Document:

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.

 

10%
CONVERTIBLE PROMISSORY NOTE

 

MATURITY
DATE OF MAY 29, 2020*THE “MATURITY DATE”

 

$57,000
MAY 29, 2019 *THE “ISSUANCE DATE”

 

FOR
VALUE RECEIVED, Foothills Exploration, Inc., a Delaware Corporation (the “Company”) doing business in Los Angeles,
California, 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 Fifty-Seven Thousand Dollars ($57,000) (“Note”), on demand
of the Holder at any time on or after May 29, 2020 (the “Maturity Date”), and to pay interest on the unpaid principal
balance hereof at the rate of Ten Percent (10%) per annum (the “Interest Rate”) commencing on the date hereof (the
“Issuance Date”).

 

	 	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 Sixtieth (60th) day after the Issuance Date the Company may pay the principal at a cash redemption premium of 125%,
    in addition to outstanding interest, without the Holder’s consent; from the 60th 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 135%, 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. The Holder may, by written notice
    to the Company at least five (5) days before the Maturity Date (as may have been previously extended), extend the Maturity
    Date to up to one (1) year following the date of the original Maturity Date hereunder.
	 	 	 
	 	c.	Interest.
    This Note shall bear interest (“Interest”) at the rate of Ten Percent (10%) 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 on
    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 a 45% discount to the lowest trading price during the previous twenty (20)
    trading days to the date of a Conversion Notice; (subject to equitable adjustments for stock splits, stock dividends or rights
    offerings by the Company relating to the Company’s securities or the securities of any subsidiary of the Company, combinations,
    recapitalization, reclassifications, extraordinary distributions and similar events).
	 	 	 
	 	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”). If in the case that the Company’s Common Stock is “chilled” for
    deposit into the DTC system and only eligible for clearing deposit, then an additional 15% discount to the Conversion Price
    shall apply for all future conversions under the Note while the “chill” is in effect. For the avoidance of doubt,
    with reference to section 2(a)ii of this note, when the “chill” is in effect the conversion price will increase
    from a 35% discount to a 50% discount to the lowest trading price during the previous (20) days to the date of a Conversion
    Notice. To the extent the Conversion Price of the Company’s Common Stock closes below the par value per share, the Company
    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 Company agrees to honor all conversions submitted pending this adjustment unless the Holder, in its sole and
    absolute discretion elects instead to set the Conversion Price to par value for such conversion(s) and the conversion amount
    for such conversion(s) 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 Common Stock issuable
    upon such conversion(s) to equal the same number of Common Stock as would have been issued had the Conversion Price not been
    set to par value in the Holder’s sole and absolute discretion.
	 	 	 
	 	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.

 

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	 	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.
	 	 	 
	 	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 45% to 50%) 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 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.	Issuance
    of Common Stock Equivalents. If the Company, at any time after the Issuance Date, shall issue any securities convertible into
    or exchangeable for, directly or indirectly, Common Stock (“Convertible Securities”), other than the Note, or
    any rights or warrants or options to purchase any such Common Stock or Convertible Securities, shall be issued or sold (collectively,
    the “Common Stock Equivalents”) and the aggregate of the price per share for which additional Shares of Common
    Stock may be issuable thereafter pursuant to such Common Stock Equivalent, plus the consideration received by the Company
    for issuance of such Common Stock Equivalent divided by the number of shares of Common Stock issuable pursuant to such Common
    Stock Equivalent (the “Aggregate Per Common Share Price”) shall be less than the applicable Conversion Price then
    in effect, or if, after any such issuance of Common Stock Equivalents, the price per share for which additional Shares of
    Common Stock may be issuable thereafter is amended or adjusted, and such price as so amended shall make the Aggregate Per
    Share Common Price be less than the applicable Conversion Price in effect at the time of such amendment or adjustment, then
    the applicable Conversion Price upon each such issuance or amendment shall be reduced to the lower of: (i) the Conversion
    Price; or (ii) a twenty-five percent (25%) discount to the lowest Aggregate Per Common Share Price (whether or not such Common
    Stock Equivalents are actually then exercisable, convertible or exchangeable in whole or in part) as of the earlier of (A)
    the date on which the Company shall enter into a firm contract for the issuance of such Common Stock Equivalent, or (B) the
    date of actual issuance of such Common Stock Equivalent. No adjustment of the applicable Conversion Price shall be made under
    this Section 6 upon the issuance of any Convertible Security which is outstanding on the day immediately preceding the Issuance
    Date.
	 	 	 
	 	7.	Reservation
    of Shares. On or before June 26, 2019, and so long as any principal amount of the Note is outstanding, thereafter the Company
    shall 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.”
    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. If after June 26, 2019 the company fails maintain a share reserve of 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, then the
    discount set forth in the Conversion Price will be increased by 10 percentage points (i.e. from 45% to 55%) 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.
	 	 	 
	 	8.	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.
	 	 	 
	 	9.	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.
	 	 	 
	 	10.	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 Interest 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.	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;
	 	vi.	the
    cessation of operations of the Company or a material subsidiary;
	 	vii.	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;
	 	viii.	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;
	 	ix.	the
    Company files a Form 15 with the SEC;
	 	x.	the
    Company’s failure to timely file all reports required to be filed by it with the Securities and Exchange Commission;
	 	xi.	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;
	 	xii.	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;
	 	xiii.	the
    Company’s failure to maintain the required Share Reserve pursuant to the terms of the Irrevocable Letter of Instructions
    to the Transfer Agent;

 

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	 	xiv.	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;
	 	xv.	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;
	 	xvi.	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
	 	xvii.	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).
	 	xviii.	“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.
	 	xix.	Altering
    the conversion terms of any notes that are currently outstanding.
	 	xx.	Notwithstanding
    anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Company
    of any covenant or other term or condition contained in any of other agreement entered into by the Company, after the passage
    of all applicable notice and cure or grace periods therein.
	 	 	 
	 	 	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.
	 	 	 
	 	c.	If
    at any time after the Issuance Date, the Company is not DWAC Eligible, then an additional 5% discount shall be factored into
    the Conversion Price. If at any time after the Issuance Date, the Common Stock is not DTC Eligible, then an additional 5%
    discount shall be factored into the Conversion Price. In addition, if any Event of Default occurs after the Issuance Date,
    then an additional 5% discount shall be factored into the Conversion Price for each of the first three (3) Events of Default
    that occur after the Issuance Date (for the avoidance of doubt, each occurrence of any Event of Default shall be deemed to
    be a separate occurrence for purposes of the foregoing reductions, even if the same Event of Default occurs three (3) separate
    times). For example, if there are three (3) separate occurrences of an Event of Default, then an additional 5% discount shall
    be factored into the Conversion Price for the first such occurrence, and so on for each of the second and third occurrences
    of such Event of Default.

 

	 	11.	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.

 

    	6

    	 

    

 

 

	 	12.	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.
	 	 	 
	 	13.	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.
	 	 	 
	 	14.	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.
	 	 	 
	 	15.	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.
	 	 	 
	 	16.	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.
	 	 	 
	 	17.	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).
	 	 	 
	 	18.	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.
	 	 	 
	 	19.	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.
	 	 	 
	 	20.	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.
	 	 	 
	 	21.	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.
	 	 	 
	 	22.	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.

 

    	7

    	 

    

 

 

	 	23.	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 courier, 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.
	 	 	 
	 	24.	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.
	 	 	 
	 	25.	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.
	 	 	 
	 	26.	Successors
    and Assigns. This Agreement shall be binding upon all successors and assigns hereto. The Company may not assign this Note
    without the prior written consent of Holder. This Note and any shares of Common Stock issued upon conversion of this Note
    may be offered, sold, assigned or transferred by Holder without the consent of the Company.
	 	 	 
	 	27.	Right
    of First Refusal. If at any time while this Note is outstanding, the Company has a bona fide offer of capital or financing
    from any 3rd party, that the Company intends to act upon, then the Company must first offer such opportunity to the Holder
    to provide such capital or financing to the Company on the same terms as each respective 3rd party’s terms. Should the
    Holder be unwilling or unable to provide such capital or financing to the Company within 10 trading days from Holder’s
    receipt of written notice of the offer (the “Offer Notice”) from the Company, then the Company may obtain such
    capital or financing from that respective 3rd party upon the exact same terms and conditions offered by the Company to the
    Holder, which transaction must be completed within 30 days after the date of the Offer Notice. If the Company does not receive
    the capital or financing from the respective 3rd party within 30 days after the date of the respective Offer Notice, then
    the Company must again offer the capital or financing opportunity to the Holder as described above, and the process detailed
    above shall be repeated. The Offer Notice must be sent via electronic mail to matthewhirji@jsjinvestments.com.
	 	 	 
	 	28.	Terms
    of Future Financings. So long as this Note is outstanding, upon any issuance by the Company 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 Company 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.

 

—
SIGNATURE PAGE TO FOLLOW —

 

    	8

    	 

    

 

 

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

 

Foothills
Exploration, Inc.

 

Signature:

 

	By:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Email:	 	 
	 	 	 
	Phone:	 	 
	 	 	 
	Facsimile:	 	 

 

JSJ
Investments Inc.

 

Signature:

 

Sameer
Hirji, President JSJ Investments Inc.

10830
North Central Expressway, Suite 152

Dallas
TX 75231

888-503-2599

 

    	9

    	 

    

 

 

Exhibit
1

Conversion
Notice

 

Reference
is made to the 10% Convertible Note issued by Foothills Exploration, Inc. (the “Note”), dated May 29, 2019 in the
principal amount of $57,000 with 10% interest. This note currently holds a principal balance of $57,000. The features of conversion
stipulate a Conversion Price equal to a 45% discount to the lowest trading price during the previous twenty (20) trading days
to the date of a Conversion Notice, pursuant to the provisions of Section 2(a)(ii) in the Note.

 

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 *Do not send certificates to this address

Dallas,
TX 75231

888-503-2599

 

Tax
ID: 20-2122354

 

Sameer
Hirji, President

 

[DATE]

 

[CONTINUED
ON NEXT PAGE]

 

    	10

    	 

    

 

 

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:	 
	 	 
	 	 
	B.P.
    Allaire	 
	CEO	 
	Foothills Exploration, Inc.	 

 

    	11SECURITIES
PURCHASE AGREEMENT

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of May 31, 2019, by and between Foothills Exploration,
Inc., a Delaware corporation, with headquarters located at 10940 Wilshire Blvd, 23rd Floor, Los Angeles, CA 90024,
(the “Company”), and GS CAPITAL PARTNERS, LLC, a New York limited liability company, with its address at 30
Broad Street, Suite 1201, New York, NY 10004 (the “Buyer”).

 

WHEREAS:

 

A.
The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”);

 

B.
Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement
a 10% convertible note of the Company, in the form attached hereto as Exhibit A in the aggregate principal amount of $60,000.00
(together with any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance
with the terms thereof, the “Note”), convertible into shares of common stock, of the Company (the “Common Stock”),
upon the terms and subject to the limitations and conditions set forth in the Note. The Note shall contain a $7,000 original issue
discount such that the purchase price of the Note shall be $53,000.

 

C.
The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set
forth immediately below its name on the signature pages hereto; and

 

NOW
THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.
Purchase and Sale of Note.

 

a.
Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees
to purchase from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature
pages hereto.

 

b.
Form of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be
issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available
funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the
principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto,
and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchas
e Price.

 

 

Company Initials

 

    	 	 	 

     

    

 

c.
Closing Date. The date and time of the first issuance and sale of the Note pursuant to this Agreement (the “Closing
Date”) shall be on or about May 31 2019, or such other mutually agreed upon time. The closing of the transactions contemplated
by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.

 

2.
Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a.
Investment Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon
conversion of or otherwise pursuant to the Note, such shares of Common Stock being collectively referred to herein as the “Conversion
Shares” and, collectively with the Note, the “Securities”) for its own account and not with a present view towards
the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act;
provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Securities
for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant
to a registration statement or an exemption under the 1933 Act.

 

b.
Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D (an “Accredited Investor”). Any of Buyer’s transferees, assignees, or purchasers must be “accredited
investors” in order to qualify as prospective transferees, permitted assignees in the case of Buyer’s or Holder’s
transfer, assignment or sale of the Note.

 

c.
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility
of the Buyer to acquire the Securities.

 

d.
Information. The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue
to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to
the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any,
have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the
Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will
not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure
to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives
shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section
3 below. The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware
of any facts that may constitute a breach of any of the Company’s representations and warranties made herein.

 

    	 	2	 

     

    

 

e.
Governmental Review. The Buyer understands that no United States federal or state agency or any other government or governmental
agency has passed upon or made any recommendation or endorsement of the Securities.

 

f.
Transfer or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being
registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the
Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) in the case of subparagraphs (c),
(d) and (e) below, the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be
in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to
be sold or transferred may be sold, or transferred pursuant to an exemption from such registration, including the removal of any
restrictive legend which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to an “affiliate”
(as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”) of the Buyer who agrees
to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d)
the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a
successor rule) (“Regulation S”); (ii) any sale of such Securities made in reliance on Rule 144 may be made only in
accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances
in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined
in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder;
and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any
state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the
foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a
bona fide margin account or other lending arrangement.

 

g.
Legends. The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the
1933 Act will be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular
date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form
(and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

“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.”

 

    	 	3	 

     

    

 

The
legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security
upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for
sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation
S without any restriction as to the number of securities as of a particular date that can then be immediately sold, and (b) such
holder provides the Company with 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 Security may be made without registration under the 1933 Act,
and that legend removal is appropriate, which opinion shall be accepted by the Company so that the sale or transfer is effected.
The Buyer agrees to sell all Securities, including those represented by a certificate(s) from which the legend has been removed,
in compliance with applicable prospectus delivery requirements, if any. In the event that the Company 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, within 2 business days, it will be considered an Event of Default under the Note.

 

h.
Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed
and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in
accordance with its terms.

 

i.
Residency. The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature
pages hereto.

 

j.
No Short Sales. Buyer/Holder, its successors and assigns, agrees that so long as the Note remains outstanding, neither
the Buyer/Holder nor any of its affiliates shall not enter into or effect “short sales” of the Common Stock or hedging
transaction which establishes a short position with respect to the Common Stock of the Company. The Company acknowledges and agrees
that upon delivery of a Conversion Notice by the Buyer/Holder, the Buyer/Holder immediately owns the shares of Common Stock described
in the Conversion Notice and any sale of those shares issuable under such Conversion Notice would not be considered short sales.

 

    	 	4	 

     

    

 

3.
Representations and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a.
Organization and Qualification. The Company and each of its subsidiaries, if any, is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate
and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated
and conducted.

 

b.
Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this
Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance
with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation
by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance
and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized
by the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its
shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative,
and such authorized representative is the true and official representative with authority to sign this Agreement and the other
documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution
and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the
Company enforceable against the Company in accordance with its terms.

 

c.
Issuance of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note
in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and 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 Company and will not impose personal liability upon the holder thereof.

 

d.
Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock
upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to
issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

e.
No Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by
the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for
issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of
Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default
(or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company
or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the
Company or its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset
of the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect). All
consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof. The Company is not in violation of the listing requirements
of the OTC Markets Exchange (the “OTC MARKETS”) and does not reasonably anticipate that the Common Stock will be delisted
by the OTC MARKETS in the foreseeable future, nor are the Company’s securities “chilled” by FINRA. The Company
and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

    	 	5	 

     

    

 

f.
Absence of Litigation. Except as disclosed in the Company’s Periodic Report filings with the SEC, there is no action,
suit, claim, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization
or body pending or, to the knowledge of the Company or any of its subsidiaries, threatened against or affecting the Company or
any of its subsidiaries, or their officers or directors in their capacity as such, that could have a material adverse effect.
Schedule 3(f) contains a complete list and summary description of any pending or, to the knowledge of the Company, threatened
proceeding against or affecting the Company or any of its subsidiaries, without regard to whether it would have a material adverse
effect. The Company and its subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

g.
Acknowledgment Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting
solely in the capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated hereby.
The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of
its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice
or a recommendation and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents to
the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of
the Company and its representatives.

 

h.
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the 1933 Act of the issuance of the Securities to the Buyer.

 

i.
Title to Property. The Company and its subsidiaries have good and marketable title in fee simple to all real property and
good and marketable title to all personal property owned by them which is material to the business of the Company and its subsidiaries,
in each case free and clear of all liens, encumbrances and defects except such as are described in Schedule 3(i) or such as would
not have a material adverse effect. Any real property and facilities held under lease by the Company and its subsidiaries are
held by them under valid, subsisting and enforceable leases with such exceptions as would not have a material adverse effect.

 

    	 	6	 

     

    

 

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

 

k.
Breach of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties
set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will
be considered an Event of default under the Note.

 

4.
COVENANTS.

 

a.
Expenses. At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation,
preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith
(“Documents”), including, without limitation, reasonable attorneys’ and consultants’ fees and expenses,
transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents or any
consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of
restructuring the transactions contemplated by the Documents. When possible, the Company must pay these fees directly, otherwise
the Company must make immediate payment for reimbursement to the Buyer for all fees and expenses immediately upon written notice
by the Buyer or the submission of an invoice by the Buyer.

 

b.
Listing. The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange
or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance)
and, so long as the Buyer owns any of the Note Securities, shall maintain, so long as any other shares of Common Stock shall be
so listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain
and, so long as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTC MARKETS
or any equivalent replacement market, the Nasdaq stock market (“Nasdaq”), or the New York Stock Exchange (“NYSE”)
and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of
the Financial Industry Regulatory Authority (“FINRA”) and such exchanges, as applicable. The Company shall promptly
provide to the Buyer copies of any notices it receives from the OTC MARKETS and any other markets on which the Common Stock is
then listed regarding the continued eligibility of the Common Stock for listing on such markets.

 

    	 	7	 

     

    

 

c.
Corporate Existence. So long as the Buyer beneficially owns the Note, the Company shall maintain its corporate existence
and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or
sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i)
assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith
and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTC MARKETS, Nasdaq, or NYSE.

 

d.
No Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances
that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of
the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval
provision applicable to the Company or its securities.

 

e.
Breach of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other
remedies available to the Buyer pursuant to this Agreement, it will be considered an event of default under the Note.

 

5.
Governing Law; Miscellaneous.

 

a.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county
of New York. The parties to this Agreement 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
Company and Buyer waive trial by jury. 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 Agreement 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.

 

b.
Counterparts; Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts
have been signed by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to
the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering
this Agreement.

 

    	 	8	 

     

    

 

c.
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the
interpretation of, this Agreement.

 

d.
Severability. In the event that any provision of this Agreement 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.

 

e.
Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of
the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither
the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

 

f.
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,
(iv) via electronic mail or (v) transmitted by hand delivery, telegram, 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 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 delivery via electronic mail, 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:

 

If
to the Company, to:

Foothills
Exploration, Inc.

10940
Wilshire Blvd

23rd
Floor

Los
Angeles, CA 90024

Attn:
B.P. Allaire, CEO

 

If
to the Buyer:

GS
CAPITAL PARTNERS, LLC

30
Broad Street, Suite 1201

New
York, NY 10004

Attn:
Gabe Sayegh

 

    	 	9	 

     

    

 

Each
party shall provide notice to the other party of any change in address.

 

g.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the
prior written consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any “qualified
person”, any “permitted assigns”, or “prospective transferee” that acquires or purchases Note Securities
in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act,
without the consent of the Company with Buyer’s Opinion of Counsel. A qualified person is an “accredited investor”
transferee, assignee, or purchaser of the Note who succeeds to the Holder’s right, title and interest to all or a portion
of the Note accompanied with an Opinion of Counsel as provided for in Section 2(f).

 

h.
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.
Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The
Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage
arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and
covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses
as they are incurred.

 

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

 

k.
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.

 

l.
Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the
Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the
remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or
threatened breach by the Company of the provisions of this Agreement, that the Buyer 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 Agreement and to enforce specifically the terms and provisions hereof, without the necessity
of showing economic loss and without any bond or other security being required.

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first
above written.

 

	FOOTHILLS
    EXPLORATION, INC.	 
	 	 
	By:	 	 
	Name:	B.P.
    Allaire, CEO	 
	 	 	 
	GS
    CAPITAL PARTNERS, LLC	 
	 	 
	By:	 	 
	Name:
    	Gabe
    Sayegh	 
	Title:
    	Manager	 

 

	AGGREGATE SUBSCRIPTION AMOUNT:	$60,000.00
	 	 
	Aggregate Principal Amount of Notes: 
	 
	 	 
	Aggregate Purchase Price: 
	 
	 	 
	Note 1: $60,000.00, less $7,000.00 in OID, less $3,000.00 in legal fees	 

 

    	 	11	 

     

    

 

EXHIBIT
A

144
NOTE - $60,000

 

    	 	12

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