Document:

CONVERSION
AGREEMENT

 

THIS
CONVERSION AGREEMENT (the “Agreement”) is made effective as of March1st, 2017 by and between BROWNIE’S
MARINE GROUP, INC., a Florida corporation (the “Company”), TREBOR INDUSTRIES, INC., a Florida corporation
and wholly owned subsidiary of the Company (“Trebor”) (the Company and Trebor sometimes collectively referred to under
this Agreement as, the “Company”) and 940 ASSOCIATES, INC., a Florida corporation (the “Licensor”).

 

A.
       The Company has an Exclusive License Agreement (the “License Agreement”)
with Licensor, an entity owned by the Company’s Chief Executive Officer, to license the trademark “Brownies Third
Lung”, “Tankfill”, “Brownies Public Safety” and various other related trademarks as listed in the
agreement which license agreement calls for the Company to pay Licensor 2.5% of gross revenues per quarter.

 

B.
       Effective November 21, 2016 the Company was delinquent on its monthly payment obligations
under the License Agreement by more than 31 months in the aggregate amount of approximately $150,704.89 (the “Past Due Amount”)
and the Parties converted $88,550 of the 2016 Past Due Amount (the “2016 Conversion Amount”) into restricted shares
of common stock of the Company (the “Initial Conversion Shares”) in full satisfaction of the 2016 Conversion Amount.

 

C.       Licensor
agreed in partial consideration of the Initial Conversion Shares to forebear on any default of the remaining Past Due Amount and
any future royalty payments under the License Agreement until February 21, 2017 (the “Forbearance Period”) and the
Forbearance Period has expired.

 

D.       As
of the effective date of this Agreement the Company is delinquent on its monthly payment obligations under the License Agreement
by more than 3 months in the aggregate amount of approximately $63,303.23 (the “Past Due Amount”).

 

E.       The
Parties have agreed to convert the Past Due Amount (the “Conversion Amount”) into restricted shares of common stock
of the Company in full satisfaction of the Conversion Amount.

 

F.       Licensor
and the Company have agreed that Licensor shall convert the Conversion Amount into shares of common stock of the Company at a
conversion price of $0.0138 per share which equals a 15% premium to the closing sale price of the Company’s common stock
as reported on the OTC Markets on the date immediately preceding the effectiveness of this Agreement, on the terms and conditions
set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be
legally bound hereby, the Company and the Licensor hereby agree as follows:

 

1.            Issuance
of Common Stock and Partial Satisfaction of the Note.

 

1.1       Full
Satisfaction of the Past Due Amount. Licensor and the Company agree that as of the date hereof to convert the Past Due Amount
into restricted shares of the Company’s common stock and following the payment of the Conversion Amount (i) the Company
shall be current on all royalty payments under the License Agreement as of the date hereof, and (ii) future royalty payments under
the License Agreement shall be due and payable commencing on March 31st, 2017.

 

1.2       Issuance
and Delivery of Common Stock. Upon the terms and subject to the conditions set forth herein, at the Closing (defined below),
(i) the Company shall issue and deliver to the Licensor a certificate evidencing 4,587,190 shares of restricted Common Stock of
the Company (the “Shares”) and (ii) the Company and the Licensor hereby agree that as except as otherwise provided
under this Agreement, the License Agreement shall remain in full force and effect.

 

    	 

    	 

    

 

1.3       Closing.
The issuance of the Shares and satisfaction of the Conversion Amount shall take place upon the execution of this Agreement by
the Company and the Licensor at such place as the Company and the Licensor mutually agree, orally or in writing (which time and
place are designated as the “Closing”).

 

2.            Representations
and Warranties of the Company. The Company hereby represents and warrants to the Licensor that as of the date of this Agreement:

 

2.1       Authorization.
All corporate action on the part of each of the Company and Trebor, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement and the Shares, the performance of all obligations of the Company hereunder
and thereunder and the authorization, issuance and delivery of the Shares has been taken, and this Agreement has been duly executed
and delivered by the Company and constitutes a valid and legally binding obligation of the Company, enforceable in accordance
with its terms.

 

2.2       Valid
Issuance of Common Stock. The Shares that are being issued to the Licensor pursuant to this Agreement are duly and validly
authorized and, when issued, sold and delivered in accordance with the terms hereof for the consideration duly expressed herein,
will be duly and validly issued, fully paid and nonassessable.

 

2.3       No
Conflict or Violation. Neither the execution, delivery or performance by the Company of this Agreement or the consummation
of the transactions contemplated hereby or thereby by the Company, nor compliance by the Company with any of the provisions hereof
or thereof, will: (a) violate or conflict with any provision of the Company’s Certificate of Incorporation or By-Laws, (b)
violate, 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, would constitute a default) under, or result in the termination of, or accelerate the performance required
by, or result in a right of termination or acceleration under, or result in the creation of any encumbrance upon any of the Company’s
assets under, any of the terms, conditions or provisions of any contract, indebtedness, note, bond, indenture, security or pledge
agreement, commitment, license, lease, franchise, permit, agreement, or other instrument or obligation (i) to which the Company
is a party or (ii) by which the Company’s assets are bound, (c) violate any law, statute, rule, regulation, ordinance, code,
order, judgment, ruling, writ, injunction, decree, permit or award, or (d) impose any encumbrance, restriction or charge on the
Company’s assets or business.

 

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

 

3.1       Authorization.
All corporate action on the part of Licensor, its officers, directors and stockholders necessary for the authorization, execution
and delivery of this Agreement and the performance of all obligations of the Licensor hereunder has been taken, and this Agreement
has been duly executed and delivered by the Licensor and constitutes a valid and legally binding obligation of the Licensor, enforceable
in accordance with its terms.

 

3.2       Restricted
Securities. The Licensor understands that the Shares may not be sold, transferred, or otherwise disposed of without registration
under the Securities Act or an exemption therefore.

 

3.3       Legend.
To the extent applicable, each certificate evidencing any of the Securities shall be endorsed with a legend substantially in the
form set forth below:

 

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“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND MAY NOT BE SOLD, TRANSFERRED,
ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF
COUNSEL OR OTHER EVIDENCE, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

4.            Further
Assurances. Upon the terms and subject to the conditions contained herein, the parties agree, both before and after the Closing,
(a) to use all reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary,
proper or advisable to consummate and make effective the transactions contemplated by this Agreement, (b) to execute any documents,
instruments or conveyances of any kind which may be reasonably necessary or advisable to carry out any of the transactions contemplated
hereunder, and (c) to cooperate with each other in connection with the foregoing.

 

5.            Miscellaneous.

 

5.1       Notices.
All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given
or made if and when delivered personally or by overnight courier to the parties at the following addresses or sent by electronic
transmission, with confirmation received, to the telecopy numbers specified below (or at such other address or telecopy number
for a party as shall be specified by like notice) at the respective addresses set forth on the signature page below.

 

5.2       Successors
and Assigns. This Agreement shall be binding upon, and inure to the benefit of, the respective successors, assigns, heirs,
executors and administrators of the parties hereto and their respective successors and assigns, and no other person shall have
any right, benefit or obligation under this Agreement as a third party beneficiary or otherwise.

 

5.3       Governing
Law. This Agreement shall be governed by and construed under the laws of the State of Florida, without regard to any applicable
conflict of laws.

 

5.4       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

5.5       Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered
in construing or interpreting this Agreement.

 

5.6       Amendments
and Waivers. Any term of this Agreement may be amended or waived, only with the written consent of the Company and the Licensor.

 

5.7       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 balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.

 

5.8       Arbitration.
The parties agree that any dispute, controversy or claim arising out of this Agreement or the performance, breach or termination
thereof shall be settled by final and binding arbitration in accordance with the Commercial Arbitration Rules of the American
Arbitration Association. The place of arbitration shall be a mutually agreed location in the State of Florida.

 

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5.9       Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof,
and any and all other written or oral agreements existing between the parties hereto are expressly canceled.

 

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

 

	 	BROWNIE’S
    MARINE GROUP, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 
	 	Address:	 
	 	 	 
	 	TREBOR
    INDUSTRIES, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 
	 	Address:	 
	 	 	 
	 	940
    ASSOCIATES, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 
	 	Address:	 

 

    	4UNANIMOUS
WRITTEN CONSENT OF THE BOARD OF DIRECTORS OF

BROWNIE’S MARINE GROUP, INC.

 

The
undersigned, being the sole member of the members of the Board of Directors (the “Board”) of Brownie’s Marine
Group, Inc., a Florida corporation (the “Company”), consent to the corporate actions specified below and adopt the
following resolutions by written consent pursuant to the Florida Business Corporation Act.

 

WHEREAS,
the Company and its wholly owned subsidiary, Trebor Industries, Inc., has an Exclusive License Agreement (the “License Agreement”)
with 940 Associates, Inc. (hereinafter referred to as “940A”), an entity owned by the Company’s Chief Executive
Officer, to license the trademark “Brownies Third Lung”, “Tankfill”, “Brownies Public Safety”
and various other related trademarks as listed in the agreement, which license agreement calls for the Company to pay 940A 2.5%
of gross revenues per quarter and as of the date hereof, the Company was more than 3 months in arrears on royalty payments in
the amount of approximately $63,303.23 (the “Past Due Amount”); and

 

WHEREAS,
the Company relies on the License Agreement to operate its business and the Company does not have available working capital to
satisfy the Past Due Amount; and

 

WHEREAS,
940A has previously converted past due amounts under the License Agreement into restricted shares of common stock of the Company
and the Company is no longer in a position to continue carrying remaining past due balances; and

 

WHEREAS,
940A has agreed to convert the Past Due Amount into restricted shares of common stock of the Company in full satisfaction of the
Conversion Amount; and

 

WHEREAS,
settlement of the Past Due Amount will improve the Company’s balance sheet and increase the Company’s working capital
and 940A has agreed to accept restricted shares of common stock of the Company in satisfaction of the Past Due Amount; and

 

WHEREAS,
the Board believes it is in the best interests of the Company to satisfy the Past Due Amount with the issuance of restricted shares
of common stock of the Company at a price per share of $0.0138 (the “Conversion Price”), which is a 15% premium to
the closing price of the Company’s common stock as reported on the OTC Markets on February 28, 2017 (the “Market Price”),
the date immediately preceding the effective date of this consent, pursuant to the Conversion Agreement attached hereto (the “Agreement”);
and

 

WHEREAS,
due to the restricted nature of the Company’s common stock, the Conversion Price exceeding the Market Price in excess of
15%, and the limited trading of the Company’s common stock, the Board believes that the terms of the Agreement and price
per share of common stock are fair and reasonable and are in the Company’s best interests; and

 

NOW,
THEREFORE, BE IT RESOLVED, that the Company is authorized to enter into the Agreement and the Company shall issue 4,587,190 shares
of restricted common stock (the “Shares”) to 940A pursuant to the Agreement and in full satisfaction of the Past Due
Amount and that upon issuance of the Shares pursuant to the Agreement, the Shares shall be fully paid and non-assessable; and

 

FURTHER
RESOLVED, that the certificate representing the Shares shall contain a legend restricting their transferability absent registration
or applicable exemption; and

 

FURTHER
RESOLVED, that in order to fully carry out the intent and effectuate the purposes of the foregoing resolutions, the appropriate
officers of the Company are hereby authorized and directed to take all such further action, to execute and deliver the agreements,
instruments and documents authorized in the foregoing resolutions and all such further agreements, instruments and documents relating
thereto in the name and on behalf of the Company and under its corporate seal or otherwise, and to pay all such fees and expenses,
which shall, in their judgment, be necessary, proper or advisable.

 

Effective:
March 1st, 2017

 

	 	 
	 	Robert
    Carmichael, Director

 

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