Whenever any amount expressed to be due by the terms of
this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding day which is a business
day and, in the case of any interest payment date which is not the date on which this Note is paid in full, the extension of the
due date thereof shall not be taken into account for purposes of determining the amount of interest due on such date. As used
in this Note, the term “business day” shall mean any day other than a Saturday, Sunday or a day on which commercial
banks in the city of New York, New York are authorized or required by law or executive order to remain closed. Each capitalized
term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement
dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”).

 

     

     

    

 

This Note is free from all taxes, liens, claims and encumbrances
with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the
Borrower and will not impose personal liability upon the holder thereof.

 

The following terms shall also apply to this Note:

 

ARTICLE I. CONVERSION RIGHTS

 

1.1 Conversion Right.
The Holder shall have the right from time to time, and at any time following the Issue Date, and ending on the later of (i)
the Maturity Date and (ii) the date of payment of the Default Amount (as defined in Article III) pursuant to Section 1.6(a) or
Article III, each in respect of the remaining outstanding principal amount of this Note to convert all or any part of the outstanding
and unpaid principal amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists
on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter
be changed or reclassified at the Conversion Price (as defined below) determined as provided herein (a “Conversion”);
provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that
portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder
and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted
portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on
conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon
the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result
in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes
of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except
as otherwise provided in clause (1) of such proviso, provided, further, however, that the limitations on conversion may
be waived by the Holder (up to a maximum of 9.99%) upon, at the election of the Holder, not less than 61 days’ prior notice
to the Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such
later date, as determined by the Holder, as may be specified in such notice of waiver). The number of shares of Common Stock to
be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable
Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the
“Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that
the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result
in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”).
The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount
of this Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid interest, if
any, on such principal amount at the interest rates provided in this Note to the Conversion Date, provided however, that the Borrower
shall have the right to pay any or all interest in cash plus (3) at the Holder’s option, Default Interest, if any,
on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any
amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof.

 

    2

     

    

 

1.2 Conversion Price.

 

Calculation of
Conversion Price. Subject to the adjustments described herein, the conversion price (the “Conversion Price”)
shall equal the lesser of: (i) the closing price of the Common Stock on the Trading Day immediately prior to the date of this
Note, and (ii) the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock
dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary
of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The
“Variable Conversion Price” shall mean 60% multiplied by the Market Price (as defined herein) (representing a
discount rate of 40%). “Market Price” means the lowest Trading Price (as defined below) for the Common Stock
during the twenty-five (25) Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. The
Conversion Price shall be subject to a floor of $0.50 per share for the initial 180 calendar days after the Issue Date. If
the Company’s share price at any time loses the bid (ex: 0.0001 on the ask with zero market makers on the bid on level
2), then the Conversion Price may, in the Holder’s sole and absolute discretion on each Notice of Conversion
thereafter, be reduced to a fixed conversion price of $0.00001. “Trading Price” means, for any security as of any
date, the lesser of: (i) the lowest trade price on the OTC Pink, OTCQB or applicable trading market as reported by a reliable
reporting service (“Reporting Service”) designated by the Holder or, if the OTC Pink is not the principal trading
market for such security, the trading price of such security on the principal securities exchange or trading market where
such security is listed or traded or, if no trading price of such security is available in any of the foregoing manners, the
average of the trading prices of any market makers for such security that are listed in the “pink sheets” by the
National Quotation Bureau, Inc., or (ii) the closing bid price on the OTC Pink, OTCQB or applicable trading market as
reported by a Reporting Service designated by the Holder or, if the OTC Pink is not the principal trading market for such
security, the closing bid price of such security on the principal securities exchange or trading market where such
security is listed or traded or, if no closing bid price of such security is available in any of the foregoing manners, the
average of the closing bid prices of any market makers for such security that are listed in the “pink sheets” by
the National Quotation Bureau, Inc. To the extent the Conversion Price of the Borrower’s Common Stock closes below the
par value per share, the Borrower will take all steps necessary to solicit the consent of the stockholders to reduce the par
value to the lowest value possible under law. The Borrower agrees to honor all conversions submitted pending this adjustment.
Furthermore, the Conversion Price may be adjusted downward if, within three (3) business days of the transmittal of the
Notice of Conversion to the Borrower, the Common Stock has a closing bid which is 5% or lower than that set forth in the
Notice of Conversion. If the shares of the Borrower’s Common Stock have not been delivered within three (3) business
days to the Borrower, the Notice of Conversion may be rescinded. At any time after the Closing Date, if in the case that the
Borrower’s Common Stock is not deliverable by DWAC (including if the Borrower’s transfer agent has a policy
prohibiting or limiting delivery of shares of the Borrower’s Common Stock specified in a Notice of Conversion), an
additional 10% discount will apply for all future conversions under all Notes. If in the case that the Borrower’s
Common Stock is “chilled” for deposit into the DTC system and only eligible for clearing deposit, an additional
15% discount shall apply for all future conversions under all Notes while the “chill” is in effect. If in the
case of both of the above, an additional cumulative 25% discount shall apply. Additionally, if the Borrower ceases to be a
reporting company pursuant to the 1934 Act or if the Note cannot be converted into free trading shares after one hundred
eighty-one (181) days from the Issue Date, an additional 15% discount will be attributed to the Conversion Price. If
the Trading Price cannot be calculated for such security on such date in the manner provided above, the Trading Price shall
be the fair market value as mutually determined by the Borrower and the holders of a majority in interest of the Notes being
converted for which the calculation of the Trading Price is required in order to determine the Conversion Price of such
Notes. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC Pink,
OTCQB or on the principal securities exchange or other securities market on which the Common Stock is then being traded. The
Borrower shall be responsible for the fees of its transfer agent and all DTC fees associated with any such issuance. Holder
shall be entitled to deduct $500.00 from the conversion amount in each Notice of Conversion to cover Holder’s deposit
fees associated with each Notice of Conversion.

 

    3

     

    

 

While this Note is
outstanding, each time any 3rd party has the right to convert monies owed to that 3rd party (or receive
shares pursuant to a settlement or otherwise), including but not limited to under Section 3(a)(9) and Section 3(a)(10), at a discount
to market greater than the Conversion Price in effect at that time (prior to all other applicable adjustments in the Note), then
the Hlolder, in Holder’s sole discretion, may utilize such greater discount percentage (prior to all applicable adjustments
in this Note) until this Note is no longer outstanding. While this Note is outstanding, each time any 3rd party has
a look back period greater than the look back period in effect under the Note at that time, including but not limited to under
Section 3(a)(9) and Section 3(a)(10), then the Holder, in Holder’s sole discretion, may utilize such greater number of look
back days until this Note is no longer outstanding. The Borrower shall give written notice to the Holder within one (1) business
day of becoming aware of any event that could permit the Holder to make any adjustment described in the two immediately preceding
sentences.

 

(a) Conversion
Price During Major Announcements. Notwithstanding anything contained in Section 1.2(a) to the contrary, in the event the
Borrower (i) makes a public announcement that it intends to consolidate or merge with any other corporation (other than a
merger in which the Borrower is the surviving or continuing corporation and its capital stock is unchanged) or sell or
transfer all or substantially all of the assets of the Borrower or (ii) any person, group or entity (including the Borrower)
publicly announces a tender offer to purchase 50% or more of the Borrower’s Common Stock (or any other takeover scheme)
(the date of the announcement referred to in clause (i) or (ii) is hereinafter referred to as the “Announcement
Date”), then the Conversion Price shall, effective upon the Announcement Date and continuing through the Adjusted
Conversion Price Termination Date (as defined below), be equal to the lower of (x) the Conversion Price which would have been
applicable for a Conversion occurring on the Announcement Date and (y) the Conversion Price that would otherwise be in
effect. From and after the Adjusted Conversion Price Termination Date, the Conversion Price shall be determined as set forth
in this Section 1.2(a). For purposes hereof, “Adjusted Conversion Price Termination Date” shall mean, with
respect to any proposed transaction or tender offer (or takeover scheme) for which a public announcement as contemplated by
this Section 1.2(b) has been made, the date upon which the Borrower (in the case of clause (i) above) or the person, group or
entity (in the case of clause (ii) above) consummates or publicly announces the termination or abandonment of the proposed
transaction or tender offer (or takeover scheme) which caused this Section 1.2(b) to become operative.

 

    4

     

    

 

(b) Pro
Rata Conversion; Disputes. In the event of a dispute as to the number of shares of Common Stock issuable to the Holder in connection
with a conversion of this Note, the Borrower shall issue to the Holder the number of shares of Common Stock not in dispute and
resolve such dispute in accordance with Section 4.13.

 

(c) If
at any time the Conversion Price as determined hereunder for any conversion would be less than the par value of the Common Stock,
then the Conversion Price hereunder shall equal such par value for such conversion and the Conversion Amount for such conversion
shall be increased to include Additional Principal, where “Additional Principal” means such additional amount to be
added to the Conversion Amount to the extent necessary to cause the number of conversion shares issuable upon such conversion to
equal the same number of conversion shares as would have been issued had the Conversion Price not been subject to the minimum price
set forth in this Section 1.2(c).

 

1.3 Authorized
Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its
authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at
all times to have authorized and reserved ten times the number of shares that is actually issuable upon full conversion of
the Note (based on the Conversion Price of the Notes in effect from time to time) (the “Reserved Amount”). The
Reserved Amount shall be increased from time to time in accordance with the Borrower’s obligations pursuant to Section
3(d) of the Purchase Agreement. The Borrower represents that upon issuance, such shares will be duly and validly issued,
fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital
structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then
current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a
sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the
outstanding Notes. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates
for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute
full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue
the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note.
Notwithstanding the foregoing, in no event shall the Reserved Amount be lower than the initial Reserved Amount, regardless of
any prior conversions.

 

    5

     

    

 

If, at any time the Borrower does not maintain
or replenish the Reserved Amount within three (3) business days of the request of the Holder, the principal amount of the Note
shall increase by Five Thousand and No/100 United States Dollars ($5,000) (under Holder’s and Borrower’s expectation
that any principal amount increase will tack back to the Issue Date) per occurrence.

 

1.4 Method of Conversion.

 

(a)
Mechanics of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at
any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile,
e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 5:00 p.m., New York, New York
time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower.

 

(b) Surrender
of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid
principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount
so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower,
so as not to require physical surrender of this Note upon each such conversion. In the event of any dispute or discrepancy, such
records of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest error. Notwithstanding
the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder first
physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order of the
Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes) may request,
representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by acceptance of
this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this
Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the
face hereof.

 

(c) Payment of
Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved in the issue
and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other than that of
the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other securities
or property unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are
to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Borrower the amount of any such
tax or shall have established to the satisfaction of the Borrower that such tax has been paid.

 

    6

     

    

 

(d) Delivery of Common Stock Upon Conversion. Upon receipt
by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice
of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or
cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion
within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire
unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement.

 

(e) Obligation
of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to
be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued
and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations
under this Article I, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the
right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder
shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates
for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same,
any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce
the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff,
counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower,
and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection
with such conversion. The Conversion Date specified in the Notice of Conversion shall be the Conversion Date so long as the Notice
of Conversion is received by the Borrower before 5:00 p.m., New York, New York time, on such date.

 

(f) Delivery
of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable
upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities
Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions contained in Section 1.1
and in this Section 1.4, the Borrower shall use its commercially reasonable best efforts to cause its transfer agent to electronically
transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC
through its Deposit Withdrawal At Custodian (“DWAC”) system.

 

(g) DTC
Eligibility & Market Loss. If the Borrower fails to maintain its status as “DTC Eligible” for any reason, or,
if the Conversion Price is less than $0.01 at any time after the Issue Date, the principal amount of the Note shall increase by
Fifteen Thousand and No/100 United States Dollars ($15,000) (under Holder’s and Borrower’s expectation that any principal
amount increase will tack back to the Issue Date). In addition, the Variable Conversion Price shall be redefined to mean forty
percent (40%) multiplied by the Market Price, subject to adjustment as provided in this Note.

 

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(h) Failure
to Deliver Common Stock Prior to Delivery Deadline. Without in any way limiting the Holder’s right to pursue other remedies,
including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion
of this Note is not delivered by the Deadline (other than a failure due to the circumstances described in Section 1.3 above, which
failure shall be governed by such Section) the Borrower shall pay to the Holder $2,000 per day in cash, for each day beyond the
Deadline that the Borrower fails to deliver such Common Stock until the Borrower issues and delivers a certificate to the Holder
or credit the Holder’s balance account with OTC for the number of shares of Common Stock to which the Holder is entitled
upon such Holder’s conversion of any Conversion Amount (under Holder’s and Borrower’s expectation that any damages
will tack back to the Issue Date).. Such cash amount shall be paid to Holder by the fifth day of the month following the month
in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following
the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon
in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance
with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting
from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly
the parties acknowledge that the liquidated damages provision contained in this Section 1.4(h) are justified.

 

(i) Rescindment
of a Notice of Conversion. If (i) the Borrower fails to respond to Holder within one (1) business day from the Conversion Date
confirming the details of Notice of Conversion, (ii) the Borrower fails to provide any of the shares of the Borrower’s Common
Stock requested in the Notice of Conversion within three (3) business days from the date of receipt of the Note of Conversion,
(iii) the Holder is unable to procure a legal opinion required to have the shares of the Borrower’s Common Stock issued unrestricted
and/or deposited to sell for any reason related to the Borrower’s standing, (iv) the Holder is unable to deposit the shares
of the Borrower’s Common Stock requested in the Notice of Conversion for any reason related to the Borrower’s standing,
(v) at any time after a missed Deadline, at the Holder’s sole discretion, or (vi) if OTC Markets changes the Borrower’s
designation to ‘Limited Information’ (Yield), ‘No Information’ (Stop Sign), ‘Caveat Emptor’
(Skull & Crossbones), ‘OTC’, ‘Other OTC’ or ‘Grey Market’ (Exclamation Mark Sign) or other trading
restriction on the day of or any day after the Conversion Date, the Holder maintains the option and sole discretion to rescind
the Notice of Conversion (“Rescindment”) with a “Notice of Rescindment.”

 

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1.5 Concerning
the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless
(i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer
agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for
opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or
transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144
under the Act (or a successor rule) (“Rule 144”) or (iv) such shares are transferred to an
“affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in
accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). Except as
otherwise provided in the Purchase Agreement (and subject to the removal provisions set forth below), until such time as the
shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise may be sold
pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be
immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so
included in an effective registration statement or that has not been sold pursuant to an effective registration statement or
an exemption that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

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

 

The legend set forth above shall be removed
and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Borrower or its transfer
agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions,
to the effect that a public sale or transfer of such Common Stock may be made without registration under the Act, which opinion
shall be reasonably accepted by the Borrower so that the sale or transfer is effected or (ii) in the case of the Common Stock issuable
upon conversion of this Note, such security is registered for sale by the Holder under an effective registration statement filed
under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular
date that can then be immediately sold. In the event that the Borrower does not accept the opinion of counsel provided by the Buyer
with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the
Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.

 

1.6 Effect of Certain Events.

 

(a) Effect of
Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all
of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which
more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination
of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall
either: (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required
to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount
(as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean any
individual, corporation, limited liability company, partnership, association, trust or other entity or organization.

 

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(b) Adjustment
Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all
of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar
event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares
of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all
or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower,
then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the
terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion,
such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted
in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such
case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the
provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities
or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section
1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen
(15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record
date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event
or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring
entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions shall similarly
apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

(c) Adjustment
Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets)
to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or
distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary
(i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this
Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets
which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder
been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution.

 

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(d) Purchase Rights. If, at any time when any Notes
are issued and outstanding, the Borrower issues any convertible securities or rights to purchase stock, warrants, securities or
other property (the “Purchase Rights”) pro rata to the record holders of any class of Common Stock, then the Holder
of this Note will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which
such Holder could have acquired if such Holder had held the number of shares of Common Stock acquirable upon complete conversion
of this Note (without regard to any limitations on conversion contained herein) immediately before the date on which a record
is taken for the grant, issuance or sale of such Purchase Rights or, if no such record is taken, the date as of which the record
holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights.

 

(e) Notice
of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described
in this Section 1.6, the Borrower, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish
to the Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment
or readjustment is based. The Borrower shall, upon the written request at any time of the Holder, furnish to such Holder a like
certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number
of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon conversion
of the Note.

 

1.7 [Intentionally Omitted].

 

1.8 Status as Shareholder. Upon
submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other than the shares, if any, which cannot be
issued because their issuance would exceed such Holder’s allocated portion of the Reserved Amount or Maximum Share Amount)
shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights as a Holder of such converted portion
of this Note shall cease and terminate, excepting only the right to receive certificates for such shares of Common Stock and to
any remedies provided herein or otherwise available at law or in equity to such Holder because of a failure by the Borrower to
comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received certificates for all shares of
Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect to a conversion of any portion
of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a holder of Common Stock by so notifying
the Borrower) the Holder shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note
and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder or, if the Note has not been surrendered,
adjust its records to reflect that such portion of this Note has not been converted. In all cases, the Holder shall retain all
of its rights and remedies (including, without limitation, (i) the right to receive Conversion Default Payments pursuant to Section
1.3 to the extent required thereby for such Conversion Default and any subsequent Conversion Default and (ii) the right to have
the Conversion Price with respect to subsequent conversions determined in accordance with Section 1.3) for the Borrower’s
failure to convert this Note.

 

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1.9 Prepayment. Subject to the terms of this Note, and
provided that an Event of Default has not occurred under this Note, the Borrower may prepay the amounts outstanding hereunder
pursuant to the following terms and conditions:

 

(a) At
any time during the period beginning on the Issue Date and ending on the date which is ninety (90) calendar days following the
Issue Date, the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the
Holder of the Note to prepay the outstanding Note (principal and accrued interest), in full by making a payment to the Holder of
an amount in cash equal to 135%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus (x)
accrued and unpaid interest on the unpaid principal amount of this Note plus (y) Default Interest, if any.

 

(b) At
any time during the period beginning the day which is ninety one (91) calendar days following the Issue Date and ending on the
date which is one hundred eighty (180) calendar days following the Issue Date, the Borrower shall have the right, exercisable on
not less than three (3) Trading Days prior written notice to the Holder of the Note to prepay the outstanding Note (principal and
accrued interest), in full by making a payment to the Holder of an amount in cash equal to 150%, multiplied by the sum of: (w)
the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of
this Note plus (y) Default Interest, if any.

 

(c) After
the expiration of one hundred eighty (180) calendar days following the date of the Note, the Borrower shall have no right of prepayment.

 

ARTICLE II. CERTAIN COVENANTS

 

2.1 Distributions on Capital Stock.
So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s written consent
(a) pay, declare or set apart for such payment, any dividend or other distribution (whether in cash, property or other securities)
on shares of capital stock other than dividends on shares of Common Stock solely in the form of additional shares of Common Stock
or (b) directly or indirectly or through any subsidiary make any other payment or distribution in respect of its capital stock
except for distributions pursuant to any shareholders’ rights plan which is approved by a majority of the Borrower’s
disinterested directors.

 

2.2 Restriction on Stock Repurchases.
So long as the Borrower shall have any obligation under this Note, the Borrower shall not without the Holder’s written consent
redeem, repurchase or otherwise acquire (whether for cash or in exchange for property or other securities or otherwise) in any
one transaction or series of related transactions any shares of capital stock of the Borrower or any warrants, rights or options
to purchase or acquire any such shares.

 

2.3 [Intentionally Omitted].

 

2.4 Sale of Assets. So long as
the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s written consent,
sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any
consent to the disposition of any assets shall be conditioned on a specified use of the proceeds towards the repayment of
this Note.

 

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2.5 Advances and Loans. So long
as the Borrower shall have any obligation under this Note, the Borrower shall not, without the Holder’s written consent,
lend money, give credit or make advances to any person, firm, joint venture or corporation, including, without limitation, officers,
directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits or advances (a) in existence or committed
on the date hereof and which the Borrower has informed Holder in writing prior to the date hereof, (b) made in the ordinary course
of business or (c) not in excess of $100,000.

 

2.6 Section 3(a)(9) or 3(a)(10) Transaction.
So long as this Note is outstanding, the Borrower shall not enter into any transaction or arrangement structured in accordance
with, based upon, or related or pursuant to, in whole or in part, either Section 3(a)(9) of the Securities Act (a “3(a)(9)
Transaction”) or Section 3(a)(10) of the Securities Act (a “3(a)(l0) Transaction”). In the event that the Borrower
does enter into, or makes any issuance of Common Stock related to a 3(a)(9) Transaction or a 3(a)(l0) Transaction while this note
is outstanding, a liquidated damages charge of 25% of the outstanding principal balance of this Note, but not less than Fifteen
Thousand Dollars $15,000, will be assessed and will become immediately due and payable to the Holder at its election in the form
of cash payment or addition to the balance of this Note.

 

2.7 Preservation of Existence, etc.
The Borrower shall maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its existence, rights and
privileges, and become or remain, and cause each of its Subsidiaries (other than dormant Subsidiaries that have no or minimum assets)
to become or remain, duly qualified and in good standing in each jurisdiction in which the character of the properties owned or
leased by it or in which the transaction of its business makes such qualification necessary.

 

2.8 Non-circumvention. The Borrower
hereby covenants and agrees that the Borrower will not, by amendment of its Certificate or Articles of Incorporation or Bylaws,
or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Note,
and will at all times in good faith carry out all the provisions of this Note and take all action as may be required to protect
the rights of the Holder.

 

2.9 [Intentionally Omitted]. 

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each, an “Event
of Default”) shall occur:

 

3.1 Failure to Pay Principal or Interest.
The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity, upon acceleration
or otherwise.

 

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3.2 Conversion and the Shares. The
Borrower (i) fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor
its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this
Note, (ii) fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate
for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by
this Note, (iii) directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring
(or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon
conversion of or otherwise pursuant to this Note as and when required by this Note, (iv) fails to remove (or directs its transfer
agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw
any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon
conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement
or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured
(or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3)
business days after the Holder shall have delivered a Notice of Conversion, (v) fails to remain current in its obligations to
its transfer agent, (vi) causes a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower
to its transfer agent, (vii) fails to repay Holder, within forty eight (48) hours of a demand from the Holder, any amount of funds
advanced by Holder to Borrower’s transfer agent in order to process a conversion, (viii) fails to reserve sufficient amount
of shares of common stock to satisfy the Reserved Amount at all times, (ix) fails to provide a Rule 144 opinion letter from the
Borrower’s legal counsel to the Holder, covering the Holder’s resale into the public market of the respective conversion
shares under this Note, within two (2) business days of the Holder’s submission of a Notice of Conversion to the Borrower
(provided that the Holder must request the opinion from the Borrower at the time that Holder submits the respective Notice of
Conversion and the date of the respective Notice of Conversion must be on or after the date which is six (6) months after the
date that the Holder funded the Purchase Price under this Note), and/or (x) an exemption under Rule 144 is unavailable for the
Holder’s deposit into Holder’s brokerage account and resale into the public market of any of the conversion shares
under this Note at any time after the date which is six (6) months after the date that the Holder funded the Purchase Price under
this Note.

 

3.3 Failure to Deliver Transaction Expense
Amount. The Borrower fails to deliver the Transaction Expense Amount (as defined in the Purchase Agreement) to the Holder within
three (3) business days of the date such amount is due.

 

3.4 Breach of Covenants. The Borrower
breaches any material covenant or other material term or condition contained in this Note and any collateral documents including
but not limited to the Purchase Agreement and such breach continues for a period of ten (10) days after written notice thereof
to the Borrower from the Holder.

 

3.5 Breach of
Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement
or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase
Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage
of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase
Agreement.

 

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3.6 Receiver or Trustee. The Borrower
or any subsidiary of the Borrower shall make an assignment for the benefit of creditors or commence proceedings for its dissolution,
or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business,
or such a receiver or trustee shall otherwise be appointed for the Borrower or for a substantial part of its property or business
without its consent and shall not be discharged within sixty (60) days after such appointment.

 

3.7 Judgments. Any money judgment,
writ or similar process shall be entered or filed against the Borrower or any subsidiary of the Borrower or any of its property
or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless
otherwise consented to by the Holder, which consent will not be unreasonably withheld.

 

3.8 Bankruptcy.Bankruptcy, insolvency,
reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or
any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower, or the Borrower
admits in writing its inability to pay its debts generally as they mature, or have filed against it an involuntary petition for
bankruptcy relief, all under federal or state laws as applicable or the Borrower admits in writing its inability to pay its debts
generally as they mature, or have filed against it an involuntary petition for bankruptcy relief, all under international, federal
or state laws as applicable.

 

3.9 Delisting of Common Stock. The
Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC Pink, OTCQB, Nasdaq National Market,
Nasdaq Small Cap Market, New York Stock Exchange, NYSE MKT, or an equivalent replacement exchange

 

3.10 Failure to Comply with the Exchange
Act. The Borrower shall fail to comply with the reporting requirements of the Exchange Act (including but not limited to becoming
delinquent in its filings); and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

 

3.11 Liquidation. Any dissolution,
liquidation, or winding up of Borrower or any substantial portion of its business.

 

3.12 Cessation of Operations. Any
cessation of operations by Borrower or Borrower admits it is otherwise generally unable to pay its debts as such debts become due,
provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be
an admission that the Borrower cannot pay its debts as they become due.

 

3.13 Maintenance
of Assets. The failure by Borrower to maintain any material intellectual property rights, personal, real property or
other assets which are necessary to conduct its business (whether now or in the future), or any disposition or conveyance of
any material asset of the Borrower.

 

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3.14 Financial Statement Restatement.The restatement
of any financial statements filed by the Borrower with the SEC for any date or period from two years prior to the Issue Date of
this Note and until this Note is no longer outstanding, if the result of such restatement would, by comparison to the unrestated
financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note or the Purchase
Agreement.

 

3.15 Reverse Splits. The Borrower
effectuates a reverse split of its Common Stock without twenty (20) days prior written notice to the Holder.

 

3.16 Replacement of Transfer Agent.
In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date
of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the
Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount)
signed by the successor transfer agent to Borrower and the Borrower.

 

3.17 Cessation of Trading. Any cessation
of trading of the Common Stock on at least one of the OTC Pink, OTCQB, Nasdaq National Market, Nasdaq Small Cap Market, New York
Stock Exchange, NYSE MKT, or an equivalent replacement exchange, and such cessation of trading shall continue for a period of five
consecutive (5) Trading Days.

 

3.18 Cross-Default. Notwithstanding
anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower
of any covenant or other term or condition contained in any of the Other Agreements (as defined herein), after the passage of all
applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the
Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the
Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other
Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit
of, (2) the Holder (and any affiliate of the Holder) or any other third party, including, without limitation, promissory notes;
provided, however, the term “Other Agreements” shall not include the agreements and instruments defined as the Documents.
Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt
of Borrower to the Holder.

 

3.19 Bid Price. The Borrower shall
lose the “bid” price for its Common Stock ($0.0001 on the “Ask” with zero market makers on the “Bid”
per Level 2) and/or a market (including the OTC Pink, OTCQB or an equivalent replacement exchange).

 

3.20 OTC Markets Designation. OTC Markets changes the
Borrower’s designation to ‘No Information’ (Stop Sign), ‘Caveat Emptor’ (Skull and Crossbones), or ‘OTC’,
‘Other OTC’ or ‘Grey Market’ (Exclamation Mark Sign).

 

    16

     

    

 

3.21 Inside Information. Any attempt by the Borrower
or its officers, directors, and/or affiliates to transmit, convey, disclose, or any actual transmittal, conveyance, or disclosure
by the Borrower or its officers, directors, and/or affiliates of, material non-public information concerning the Borrower, to
the Holder or its successors and assigns, which is not immediately cured by Borrower’s filing of a Form 8-K pursuant to
Regulation FD on that same date.

 

3.22 Unavailability of Rule 144.
If, at any time on or after the date which is six (6) months after the Issue Date, the Holder is unable to (i) obtain a standard
“144 legal opinion letter” from an attorney reasonably acceptable to the Holder, the Holder’s brokerage firm
(and respective clearing firm), and the Borrower’s transfer agent in order to facilitate the Holder’s conversion of
any portion of the Note into free trading shares of the Borrower’s Common Stock pursuant to Rule 144, and (ii) thereupon
deposit such shares into the Holder’s brokerage account

 

UPON THE OCCURRENCE
OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2 AND/OR 3.22 OF THIS NOTE, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE
AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE
DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence of any Event of Default specified in Sections
3.1, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13, 3.14, 3.15, 3.16. 3.17, 3.18, 3.19, 3.20, and/or 3.21
exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), the
Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its
obligations hereunder, an amount equal to (i) 150% times the sum of (w) the then outstanding principal amount of this
Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the
“Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w)
and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding
principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall
collectively be known as the “Default Sum”) or (ii) at the option of the Holder, the “parity value”
of the Default Sum to be prepaid, where parity value means (a) the highest number of shares of Common Stock issuable upon
conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately
preceding the Mandatory Prepayment Date as the “Conversion Date” for purposes of determining the lowest
applicable Conversion Price, unless the Default Event arises as a result of a breach in respect of a specific Conversion Date
in which case such Conversion Date shall be the Conversion Date), multiplied by (b) the highest Trading Price for the
Common Stock during the period beginning on the date of first occurrence of the Event of Default and ending one day prior to
the Mandatory Prepayment Date (the “Default Amount”) and all other amounts payable hereunder shall immediately
become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with
all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to
exercise all other rights and remedies available at law or in equity. Further, if a breach of Sections 3.9, 3.10 and/or 3.19
occurs or is continuing after the six (6) month anniversary of this Note, then the principal amount of the Note shall
increase by Fifteen Thousand and No/100 United States Dollars ($15,000) (under Holder’s and Borrower’s
expectation that any principal amount increase will tack back to the Issue Date) and the Holder shall be entitled to use the
lowest Trading Price during the delinquency period as a base price for the conversion with the Variable Conversion Price
shall be redefined to mean forty percent (40%) multiplied by the Market Price, subject to adjustment as provided in this
Note. For example, if the lowest Trading Price during the delinquency period is $0.50 per share and the conversion discount
is 50%, then the Holder may elect to convert future conversions at $0.25 per share. If this Note is not paid at Maturity
Date, then the outstanding principal due under this Note shall increase by Fifteen Thousand and No/100 United States Dollars
($15,000).

 

    17

     

    

 

The Holder shall have the right at any
time, to require the Borrower, to immediately issue, in lieu of the Default Amount and/or Default Sum, the number of shares of
Common Stock of the Borrower equal to the Default Amount and/or Default Sum divided by the Conversion Price then in effect, pursuant
to the terms of this Note (including but not limited to any beneficial ownership limitations contained herein). This requirement
by the Borrower shall automatically apply upon the occurrence of an Event of Default without the need for any party to give any
notice or take any other action.

 

If the Holder shall commence an action
or proceeding to enforce any provisions of this Note, including, without limitation, engaging an attorney, then if the Holder prevails
in such action, the Holder shall be reimbursed by the Borrower for its attorneys’ fees and other costs and expenses incurred
in the investigation, preparation and prosecution of such action or proceeding.

 

ARTICLE IV. MISCELLANEOUS

 

4.1 Failure or Indulgence Not Waiver.
No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof
or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of,
any rights or remedies otherwise available.

 

4.2 Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, electronic mail, or facsimile, addressed as set forth below or to such other address as such party
shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by electronic mail or facsimile, with accurate confirmation
generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

 

    18

     

    

 

If to the Borrower, to:

 

Nanoflex Power Corporation

17207 N. Perimeter Dr., Suite 210

Scottsdale, AZ 85255

Attn: Dean Ledger

E-mail:
investorrelations@nanoflexpower.com

 

If to the Holder:

 

Auctus Fund, LLC

545 Boylston Street, 2nd Floor

Boston, MA 02116

Attn: Lou Posner

Facsimile: (617) 532-6420

 

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

 

Chad Friend, Esq., LL.M.

Anthony L.G., PLLC

330 Clematis Street, Suite 217

West Palm Beach, FL 33401

E-mail: CFriend@AnthonyPLLC.com

 

4.3 Amendments. This Note and any
provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note”
and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant
to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

4.4 Assignability. This Note shall
be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors
and assigns. Neither the Borrower nor the Holder shall assign this Note or any rights or obligations hereunder without the prior
written consent of the other. Notwithstanding the foregoing, the Holder may assign its rights hereunder to any “accredited
investor” (as defined in Rule 501(a) of the 1933 Act) in a private transaction from the Holder or to any of its “affiliates”,
as that term is defined under the 1934 Act, without the consent of the Borrower. Notwithstanding anything in this Note to the contrary,
this Note may be pledged as collateral in connection with a bona fide margin account or other lending arrangement. The Holder
and any assignee, by acceptance of this Note, acknowledge and agree that following conversion of a portion of this Note, the unpaid
and unconverted principal amount of this Note represented by this Note may be less than the amount stated on the face hereof.

 

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4.5 Cost of Collection. If default is made in the payment
of this Note, the Borrower shall pay the Holder hereof reasonable costs of collection, including reasonable attorneys’ fees.

 

4.6 Governing Law.
This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles
of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note
shall be brought only in the state courts of Massachusetts or in the federal courts located in the Commonwealth of Massachusetts.
The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and
shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. THE BORROWER
HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY. The prevailing party shall
be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of
this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or
rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law
shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives
personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement
or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by law.

 

4.7 Certain Amounts. Whenever pursuant
to this Note the Borrower is required to pay an amount in excess of the outstanding principal amount (or the portion thereof required
to be paid at that time) plus accrued and unpaid interest plus Default Interest on such interest, the Borrower and the Holder agree
that the actual damages to the Holder from the receipt of cash payment on this Note may be difficult to determine and the amount
to be so paid by the Borrower represents stipulated damages and not a penalty and is intended to compensate the Holder in part
for loss of the opportunity to convert this Note and to earn a return from the sale of shares of Common Stock acquired upon conversion
of this Note at a price in excess of the price paid for such shares pursuant to this Note. The Borrower and the Holder hereby agree
that such amount of stipulated damages is not plainly disproportionate to the possible loss to the Holder from the receipt of a
cash payment without the opportunity to convert this Note into shares of Common Stock.

 

4.8 Purchase Agreement. By its acceptance
of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.

 

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4.9 Notice of Corporate Events. Except as otherwise
provided below, the Holder of this Note shall have no rights as a Holder of Common Stock unless and only to the extent that it
converts this Note into Common Stock. The Borrower shall provide the Holder with prior notification of any meeting of the Borrower’s
shareholders (and copies of proxy materials and other information sent to shareholders). In the event of any taking by the Borrower
of a record of its shareholders for the purpose of determining shareholders who are entitled to receive payment of any dividend
or other distribution, any right to subscribe for, purchase or otherwise acquire (including by way of merger, consolidation, reclassification
or recapitalization) any share of any class or any other securities or property, or to receive any other right, or for the purpose
of determining shareholders who are entitled to vote in connection with any proposed sale, lease or conveyance of all or substantially
all of the assets of the Borrower or any proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail
a notice to the Holder, at least twenty (20) days prior to the record date specified therein (or thirty (30) days prior to the
consummation of the transaction or event, whichever is earlier), of the date on which any such record is to be taken for the purpose
of such dividend, distribution, right or other event, and a brief statement regarding the amount and character of such dividend,
distribution, right or other event to the extent known at such time. The Borrower shall make a public announcement of any event
requiring notification to the Holder hereunder substantially simultaneously with the notification to the Holder in accordance
with the terms of this Section 4.9 including, but not limited to, name changes, recapitalizations, etc. as soon as possible under
law.

 

4.10 Usury. If it shall be found
that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable provision
shall automatically be revised to equal the maximum rate of interest or other amount deemed interest permitted under applicable
law. The Borrower covenants (to the extent that it may lawfully do so) that it will not seek to claim or take advantage of any
law that would prohibit or forgive the Borrower from paying all or a portion of the principal or interest on this Note.

 

4.11 Remedies. The Borrower acknowledges
that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose
of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations
under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions
of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition
to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and
to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or
other security being required. No provision of this Note shall alter or impair the obligation of the Borrower, which is absolute
and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

 

4.12 Severability. In the event
that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall
be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or
rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability
of any other provision hereof.

 

    21

     

    

 

4.13 Dispute Resolution. In the
case of a dispute as to the determination of the Conversion Price, Conversion Amount, any prepayment amount or Default Amount,
Default Sum, Closing or Maturity Date, the closing bid price, or fair market value (as the case may be) or the arithmetic calculation
of the Conversion Price or the applicable prepayment amount(s) (as the case may be), the Borrower or the Holder shall submit the
disputed determinations or arithmetic calculations via facsimile (i) within two (2) Business Days after receipt of the applicable
notice giving rise to such dispute to the Borrower or the Holder 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 Borrower 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 Borrower or the Holder, then the Borrower shall, within two (2) Business Days, submit via facsimile
(a) the disputed determination of the Conversion Price, the closing bid price, the or fair market value (as the case may be) to
an independent, reputable investment bank selected by the Borrower and approved by the Holder or (b) the disputed arithmetic calculation
of the Conversion Price, Conversion Amount, any prepayment amount or Default Amount, Default Sum to an independent, outside accountant
selected by the Holder that is reasonably acceptable to the Borrower. The Borrower shall cause at its expense the investment bank
or the accountant to perform the determinations or calculations and notify the Borrower and the Holder of the results no later
than ten (10) Business Days from the time it receives such disputed determinations or calculations. Such investment bank’s
or accountant’s determination or calculation shall be binding upon all parties absent demonstrable error.

 

4.14 Terms of Future Financings.
So long as this Note is outstanding, upon any issuance by the Borrower or any of its subsidiaries of any security with any term
more favorable to the holder of such security or with a term in favor of the holder of such security that was not similarly provided
to the Holder in this Note, then the Borrower shall notify the Holder of such additional or more favorable term and such term,
at Holder’s option, shall become a part of the transaction documents with the Holder. The types of terms contained in another
security that may be more favorable to the holder of such security include, but are not limited to, terms addressing conversion
discounts, prepayment rate, conversion lookback periods, interest rates, original issue discounts, stock sale price, private placement
price per share, and warrant coverage.

 

4.15 Piggyback Registration
Rights. The Borrower shall include on the next registration statement the Borrower files with SEC (or on the subsequent registration
statement if such registration statement is withdrawn) all shares issuable upon conversion of this Note. Failure to do so will
result in liquidated damages of 25% of the outstanding principal balance of this Note, but not less than Fifteen Thousand and
No/100 United States Dollars ($15,000), being immediately due and payable to the Holder at its election in the form of cash payment
or addition to the balance of this Note.

 

[signature page follows]

 

    22

     

    

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed
in its name by its duly authorized officer as of the date first above written.

 

	 	NANOFLEX
    POWER CORPORATION
	 	 	 
	 	By:	/s/ Dean Ledger
	 	Name: 	Dean Ledger
	 	Title: 	Chief Executive Officer

 

    23

     

    

 

EXHIBIT A

NOTICE OF CONVERSION

 

The undersigned hereby
elects to convert $                            principal
amount of the Note (defined below) together with $                            of
accrued and unpaid interest thereto, totaling $                            
into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as
set forth below, of Nanoflex Power Corporation, a Florida corporation (the “Borrower”), according to the conditions
of the convertible note of the Borrower dated as of May 10, 2019 (the “Note”), as of the date written below. No fee
will be charged to the Holder for any conversion, except for transfer taxes, if any.

 

Box Checked as to applicable instructions:

 

		☐	The Borrower shall electronically transmit the Common
Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit
Withdrawal At Custodian system (“DWAC Transfer”).

 

Name of DTC Prime Broker:

Account Number:

 

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

 

	 	Name: [NAME]	 	 	 
	 	Address: [ADDRESS]	 	 	 
	 	 	 	 	 
	 	Date of Conversion:	 	 	 
	 	Applicable Conversion Price:	$	 	 
	 	Number of Shares of Common Stock to be Issued	 	 	 
	 	Pursuant to Conversion of the Notes:	 	 	 
	 	Amount of Principal Balance Due remaining	 	 	 
	 	Under the Note after this conversion:	 	 	 
	 	Accrued and unpaid interest remaining:	 	 	 

 

	 	[HOLDER]	 	 
	 	 	 	 	 
	 	By:	 	 	 
	 	Name: 	[NAME]	 	 
	 	Title:	[TITLE]	 	 
	 	Date:	[DATE]

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