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CONVERTIBLE NOTE PURCHASE AGREEMENT

This  CONVERTIBLE  NOTE  PURCHASE  AGREEMENT  (the  “Agreement”),  dated  January

__,  2015,  by  and  between  MineralRite  Corporation,  a  Nevada  corporation,  with  headquarters

located  at  55  South  Geneva  Road,  Lindon,  Utah  84042  (the  "Company"),  and  River  North

Equity,  Inc.,  an  Illinois  corporation,  with  its  principal  place  of  business  at  360  W.  Hubbard  St.,

Unit  2801,  Chicago,  Illinois  60654  (the  "Buyer"),  (together  the  "Parties").   Capitalized  terms

used  in  this  Agreement  and  not  otherwise  defined  shall  have  the  meanings  ascribed  to  them  in

Article 1.

WHEREAS:

A.   The Parties 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”) as described in this Agreement.

B.   Buyer  desires  to  purchase  and  Company  desires  to  issue  and  sell,  upon  the  terms  and

conditions set forth in this Agreement a six percent (6%) convertible note of Company, in the

form  attached  hereto  as  Exhibit  A,  in  the  aggregate  principal  amount  of  $77,778  (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”),  with  an  original  issue

discount  of  ten  percent  (10%),  convertible into  shares  of  common  stock  of  Company,  $0.001

      par value per share (the “Common Stock”) upon  the terms  and subject to  the limitations and

conditions set forth in such Note.

C.   The  terms  and  conditions  contained  herein,  Buyer  wishes  to  purchase,  upon  the  terms  and

conditions  stated  in  this  Agreement,  such  principal  amount  of   the  Note  as  is  set  forth

immediately below its name on the signature pages hereto.

NOW THEREFORE, Company and 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),  Company  shall  issue  and

sell to Buyer and Buyer agrees to purchase from Company such principal amount of  the

Note as is set forth immediately below Buyer’s name on the signature pages hereto.

b.      Form  of  Payment/Closing.   On  the  Closing  Date,  (i) Buyer  shall  pay the  purchase  price

for  the  Note  to  be  issued  and  sold  to  it  at  the  Closing  (the  “Purchase  Price”)  by  wire

transfer  of  immediately  available  funds  to  Company,  in  accordance  with  Company’s

written  wiring instructions,  against  delivery of  the  Note,  and  (ii)  Company shall  deliver

such  duly  executed  Note  on  behalf  of  Company,  to  Buyer,  against  delivery  of  such

Purchase Price.  Such event, the “Closing”.

Company ___________

Buyer ___________

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Closing  Date.   Subject  to  the  satisfaction  (or  written  waiver)  of  the  conditions  set

forth  in  Section  6  and  Section  7  below,  the  date  and  time  of  the  issuance  and  sale  of  the

Note  pursuant  to  the  Agreement  (the  “Closing  Date”)  shall  be  on  or  about  January  __,

2015,  or  such  other  mutually  agreed  upon  time.    The  Closing  to  occur  at  any  such

location as may be agreed to by the Parties.

2.   Representations and Warranties of Buyer.  Buyer represents and warrants to Company that:

a.

Investment Purpose.  As of the date hereof, Buyer is purchasing the Note and the shares

of  Common  Stock  issuable  upon  full  conversion  of,  or  otherwise  pursuant  to,  the  Note

(including,  without  limitation,  such  additional  shares  of  Common  Stock,  if  any,  as  are

issuable  (i)  on  account  of  interest  on  the  Note,  and  (ii)  as  a  result  of  the  events

described  in  Sections  1.3  and  1.4  of  the  Note)  pursuant  to  this  Agreement,  such  shares

of  Common  Stock  being  collectively  referred  to  herein  as  the  “Conversion  Shares”

and,   collectively   with   the   Note,   the   “Securities”   and   any   of   the   Securities,   a

"Security")  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,

Buyer  does  not  agree  to  hold  any  Securities  for  a  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.   Buyer  is  an  “Accredited  Investor”  as  that  term  is  defined

in Rule 501(a) of Regulation D.

c.

Reliance  on  Exemptions.   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  Company  is  relying  upon  the

truth  and  accuracy  of,  and  Buyer’s  compliance  with,  the  representations,  warranties,

agreements, acknowledgements and understandings of Buyer set forth herein in order to

determine the availability of such exemptions and the eligibility of  Buyer  to acquire the

Securities.

d.      Information.    Buyer  and  its  advisors,  if  any,  have  been,  and  for  so  long  as  the  Note

remains  outstanding  will  continue  to  be  furnished  with  all  publicly  made  materials

relating  to  the  business,  finances  and  operations  of  Company  and  materials  relating  to

the  offer  and  sale  of  the  Securities  which  have been  requested  by Buyer  or  its  advisors.

Buyer   and   its   advisors,   if   any,   have   been,   and   for   so   long   as   the   Note   remains

outstanding  will  continue  to  be,  afforded  the  opportunity to  ask  questions  of  Company.

Notwithstanding  the  foregoing,  Company  has  not  disclosed  to  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 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

Company’s   representations   and   warranties   contained   in   Section   3   below.     Buyer

understands  that  its  investment  in  the  Securities  involves  a  significant  degree  of  risk.

Company ___________

Buyer ___________

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Buyer  is  not  aware  of  any  facts  that  may  constitute  a  breach  of  any  of  Company's

representations and warranties made herein.

e.

Governmental Review.   Buyer understands that no United States federal or state agency

or   any   other   government   or   governmental   agency   has   passed   on   or   made   any

recommendation or endorsement of the Securities.

f.

Transfer  or  Re-sale.   Buyer  understands  that  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) Buyer  shall  have

delivered  to  Company,  at  the  cost  of  Buyer,  an  opinion  of  counsel  to  the  effect  that  the

Securities  to  be  sold  or  transferred  may be sold  or  transferred  pursuant  to  an  exemption

from  such  registration;  (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   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; (e) the Securities are sold pursuant to Regulation S under

the 1933 Act (or a successor rule) (“Regulation S”); (f) the Securities are sold pursuant

to  any  other  available  exemption  from  the  registration  requirements  under  the  1933

Act;   (g)   a   restrictive   legend   is   not   required   under   applicable   requirements   of   the

Securities  Act  (including  judicial  interpretations  and  pronouncements  issued  by  the

staff  of  the  Commission)  and  Buyer  shall  have  delivered  to  Company,  at  the  cost  of

Buyer,  an  opinion  of  counsel  that  shall  be  in  form,  substance  and  scope  customary  for

opinions   of   counsel   in   corporate   transactions.     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

in compliance with applicable securities rules and regulations.

g.

Legends.    Buyer  understands  that  the  Note,  and  until  such  time  as  the  Conversion

Shares  have  become  eligible  for transfer  pursuant  to  any of  the  alternatives  specified  in

Section 2(f) above, the Conversion Shares may bear a restrictive legend in  substantially

the following form:

“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.

Company ___________

Buyer ___________

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NOTWITHSTANDING   THE   FOREGOING,   THE   SECURITIES   MAY   BE

PLEDGED  IN  CONNECTION  WITH  A  BONA  FIDE  MARGIN  ACCOUNT  OR

OTHER   LOAN   OR   FINANCING   ARRANGEMENT   SECURED   BY   THE

SECURITIES.”

The legend  set  forth  above  shall  be  removed  from  a Security which  satisfied  any of  the

alternatives specified in Section 2(f) above  and Company shall cause its Transfer Agent

to  issue  a  certificate(s)  without  such  legend  upon  request  by  its  holder.  In  the  absence

of  a  registration  statement  covering  the  Security,  such  holder  shall  provide  an  opinion

of  counsel,  to  the  effect  that  a  public  sale  or  transfer  of  such  Security  may  be  made

without registration under the 1933 Act.   In the event that Company does not accept the

opinion  of  counsel  provided  by  Buyer  by  the  Deadline,  it  will  be  considered  an  Event

of Default pursuant to Section 3.3 of the Note.

h.      Authorization;  Enforcement.    This  Agreement  has  been  duly  and  validly  authorized.

This  Agreement  has  been  duly  executed  and  delivered  on  behalf  of  Buyer,  and  this

Agreement   constitutes   a   valid   and   binding   agreement   of   Buyer   enforceable   in

accordance with its terms.

i.

Residency.   Buyer  is  a  resident  of  the  jurisdiction  set  forth  immediately below  Buyer’s

name on the signature pages hereto.

3.   Representations  and  Warranties  of  Company.    Company  represents  and  warrants  to  Buyer

that:

a.

Organization  and  Qualification.    Company  and  each  of  its  Subsidiaries  (as  defined

below), if any, is, or shall be, 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.

Schedule  3(a)  sets  forth  a  list  of  all  of the  Subsidiaries  of  Company and  the jurisdiction

in which each is incorporated.  Company and each of it Subsidiaries is duly qualified as

a  foreign  corporation  to  do  business  and  is  in  good  standing  in  every  jurisdiction  in

which  its  ownership  or  use  of  property  or  the  nature  of  the  business  conducted  by  it

makes  such  qualification  necessary  except  where  the  failure  to  be  so  qualified  or  in

good  standing  would  not  have  a  Material  Adverse  Effect.   “Material  Adverse  Effect”

means   any   material   adverse   effect   on   the   business,   operations,   assets,   financial

condition  or  prospects  of  Company  or  its  Subsidiaries,  if  any,  taken  as  a  whole,  or  on

the  transactions  contemplated  hereby or  by the  agreements  or  instruments  to  be entered

into  in  connection  herewith.    "Subsidiary"  or  “Subsidiaries”  (as  the  case  may  be)

means  any  corporation  or  other  organization,  whether  incorporated  or  unincorporated,

in  which  Company  owns,  directly  or  indirectly,  an  equity  majority  or  other  controlling

ownership interest.

b.      Authorization;   Enforcement.     (i)   Company   has   all   requisite   corporate   power   and

authority  to  enter  into  and  perform  this  Agreement,  the  Note  and  to  consummate  the

Company ___________

Buyer ___________

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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 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  Company’s  Board  of  Directors  and  no  further

consent  or  authorization  of  Company,  its  Board  of  Directors,  or  its  shareholders  is

required,  (iii)  this  Agreement  has  been  duly executed  and  delivered  by Company by its

authorized  representative,  and  such  authorized  representative  is  the  true  and  official

representative  with  the   authority  to  sign  this  Agreement  and  the  other  documents

executed   in   connection   herewith   and   bind   Company   accordingly,   and   (iv)   this

Agreement  constitutes, and upon execution and delivery by Company of the Note,  each

of  such  instruments  will  constitute,  a  legal,  valid  and  binding  obligation  of  Company

enforceable against Company in accordance with its terms.

c.

Capitalization.   As  of  the  date  hereof,  the  authorized  capital  stock  of  Company consists

of:  _______________  shares  of  Common  Stock,  $0.001  par  value  per  share,  of  which

_______________ shares are issued and outstanding as of _______________; except as

disclosed in  Company’s  SEC Documents  (as defined herein), no shares  are reserved for

issuance  pursuant  to  Company’s  stock  option  plans,  no  shares  are  reserved  for issuance

pursuant  to  securities  (other  than  the  Note)  exercisable  for,  or  convertible  into  or

exchangeable  for  shares  of  Common  Stock.   All  of  such  outstanding  shares  of  capital

stock  are,  or  upon  issuance  will  be,  duly authorized,  validly issued,  fully paid  and  non-

assessable.   No  shares  of  capital  stock  of  Company  are  subject  to  preemptive  rights  or

any  other  similar  rights  of  the  shareholders  of  Company  or  any  liens  or  encumbrances

imposed  through  the  actions  or  failure  to  act  of  Company.    Except  as  disclosed  in

Company’s  SEC  Documents  as  of  the  effective  date  of  this  Agreement,  (i)  there  are  no

outstanding  options,  warrants,  scrip,  rights  to  subscribe  for,  puts,  calls,  rights  of  first

refusal,  agreements,  understandings,  claims  or  other  commitments  or  rights  of  any

character whatsoever relating to, or securities or rights convertible into or exchangeable

for  any  shares  of  capital  stock  of  Company  or  any  of  its  Subsidiaries,  or  arrangements

by  which   Company  or   any  of   its   Subsidiaries   is   or   may  become  bound   to   issue

additional shares of capital stock of Company or any of its Subsidiaries, (ii) there are no

agreements   or   arrangements   under   which   Company   or   any   of   its   Subsidiaries   is

obligated to register the sale of any of its or their securities under the 1933  Act and (iii)

there  are  no  anti-dilution  or  price  adjustment  provisions  contained  in  any  security

issued  by  Company  (or  in  any  agreement  providing  rights  to  security  holders)  that  will

be  triggered  by  the  issuance  of  the  Note  or  the  Conversion  Shares.    Company  has

furnished  to  Buyer  via  email  links  to  Company’s  SEC  Documents  true  and  correct

copies   of   Company’s   Certificate   of   Incorporation   as   in   effect   on   the   date   hereof

(“Certificate  of  Incorporation”),  Company’s  By-laws,  as  in  effect  on  the  date  hereof

(the  “By-laws”),  and  the  terms  of  all  securities  convertible  into  or  exercisable  for

Common  Stock  of  Company  and  the  material  rights  of  the  holders  thereof  in  respect

thereto.    Company  shall  provide  Buyer  with  a  written  update  of  this  representation

signed by Company’s Chief Executive on behalf of Company as of the Closing Date.

Company ___________

Buyer ___________

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d.      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  Company  and  will  not

impose personal liability upon the holder thereof.

e.

Tag-Along   Registration   Rights   of   Conversion   Shares.   Company   shall   include   the

Conversion  Shares  in  any  Registration  Statement  filed  with  the  SEC  following  the

Registration  Statement  which  shall  be  filed  in  connection  with  the  Securities  Purchase

Agreement dated January __, 2015.

f.

Acknowledgment of Dilution.   Company understands and  acknowledges the potentially

dilutive  effect  to  the  Common  Stock  upon  the  issuance  of  the  Conversion  Shares  upon

conversion  of  the  Note.    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 Company.

g.

No Conflicts.   The execution, delivery and performance of this Agreement, the Note by

Company  and  the  consummation  by 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  of  instrument  to  which  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  Company  or  its  securities  are  subject)  applicable  to

Company  or  any  of  its  Subsidiaries  or  by  which  any  property  or  asset  of  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).   Neither  Company

nor  any  of  its  Subsidiaries  is  in  violation  of  its  Certificate  of  Incorporation,  By-laws  or

other  organizational  documents  and  neither  Company  nor  any  of  its  Subsidiaries  is  in

default  (and  no  event  has  occurred  which  the  notice  or  lapse  of  time  or  both  could  put

Company  or  any  of  its  Subsidiaries  in  default)  under,  and  neither  Company  nor  any  of

its  Subsidiaries  has  taken  any  action  or  failed  to  take  any  action  that  would  give  to

others   any   rights   of   termination,   amendment,   acceleration   or   cancellation   of,   any

agreement,  indenture  or  instrument  to  which  Company  or  any  of  its  Subsidiaries  is  a

party or by which any property or assets of Company or any of its Subsidiaries is bound

or  affected,  except  for  possible  defaults  as  would  not,  individually  or  in  the  aggregate,

have  a  Material  Adverse  Effect.   The  businesses  of  Company  and  its  Subsidiaries,  if

any,  are  not  being conducted,  and  shall  be  conducted  so  long as  Buyer  owns  any of  the

Company ___________

Buyer ___________

Page 7 of 23

Securities,  in  violation  of  any  law,  ordinance  or  regulation  of  any  governmental  entity.

Except  as  specifically  contemplated  by  this  Agreement  and  as  required  under  the  1933

Act  and  any  applicable  state  securities  laws,  Company  is  not  required  to  obtain  any

consent,  authorization  or  order  of,  or  make  any  filing  or  registration  with  any  court,

governmental  agency,  regulatory  agency,  self-regulatory  organization  or  stock  market

or  any  third  party  in  order  for  it  to  execute,  deliver  or  perform  any  of  its  obligations

under  this  Agreement,  the  Note  in  accordance  with  the  terms  hereof  or  thereof  or  to

issue  and  sell  the  Note  in accordance with  the  terms  hereof  and  to  issue the Conversion

Shares  upon  conversion  of  the  Note.   All  consents,  authorizations,  orders,  filings  and

registrations  which  Company  is  required  to  obtain  pursuant  to  the  preceding  sentence

have  been  obtained  or  effected  on  or  prior  to  the  date  hereof.    Company  is  not  in

violation  of  the  listing  requirements  of  the  OTC  Pink  market  (the  "OTC  Pink")

operated  by OTC  Markets  Group,  a  financial  marketplace  platform  ("OTC  Markets"),

it  will  be  current  with  its  SEC  reports  within  14  days  of  the  date  hereof  and  does  not

reasonably  anticipate  that  in  the  foreseeable  future  such  current  status  will  be  lost  or

that  its  Common  Stock  will  be  delisted  from  the  OTC  Pink  or  that  a  "Stop"  or  "Yield"

sign will be placed on its trading symbol.  Company and its Subsidiaries are unaware of

any facts or circumstances, which might give rise to any of the foregoing.

h.      SEC   Documents:   Financial   Statements.      Company   has   timely   filed   all   reports,

schedules,  forms,  statements  and  other  documents  required  to  be  filed  by  it  with  the

SEC  pursuant  to  the  reporting  requirements  of  the  Securities  Exchange  Act  of  1934,  as

amended  (the  “1934  Act”)  (all  of  the  foregoing  filed  prior  to  the  date  hereof  and  all

exhibits included therein and financial statements and schedules thereto and documents,

other   than   exhibits   to   such   documents,   incorporated   by   reference   therein,   being

hereinafter   referred   to   herein   as   the   “SEC   Documents”).   Upon   written   request

Company will deliver to Buyer true and complete copies of the SEC Documents, except

for  such  exhibits  and  incorporated  documents.   As  of  their  respective  dates,  the  SEC

Documents complied in  all material respects  with the requirements of the 1934 Act and

the  rules  and  regulations  of  the  SEC  promulgated  thereunder  applicable  to  the  SEC

Documents, and none of  the SEC Documents, at the time they were filed  with the SEC,

contained  any  untrue  statement  of  a  material  fact  or  omitted  to  state  a  material  fact

required  to  be  stated  therein  or  necessary  in  order  to  make  the  statements  therein,  in

light  of  the  circumstances  under  which  they  were  made,  not  misleading.   None  of  the

statements  made  in  any  such  SEC  Documents  is,  or  has  been,  required  to  be  amended

or  updated  under  applicable  law  (except  for  such  statements  as  have  been  amended  or

updated  in  subsequent  filings  prior  the  date  hereof,  or  pursuant  to  pending  comments

from  the  SEC.  As  of  their  respective  dates,  the  financial  statements  of  Company

included  in  the  SEC  Documents  complied  as  to  form  in  all  material  respects  with

applicable  accounting  requirements  and  the  published  rules  and  regulations  of  the  SEC

with  respect  thereto.   Such  financial  statements  have  been  prepared  in  accordance  with

the    United    States    Generally    Accepted    Accounting    Principles    ("US    GAAP"),

consistently  applied,  during  the  periods  involved  and  fairly  present  in  all  material

respects   the   consolidated   financial   position   of   Company   and   its   consolidated

Subsidiaries  as  of  the  dates  thereof  and  the  consolidated  results  of  their  operations  and

cash  flows  for  the  periods  then  ended  (subject,  in  the  case  of  unaudited  statements,  to

Company ___________

Buyer ___________

Page 8 of 23

normal  year-end  audit  adjustments).   Except  as  set  forth  in  the  financial  statements  of

Company  included  in  the  SEC  Documents,  Company  has  no  liabilities,  contingent  or

otherwise,  other  than  (i)  liabilities  incurred  in  the  ordinary  course  of  business,  and  (ii)

obligations   under   contracts   and   commitments   incurred   in   the   ordinary   course   of

business  and  not  required  under  US  GAAP  to  be reflected  in  such  financial  statements,

which,  individually  or  in  the  aggregate,  are  not  material  to  the  financial  condition  or

operating results of Company.   Company is  subject to the  reporting requirements of the

1934 Act.

i.

Absence  of  Certain  Changes.   Since  June  30,  2014,  there  has  been  no  material  adverse

change   and   no   material   adverse   development   in   the   assets,   liabilities,   business,

properties,  operations,  financial  condition,  results  of  operations,  prospects  or  1934  Act

reporting status of Company or any of its Subsidiaries.

j.

Absence   of   Litigation.     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   Company   or   any   of   its

Subsidiaries,  threatened  against  or  affecting  Company  of  any  of  its  Subsidiaries,  or

their  officers  or  directors  in  the  their  capacity  as  such,  that  could  have  a  Material

Adverse Effect.   Schedule 3(j)  contains  a complete list and summary description of any

pending  or,  to  the  knowledge  of  Company  threatened  proceeding  against  or  affecting

Company or  any of its Subsidiaries, without regard to whether it would have a Material

Adverse   Effect.      Company   and   its   Subsidiaries   are   unaware   of   any   facts   or

circumstances which might give rise to any of the foregoing.

k.      Patents, Copyrights, etc.   Company and  each of its Subsidiaries owns or possesses  or in

the  process  of  obtaining  ownership  of  the  requisite  licenses  or  rights  to  use  all  patents,

patent  applications,  patent  rights,  inventions,  know-how,  trade  secrets,  trademarks,

trademark   applications,   service  marks,   service   names,   trade  names   and   copyrights

(“Intellectual   Property”)   necessary   to   enable   it   to   conduct   its   business   as   now

operated  (and,  as  presently contemplated to  be operated  in the  future); there is no  claim

or   action   by   any   person   pertaining   to,   or   proceeding   pending,   or   to   Company’s

knowledge  threatened,  which  challenges  the  right  of  Company  or  of  a  Subsidiary  with

respect to any Intellectual Property necessary to enable it to conduct its business as now

operated  (and,  as  presently  contemplated  to  be  operated  in  the  future);  to  the  best  of

Company’s  knowledge,  Company’s  or  its  Subsidiaries’  current  and  intended  products,

services  and  processes  do  not  infringe  on  any  Intellectual  Property  or  other  rights  held

by  any  person;  and  Company  is  unaware  of  any  facts  or  circumstances  which  might

give  rise  to  any  of  the  foregoing.    Company  and  each  of  its  Subsidiaries  have  taken

reasonable  security  measures  to  protect  the  secrecy,  confidentiality  and  value  of  their

Intellectual Property.

l.

No  Materially  Adverse  Contracts,  Etc.   Neither  Company  nor  any  of  its  Subsidiaries  is

subject  to  any  charter,  corporate  or  other  legal  restriction,  or  any  judgment,  decree,

order,  rule  or  regulation,  which  in  the  judgment  of  Company’s  officers  has  or  is

expected  in  the  future  to  have  a  Material  Adverse  Effect.   Neither  Company  nor  any of

Company ___________

Buyer ___________

Page 9 of 23

its  Subsidiaries  is  a  party  to  any  contract  or  agreement,  which  in  the  judgment  of

Company’s officers has or is expected to have a Material Adverse Effect.

m.     Tax  Status.   Company  and  each  of  its  Subsidiaries  has  made  or  filed  all  federal,  state

and  foreign  income  and  all  other  tax  returns,  reports  and  declarations  required  by  any

jurisdiction  to  which  it  is  subject  (unless  and  only to  the  extent  that  Company and  each

of  its  Subsidiaries  has  set  aside  on  its  books  provisions  reasonably  adequate  for  the

payment   of   all   unpaid   and   unreported   taxes)   and   has   paid   all   taxes   and   other

governmental   assessments   and   charges   that   are   material   in   amount,   shown   or

determined  to  be  due  on  such  returns,  reports  and  declarations,  except  those  being

contested  in  good  faith  and  has  set  aside  on  its  books  provisions  reasonably  adequate

for the payment of all taxes for periods subsequent to the periods to which such returns,

reports  or  declarations  apply.    There  are  no  unpaid  taxes  in  any  material  amount

claimed  to  be  due  by  the  taxing  authority  of  any  jurisdiction,  and  the  officers  of

Company  know  of  no  basis  for  any  such  claim.   Company  has  not  executed  a  waiver

with  respect  to  the  statute  of  limitations  relating  to  the  assessment  or  collection  of  any

foreign,  federal,  state  or  local  tax.   None  of  Company’s  tax  returns  are  presently  being

audited by any taxing authority.

n.      Certain Transactions.   Except for arm’s length transactions pursuant to which Company

or  any  of  its  Subsidiaries  makes  payments  in  the  ordinary  course  of  business  upon

terms no less favorable than Company or any of its Subsidiaries could obtain from third

parties   and   other   than   the   grant   of   stock   options   disclosed   in   Company’s   SEC

Documents  and  on  Schedule  3(c),  none  of  the  officers,  directors,  or  employees  of

Company   is   presently   a   party   to   any   transaction   with   Company   or   any   of   its

Subsidiaries  (other  than  for  services  as  employees,  officers  and  directors),  including

any contract, agreement or other arrangement providing for the furnishing of services to

or   by,   providing  for  rental   of   real   or   personal   property  to   or   from,   or   otherwise

requiring   payments   to   or   from   any   officer,   director   or   such   employee   or,   to   the

knowledge of Company,  any corporation, partnership, trust or other entity in which any

officer,  director,  or  any  such  employee  has  a  substantial  interest  or  is  an  officer,

director, trustee or partner.

o.      Disclosure.      All   information   relating   to   or   concerning   Company   or   any   of   its

Subsidiaries set forth in this Agreement  and provided to Buyer pursuant  to  Section 2(d)

hereof  and  otherwise  in  connection  with  the  transactions  contemplated  hereby  is  true

and  correct  in  all  material  respects  and  Company  has  not  omitted  to  state  any  material

fact  necessary  in  order  to  make  the  statements  made  herein  or  therein,  in  light  of  the

circumstances  under  which  they were made,  not  misleading.   No  event  or  circumstance

has  occurred  or  exists  with  respect  to  Company or  any of  its  Subsidiaries  or  its  or  their

business,   properties,   prospects,   operations   or   financial   conditions,   which,   under

applicable   law,   rule  or   regulation,   requires   public  disclosure  or   announcement   by

Company but which has not been so publicly announced or disclosed (assuming for this

purpose that Company’s  reports filed under the 1934 Act are being incorporated into an

effective registration statement filed by Company under the 1933 Act).

Company ___________

Buyer ___________

Page 10 of 23

p.      Acknowledgment  Regarding  Buyer’s  Purchase  of  Securities.   Company  acknowledges

and  agrees  that  Buyer  is  acting  solely  in  the  capacity  of  arm’s  length  purchasers  with

respect  to  this  Agreement  and  the  transactions  contemplated  hereby.   Company  further

acknowledges  that  Buyer  is  not  acting  as  a  financial  advisor  or  fiduciary  of  Company

(or   in   any   similar   capacity)   with   respect   to   this   Agreement   and   the   transactions

contemplated   hereby   and   any   statement   made   by   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

Buyer’s   purchase   of   the   Securities.     Company   further   represents   to   Buyer   that

Company’s   decision   to   enter   into   this   Agreement   has   been   based   solely   on   the

independent evaluation of Company and its representatives.

q.      No   Integrated   Offering.     Assuming   the   accuracy   of   Buyer’s   representations   and

warranties  set  forth  in  Section  2,  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

of  any  security  or  solicited  any  offers  to  buy  any  security,  under  circumstances  that

would  cause  this  offering  of  the  Securities  to  be  integrated  with  prior  offerings  by  the

Company  for  purposes  of  the  Securities  Act  or  any  applicable  shareholder  approval

provisions  of  any  Trading  Market  on  which  any  of  the  Securities  of  the  Company  are

listed or designated.

r.

Permits;  Compliance.    Company  and  each  of  its  Subsidiaries  is  in  possession  of  all

franchises,  grants,  authorizations,  licenses,  permits,  easements,  variances,  exemptions,

consents,  certificates,  approvals  and  orders  necessary  to  own,  lease  and  operate  its

properties  and  to  carry  on  its  business  as  it  is  now  being  conducted  (collectively,  the

“Company   Permits”),   and   there   is   no   action   pending   or,   to   the   knowledge   of

Company,  threatened  regarding suspension  or  cancellation  of  any of  Company Permits.

Neither  Company  nor  any  of  its   Subsidiaries  is  in  conflict  with,  or  in  default  or

violation   of,   any  of   Company  Permits,   except   for   any  such   conflicts,   defaults   or

violations  which,  individually or  in  the  aggregate,  would  not  reasonably be  expected  to

have  a  Material  Adverse  Effect.   Since  June  30,  2014,  neither  Company  nor  any  of  its

Subsidiaries  has  received  any notification  with  respect  to  possible  conflicts,  defaults  or

violations  of  applicable  laws,  except  for  notices  relating  to  the  possible  conflicts,

defaults  or  violations,  which  conflicts,  defaults  or  violations  would  not  have  a  Material

Adverse Effect.

s.

Environmental Matters.

(i)      There  are,  to  Company’s  knowledge,  with  respect  to  Company  or  any  of  its

Subsidiaries  or  any  predecessor  of  Company,  no  past  or  present  violations  of

Environmental   Laws   (as   defined   below),   releases   of   any   material   into   the

environment,  actions  activities,  circumstances,  conditions,  events,  incidents,  or

contractual  obligations  which  may  give  rise  to  any  common  law  environmental

liability   or   any   liability   under   the   Comprehensive   Environmental   Response,

Compensation  and  Liability  Act  of  1980  or  similar  federal,  state,  local  or  foreign

laws  and  neither  Company  nor  any  of  its  Subsidiaries  has  received  any  notice

Company ___________

Buyer ___________

Page 11 of 23

with  respect  to  any  of  the  foregoing,  nor  is  any  action  pending  or,  to  Company’s

knowledge,   threatened   in   connection   with   any   of   the   foregoing.     The   term

“Environmental  Laws”  means  all  federal,  state,  local  or  foreign  laws  relating  to

pollution  or  protection  of  human  health  or  the  environment  (including,  without

limitation,  ambient  air,  surface  water,  groundwater,  land  surface  or  subsurface

strata),   including,   without   limitation,   laws   relating   to   emissions,   discharges,

releases  or  threatened  releases  of  chemicals,  pollutants  contaminants,  or  toxic  or

hazardous  substances  or  waste  (collectively,  “Hazardous  Materials”)  into  the

environment,  or  otherwise  relating  to  the  manufacture,  processing,  distribution,

use,  treatment,  storage,  disposal,  transport  or  handling  of  Hazardous  Materials,  as

well  as  all  authorizations,  codes,  decrees,  demands  or  demand  letters,  injunctions,

judgments,  licenses,  notices  or  notice  letters,  orders,  permits,  plans  or  regulations

issued, entered, promulgated or approved thereunder.

(ii)     Other  than  those  that  are  or  were  stored,  used  or  disposed  of  in  compliance  with

applicable   law,   no   Hazardous   Materials   are   contained   on   or   about   any   real

property  currently  owned,  leased  or  used  by  Company  or  any  of  its  subsidiaries,

and   no   Hazardous   Materials   were   released   on   or   about   any   real   property

previously  owned,  leased  or  used  by  Company  or  any  of  its  Subsidiaries  during

the  period  the  property  was  owned,  leased  or  used  by  Company  or  any  of  its

Subsidiaries, except in the normal course of Company’s or any of its Subsidiaries’

business.

(iii)   There  are  no  underground  storage  tanks  on  or  under  any  real  property  owned,

leased  or  used  by  Company  or  any  of  its  Subsidiaries  that  are  not  in  compliance

with applicable law.

t.

Title  to  Property.   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 Company and its Subsidiaries, in each case

free  and  clear  of  all  liens,  encumbrances  and  defects  except  such  as  are  described  in

Schedule  3(t)  or  such  as  would  not  have  a  Material  Adverse  Effect.   Any  real  property

and  facilities  held  under  lease  by 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.

u.

Insurance.   Company and  each  of  its  Subsidiaries  are  insured  by insurers  of  recognized

financial   responsibility   against   such   losses   and   risks   and   in   such   amounts   as

management  of  Company  believes  to  be  prudent  and  customary  in  the  businesses  in

which  Company  and  its  Subsidiaries  are  engaged.    Neither  Company  nor  any  such

Subsidiary  has  any  reason  to  believe  that  it  will  not  be  able  to  renew  its  existing

insurance  coverage  as  and  when  such  coverage  expires  or  to  obtain  similar  coverage

from  similar  insurers  as  may  be  necessary  to  continue  its  business  at  a  cost  that  would

not  have  a  Material  Adverse  Effect.    Upon  written  request  Company  will  provide  to

Buyer  true  and  correct  copies  of  all  policies  relating  to  the  directors’  and  officers’

Company ___________

Buyer ___________

Page 12 of 23

liability  coverage,  errors  and  omissions  coverage,  and  commercial  general  liability

coverage.

v.

Internal Accounting Controls.   Company and each of its Subsidiaries maintain a system

of  internal  accounting  controls  sufficient,  in  the  judgment  of  Company’s  board  of

directors,   to   provide   reasonable   assurance   that   (i)   transactions   are   executed   in

accordance  with  management's  general  or  specific  authorizations,  (ii)  transactions  are

recorded  as  necessary  to  permit  preparation  of  financial  statements  in  conformity  with

generally  accepted  accounting  principles  and  to  maintain  asset  accountability,  (iii)

access  to  assets  is  permitted  only  in  accordance  with  management's  general  or  specific

authorization  and  (iv)  the  recorded  accountability  for  assets  is  compared  with  the

existing  assets  at  reasonable  intervals  and  appropriate  action  is  taken  with  respect  to

any differences.

w.

Foreign  Corrupt  Practices.    Neither  Company,  nor  any  of  its  Subsidiaries,  nor  any

director,  officer,  agent,  employee  or  other  person  acting  on  behalf  of  Company  or  any

Subsidiary  has,  in  the  course  of  his  actions  for,  or  on  behalf  of,  Company,  used  any

corporate  funds  for  any  unlawful  contribution,  gift,  entertainment  or  other  unlawful

expenses  relating  to  political  activity;  made  any  direct  or  indirect  unlawful  payment  to

any   foreign   or   domestic   government   official   or   employee   from   corporate   funds;

violated or is in violation of any provisions of the U.S. Foreign Corrupt Practices Act of

1977,  as  amended,  or  made  any  bribe,  rebate,  payoff,  influence  payment,  kickback  or

other unlawful payment to any foreign or domestic government official or employee.

x.

Solvency.   Company   (after   giving   effect   to   the   transactions   contemplated   by   this

Agreement)  is  solvent  (i.e.,  its  assets  have  a  fair  market  value  in  excess  of  the  amount

required  to  pay its  probable  liabilities  on its existing debts  as  they become  absolute  and

matured)  and  currently  Company  has  no  information  that  would  lead  it  to  reasonably

conclude  that  Company  would  not,  after  giving  effect  to  the  transaction  contemplated

by  this  Agreement,  have  the  ability  to,  nor  does  it  intend  to  take  any  action  that  would

impair  its  ability to,  pay its  debts  from  time  to  time  incurred  in  connection  therewith  as

such  debt  mature.   Company  did  not  receive  a  qualified  opinion  from  its  auditors  with

respect  to  its  most  recent  fiscal  year  end  and,  after  giving  effect  to  the  transactions

contemplated  by  this  Agreement,  does  not  anticipate  or  know  of  any  basis  upon  which

its auditors might issue a qualified opinion in respect of its current fiscal year.

y.

No Investment Company.  Company is not, and upon the issuance and sale of Securities

as  contemplated  by this  Agreement,  will  not  be  an  Investment  Company required  to  be

registered  under  the  Investment  Company  Act  of  1940.   Company  is  not  controlled  by

an Investment Company.

z.

Breach  of  Representations  and  Warranties  by  Company.   If  Company  breaches  any  of

the  representations  or  warranties  set  forth  in  this  Section  3,  and  in  addition to  any other

remedies  available  to  Buyer  pursuant  to  this  Agreement,  it  will  be  considered  an  Event

of Default under Section 3.4 of the Note.

Company ___________

Buyer ___________

Page 13 of 23

4.   Covenants.

a.    Best  Efforts.     The  Parties  shall  use  their  best   efforts  to   timely  satisfy  each  of  the

conditions described in Section 6 and 7 of this Agreement.

b.   Use  of  Proceeds.   $70,000  of  the  proceeds  to  the  Company  pursuant  to  this  Agreement

shall  be  used  only  as  follows:  Peder  Davisson  -  $10,000;  Jr  Reuben  acctg  -  $10,000;  SEC

Filers  -  $2,500;  Nevada  Transfer  -  $10,000;  Davisson  Trust  for  SEC  -  $5,000;  State  of

Nevada - $3,500; 3 months of operations (including legal, accounting, filing etc.) - $30,000.

c.    Right  of  First  Refusal.   The  Company  shall  deliver  to  Buyer,  at  least  seventy  two  (72)

hours  prior  to  the  closing  of  a  Future  Offering  (as  defined  herein),  written  notice  describing

the  proposed  Future  Offering,  including  the  terms  and  conditions  thereof  and  proposed

definitive  documentation  to  be  entered  into  in  connection  therewith,  and  providing  Buyer  an

option  during the  seventy two  (72) hour  period  following delivery of  such  notice to  purchase

the securities being offered in the Future Offering on the same terms as contemplated by such

Future  Offering  (the  limitations  referred  to  in  this  sentence  and  the  preceding  sentence  are

collectively  referred  to  as  the  “Right  Of  First  Refusal”)  (and  subject  to  the  exceptions

described  below).     In  the  event  the  terms  and  conditions  of  proposed   equity  financing

(including debt with an  equity component) (“Future Offerings”) are amended in any respect

after delivery of the notice to Buyer concerning the proposed Future Offering, Company shall

deliver  a  new  notice  to  Buyer  describing  the  amended  terms  and  conditions  of  the  proposed

Future  Offering  and  Buyer  thereafter  shall  have  an  option  during  the  seventy  two  (72)  hour

period  following  delivery  of  such  new  notice  to  purchase  its  pro  rata  share  of  the  securities

being  offered  on  the  same  terms  as  contemplated  by  such  proposed  Future  Offering,  as

amended.   The  foregoing  sentence  shall  apply  to  successive  amendments  to  the  terms  and

conditions  of  any  proposed  Future  Offering.   The  Right  Of  First  Refusal  shall  not  apply  to

any  transaction  involving  (i)  issuances  of  securities  in  a  firm  commitment  underwritten

public  offering  (excluding  a  continuous  offering  pursuant  to  rule  415  under  the  1933  Act)  or

(ii)  issuances  of  securities  as  consideration  for  a  merger,  consolidation  or  purchase  of  assets,

or in connection with any strategic partnership or joint venture (the primary purpose of which

is  not  to  raise  equity  capital),  or  in  connection  with  the  disposition  or  acquisition  of  a

business,  product  or  license  by  Company.   The  Right  of  First  Refusal  also  shall  not  apply to

      the  issuance  of  securities  upon  exercise  or  conversion  of  Company’s  options,  warrants  or

other  convertible  securities  outstanding  as  of  the  date  hereof  or  to  the  grant  of  additional

options or warrants, or the issuance of additional securities, under any Company stock option

or restricted stock plan approved by the shareholders of Company.

d.   Financial  Information.   Upon written  request  by Buyer,  Company agrees  to send or  make

available  by facsimile  (with  receipt  confirmation  by recipient)  or  email  the  following  reports

to  Buyer  until  Buyer  transfers,  assigns,  or  sells  all  of  the  Securities;  (i)  within  ten  (10)  days

after the filing with the SEC, a copy of its Annual Report on Form 10-K, its Quarterly reports

on  Form  10-Q  and  any  Current  Reports  on  Form  8-K;  (ii)  within  one  (1)  day  after  release,

copies   of   all   press   releases   issued   by   Company   or   any   of   its   Subsidiaries;   and   (iii)

contemporaneously  with  the  making  available  or  giving  to  the  shareholders  of  Company,

Company ___________

Buyer ___________

Page 14 of 23

copies  of  any  notices  or  other  information  Company  makes  available  or  gives  to  such

shareholders.

e.    Listing.    Company  shall  promptly  secure  the  listing  of  the  Conversion  Shares  on  each

national  securities  exchange  or  automated  quotation  system,  if  any,  on  which  shares  of

Common  Stock  are  then  listed  and,  so  long  as  Buyer  owns  any  of  the  Securities,  shall

maintain such listing of  all Conversion Shares  from time to time issuable upon conversion of

the  Note.   Company  will  obtain  and,  so  long  as  Buyer  owns  any  of  the  Securities,  maintain

the  listing  and  trading  of  its  Common  Stock  on  the  OTCBB,  OTCQB,  OTCQX  or  the  OTC

Pink  (provided  that  if  it  is  listed  on  the  OTC  Pink  it  must  maintain  its  SEC  current  reporting

status),  the  NASDAQ  Stock  Market,  the  New  York  Stock  Exchange,  or  the  NYSE  MKT

f/k/a   the   American   Stock   Exchange   (collectively,   the   "Trading   Markets"   and   each,   a

"Trading  Market")  and  will  comply  in  all  respects  with  Company’s  reporting,  filing  and

other  obligations  under  the  bylaws  or  rules  of  the  Financial  Industry  Regulatory  Authority

(“FINRA”)  and  such  Trading  Markets,  as  applicable.   Company  shall  promptly  provide  to

Buyer copies of any notices it receives  from the  OTC Pink and any other  Trading Markets  or

quotation   systems   on   which   the   Common   Stock   is   then   listed   regarding  the   continued

eligibility of the Common Stock for listing on such Trading Markets and quotation systems.

f.    Corporate  Existence.    So  long  as  Buyer  beneficially  owns  any  Note,  Company  shall

      maintain its corporate existence and shall not sell all or substantially all of Company’s assets,

except   in   the   event   of   a   merger   or   consolidation   or   sale   of   all   or   substantially  all   of

Company's  assets,  where  the  surviving  or  successor  entity  in  such  transaction  (i)  assumes

      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 a Trading Market.

g.   No  Integration.    The  Company  shall  not  sell,  offer  for  sale  or  solicit  offers  to  buy  or

otherwise  negotiate  in  respect  of  any  security  (as  defined  in  Section  2  of  the  Securities  Act)

that  would  be  integrated  with  the  offer  or  sale  of  the  Securities  in  a  manner  that  would

require  the  registration  under  the  Securities  Act  of  the  sale  of  the  Securities  to  the  Buyer  or

that  would  be  integrated  with  the  offer  or  sale  of  the  Securities  for  purposes  of  the  rules  and

regulations  of  any  Trading  Market  such  that  it  would  require  shareholder  approval  prior  to

the  closing  of  such  other  transaction  unless  shareholder  approval  is  obtained  before  the

closing of such subsequent transaction.

h.   Breach of Covenants.   If  Company breaches any of the covenants set forth in this Section

4, and in addition to any other remedies available to Buyer pursuant to this Agreement, it will

be considered an event of default under Section 3.4 of the Note.

i.    Failure  to  Comply  with  the  1934  Act.    So  long  as  Buyer  beneficially  owns  the  Note,

Company shall  comply  with  the  reporting  requirements  of  the  1934  Act;  and  Company shall

continue to be subject to the reporting requirements of the 1934 Act.

Company ___________

Buyer ___________

Page 15 of 23

j.    Trading  Activities.    Neither  Buyer  nor  its  affiliates  has  an  open  short  position  in  the

common  stock  of  Company  and  Buyer  agrees  that  it  shall  not,  and  that  it  will  cause  its

affiliates not to, engage in any short sales with respect to the common stock of Company.

5.   Transfer  Agent  Instructions.    Company  shall  issue  irrevocable  instructions  to  its  transfer

agent to issue certificates, registered  in the name of Buyer or its nominee,  for the Conversion

Shares   in   such   amounts   as   specified   from   time   to   time   by   Buyer   to   Company   upon

conversion of the Note in accordance with the terms  set forth in Exhibit B (the “Irrevocable

Transfer  Agent  Instructions”).    In  the  event  that  the  Borrower  proposes  to  replace  its

transfer  agent,  the  Borrower  shall  provide,  prior  to  the  effective  date  of  such  replacement,  a

fully   executed   Irrevocable   Transfer   Agent   Instructions   in   a   form   as   initially   delivered

pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably

reserve  shares  of  Common  Stock  in  the  Reserved  Amount)  signed  by  the  successor  transfer

agent to Borrower and the Borrower.  Prior to registration of the Conversion Shares under the

1933  Act  or  the  date  on  which  the  Conversion  Shares  may  be  sold  without  any  restriction

pursuant  to  Rule  144  or  any  available  exemption  under  the  1933  Act,  all  such  certificates

shall  bear  the  restrictive  legend  specified  in  Section  2(g)  of  this  Agreement.    Company

warrants   that;   (i)   no   instruction   other   than   the   Irrevocable   Transfer   Agent   Instructions

referred to in this Section 5, and stop transfer instructions to give effect to Section 2(f) hereof

(in  the  case  of  the  Conversion  Shares,  prior  to  registration  of  Conversion  Shares  under  the

1933  Act  or  the  date  on  which  the  Conversion  Shares  may  be  sold  pursuant  to  Rule  144  or

any  available  exemption  under  the  1933  Act,  without  any  restriction),  will  be  given  by

Company to its transfer agent  and that the Securities shall otherwise be freely transferable on

the  books  and  records  of  Company  as  and  to  the  extent  provided  in  this  Agreement  and  the

Note;  (ii)  it  will  not  direct  its  transfer  agent  not  to  transfer  or  delay,  impair,  and/or  hinder  its

transfer agent in transferring (or issuing), electronically or in certificated form, any certificate

for Conversion  Shares  to  be  issued  to  Buyer  upon  conversion  of  or  otherwise  pursuant  to  the

Note  as  and  when  required  by  the  Note  and  this  Agreement;  and  (iii)  it  will  not  fail  to

remove,  or  direct  its  transfer  agent  not  to  remove  or  impair,  delay,  and/or  hinder  its  transfer

agent  from  removing,  any  restrictive  legend,  or  to  withdraw  any  stop  transfer  instructions  in

respect   thereof,   on   any   certificate   for   any   Conversion   Shares   issued   to   Buyer   upon

conversion  of  or  otherwise  pursuant  to  the  Note  as  and  when  required  by  the  Note  and  this

Agreement.     Nothing   in   this   Section   shall   affect   in   any   way   Buyer’s   obligations   and

agreement set forth in Section 2(g) hereof.   If Buyer provides Company, at  the cost of Buyer,

with  (i)  an  opinion  of  counsel  in  form,  substance  and  scope  customary  for  opinions  in

comparable  transactions,  to  the  effect  that  a  public  sale  or  transfer  of  such  Securities  may be

made   without   registration   under   the   1933   Act   pursuant   to   Rule   144   or   any   available

exemption  under  the  1933  Act,  Company  shall  permit  the  transfer,  and,  in  the  case  of  the

Conversion  Shares,  promptly instruct  its  transfer  agent  to  issue  one  or  more  certificates,  free

from  restrictive  legend,  in  such  name  and  in  such  denominations  as  specified  by  Buyer.

Company acknowledges  that a breach  by it of its obligations hereunder will cause irreparable

harm  to  Buyer,  by  vitiating  the  intent  and  purpose  of  the  transactions  contemplated  hereby.

Accordingly,  Company  acknowledges  that  the  remedy  at  law  for  a  breach  of  its  obligations

under  this  Section  5  may  be  inadequate  and  agrees,  in  the  event  of  a  breach  or  threatened

breach  by Company of  the provisions of this Section, that Buyer shall be entitled, in addition

to   all   other   available   remedies,   to   an   injunction   restraining   any   breach   and   requiring

Company ___________

Buyer ___________

Page 16 of 23

immediate  transfer,  without  the  necessity of  showing economic loss  and  without  any bond  or

other security being required.

6.   Conditions to Company’s Obligation to Sell.    The obligation of Company hereunder to issue

and  sell  the  Note  to  Buyer  at  the  Closing  is  subject  to  the  satisfaction,  at  or  before  the

Closing Date of each of the following conditions thereto:

a.    Buyer shall have executed this Agreement and delivered the same to Company.

b.   Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.

c.    The  representations  and  warranties  of  Buyer  shall  be  true  and  correct  in  all  material

respects as of the date when made and as of the Closing Date as though made at that time

(except  for  representations  and  warranties  that  speak  as  of  a  specific  date),  and  Buyer

shall  have  performed,  satisfied  and  complied  in  all  material  respects  with  the  covenants,

agreements  and  conditions  required  by  this  Agreement  to  be  performed,  satisfied  or

complied with by Buyer at or prior to the Closing Date.

d.   No  litigation,  statute,  rule,  regulation,  executive  order,  decree,  ruling  or  injunction  shall

have  been  enacted,  entered,  promulgated  or  endorsed  by  or  in  any  court  or  governmental

authority  or  competent  jurisdiction  or  any  self-regulatory  organization  having  authority

over  the  matters  contemplated  hereby  which  prohibits  the  consummation  of  any  of  the

transactions contemplated by this Agreement.

7.   Conditions   to   Buyer’s   Obligation   to   Purchase.     The   obligation   of   Buyer   hereunder   to

purchase the Note at the Closing is subject to the satisfaction, at or before the Closing date of

each of the following conditions:

a.    Company shall have executed this Agreement and delivered the same to Buyer.

b.   Company  shall  have  delivered  to  Buyer  the  duly  executed  Note  in  accordance  with

Section 1(b) above.

c.    The  Irrevocable  Transfer  Agent  Instructions,  in  form  and  substance  satisfactory  to  the

Buyer,  shall have been  delivered to  and acknowledged  in writing by Company’s Transfer

Agent.

d.   The  representations  and  warranties  of  Company  shall  be  true  and  correct  in  all  material

respects  as  of  the  date  when  made  and  as  of  the  Closing  Date  as  though  made  at  such

time  (except  for  representations  and  warranties  that  speak  as  of  a  specific  date)  and

Company  shall  have  performed,  satisfied  and  complied  in  all  material  respects  with  the

covenants,   agreements   and  conditions  required   by  this   Agreement  to   be  performed,

satisfied  or  complied  with  by Company at  or  prior to  the  Closing Date.   Buyer  shall  have

received  a  certificate  or  certificates,  executed  by  the  chief  executive  officer  of  Company,

dated  as  of  the  Closing  Date,  to  the  foregoing  effect  and  as  to  such  other  matters  as  may

be reasonably requested  by Buyer including, but not limited to certificates  with respect to

Company ___________

Buyer ___________

Page 17 of 23

Company’s  Certificate  of  Incorporation,  By-law’s  and  Board  of  Directors’  resolutions

relating to the transactions contemplated hereby.

e.    No  litigation,  statute,  rule,  regulation,  executive  order,  decree,  ruling  or  injunction  shall

have  been  enacted,  entered,  promulgated  or  endorsed  by  or  in  any  court  or  governmental

authority  or  competent  jurisdiction  or  any  self-regulatory  organization  having  authority

over  the  matters  contemplated  hereby  which  prohibits  the  consummation  of  any  of  the

transactions contemplated by this Agreement.

f.    No  event  shall  have  occurred  which  could  reasonably  be  expected  to  have  a  Material

Adverse  Effect  on  Company  including  but  not  limited  to  a  change  in  the  1934  Act

reporting  status  of  Company  or  the  failure  of  Company  to  be  timely  in  its  1934  Act

reporting obligations.

g.   Trading in the Company's Common Stock shall not have been suspended  by the SEC and

a  "Stop"  sign  shall  not  have  been  placed  on  the  Company's  trading  symbol  by  OTC

Markets.

h.  Par value of Company's Common Stock shall have been set at $0.00001.

i.    Buyer  shall  have  received  an  officer’s  certificate  described  in  Section  3(c)  above,  dated

as of the Closing Date.

8.   Governing Law; Indemnity; Miscellaneous.

a.    Governing Law.   This Agreement shall be governed by and  construed  in accordance  with

the  laws  of  the  State  of  Illinois  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  Illinois  or  in  the  federal

courts  located  in  the  state  and  county  of  Cook.   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.   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  serviced  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

Company ___________

Buyer ___________

Page 18 of 23

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.    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.

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  Company  nor

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 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, or (iv) 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  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 Company:

MineralRite Corporation

55 South Geneva Road

Lindon, Utah 84042

Company ___________

Buyer ___________

Page 19 of 23

Phone:  801-796-8944

Email: info@mineralrite.com

If to Buyer:

River North Equity, Inc.

360 W. Hubbard St., Unit 2801

Chicago, IL 60654

Phone:  (312) 643-0280

Email: Edward@rivernorthequity.com

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  Company nor  Buyer  shall  assign

this Agreement or any rights or obligations hereunder without the prior written consent of

the  other.   Notwithstanding  the  foregoing,  subject  to  Section  2(f),  Buyer  may  assign  its

rights  hereunder  to  any  person  that  purchases  Securities  in  a  private  transaction  from

Buyer  or  to  any  of  its  affiliates  as  that  term  is  defined  under  the  1934  Act,  without  the

consent of Company.

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  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 Buyer.

j.    Indemnity.   Company agrees to indemnify and  hold harmless 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  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.

k.   Publicity.  Company, and Buyer shall have the right to review a reasonable period of time

before  issuance  of  any press  releases,  SEC,  OTC  Markets  or  FINRA  filings,  or  any other

public   statements   with   respect   to   the   transactions   contemplated   hereby;   provided,

however,  that  Company  shall  be  entitled,  without  the  prior  approval  of  Buyer,  to  make

any   press   release   or   SEC,   OTC   Markets   or   FINRA   filings   with   respect   to   such

transactions  as  is  required  by  applicable  law  and  regulations  (although  Buyer  shall  be

consulted  by  Company  in  connection  with  any  such  press  release  prior  to  its  release  and

shall be provided with a copy thereof and be given an opportunity to comment thereon).

Company ___________

Buyer ___________

Page 20 of 23

l.    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.

m.  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.

n.   Remedies.   Company  acknowledges  that  a  breach  by  it  of  its  obligations  hereunder  will

cause  irreparable  harm  to  Buyer  by  vitiating  the  intent  and  purpose  of  the  transaction

contemplated  hereby.   Accordingly,  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  Company  of  the  provisions  of  this  Agreement,  that

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.

[REMAINDER OF DOCUMENT INTENTIONALLY LEFT BLANK]

Company ___________

Buyer ___________

Page 21 of 23

IN  WITNESS  WHEREOF,  the  undersigned  Buyer  and  Company have  caused  this  Agreement  to

be duly executed as of the date first above written.

SIGNED by:  Edward M. Liceaga

Signature: ______________________

for and on behalf of:

RIVER NORTH EQUITY, INC.

Principal Amount of Note:

$77,778.00

SIGNED by: ____________________

Signature: ______________________

for and on behalf of:

MINERALRITE CORPORATION

Company ___________

Buyer ___________

Page 22 of 23

EXHIBIT B:  IRREVOCABLE INSTRUCTIONS

Nevada Agency & Transfer Company

50 W. Liberty St., Suite 880

Reno, NV 89501

775-322-0626

info@natco.org

RE:      IRREVOCABLE INSTRUCTIONS

MineralRite Corporation

To whom it may concern:

River  North  Equity,  Inc.  (the  “Holder”)  is  the  holder  of  a  $77,778  Convertible  Note  (the

“Note”)  and  ________  shares  of  common  stock  issued  by  MineralRite  Corporation  (the

“Company”).

Nevada   Agency   &   Trust   Company   (the   “Transfer   Agent”   or   “you”)   is   hereby

irrevocably  authorized  and  directed  to  issue  the  shares  of  Common  Stock  (the  “Shares”)

of  the  Company  within  three  (3)  business  days  upon  your  receipt  from  the  Holder  of  a

notice of conversion ("Conversion Notice") executed by the Holder, as well as  an opinion

of  counsel,  in  form,  substance  and  scope  customary  for  opinions  of  counsel  in  comparable

transactions,  according  to  which  the  Shares  are  not  “restricted  securities”  pursuant  to  rule

144  under  the  Securities  Act  of  1933,  as  amended  (the  "Act"),  any  other  available

exemption under the Act, or an effective registration with the SEC.

A  copy of  the  Note  is  attached  hereto.  The  Shares  to  be  issued  are  to  be  registered  in  the

name of the registered holder of the securities submitted for conversion or exercise.

So long as you have previously received a Conversion notice and a confirmation from the

Company’s  or  Holder’s  counsel  that  the  Shares  have  been  registered  under  the  1933  Act

or otherwise may be sold  without any restriction, including pursuant to Rule 144,  and the

number  of  Shares  to  be  issued  in  any  one  conversion  are  less  than  9.99%  of  the  total

issued and outstanding common stock of the Company, such Shares should be transferred

via  DWAC  or,  if  DWAC  is  unavailable,  via  unrestricted  certificate(s)  issued  to  the

Holder,  pursuant  to  the  instructions  provided  by  the  Holder  on  the  Conversion  Notice  or

as otherwise instructed by the Holder.

You    are    instructed    to    reserve    for    issuance    to    the    Holder    a    minimum    of

____________________________  shares  of  common  stock  of  the  Company,  as  may  be

increased  upon  advice  from  the  Company  (the  “Share  Reserve”).  The  Share  Reserve

shall  neither  act  to  increase  the  number  of  Shares  to  be  issued  pursuant  to  the  Note  nor

shall  the  Share  Reserve  articulated  herein  create  or  be  deemed  to  be  a  cap  on  the  number

of  Shares  to  be  issued  to  the  Holder.  All  such  shares  shall  remain  in  reserve  with  the

Transfer  Agent  until  the  Holder  provides  the  Transfer  Agent  instructions  that  the  shares

or  any  part  of  them  shall  be  taken  out  of  reserve  and  shall  no  longer  be  subject  to  the

terms of these instructions. Until such  time  as the  Holder issues  any such instruction, and

subject  to  the  ownership  percentage  limitation  in  the  preceding  paragraph,  the  Holder

Company ___________

Buyer ___________

Page 23 of 23

shall  have  no  beneficial  interest  in  the  Shares  so  reserved  and  no  rights  attendant  to

ownership, including, but not limited to, the right to vote, sell or hypothecate the reserved

shares.

The  Company  shall  indemnify  you  and   your  officers,  directors,  principals,  partners,

agents  and  representatives,  and  hold  each  of  them  harmless  from  and  against  any  and  all

loss, liability, damage, claim or expense (including the reasonable fees and disbursements

of  its  attorneys)  incurred  by  or  asserted  against  you  or  any  of  them  arising  out  of  or  in

connection   with   the   instructions   set   forth   herein,   the   performance   of   your   duties

hereunder  and  otherwise  in  respect  hereof,  including the  costs  and  expenses  of  defending

yourself  or  themselves  against  any  claim  or  liability hereunder,  except  that  the  Company

shall  not  be  liable  hereunder  as  to  matters  in  respect  of  which  it  is  determined  that  you

have acted with gross negligence or in bad faith.  Transfer Agent shall have no liability to

the  Company  in  respect  to  any  action  taken  or  any  failure  to  act  in  respect  of  this  if  such

action  was  taken  or  omitted  to  be  taken  in  good  faith,  and  you  shall  be  entitled  to  rely in

this regard on the advice of counsel.

The  Company  hereby  requests  that  the  Transfer  Agent  act  immediately,  without  delay

and  without  the  need  for  any  action  or  confirmation  by  the  Company  with  respect  to  the

issuance   of   Common   Stock   pursuant   to   any  Conversion   Notices   received   from   the

Holder.  Transfer  Agent  will  not  delay in  processing a  duly valid  Conversion  Notice from

the Holder.

The  Company  agrees  that  in  the  event  that  the  Transfer  Agent  resigns  as  the  Company’s

transfer  agent,  the  Company  shall  engage  a  suitable  replacement  transfer  agent  that  will

agree  to  serve   as  transfer   agent  for  the   Company  and  be  bound  by  the  terms   and

conditions  of  these  Irrevocable  Instructions  within  five  (5)  business  days,  and  that  the

obligations,    indemnifications    and    representations    contained    in    these    irrevocable

instructions  will  assign  to  each  and  every replacement  transfer  agent,  without  any further

action by the Company.

The Holder  is  intended  to  be  and  is  a third-party beneficiaries  hereof,  and  no  amendment

or  modification  to  the  instructions  set  forth  herein  may  be  made  without  the  consent  of

the Holder.

SIGNED by: ____________________

Accepted and Agreed

Siganture: _____________________

By: ___________________

for and on behalf of:

Signature: _________________

MineralRite Corporation

Nevada Agency & Transfer

Company

Company ___________

Buyer ___________Converted by EDGARwiz

Page 1 of 21

EXHIBIT A

CONVERTIBLE PROMISSORY NOTE

NEITHER  THE  ISSUANCE  AND  SALE  OF  THE  SECURITIES  REPRESENTED  BY  THIS

CERTIFICATE    NOR    THE    SECURITIES    INTO    WHICH    THESE    SECURITIES    ARE

CONVERTIBLE  HAVE  BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,

AS   AMENDED,   OR   APPLICABLE   STATE   SECURITIES   LAWS.   THE   SECURITIES

MAY  NOT  BE  OFFERED  FOR  SALE,  SOLD,  TRANSFERRED  OR  ASSIGNED  (I)  IN

THE   ABSENCE   OF   (A)   AN   EFFECTIVE   REGISTRATION   STATEMENT   FOR   THE

SECURITIES   UNDER   THE   SECURITIES   ACT   OF   1933,   AS   AMENDED,   OR   (B)   AN

OPINION  OF  COUNSEL  (WHICH  COUNSEL  SHALL  BE  SELECTED  BY  TIIE  HOLDER),

IN  A  GENERALLY  ACCEPTABLE  FORM,  THAT  REGISTRATION  IS  NOT  REQUIRED

UNDER SAID ACT OR  (11)  UNLESS SOLD  P U R S U A N T  T O   R U L E   1 4 4   O R   R U L E

1 4 4 A  U N D E R   S A I D  A C T.   NOTWITHSTANDING THE FOREGOING, THE SECURITIES

MAYBE  PLEDGED  IN  CONNECTION   WITH  A  BONA  FIDE   MARGIN  ACCOUNT   OR

OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

Issue Date:  January __, 2015

Principal Amount:  $77,778.00

Original Issue Discount:  10%

Interest Rate:  6% per annum

Maturity Date:  January __, 2016

CONVERTIBLE PROMISSORY NOTE

FOR VALUE  RECEIVED,  MineralRite  Corporation,  a  Nevada  corporation  (hereinafter  called  the

"Borrower"),   hereby  promises   to   pay  to   the   order   of   River   North   Equity   Inc.,   an   Illinois

corporation,  or  its  registered  assigns  (the  "Holder")  the  sum  of  $77,778.00  together  with  any

interest  as  set  forth  herein,  on  January __,  2016  (the  "Maturity  Date"),  and  to  pay interest  on  the

unpaid  principal  balance  hereof  at  the  rate  of  six  percent  (6%)  per  annum  (the  "Interest  Rate")

from  the  date  hereof  (the  "Issue  Date")  until  the  same  becomes  due  and  payable,  whether  at  the

Maturity Date  or  upon  acceleration or by prepayment  or  otherwise.  This  Note  may  not  be  prepaid

in  whole  or  in  part  except  as  otherwise  explicitly  set  forth  herein.  Any  amount  of  principal  or

interest on this Note, which  is  not paid  when due, shall  bear  interest  at  the  rate  of  sixteen  percent

(16%)  per  annum  from  the  due  date  thereof  until  the  same  is  paid  ("Default  Interest")  and  shall

be  subject  to  a  partial  penalty  at  the  rate  of  five  percent  (5%)  on  the  outstanding  principal  and

accrued interest under this Note ("Partial Penalty Payment").  Interest shall commence accruing

on  the  date  that  the  Note  is  fully paid  by the  Holder  and  shall  be  computed  on  the  basis  of  a 365-

day  year  and  the  actual  number  of  days  elapsed.  All  payments  due  hereunder  (to  the  extent  not

converted into common stock, $0.001 par value per share (the "Common Stock")) in accordance

with  the  terms  hereof  shall  be  made  in  lawful  money  of  the  United  States  of  America.  All

payments  shall  be  made  at  such  address,  as  Holder  shall  hereafter  give  to  Borrower  by  written

notice made in accordance with the provisions of this Note. Whenever any amount expressed to be

due by the terms of this Note is due on any day which is not a business day, the same shall instead

Borrower _______________

Holder _______________

Page 2 of 21

be due on the next succeeding day which is a business day and in the case of any interest payment

date which is not the date on which  this  Note  is  paid  in  full,  the  extension  of  the  due date thereof

shall  not  be  taken  into  account  for  purposes  of  determining  the  amount  of  interest  due  on  such

date.  As  used  in  this  Note,  the  term  "business  day"  shall  mean  any  day  other  than  a  Saturday,

Sunday  or  a  day  on  which  commercial  banks  in  the  city  of  New York,  New York  are  authorized

or  required  by  law  or  executive  order  to  remain  closed.  Each  capitalized  term  used  herein,  and

not  otherwise  defined,  shall  have  the  meaning  ascribed  thereto  in  that  certain  Convertible  Note

Purchase  Agreement  dated  the  date  hereof,  by  and  between  Borrower  and  Holder,  pursuant  to

which this  Note was originally issued  (the  "Purchase Agreement").

This  Note  is  free  from  all  taxes,  liens,  claims  and  encumbrances  with  respect  to  the  issue  thereof

and shall not be subject to preemptive rights or other similar rights of shareholders of Borrower and

will not impose personal liability upon Holder thereof.

The following terms shall apply to this Note:

ARTICLE I. CONVERSION RIGHTS

1.1  Conversion  Right.  180 days after the Issue Date and until this Note is no longer outstanding,

this  Note  shall  be  convertible,  in  whole  or  in  part,  into  shares  of  Common  Stock  (as  such

Common  Stock  exists  on  the  Issue  Date,  or  any  shares  of  capital  stock  or  other  securities  of

Borrower  into  which  such  Common  Stock  shall  hereafter  be  changed  or  reclassified)  at  the

option   of   the   Holder,   at   any   time   and   from   time   to   time,   at   the   conversion   price   (the

"Conversion   Price")   determined   as    provided    herein    (a    "Conversion");    provided,

however,  that  in  no  event  shall  Holder  be  entitled  to  convert  any  portion  of  this  Note  in

excess  of  that  portion  of  this  Note  upon  conversion  of  which  the  sum  of  (1)  the  number  of

shares  of  Common  Stock  beneficially  owned  by  Holder  and its affiliates (other than  shares  of

Common   Stock   which  may  be   deemed   beneficially  owned   through   the   ownership   of   the

unconverted  portion  of  the  Notes  or  the  un-exercised  or  unconverted  portion  or  any  other

security  of   Borrower   subject  to   a  limitation   on  conversion   or   exercise   analogous   to   the

limitations  contained  herein)  and  (2)  the  number  of  shares  of  Common  Stock  issuable  upon

the  conversion  of  the  portion  of  this  Note  with  respect  to  which  the  determination  of  this

proviso  is  being  made,  would  result  in  beneficial  ownership  by  Holder  and  its  affiliates  of

more  than  9.99%  of  the  outstanding  shares  of  Common  Stock.  For  purposes  of  the  proviso  to

the  immediately  preceding  sentence,  beneficial  ownership  shall  be  determined  in  accordance

with  Section  13(d)  of  the  Securities  Exchange  Act  of  1934,  as  amended  (the  "Exchange

Act"),  and  Regulations  13D  thereunder,  except  as  otherwise   provided  in  clause  (1)  of

such  proviso,  provided,  further,  however  that  the  limitations  on  conversion  may  be  waived

by  Holder  upon,  at  the  election  of  Holder,  not  less  than  61  days'  prior  notice  to  Borrower,  and

the  provisions  of  the  conversion  limitation  shall  continue  to  apply  until  such  61st  day  (or  such

later  date,  as  determined  by  Holder,  as  may  be  specified  in  such  notice  of  waiver).  Should

Borrower  fail  to  eliminate  any  prohibitions  under  applicable  law  or  the  rules  or  regulations  of

any  stock  exchange,  inter-dealer  quotation  system  or  other  self-regulatory  organization  with

jurisdiction  over  Borrower  or  any  of  its  securities  on  Borrower's  ability  to  issue  shares  of

Common Stock, in lieu of any right to convert this Note as described in this Section 1.1, this will be

considered an Event of Default under Section 3.2 of the Note.

Borrower _______________

Holder _______________

Page 3 of 21

The  number  of  shares  of  Common  Stock  to  be  issued  upon  each  conversion  of  this  Note  shall

be  determined  by  dividing  the  Conversion  Amount  (as  defined   below)  by  the  applicable

Conversion  Price  then  in  effect  on  the  date  specified  in  the  notice  of  conversion,  in  the  form

attached  hereto  as  Exhibit  C  (the  "Conversion  Notice"),  delivered  to  Borrower  by  Holder  in

accordance  with  Section  1.4  below;  provided  that  the   Conversion  Notice  is  submitted  by

facsimile  or  e-mail  (or  by  other  means  resulting  in,  or  reasonably   expected  to  result  in,

notice)  to  Borrower  before  6:00  pm  New  York,  New  York  time  on  such  conversion  date  (the

"Conversion  Date").  The  term  “Conversion Amount"  means,  with  respect  to  any  conversion

of  this  Note,  the  sum  of  (1)  the  principal  amount  of  this  Note  to  be  converted  in  such

conversion  plus  (2)  at  Borrower's  option,  accrued  and  unpaid  interest,  if  any,  on  such  principal

amount   at   the   interest   rates   provided   in   this   Note   to   the   Conversion   Date,   plus   (3)   at

Borrower's   option,   Default   Interest   and   Partial  Penalty  Payment,   if   any,   on   the  amounts

referred  to  in  the  immediately  preceding  clauses  (1)  and/or  (2)  plus  (3)  at  Holder's  option,  any

amounts owed  to Holder pursuant to Sections 1.3 and 1.4(g) hereof.

1.2 Conversion Price

1.2(a)  Calculation  of  Conversion  Price:    The  Conversion  Price  shall  equal

the Variable  Conversion  Price  (as  defined  herein)  (subject  to  equitable  adjustments  for

stock  splits,  stock  dividends  or  rights  offerings  by  Borrower  relating  to  Borrower's

securities    or    the    securities    of    any    subsidiary    of    Borrower,    combinations,

recapitalization,  reclassifications,  extraordinary distributions  and  similar  events). As  used

in this Agreement, the  "Variable Conversion  Price"  shall mean  50% multiplied by the

Formula  Price  (representing  a  discount   rate  of   50%).  The  term   "Formula   Price"

means  the lower of: (i) the  Market Price (as defined herein); and (ii) the  closing bid price

on  the  Conversion  Date,  subject  to  adjustment  for  reverse  and  forward  stock  splits,  stock

dividends,  stock  combinations  and  other  similar  transactions  of  the  Common  Stock  that

occur  after  the  date  hereof.  “Market  Price”  means  the  average  Trading  Price  of  the

Common  Stock  during the  10  Trading Days  immediately preceding the  Conversion  Date.

"Trading  Price"  means,  for  any  security  as  of  any  date,  the  closing  bid  price  on  the

OTC   Pink,   or   other   applicable   Trading   Market   (as   such   term   is   defined   in   the

Convertible  Note  Purchase  Agreement  dated  January  __,  2015  pursuant  to  which  this

Note  is  issued  (the  "Purchase Agreement")),  as  reported  by a  reliable  reporting  service

designated  by  Holder  (e.g.  Bloomberg  LP),  or  if  no  closing  bid  price  of  such  security  is

available  in  any  of  the  foregoing  manners,  the  average  of  the  closing  bid  prices  of  any

market  makers  for  such  security  that  are  listed  on  the  OTC  Markets.  If  the  Trading

Price cannot  be calculated  for such  security  on such date in the manner provided above,

the Trading Price shall be the fair market  value as  mutually determined by Borrower and

Holders  of  a  majority  in  interest  of  the  Notes  being  converted  for  which  the  calculation

of  the  Trading  Price  is  required  in  order  to  determine  the  Conversion  Price  of  such

Notes.  "Trading  Day"  shall  mean  any  day  on  which  the  Common  Stock  is  tradable

for  any  period  on  the  OTC  Pink,  or  any  other  Trading  Market  on  which  the  Common

Stock is then being traded.

1.2(b)

Conversion   Price   During   Major   Announcements:   Notwithstanding

Borrower _______________

Holder _______________

Page 4 of 21

anything  contained  in  Section  1.2(a)  to  the  contrary,  in  the  event  Borrower  (i)  makes  a

public  announcement  that  it  intends  to  consolidate  or  merge  with  any  other  corporation

(other  than  a  merger  in  which  Borrower  is  the  surviving  or  continuing  corporation  and  its

capital  stock  is  unchanged)  or  sell  or  transfer  all  or  substantially  all  of  the  assets  of

Borrower  or  (ii)  any  person,  group  or  entity  (including  Borrower)  publicly  announces  a

tender  offer to  purchase  50% or more of Borrower's Common Stock (or any other takeover

scheme)  (the  date  of  the  announcement  referred  to  in  clause  (i)  or  (ii)  is  hereinafter

referred  to  as  the  "Announcement  Date"),  then  the  Conversion  Price  shall,  effective

upon  the  Announcement  Date  and  continuing  through  the  Adjusted  Conversion  Price

Termination  Date  (as  defined  below),  be  equal  to  the  lower  of  (x)  the  Conversion  Price

which would have been applicable for a Conversion occurring  on the Announcement Date

and  (y)  the  Conversion  Price  that  would  otherwise  be  in  effect.  From  and   after  the

Adjusted  Conversion  Price  Termination  Date,  the  Conversion  Price  shall  be  determined

as  set  forth  in  this  Section  1.2(b).  For  purposes  hereof,  "Adjusted  Conversion  Price

Termination  Date"  shall  mean,  with  respect  to  any  proposed  transaction  or  tender

offer  (or  takeover  scheme)  for  which  a  public  announcement  as  contemplated  by  this

Section  1.2(b)  has  been  made,  the  date  upon  which  Borrower  (in  the  case  of  clause  (i)

above)  or  the  person,  group  or  entity  (in  the  case  of  clause  (ii)  above)  consummates  or

publicly  announces  the   termination  or  abandonment  of  the  proposed  transaction  or

tender  offer  or  takeover  scheme)  which caused this Section 1.2(b) to become operative.

1.3   Authorized   Shares.   Borrower   covenants   that   during   the   period   the   conversion   right

exists,  Borrower  will  reserve  from  its  authorized  and  unissued  Common  Stock  a  sufficient

number of shares, free from preemptive rights, to  provide for the issuance of Common Stock  for

the  entire  principal  amount  of  this  Note,  plus  all  accrued  and  unpaid  interest  thereon,  plus  any

liquidated   damages   as   per   Section   1.4(g)   below   (the   "Reserved   Amount").   Borrower

represents  that  upon  issuance,  such  shares  will  be duly and  validly  issued,  fully  paid  and  non-

assessable.  In  addition,  if  Borrower  shall  issue  any  securities  or  make  any  change  to  its

capital  structure  which  would  change  the  number  of  shares  of  Common  Stock  into  which  the

Notes shall be convertible at the then current Conversion Price,  Borrower  shall  at  the  same time

make  proper  provision  so  that  thereafter  there  shall  be  a  sufficient  number  of  shares  of

Common  Stock  authorized  and  reserved,  free  from  preemptive  rights,  for  conversion  of  the

outstanding  Notes.  Borrower  (i)  acknowledges  that  it  has  irrevocably  instructed  its  transfer

agent  to  issue  certificates  for the  Common  Stock  issuable upon  conversion  of  this  Note,  and  (ii)

agrees  that  its  issuance  of  this  Note  shall  constitute  full  authority  to  its  officers  and  agents  who

are  charged  with  the  duty  of  executing  stock  certificates  to  execute  and  issue  the  necessary

certificates  for  shares  of  Common  Stock  in  accordance  with  the  terms  and  conditions  of  this

Note.   If, at any time  Borrower  does not maintain the Reserved Amount it will be  considered an

Event of Default under Section 3.2 of the Note.

1.4 Method of Conversion.

(a)     Mechanics  of  Conversion.  Subject  to  Section  1.1,  this  Note  may  be  converted  by  Holder

in  whole  or  in  part  at  any  time  from  time to  time  after  the  Issue Date,  by  (a)  submitting  to

Borrower a Conversion  Notice by facsimile (with receipt confirmation  from  recipient),  e-

mail  or  other  reasonable  means  of  communication  dispatched  on  the  Conversion  Date

Borrower _______________

Holder _______________

Page 5 of 21

prior  to  6:00  p.m.,  Eastern  Standard  Time  and  (b)  subject  to  Section  1.4(b), surrendering

this Note at the principal office of  Borrower.

(b)     Surrender  of  Note  Upon  Conversion.  Notwithstanding  anything  to  the  contrary  set  forth

herein, upon conversion of this Note in accordance with the terms hereof,  Holder shall not be

required  to  physically  surrender  this  Note  to  Borrower  unless  the  entire  unpaid  principal

amount  of  this  Note  is  so  converted.  Holder  and  Borrower  shall  maintain records showing

the  principal  amount  so  converted  and  the  dates  of  such  conversions  or  shall  use  such  other

method,   reasonably  satisfactory  to   Holder   and  Borrower,   so   as   not   to   require  physical

surrender of this  Note  upon  each  such  conversion.  in the  event  of  any dispute or  discrepancy,

such records of Borrower shall, prima-facie, be controlling and determinative in the absence

of manifest error. Notwithstanding the foregoing, if any portion of this Note is  converted as

aforesaid,  Holder  may  not  transfer  this  Note  unless  Holder  first  physically  surrenders  this

Note  to  Borrower,  whereupon  Borrower  will  forthwith  issue  and  deliver  upon  the  order  of

Holder  a  new  Note  of  like  tenor,  registered  to  Holder  (upon  payment  by  Holder  of  any

applicable  transfer  taxes)  representing  in  the  aggregate  the  remaining  unpaid  principal

amount  of  this  Note.  Holder  and  any  assignee  who  is  an  "accredited  investor"  as  defined

under Rule  501(a), by acceptance of this  Note,  acknowledge and  agree that, by reason of the

provisions  of  this  paragraph,  following  conversion  of  a  portion  of  this  Note,  the  unpaid  and

unconverted  principal  amount  of  this  Note  represented  by  this  Note  may  be  less  than  the

amount stated on the face hereof.

(c)     Payment  of  Taxes.  Borrower  shall  not  be  required  to  pay  any  tax  which  may  be  payable  in

respect  of  any  transfer  involved  in  the  issue  and  delivery  of  shares  of  Common  Stock  or

other  securities  or  property  on  conversion  of  this  Note  in  a  name  other  than  that  of  Holder

(or in street name), and Borrower shall not be required to issue or deliver any such shares or

other  securities  or  property unless  and  until  the  person  or  persons  (other than  Holder  or  the

custodian  in  whose  street  name  such  shares  are  to  be  held  for  Holder's  account)  requesting

the  issuance  thereof  shall  have  paid  to  Borrower  the  amount  of  any  such  tax  or  shall  have

established to the satisfaction of Borrower that such tax has been paid.

(d)     Delivery of  Common  Stock  upon  Conversion.  Upon  receipt  by  Borrower  from  Holder  of  a

facsimile   transmission   (with   receipt   confirmation   from   recipient)   or   e-mail   (or   other

reasonable  means  of  communication)  of  a  Conversion  Notice  meeting  the  requirements  for

conversion  as  provided  in  this  Section  1.4,  Borrower  shall  issue  and  deliver  or  cause  to  be

issued  and  delivered  to  or  upon  the  order  of  Holder  certificates  for  the  Common  Stock

issuable  upon  such  conversion  within  two  (2)  business  days  after  such  receipt  (but  in  no

event   later   than   the   fourth   (4th)   business   day   being   hereinafter   referred   to   as   the

"Deadline")  (and,  solely  in  the  case  of  conversion  of  the  entire  unpaid  principal  amount

hereof,  surrender  of  this  Note)  in  accordance  with  the  terms  hereof  and  the  Purchase

Agreement.

(e)     Obligation   of   Borrower   to   Deliver   Common   Stock.   Upon   receipt   by   Borrower   of   a

Conversion  Notice,  Holder  shall  be  deemed  to  be  Holder  of  record  of  the  Common  Stock

issuable   upon   such   conversion,   the   outstanding   principal   amount   and   the   amount   of

accrued  and  unpaid  interest  on  this  Note  shall  be  reduced  to  reflect  such  conversion,  and,

Borrower _______________

Holder _______________

Page 6 of 21

unless  Borrower  defaults on  its  obligations  under this Article  I,  all  rights  with  respect to the

portion  of  this  Note  being  so  converted  shall  forthwith  terminate  except  the right  to  receive

the  Common  Stock  or  other  securities,  cash  or  other  assets,  as  herein  provided,  on  such

conversion.   If   Holder   shall   have   given   a   Conversion   Notice   as   provided   herein,

Borrower's  obligation  to  issue  and  deliver  the  certificates  for  Common  Stock  shall  be

absolute  and  unconditional,  irrespective  of  the  absence  of  any  action  by   Holder  to

enforce  the  same,  any  waiver  or  consent  with  respect  to  any  provision  thereof,  the

recovery  of  any  judgment  against  any  person  or  any  action  to  enforce  the  same,  any

failure  or  delay  in  the  enforcement  of  any  other  obligation  of  Borrower  to  Holder  of

record,   or   any   setoff;   counterclaim,   recoupment,   limitation   or   termination,   or   any

breach  or  alleged  breach  by  Holder  of  any  obligation  to  Borrower,  and  irrespective  of

any  other  circumstance  which  might  otherwise   hint  such  obligation  of  Borrower  to

Holder   in   connection   with   such   conversion.   The   Conversion   Date   specified   in   the

Conversion  Notice  shall  be  the  Conversion  Date  so  long  as  the  Conversion  Notice  is

received by Borrower  before 6:00  p.m.,  Eastern  Standard Time, on such date.

(f)     Delivery  of  Common  Stock  by  Electronic  Transfer.   In  lieu  of  delivering  physical

certificates   representing   the   Common   Stock   issuable   upon   conversion,   provided

Borrower    is    participating    in    the    Depository    Trust    Company    ( "DTC")    Fast

Automated   Securities   Transfer    ("FAST")   program,    upon    request   of    Holder,

Borrower  shall  use  its  best  efforts  to  cause  its  transfer  agent  to  electronically  transmit  the

Common  Stock  issuable  upon  conversion  to  Holder  by  crediting  the  account  of  Holder's

Prime  Broker  with  DTC  through  its  Deposit  Withdrawal Agent  Commission  ("DWAC")

system.

(g)     Failure   to   Deliver   Common   Stock   Prior   to   Deadline;   Partial   Liquidated   Damages.

Without  in  any  way  limiting  Holder's  right  to  pursue  other  remedies,  including  actual

damages  and/or  equitable  relief,  the  parties  agree  that  if  delivery  of  the  Common  Stock

issuable  upon  conversion  of  this  Note  is  not  delivered  by  the  Deadline,  Borrower  shall

pay  to  Holder  $500  per  day  in  cash,  for  each  day  beyond  the  Deadline  that  Borrower

fails  to  deliver  such  Common  Stock.  Such  cash  amount  shall  be  paid  to  Holder  on  the

business  day  immediately  following  delivery  of  the  Common  Stock  or,  at  the  option  of

Holder  (by  written  notice  to  Borrower),  shall  be  added  to  the  principal  amount  of  this

Note,  in  which  event  interest  shall  accrue  thereon  in  accordance  with  the  terms  of  this

Note  and  such  additional  principal  amount  shall  be  convertible  into  Common  Stock  in

accordance  with  the  terms  of  this  Note.  Borrower  agrees  that  the  right  to  convert  is  a

valuable  right  to  Holder.  The  damages  resulting  from  a  failure,  attempt  to  frustrate  or

interference   with   such   conversion   right   are   difficult   if   not   impossible   to   qualify.

Accordingly,  the  parties  acknowledge  that  the  partial  liquidated  damages  provision

contained in this Section 1.4(g) are justified.

1.5  Concerning  the  Shares.  Buyer  understands  that  the  Note,  and  until  such  time  as  the

Conversion  Shares  have  become  eligible  for  transfer  pursuant  to  any  of  the  alternatives

specified  in  Section  2(f)  of  the  Purchase  Agreement,  the  Conversion  Shares  may  bear  a

restrictive legend in substantially the following form:

Borrower _______________

Holder _______________

Page 7 of 21

" N E I T H E R    T H E    I S S U A N C E    A N D    S A L E    O F    T H E    S E C U R I T I E S

REPRESENTED   BY   THIS   CERTIFICATE   NOR   THE   SECURITIES   INTO

W H I C H    T H E S E    S E C U R I T I E S    A R E    E X E R C I S A B L E    H AV E    B E E N

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

H O L D E R ) ,      I N      A      GE N E R A L LY     A C C E PTA B L E      F O R M ,      T H AT

REGISTRATION  IS  NOT  REQUIRED  UNDER  SAID  ACT  OR   (II)  UNLESS

SOLD   PURSUANT   TO   RULE   144   OR   RULE   144A   UNDER   SAID   ACT,

NOTWITHSTANDING   THE   FOREGOING,   THE   SECURITIES   MAY   BE

PLEDGED  IN  CONNECTION  WITH  A  BONA  FIDE  MARGIN  ACCOUNT  OR

OTHER   LOAN   OR   FINANCING   ARRANGEMENT   SECURED   BY   THE

SECURITIES."

The  legend  set  forth  above  shall  be  removed  from  a  Security  which  satisfied  any  of  the

alternatives  specified  in  Section  2(f)  of  the  Purchase  Agreement  and  Company  shall

cause  its  Transfer  Agent  to  issue  a  certificate(s)  without  such  legend  upon  request  by  its

holder.  In  the  absence  of  a  registration  statement  covering  the  Security,  such  holder  shall

provide  an  opinion  of  counsel,  to  the  effect  that  a  public  sale  or  transfer  of  such  Security

may  be  made  without  registration  under  the  1933  Act.   In  the  event  that  Company  does

not   accept   the   opinion   of   counsel   provided   by   Buyer   by   the   Deadline,   it   will   be

considered an Event of Default pursuant to Section 3.2 of the Note.

1.6 Effect of Certain Events.

(a)     Effect  of  Merger,  Consolidation,  Etc.  At  the  option  of  Holder,  the  sale,  conveyance  or

disposition  of  all  or  substantially  all  of  the  assets  of   Borrower,  the  effectuation  by

Borrower  of  a  transaction  or  series  of  related  transactions  in  which  more  than  50%  of  the

voting  power  of  Borrower  is  disposed  of,  or  the  consolidation,  merger  or  other  business

combination  of  Borrower  with  or  into  any  other  Person  (as  defined  below)  or  Persons

when  Borrower  is  not  the  survivor  shall  either:  (i)  be  deemed  to  be  an  Event  of  Default

(as  defined  in  Article  III)  pursuant  to  which  Borrower  shall  be  required  to  pay  to  Holder

upon  the  consummation  of  and  as  a  condition  to  such  transaction  an  amount  equal  to  the

Default  Amount  (as  defined  in  Article  III)  or  (ii)  be  treated  pursuant  to  Section  1.6(b)

hereof.  "Person"  shall  mean  any  individual,  corporation,  limited  liability  company,

partnership,  association, trust or other entity or organization

(b)     Adjustment  Due  to  Merger,  Consolidation,  Etc.  If,  at  any  time  when  this  Note  is  issued

and  outstanding  and  prior  to  conversion  of  all  of  the  Notes,  there  shall  be  any  merger,

consolidation,   exchange   of   shares,   recapitalization,   reorganization,   or   other   similar

event,  as  a  result  of  which  shares  of  Common  Stock  of  Borrower  shall  be  changed  into

the  same  or  a  different  number  of  shares  of  another  class  or  classes  of  stock  or securities

Borrower _______________

Holder _______________

Page 8 of 21

of  Borrower  or  another  entity,  or  in  case  of  any  sale  or  conveyance  of  all  or  substantially

all   of   the   assets   of   Borrower   other   than   in   connection   with   a   plan   of   complete

liquidation  of   Borrower,  then  Holder  of  this  Note  shall  thereafter  have  the  right  to

receive  upon  conversion  of  this  Note,  upon  the  basis  and  upon  the  terms  and  conditions

specified  herein  and  in  lieu  of  the  shares  of  Common  Stock  immediately  theretofore

issuable  upon  conversion,  such  stock,  securities or assets which  Holder would have been

entitled  to  receive  in  such  transaction  had  this  Note  been  converted  in  full  immediately

prior   to   such   transaction   (without   regard   to   any   limitations   on   conversion   set   forth

herein),  and  in  any  such  case  appropriate  provisions  shall  be  made  with  respect  to  the

rights   and   interests   of   Holder   of   this   Note   to   the   end   that   the   provisions   hereof

(including,  without  limitation,  provisions  for  adjustment  of  the  Conver sion  Price  and  of

the   number   of   shares   issuable   upon   conversion   of   the   Note)   shall   thereafter   be

applicable,   as   nearly   as   may   be   practicable   in   relation   to   any   securities   or   assets

thereafter   deliverable   upon   the   conversion   hereof.   Borrower   shall   not   affect   any

transaction   described   in   this   Section   1.6(b)   unless   (a)   it   first   gives,   to   the   extent

practicable,  thirty  (30)  days  prior  written  notice  (but  in  any  event  at  least  fifteen  (15)

days  prior  written  notice)  of  the  record  date  of  the  special  meeting  of  shareholders  to

approve,   or   if   there  is   no   such   record   date,   the   consummation   of,   such   merger,

consolidation,  exchange  of  shares,  recapitalization,   reorganization  or  other  similar

event  or  sale  of  assets  (during  which  time  Holder  shall  be  entitled  to  convert  this  Note)

and  (b)  the  resulting  successor  or  acquiring  entity  (if  not  Borrower)  assumes  by  written

instrument  the  obligations  of  this  Section  1.6(b).  The  above  provisions  shall  similarly

apply to successive consolidations, mergers, sales, transfers or share exchanges.

(c)     Adjustment  due  to  Distribution.  If  Borrower  shall  declare  or  make  any  distribution  of  its

assets  (or  rights  to  acquire  its  assets)  to  holders  of  Common  Stock  as  a  dividend,  stock

repurchase,  by way of  return  of  capital  or  otherwise  (including any dividend  or  distribution  to

Borrower's  shareholders  in  cash  or  shares  (or  rights  to  acquire  shares)  of  capital  stock  of  a

subsidiary  (i.e.,  a  spin-off))  (a  "Distribution"),  then  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

Holder  with  respect  to  the  shares  of  Common  Stock  issuable  upon  such  conversion  had  such

Holder  been  Holder  of  such  shares  of  Common Stock  on  the  record  date  for the  determination

of shareholders entitled to such Distribution.

(d)     Adjustment   due   to   Dilutive   Issuance.   If,   at   any   time   when   any   Notes   are   issued   and

outstanding, Borrower issues or sells more than 5% of its then outstanding common shares, or

in  accordance  with  this  Section  1.6(d)  hereof  is  deemed  to  have  issued  or  sold, any shares of

Common  Stock  for  no  consideration  or  for  a  consideration  per  share  (before  deduction  of

reasonable  expenses  or  commissions  or  underwriting  discounts  or  allowances  in  connection

therewith)  less  than  the  Conversion  Price  in  effect  on  the  date  of  such  issuance  (or  deemed

issuance) of  such shares of  Common Stock (a  "Dilutive Issuance"), then immediately,  upon

the   Dilutive   Issuance,   the   Conversion   Price   will   be   reduced   to   the   amount   of   the

consideration  per  share  received  by  Borrower  in  such  Dilutive  Issuance.   Borrower  shall  be

deemed to have issued or sold shares of Common Stock if Borrower in any manner issues  or

grants  any  warrants,  rights  or  options  (not  including  employee  stock  option  plans),  whether

Borrower _______________

Holder _______________

Page 9 of 21

or  not  immediately  exercisable,  to  subscribe  for  or  to  purchase  Common  Stock  or  other

securities  convertible  into  or  exchangeable  for  Common  Stock  ("Convertible  Securities")

(such  warrants,  rights  and  options  to  purchase  Common  Stock  or  Convertible  Securities  are

hereinafter  referred  to  as  "Options")  and  the  price  per  share  for  which  Common  Stock  is

issuable  upon  the  exercise  of  such  Options  is  less  than  the  Conversion  Price  then  in  effect,

then  the  Conversion  Price  shall  be  equal  to  such  price  per  share.  For  purposes  of  the

preceding  sentence,  the  "price  per  share  for  which  Common  Stock  is  issuable  upon  the

exercise  of  such  Options"  is  determined  by dividing  (i)  the  total  amount,  if  any,  received or

receivable  by Borrower  as  consideration  for  the  issuance  or  granting  of  all  such  Options,  plus

the  minimum  aggregate  amount  of  additional  consideration,  if  any,  payable  to  Borrower  upon

the exercise of all such Options, plus, in the case of Convertible Securities issuable upon the

exercise   of   such   Options,   the   minimum   aggregate   amount   of   additional   consideration

payable  upon the  conversion or exchange thereof at the time such Convertible Securities first

become convertible or exchangeable, by (ii) the maximum total number of shares of Common

Stock  issuable  upon the  exercise  of  all  such  Options  (assuming full  conversion  of  Convertible

Securities,  if  applicable).  No  further  adjustment  to  the  Conversion  Price  will  be  made upon

the  actual  issuance  of  such  Common  Stock  upon  the  exercise  of  such  Options  or  upon  the

conversion or exchange of Convertible Securities issuable upon exercise of such Options.

Additionally,  Borrower shall be deemed to have issued or sold shares  of Common Stock if

Borrower   in   any  manner   issues   or  sells   any  Convertible  Securities,   whether   or   not

immediately  convertible  (other  than  where  the  same  are  issuable  upon  the  exercise  of

Options),   and   the   price   per   share   for   which   Common   Stock   is   issuable   upon   such

conversion   or   exchange   is   less   than   the   Conversion   Price   then   in   effect,   then   the

Conversion  Price  shall  be  equal  to  such   price  per  share.     For  the  purposes  of  the

preceding  sentence,  the  "price  per  share  for  which  Common  Stock  is  issuable  upon  such

conversion  or  exchange" is  determined by dividing (i) the total amount, if any, received or

receivable  by  Borrower  as  consideration  for  the  issuance  or  sale  of  all  such  Convertible

Securities,  plus  the  minimum  aggregate  amount  of  additional  consideration,  if  an y,

payable   to   Borrower   upon   the   conversion   or   exchange   thereof   at   the   time   such

Convertible  Securities  first  become  convertible  or  exchangeable,  by  (ii)  the  maximum

total  number  of  shares  of  Common  Stock  issuable  upon  the  conversion  or  exchange  of

all  such  Convertible  Securities.  No  further  adjustment  to  the  Conversion  Price  will  be

made  upon  the  actual  issuance  of  such  Common  Stock  upon  conversion  or  exchange  of

such Convertible Securities.

(e)     Purchase  Rights.  If,  at  any  time  when  any  Notes  are  issued  an d  outstanding,  Borrower

issues  any  convertible  securities  or  rights  to  purchase  stock,  warrants,  securities  or  other

property  (the  "Purchase  Rights")  pro  rata  to  the  record  holders  of  any  class  of  Common

Stock,  then  Holder  of  this  Note  will  be  entitled  to  acquire,  upon  the  terms  applicable

to  such  Purchase  Rights,  the  aggregate  Purchase  Rights  which  such  Holder  could  have

acquired  if  such  Holder  had  held  the  number  of  shares  of  Common  Stock  acquirable

upon  complete  conversion  of  this  Note  (without  regard  to  any  limitations  on  conversion

contained  herein)  immediately  before  the  date  on  which  a  record  is  taken  for  the  grant,

issuance  or  sale  of  such  Purchase  Rights  or,  if  no  such  record  is  taken,  the  date  as  of

which  the  record  holders  of  Common  Stock  are  to  be  determined  for  the  grant,  issue  or

sale of such Purchase Rights.

Borrower _______________

Holder _______________

Page 10 of 21

(f)      Notice  of  Adjustments.  Upon  the  occurrence  of  each  adjustment  or  readjustment  of  the

Conversion  Price  as  a  result  of  the  events  described  in  this  Section  1.6,  Borrower,  at  its

expense,   shall   promptly   compute  such   adjustment   or   readjustment   and   prepare   and

furnish  to  Holder  a  certificate  setting  forth  such  adjustment  or  readjustment  and  showing

in  detail  the  facts  upon  which  such  adjustment  or  readjustment  is  based.  Borrower  shall,

upon  the  written  request  at  any  time  of  Holder,  furnish  to  such  Holder  a  like  certificate

setting  forth  (i)  such  adjustment  or  readjustment,  (ii)  the  Conversion  Price  at  the  time  in

effect  and  (iii)  the  number  of  shares  of  Common  Stock  and  the  amount,  if  any,  of  other

securities or  property which at the time would be received upon conversion of the Note.

1.7  Status  as  Shareholder.  Upon  submission  of  a  Conversion  Notice  by  a  Holder,  (i)  the  shares

covered thereby (provided the Reserved Amount fully covers the dollar amount being converted and

that  such  shares  meet  the  conditions  set  forth  in  Section  1.1  above)  shall  be  deemed  converted into

shares  of Common  Stock  and  (ii)  Holder's  rights  as  a  Holder  of  such  converted  portion  of  this  Note

shall cease and terminate, excepting only the right to receive certificates (or electronic transmissions

into  Holder's  broker  account)  for  such  shares  of  Common  Stock  and  to  any  remedies  provided

herein  or  otherwise  available  at  law  or  in  equity to  such  holder  because of  a  failure  by Borrower  to

comply  with  the  terms  of  this  Note.  Notwithstanding  the  foregoing,  if  a  Holder  has  not  received

certificates  (or  transfer  in  the  form  of  electronic  transmission  into  Holder's  broker  account)  for  all

shares  of  Common  Stock  prior  to  the  tenth  (10th)  business  day  after  the  expiration  of  the  Deadline

with  respect  to  a  conversion  of  any  portion  of  this  Note  for  any  reason,  then  (unless  Holder

otherwise  elects  to  retain  its  status  as  a  holder  of Common Stock by so notifying  Borrower)  Holder

shall regain the rights of a Holder of this Note with respect to such unconverted portions of this Note

and Borrower shall, as soon as  practicable,  return  such  unconverted  Note to  Holder  or,  if  the  Note

has  not  been  surrendered,  adjust  its  records  to  reflect  that  such  portion  of  this  Note  has  not  been

converted.  In  all  cases,  Holder  shall  retain  all  of  its  rights  and  remedies  (including,  without

limitation  the  right  to  receive  liquidated  damages  pursuant  to  Section  1.4(g),  to  the  extent  required

thereby, for Borrower's failure to convert this Note.

1.8  Prepayment  Notwithstanding  anything  to  the  contrary  contained  in  this  Note,  so  long  as

Borrower  has  not  received  a  Conversion  Notice  from  Holder,  then  at  any  time  during  the  period

beginning  on  the  Issue  Date,  Borrower  shall  have  the  right,  exercisable  on  not  less  than  three

(3)  Trading  Days  prior  written  notice  to  Holder  of  the  Note  to  prepay  the  outstanding  Note

(principal  and  accrued  interest),  in  full,  in  accordance  with  this  Section  1.9.  Any  notice  of

prepayment  hereunder  (an  "Optional  Prepayment  Notice")  shall  be  delivered  to  Holder  of  the

Note at its registered addresses by facsimile (with receipt confirmation by recipient) or email and

shall  state:  (i)  that  Borrower  is  exercising  its  right  to  prepay  the  Note,  and  (ii)  the  date  of

prepayment  which  shall  be  not  more  than  three  (3)  Trading  Days  from  the  date  of  the  Optional

Prepayment  Notice.  On  the  date  fixed  for  prepayment  (the  "Optional  Prepayment  Date"),

Borrower  shall  make  payment  of  the  Optional  Prepayment Amount  (as  defined  below)  to  or  upon

the  order  of  Holder  as  specified  by  Holder  in  writing  to  Borrower  at  least  one  (1)  business  day

prior  to  the  Optional  Prepayment  Date.  If  Borrower  exercises  its  right  to  prepay  the  Note,

Borrower  shall  make  payment  to  Holder  of  an  amount  in  cash  (the  "Optional  Prepayment

Amount")   equal   to   105%,   multiplied   by  the   sum   of   (w)  the  then   outstanding   principal

amount  of  this  Note  plus  (x)  accrued  and  unpaid  interest  on  the  unpaid  principal  amount  of

Borrower _______________

Holder _______________

Page 11 of 21

this   Note   to   the   Optional   Prepayment   Date   plus   (y)   Default   Interest   and   Partial   Penalty

Payment,  if  any,  on the  amounts referred to in clauses (w) and (x)  plus  (iv) any amounts owed to

Holder  pursuant  to  Sections  1.4  and  3.2  hereof.  If  Borrower  delivers  an  Optional  Prepayment

Notice and  fails to pay the Optional Prepayment Amount due to Holder of the Note within two (2)

business days  following the  Optional  Prepayment  Date,  Borrower  shall  forever  forfeit  its  right  to

prepay the Note pursuant to this Section 1.8.

ARTICLE  II.  CERTAIN  COVENANTS

2.1  Distributions  on  Capital  Stock.  So  long  as  Borrower  shall  have  any  obligation under this

Note,  Borrower shall  not  without  Holder's  written  consent  (a)  pay,  declare  or  set  apart  for  such

payment,  any  dividend  or  other  distribution  (whether  in  cash,  property  or  other  securities)  on

shares  of  capital  stock  other  than  dividends  on  shares  of  Common  Stock  solely  in  the  form  of

additional  shares  of  Common  Stock  or  (b)  directly  or  indirectly  or  through  any  subsidiary

make  any  other  payment  or  distribution  in  respect  of  its  capital  stock  except  for  distributions

pursuant  to  any  shareholders'  rights  plan  which  is  approved  by  a  majority  of   Borrower's

disinterested directors.

2.2  Restriction  on  Stock  Repurchases.  So  long  as  Borrower  shall  have  any  obligation  under

this  Note,  Borrower  shall  not  without  Holder's  written  consent  redeem,  repurchase  or  otherwise

acquire  (whether  for  cash  or  in  exchange  for  property  or  other  securities  or  otherwise)  in  any

one  transaction  or  series  of  related  transactions  any  shares  of  capital  stock  of  Borrower  or  any

warrants, rights or options to purchase or acquire any such shares.

2.3  Par  Value  of  Common  Stock.  So  long  as  Borrower  shall  have  any  obligation  under  this

Note,  Borrower  covenants  that  at  any time when  Holder shall  deliver  a Conversion  Notice,  the

par   value   of   Borrower's   Common   Stock   shall   not   be   higher   than   the   Conversion   Price

applicable to such Conversion  Notice.

2.4  Mandatory  Reverse  Stock  Split.  So  long  as  Borrower  shall  have  any  obligation  under  this

Note,  should  there  be  no  bid  on  the  Trading  Market  where  the  Company's  Common  Stock  is

listed  or  traded  for  3  consecutive  trading  days,  the  Company  shall  immediately  have  its

Common Stock  undergo  a reverse stock  split  at  a ratio of 100-to-1.

2.5  Current  status  of  SEC  Reports.  14  days  of  the  date  hereof  the  Company  shall  cease  being

delinquent with its SEC  filings  and shall  regain  current  status  with  respect to such  filings.

2.6  Borrowings.  So  long  as  Borrower  shall  have  any  obligation  under  this  Note,  Borrower

shall  not,  without  giving  Holder  notice  of  his  Right  Of  First  Refusal,  in  accordance  with  Section

4(c)  of  the  Purchase  Agreement  written  consent,  create,  incur,  assume  guarantee,   endorse,

contingently  agree   to  purchase  or   otherwise  become  liable  upon  the   obligation   of   any

person,   firm,   partnership,   joint   venture   or   corporation,   except   by   the   endorsement   of

negotiable  instruments  for  deposit  or  collection,  or  suffer  to  exist  any  liability  for  borrowed

money,  except  (a)  borrowings  in  existence  or  committed  on  the  date  hereof  and  of  which

Borrower  has  informed  Holder  in  writing  prior  to  the  date  hereof,  (b)  indebtedness  to  trade

creditors   or   financial   institutions   incurred   in   the   ordinary   course   of   business   or   (c)

Borrower _______________

Holder _______________

Page 12 of 21

borrowings, the proceeds of which shall be used  to repay this Note.

2.7  Sale  of  Assets.  So  long  as  Borrower  shall  have  any  obligation  under  this  Note,  Borrower

shall  not,  without  Holder's  written  consent,  sell,  lease  or  otherwise  dispose  of  any  significant

portion  of  its  assets  outside  the  ordinary  course  of  business.  Any  consent  to  the  disposition  of

any assets may be conditioned on a specified use of the proceeds of disposition.

2.8  Advances  and  Loans.  So  long  as  Borrower  shall  have  any  obligation  under  this  Note,

Borrower shall  not, without  Holder's written  consent, lend money,  give  credit  or make advances

to   any   person,   firm,   joint   venture   or   corporation,   including,   without   limitation,   officers,

directors,   employees,   subsidiaries   and   affiliates   of   Borrower,   except   loans,   credits   or

advances  (a)  in  existence  or  committed  on  the  date  hereof  and  which  Borrower  has  informed

Holder  in  writing  prior  to  the  date  hereof,  (b)  made  in  the  ordinary  course  of  business  or  (c)

not in excess of $150,000.

ARTICLE III. EVENTS OF DEFAULT/INDEMNITY

If  any  of  the  following  events  occur  (each,  an  "Event  of  Default"),  the  Holder  shall  be

entitled  to  consider  the  Borrower  to  be  in  default  and  this  Note  shall  become  immediately  due

and payable:

3.1  Failure  to  Pay  Principal  or  Interest.   Borrower  fails  to  pay  the  principal  hereof  or  interest

thereon when  due on this Note,  whether at  the Maturity Date,  upon  acceleration  or  otherwise.

3.2  Conversion  and  the  Shares.   Borrower  fails  to  issue  shares  of Common  Stock  to  Holder  (or

announces  or  threatens  in  writing  that  it  will  not  honor  its  obligation  to  do  so)  upon  exercise

by  Holder  of  the  conversion  rights  of  Holder  in  accordance  with  the  terms  of  this  Note,  fails  to

transfer   or   cause   its   transfer   agent   to   transfer   or   issue   any   certificate   (or   electronic

transmission)  for  shares  of  Common  Stock  issued  to  Holder  upon  conversion  of  or  otherwise

pursuant  to  this  Note  as  and  when  required  by  this  Note,  Borrower  directs  its  transfer  agent

not  to  transfer  or  delays,  impairs,  and/or  hinders  its  transfer  agent  in  transferring  (or  issui ng)

(electronically  or  in  certificated  form)  the  shares  of  Common  Stock  to  be  issued  to  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  any  stop  transfer

instructions  in  respect  thereof)  on  any  certificate  for  any  shares  of  Common  Stock  issued  to

Holder  upon  conversion  of  or  otherwise  pursuant  to  this  Note  as  and  when  required  by  this

Note  (or  makes  any  written  announcement,  statement  or  threat  that  it  does  not  intend  to  honor

the  obligations  described  in  this  paragraph)  and  any  such  failure  shall  continue  uncured  (or

any  written   announcement,  statement  or  threat  not  to  honor  its   obligations  shall  not  be

rescinded   in   writing)   for   three   (3)   business   days   after   Holder   shall   have   delivered   a

Conversion Notice.

3.3  Breach  of  Covenants.   Borrower  breaches  any  material  covenant  or  other  material  term  or

condition  contained  in  this  Note  and  any  collateral  documents  including  but  not  limited  to  the

Purchase Agreement and such breach  continues  for a period  of ten  (10) days  after  written  notice

Borrower _______________

Holder _______________

Page 13 of 21

thereof to  Borrower from  Holder.

3.4  Breach  of  Representations  and  Warranties.    Any  representation  or  warranty  of  Borrower

made   herein   or   in   any   agreement,   statement   or   certificate   given   in   pursuant   hereto   or   in

connection  herewith  (including,  without  limitation,  the  Purchase Agreement),  shall  be  false  or

misleading  in  any  material  respect  when  made  and  the  breach  of  which  has  (or  with   the

passage of time will have) a material adverse effect on the rights of  Holder with respect to this Note

or the Purchase Agreement.

3.5  Receiver  or Trustee.   Borrower  or  any subsidiary of  Borrower  shall  make an assignment for the

benefit  of  creditors,  or  apply for  or  consent  to  the  appointment  of  a  receiver  or  trustee  for  it  or  for  a

substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed.

3.6  Judgments.    Any  money  judgment,  writ  or  similar  process  shall  be  entered  or  filed  against

Borrower or any subsidiary of Borrower or any of its property or other assets for more than $50,000,

and shall remain unvacated, unbonded or unstayed  for a period of twenty (20)  days unless otherwise

consented to by Holder, which consent will not be unreasonably withheld.

3.7  Bankruptcy.  Bankruptcy,   insolvency,   reorganization  or  liquidation   proceedings  or  other

proceedings, voluntary or involuntary, for relief under any bankruptcy law or  any law  for  the  relief

of debtors shall be instituted by or against Borrower or any subsidiary of Borrower.

3.8  Delisting  of  Common  Stock.   Borrower  shall  fail  to  maintain  the  listing  of  the  Common  Stock

on a Trading Market.

3.9  Failure  to  Comply  with  the  Exchange  Act.   Borrower  shall  fail  to  comply  with  the  reporting

requirements  of  the  Exchange  Act;  and/or  Borrower  shall  cease  to  be  subject  to  the  reporting

requirements of the Exchange Act.

3.10  Liquidation.   Any  dissolution,  liquidation,  or  winding  up  of  Borrower  or  any  substantial

portion of its business.

3.11 Cessation of Operations.   Any  cessation  of  operations  by  Borrower  or  Borrower  admits  it  is

otherwise  generally unable  to  pay its  debts  as  such  debts  become  due,  provided,  however,  that  any

disclosure  of  Borrower's  ability  to  continue  as  a  "going  concern"  shall  not  be  an  admission  that

Borrower cannot pay its debts as they become due.

3.12  Maintenance  of  Assets.    The  failure  by  Borrower  to  maintain  any  material  intellectual

property  rights,  personal,  real  property  or  other  assets  which  are  necessary  to  conduct  its  business

(whether now or in the future).

3.13 Financial Statement Restatement.

The  restatement  of  any  financial  statements  filed  by

Borrower  with  the  SEC  for  any date  or  period  from  two  (2)  years  prior  to  the  Issue  Date  and  until

this  Note  is  no  longer  outstanding,  if  the  result  of  such  restatement  would,  by comparison  to  the

unrestated  financial  statement,  have  constituted  a  material  adverse  effect  on  the  rights  of  Holder

with respect to this Note or the Purchase Agreement.

Borrower _______________

Holder _______________

Page 14 of 21

3.14 Reverse Splits.   Borrower  effectuates  a  reverse  split  of  its  Common Stock without twenty

(20) days prior written notice to Holder, unless such reverse split is done pursuant to Section 2.4 of

this Note.

3.15  Replacement  of  Transfer Agent.   In  the  event  that  Borrower  proposes  to  replace  its  transfer

agent, Borrower fails to provide, prior to the effective date of such replacement, a fully executed

Irrevocable  Transfer Agent  Instructions  in  a  form  as  initially  delivered  pursuant  to  the  Purchase

Agreement  (including  but  not  limited  to  the  provision  to  irrevocably  reserve  shares  of  Common

Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and Borrower.

3.16  Cross-Default.   Notwithstanding anything to  the  contrary contained  in  this  Note or the other

related or companion documents, a breach or default by Borrower of any covenant or other term or

condition contained in any of the Other Agreements, after the passage of all applicable notice and

cure  or  grace  periods,  shall,  at  the  option  of  Holder,  be  considered  a default under this Note and

the Other Agreements, in which event  Holder shall  be entitled  (but  in  no  event  required)  to  apply

all  rights  and  remedies  of  Holder  under  the  terms  of  this  Note  and  the  Other  Agreements  by

reason  of  a  default  under  said  Other  Agreement  or  hereunder.  "Other  Agreements"  means,

collectively,  all  agreements  and  instruments  between,  among  or  by:  (i)  Borrower  or  Pledgor,

and,  or  for  the  benefit  of,  (ii)  Holder  and  any  affiliate  of  Holder,  including,  without  limitation,

the  Purchase  Agreement,  Stock  Pledge  Agreement,  and  any  promissory  notes.  Each  of  the  loan

transactions will be cross-defaulted with each other loan transaction and with all other existing and

future  debt  of  Borrower to  Holder.   Upon  the  occurrence  of  an  Event  of  Default  under Article  III,

exercisable  through  the  delivery  of  written  notice  to  Borrower  by  such  Holders  (the  "Default

Notice"),  the  Note  shall  become  immediately  due  and  payable  and  Borrower  shall  pay  to

Holder,  in  full  satisfaction  of  its  obligations  hereunder,  an  amount  equal  to  the  greater  of:  (i)

150%  times  the  sum  of  (w)  the  then  outstanding  principal  amount  of  this  Note   plus  (x)

accrued  and  unpaid  interest  on  the  unpaid  principal   amount  of  this   Note  to  the  date  of

payment  (the  "Mandatory  Prepayment  Date")  plus  (y)  Default  Interest  and  Partial  Penalty

Payment,  if  any,  on  the  amounts  referred  to  in  clauses  (w)  and/or  (x)  plus  (z)  any  amounts

owed  to  Holder  pursuant  to  Section  1.4(g) hereof (the then outstanding principal amount of this

Note  to  the  date  of  payment  plus  the  amounts  referred  to  in  clauses  (x),  (y)  and  (z)  shall

collectively  be  known  as  the  "Default  Sum")  and  (ii)  the  "parity  value"  of  the  Default  Sum

to  be  prepaid,  where  parity  value  means:  (a)  the  highest  number  of  shares  of  Common  Stock

issuable  upon  conversion  of  or  otherwise  pursuant  to  such  Default  Sum  in  accordance  with

Article  I,  treating  the Trading  Day  immediately  preceding  the  Mandatory  Prepayment  Date  as

the  Conversion  Date  for  purposes  of  determining  the  lowest  applicable  Conversion  Price,

unless  the  Event  of  Default  arises  as  a  result  of  a  breach  in  respect  of  a  specific  Conversion

Date  in  which  case  such  Conversion  Date  sha ll  be  the  Conversion  Date),  multiplied  by  (b)

the highest Closing Price for the Common Stock during the  period  beginning on the date of first

occurrence  of  the  Event  of  Default  and  ending  one  day  prior  to  the  Mandatory  Prepayment

Date  (the  "Default  Amount")  and  all  other  amounts  payable  hereunder  shall  immediately

become  due  and  payable,  all  without  demand,  presentment  or  notice,  all  of  which  hereby  are

expressly   waived,   together   with   all   costs,   including,   without   limitation,   legal   fees   and

expenses,  of  collection,  and  Holder  shall  be  entitled  to  exercise  all  other  rights  and  remedies

available  at  law  or  in  equity.  If  Borrower  fails  to  pay  the  Default  Amount  within  five  (5)

Borrower _______________

Holder _______________

Page 15 of 21

business days  of written  notice  that such amount is due and payable, then  Holder shall have the

right at any time, so long as  Borrower remains in default (and so long and to the extent that there

are  sufficient  authorized  shares),  to  require  Borrower,  upon  written  notice,  to  immediately issue,

in  lieu  of  the  Default  Amount  (or  any  part  thereof),  the  number  of  shares  of  Common  Stock  of

Borrower  equal  to  the  Default  Amount  (or  any  part  thereof)  divided  by  the  Conversion  Price

then in effect.

3.17  Par  Value  of  Common  Stock.  Borrower  shall  fail  to  have  the  appropriate  Common  Stock

par value in accordance with Section 2.3 of this Note.

3.18  Mandatory  Reverse  Stock  Split.  Borrower  shall  fail  to  have  its  Common  Stock  undergo  a

reverse stock split in accordance with Section 2.4 of this Note.

3.19 Current status of SEC reports. Borrower shall fail  to regain current status with respect to its

SEC reports within 14 days of the date hereof.

3.20   Indemnification  of  Holder.    In  addition  to  any  other  remedies  available  to  the  Holder,

Borrower   will,   at   all   times,   indemnify,   save,   and   hold   harmless   Holde r   and   its   officers,

directors,   employees,   and  agents   from  and  against   all  sums   and   expenses,   claims,  costs,

charges,  legal  fees,  collection  fees,  disbursements,  and  expenses  of  very  kind  and  nature

associated  with  a  breach  of  this  Agreement  by  Borrower,  including,  but  not  limited  to,  any

breach of a representation, warranty, or covenant  made by Borrower.

ARTICLE IV.  MISCELLANEOUS

4.1  Failure  or  Indulgence  Not  Waiver.  No  failure  or  delay  on  the  part  of  Holder  in  the

exercise  of  any  power,  right  or  privilege  hereunder  shall  operate  as  a  waiver  thereof,  nor

shall  any  single  or  partial  exercise  of  any  such  power,  right  or  privilege  preclude  other  or

further  exercise  thereof  or  of  any  other  right,  power  or  privileges.  All  rights  and  remedies

existing  hereunder  are  cumulative  to,  and  not  exclusive  of,  any  rights  or  remedies  otherwise

available.

4.2    Notices.    All     notices,     demands,     requests,     consents,     approvals,     and     other

communications   required   or   permitted   hereunder   shall   be   in   writing   and,   unless

otherwise   specified   herein,   shall   be   (i)   personally   served,   (ii)   deposited   in   the   mail,

registered   or   certified,   return   receipt   requested,   postage   prepaid,   (iii)   delivered   by

reputable  air  courier  service  with  charges  prepaid,  or  (iv)  transmitted  by  hand  delivery,

telegram,  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  the  first  business  day  following

such  delivery  (if  delivered  other  than  on  a  business  day  during  normal  business  hours  where

such  notice  is  to  he  received)  or  (b)  on  the  second  business  day  following  the  date  of  mailing

Borrower _______________

Holder _______________

Page 16 of 21

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 Borrower, to:

MineralRite Corporation

55 South Geneva Road

Lindon, Utah 84042

Attn: Guy Peckham

Telephone:  801-796-8944

Email: info@mineralrite.com

If to Holder, to:

River North Equity, Inc.

360 W. Hubbard St., Unit 2801

Chicago, Illinois 60654

Attn:  Edward Liceaga

Telephone:  (312)-643-0280

E-mail: Edward@rivernorthequity.com

4.3  Amendments.  This  Note  and  any  provision  hereof  may  only  be  amended  by  an  instrument

in  writing  signed  by  Borrower  and  Holder.  The  term  "Note"  and  all  reference  thereto,  as

used throughout this instrument, shall mean this instrument (and the other  Notes issued pursuant

to  the  Purchase  Agreement)  as  originally executed,  or  if  later  amended  or  supplemented,  then  as

so amended or supplemented.

4.4  Assignability.  This  Note  shall  be  binding  upon  Borrower  and  its  successors  and

assigns,   and   shall   inure   to   the   benefit   of   Holder   and   its   successors   and   assigns.   Each

transferee  of  this  Note  must  be  an  "accredited  investor"  as  defined  in  Rule  501(a)  of  the  1933

Act.  Notwithstanding  anything  in  this  Note  to  the  contrary,  this  Note  may  be  pledged  as

collateral  in  connection  with  a  bona  fide  margin  account  or  other  lending  arrangement   in

compliance with applicable securities rules and regulations.

4.5  Cost  of  Collection.  If  default  is  made  in  the  payment  of  this  Note,  Borrower  shall  pay

Holder hereof all costs of collection, including reasonable attorneys' fees.

4.6  Governing  Law.  This  Note  shall  be  governed  by  and  construed  in  accordance  with  the  laws

of  the  State  of  Illinois  without  regard  to  principles  of  conflicts  of  laws. Any  action  brought  by

either  party  against  the  other  concerning  the  transactions  contemplated  by  this  Note  shall  be

brought  only  in  the  state  courts  of  Illinois  or  in  the  federal  courts  located  in  Cook  County. The

parties  to  this  Note  hereby  irrevocably  waive  any  objection  to  jurisdiction  and  venue  of  any

Borrower _______________

Holder _______________

Page 17 of 21

action  instituted  hereunder  and  shall  not  assert  any  defense  based  on  lack  of  jurisdiction  or

venue  or  based  upon  forum  non  conveniens.  Borrower  and  Holder  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  Note  or  any  other  agreement  delivered  in

connection  herewith  is  invalid  or  unenforceable  under  any  applicable  statute  or  rule  of  law,

then  such  provisions  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  Note,  or  any  other  agreement/document  related  to  it,  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  pr ocess  and  notice

thereof.  Nothing  contained  herein  shall  be  deemed  to  limit  in  any  way  any  right  to  serve

process in any other  manner permitted  by law.

4.7  Convertible  Note  Purchase  Agreement.  By  its  acceptance  of  this  Note,  each  party  agrees  to

be  bound  by  the  applicable  terms  of  the  Convertible  Note  Purchase  Agreement  dated  January

__, 2015.

4.8  Notice of Corporate Events.  Except  as  otherwise provided  below,  Holder  of this  Note shall

have  no  rights  as  a  Holder  of  Common  Stock  unless  and  only to  the  exte nt  that  it  converts  this

Note  into  Common   Stock.   Borrower   shall   provide   Holder   with   prior  notification   of  any

meeting  of  Borrower's  shareholders  (and  copies  of  proxy  materials  and  other  information  sent

to  shareholders).  In  the  event  of  any taking  by  Borrower  of  a  record  of  its  shareholders  for  the

purpose  of  determining  shareholders  who  are  entitled  to  receive  payment  of  any  dividend  or

other distribution, any right to subscribe for, purchase or otherwise acquire (including by way of

merger,  consolidation,  reclassification  or  recapitalization)  any  share  of  any  class  or  any  other

securities or property, or to receive any other right, or for the purpose of determining shareholders

who  are  entitled  to  vote  in  connection  with  any  proposed  sale,  lease  or  conveyance  of  all  or

substantially  all  of  the  assets  of  Borrower  or  any  proposed  liquidation,  dissolution  or  winding

up  of  Borrower,  Borrower  shall  mail  a  notice  to  Holder,  at  least  twenty  (20)  days  prior  to  the

record  date  specified  therein  (or thirty (30)  days  prior to  the  consummation  of  the  transaction  or

event, whichever is earlier),  of the date on which any such  record is to  be taken  for the purpose

of  such  dividend,  distribution,  right  or  other  event,  and  a  brief  statement  regarding  the  amount

and  character  of  such  dividend,  distribution,  right  or  other  event  to  the  extent  known  at  such

time.  Borrower  shall  make  a  public  announcement  of  any  event   requiring   notification   to

Holder  hereunder  substantially  simultaneously  with  the  notification  to  Holder  in  accordance

with the terms of this Section 4.9.

4.9  Remedies.  Borrower  acknowledges  that  a  breach  by  it  of  its  obligations  hereunder

will  cause  irreparable  harm  to  Holder,  by  vitiating  the  intent  and  purpose  of  the  transaction

contemplated  hereby. Accordingly,  Borrower  acknowledges  that  the remedy at law for a breach

of  its  obligations  under  this  Note  will  be  inadequate  and  agrees,  in  the  event  of  a  breach  or

threatened  breach  by  Borrower  of  the  provisions  of  this  Note,  that  Holder  shall  be  entitled,  in

Borrower _______________

Holder _______________

Page 18 of 21

addition  to  all  other  available  remedies  at  law  or  in  equity,  and  in  addition  to  the  penalties

assessable  herein,  to  an  injunction  or  injunctions  restraining,  preventing  or  curing  any  breach

of  this  Note  and  to  enforce  specifically  the  terms  and  provisions  thereof,  without  the  necessity

of showing economic loss and without any bond or other security being  required.

[THE  REMAINDER  OF  THIS  PAGE  HAS  DELIBERATELY  BEEN  LEFT

BLANK]

Borrower _______________

Holder _______________

Page 19 of 21

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

written above.

SIGNED by: Edward M. Liceaga

|

for and on behalf of

|

River North Equity, Inc.

|

|

Signature: ____________________

|

|

SIGNED by: ____________________

|

for and on behalf of

|

MineralRite Corporation

Signature: ____________________

|

|

|

|

Borrower _______________

Holder _______________

Page 20 of 21

EXHIBIT C:  NOTICE OF CONVERSION

The  undersigned  hereby  elects  to  convert  $[  ____________]  of  the  Note  (defined  below)  into  the

number  of  shares  of  Common  Stock  of  MineralRite  Corporation  (the  "Borrower")  to  be  issued

pursuant  to  the  conversion  of  the  Note  as  set  forth  below  according  to  the  conditions  of  the

Convertible  Promissory  Note  of  Borrower  dated  January  __,  2015  (the  "Note").  No  fee  will  be

charged to Holder for any conversion, except for transfer taxes, if any.

Box Checked as to applicable instructions:

☐  The  Borrower  shall  electronically  transmit  the  Common  Stock  issuable  pursuant   to  this

Conversion  Notice  to  the  account  of  the  undersigned  or  its  nominee  with  DTC  through  its

Deposit Withdrawal Agent Commission system ("DWAC  Transfer"). This election shall only

be  effective  if  the  Company's  transfer  agent  is  a  participating  member  of  DTC's  DWAC

program and the Borrower is DWAC eligible.

Name of DTC Prime Broker:

Account Number:

☐  The  undersigned  hereby  requests  that  the  Borrower  issue  a  certificate  or  certificates for

the  number  of  shares  of  Common  Stock  set  forth  below  (which  numbers  are  based  on  the

Holder's   calculation   attached   hereto)   in   the   name(s)   specified   immediately  below   or,   if

additional space is necessary, on an attachment hereto:

River North Equity, Inc.

360 W. Hubbard St., Unit 2801

Chicago, Illinois 60654

T (312)-643-0280

Date of Conversion:  ________________

Applicable Conversion Price:  ________________

Number of Shares of Common Stock to be Issued:  ________________

Pursuant to Conversion of the Notes:

Amount of Principal Balance Due remaining under the Note after this conversion:

Borrower _______________

Holder _______________

Page 21 of 21

River North Equity, Inc.

By:  ___________________________

Name: Edward M. Liceaga

Title:  President

Date: __________________________

Borrower _______________

Holder _______________

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