Document:

Note:
November 9, 2017

 

NEITHER
THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES
AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. 

 

THIS
NOTE DOES NOT REQUIRE PHYSICAL SURRENDER OF THE NOTE IN THE EVENT OF A PARTIAL REDEMPTION OR CONVERSION. AS A RESULT, FOLLOWING
ANY REDEMPTION OR CONVERSION OF ANY PORTION OF THIS NOTE, THE OUTSTANDING PRINCIPAL SUM REPRESENTED BY THIS NOTE MAY BE LESS THAN
THE PRINCIPAL SUM AND ACCRUED INTEREST SET FORTH BELOW.

 

10%
FIXED CONVERTIBLE PROMISSORY NOTE

 

OF

 

KINERJAPAY
CORP.

 

Issuance
Date: November 9, 2017

Total
Face Value of Note: $330,000

Initial
Consideration: $150,000

Initial
Original Issue Discount: $15,000

Initial
Principal Sum Due: $165,000

 

This
Note is a duly authorized Fixed Convertible Promissory
Note of KinerjaPay Corp., a corporation duly organized and existing under the laws of the State of Delaware (the
“Company”), designated as the Company’s 10% Fixed Convertible Promissory Note in the principal amount
of $330,000 (the “Note”). This Note will become effective only upon execution by both parties and delivery
of the first payment of consideration by the Holder (the “Effective Date”).

 

For
Value Received, the Company hereby promises to
pay to the order of Tangiers Global, LLC or its registered assigns or successors-in-interest (the “Holder”)
the Principal Sum of $330,000 (the “Principal Sum”) and to pay “guaranteed” interest on the principal
balance hereof at an amount equivalent to 10% of the Principal Sum, to the extent such Principal Sum and “guaranteed”
interest and any other interest, fees, liquidated damages and/or items due to Holder herein have not been repaid or converted
into the Company’s Common Stock (the “Common Stock”), in accordance with the terms hereof. The sum of
$150,000 shall be remitted and delivered to the Company, and $15,000 shall be retained by the Holder through an original issue
discount (the “OID”) for due diligence and legal bills related to this transaction. The OID is set at 10% of
any consideration paid. The Company covenants that within three (3) months of the Effective Date of the Note, it shall utilize
approximately $150,000 of the proceeds in the manner set forth on Schedule 1, attached hereto (the “Use of Proceeds”),
and shall promptly provide evidence thereof to Holder, in sufficient detail as reasonably requested by Holder.

 

The
Holder may pay additional consideration (each, a “Consideration”) to the Company in such amounts and at such
dates (each, an “Additional Consideration Date”) as Holder may choose in its sole discretion. The Principal
Sum due to Holder shall be prorated based on the Consideration actually paid by Holder (plus the “guaranteed” interest
and 10% OID, both which are prorated based on the Consideration actually paid by the Holder, as well as any other interest or
fees) such that the Company is only required to repay the amount funded and the Company is not required to repay any unfunded
portion of this Note. The Maturity Date is seven and one-half (7.5) months from the Effective Date of each payment (the
“Maturity Date”) and is the date upon which the Principal Amount of this Note, as well as any unpaid
interest and other fees, shall be due and payable.

 

    	 	1	 

    	 	 	 

    

 

In
addition to the “guaranteed” interest referenced above, and in the Event of Default pursuant to Section 2.00(a), additional
interest will accrue from the date of the Event of Default at the rate equal to the lower of 20% per annum or the highest rate
permitted by law (the “Default Rate”).

 

This
Note will become effective only upon the execution by both parties, including the execution of Exhibits B, C, D, E and the Irrevocable
Transfer Agent Instructions (the “Date of Execution”) and delivery of the initial payment of consideration
by the Holder (the “Effective Date”).

 

As
an investment incentive, the Company will issue to the Holder 200,000 5-year cashless warrants, exercisable at a price of $2.00
per share.

 

This
Note may be prepaid by the Company, in whole or in part, according to the following schedule:

 

	Days
    Since Effective Date	 	Prepayment
    Amount
	Under
    90	 	120%
    of Principal Amount
	91-135	 	130%
    of Principal Amount
	136-180	 	140%
    of Principal Amount

 

After
180 days from the Effective Date this Note may not be prepaid without written consent from Holder, which consent may be withheld,
delayed or denied in Holder’s sole and absolute discretion. Whenever any amount expressed to be due by the terms of this
Note is due on any day which is not a Business Day (as defined below), the same shall instead be due on the next succeeding day
which is a Business Day. If the Note is in default, per Section 2.00(a) below, the Company may not prepay the Note without written
consent of the Holder.

 

For
purposes hereof, the following terms shall have the meanings ascribed to them below:

 

“Business
Day” shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the City of New York
are authorized or required by law or executive order to remain closed.

 

“Conversion
Price” shall be fixed at a price equal to -$1.25.

 

“Principal
Amount” shall refer to the sum of (i) the original principal amount of this Note (including the original issue discount,
prorated if the Note has not been funded in full), (ii) all guaranteed and other accrued but unpaid interest hereunder, (iii)
any fees due hereunder, (iv) liquidated damages, and (v) any default payments owing under the Note, in each case previously paid
or added to the Principal Amount.

 

“Principal
Market” shall refer to the primary exchange on which the Company’s common stock is traded or quoted.

 

“Trading
Day” shall mean a day on which there is trading or quoting for any security on the Principal Market.

 

“Underlying
Shares” means the shares of common stock into which the Note is convertible (including interest, fees, liquidated
damages and/or principal payments in common stock as set forth herein) in accordance with the terms hereof.

 

The
following terms and conditions shall apply to this Note:

 

    	 	2	 

    	 	 	 

    

 

Section
1.00 Conversion.

 

(a)
Conversion Right. Subject to the terms hereof and restrictions and limitations contained herein, the Holder shall have
the right, at the Holder’s sole option, at any time and from time to time to convert in whole or in part the outstanding
and unpaid Principal Amount under this Note into shares of Common Stock as per the Conversion Price, but not to exceed the Restricted
Ownership Percentage, as defined in Section 1.00(f). The date of any conversion notice (“Conversion Notice”)
hereunder shall be referred to herein as the “Conversion Date”. The Conversion Price shall be equitably adjusted
in the event of a forward split, stock dividend, or the like, but shall not be adjusted in the event of a reverse split, recombination,
or the like.

 

(b)
Stock Certificates or DWAC. The Company will deliver to the Holder, or Holder’s authorized designee, no later than
2 Trading Days after the Conversion Date, a certificate or certificates (which certificate(s) shall be free of restrictive legends
and trading restrictions if the shares of Common Stock underlying the portion of the Note being converted are eligible under a
resale exemption pursuant to Rule 144(b)(1)(ii) and Rule 144(d)(1)(ii) of the Securities Act of 1933, as amended) representing
the number of shares of Common Stock being acquired upon the conversion of this Note. In lieu of delivering physical certificates
representing the shares of Common Stock issuable upon conversion of this Note, provided the Company’s transfer agent is
participating in Depository Trust Company’s (“DTC”) Fast Automated Securities Transfer (“FAST”)
program, the Company shall instead use commercially reasonable efforts to cause its transfer agent to electronically transmit
such shares issuable upon conversion to the Holder (or its designee), by crediting the account of the Holder’s (or such
designee’s) broker with DTC through its Deposits and Withdrawal at Custodian (“DWAC”) program (provided
that the same time periods herein as for stock certificates shall apply).

 

(c)
Charges and Expenses. Issuance of Common Stock to Holder, or any of its assignees, upon the conversion of this Note shall
be made without charge to the Holder for any issuance fee, transfer tax, legal opinion and related charges, postage/mailing charge
or any other expense with respect to the issuance of such Common Stock. Company shall pay all Transfer Agent fees incurred from
the issuance of the Common Stock to Holder, as well as any and all other fees and charges required by the Transfer Agent as a
condition to effectuate such issuance. Any such fees or charges, as noted in this Section that are paid by the Holder (whether
from the Company’s delays, outright refusal to pay, or otherwise), will be automatically added to the Principal Sum of the
Note and tack back to the Effective Date for purposes of Rule 144.

 

(d)
Delivery Timeline. If the Company fails to deliver to the Holder such certificate or certificates (or shares through the
DWAC program) pursuant to this Section (free of any restrictions on transfer or legends, if eligible) prior to 3 Trading Days
after the Conversion Date, the Company shall pay to the Holder as liquidated damages an amount equal to $2,000 per day, until
such certificate or certificates are delivered. The Company acknowledges that it would be extremely difficult or impracticable
to determine the Holder’s actual damages and costs resulting from a failure to deliver the Common Stock and the inclusion
herein of any such additional amounts are the agreed upon liquidated damages representing a reasonable estimate of those damages
and costs. Such liquidated damages will be automatically added to the Principal Sum of the Note and tack back to the Effective
Date for purposes of Rule 144.

 

(e)
Reservation of Underlying Securities. The Company covenants that it will at all times reserve and keep available for Holder,
out of its authorized and unissued Common Stock solely for the purpose of issuance upon conversion of this Note, free from preemptive
rights or any other actual contingent purchase rights of persons other than the Holder, five times the number of shares
of Common Stock as shall be issuable (taking into account the adjustments under this Section 1.00, but without regard to any ownership
limitations contained herein) upon the conversion of this Note (consisting of the Principal Amount), under the formula in Section
Section 2.00(c) below, to Common Stock (the “Required Reserve”). The Company covenants that all shares of Common
Stock that shall be issuable will, upon issue, be duly authorized, validly issued, fully-paid, non-assessable and freely-tradable
(if eligible). If the amount of shares on reserve in Holder’s name at the Company’s transfer agent for this Note shall
drop below the Required Reserve, the Company will, within 2 Trading Days of notification from Holder, instruct the transfer agent
to increase the number of shares so that the Required Reserve is met. In the event that the Company does not instruct the transfer
agent to increase the number of shares so that the Required Reserve is met, the Holder will be allowed, if applicable, to provide
this instruction as per the terms of the Irrevocable Transfer Agent Instructions attached to this Note. The Company agrees that
the maintenance of the Required Reserve is a material term of this Note and any breach of this Section 1.00(e) will result in
a default of the Note.

 

(f)
Conversion Limitation. The Holder will not submit a conversion to the Company that would result in the Holder beneficially
owning more than 9.99% of the then total outstanding shares of the Company (“Restricted
Ownership Percentage”).

 

    	 	3	 

    	 	 	 

    

 

(g)
Conversion Delays. If the Company fails to deliver shares in accordance with the timeframe stated in Section 1.00(b), the
Holder, at any time prior to selling all of those shares, may rescind any portion, in whole or in part, of that particular conversion
attributable to the unsold shares. The rescinded conversion amount will be returned to the Principal Sum with the rescinded conversion
shares returned to the Company, under the expectation that any returned conversion amounts will tack back to the Effective Date.

 

(h)
Shorting and Hedging. Holder may not engage in any “shorting” or “hedging” transaction(s) in the
Common Stock of the Company prior to conversion.

 

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

 

Section
2.00 Defaults and Remedies.

 

(a)
Events of Default. An “Event of Default” is: (i) a default in payment of any amount due hereunder which
default continues for more than 5 Trading Days after the due date; (ii) a default in the timely issuance of underlying shares
upon and in accordance with terms of Section 1.00, which default continues for 2 Trading Days after the Company has failed to
issue shares or deliver stock certificates within the 3rd Trading Day following the Conversion Date; (iii) if the Company does
not issue the press release or file the Current Report on Form 8-K, in each case in accordance with the provisions and the deadlines
referenced Section 4.00(i); (iv) failure by the Company for 3 days after notice has been received by the Company to comply with
any material provision of this Note; (v) failure of the Company to remain compliant with DTC, thus incurring a “chilled”
status with DTC; (vi) any default of any mortgage, indenture or instrument which may be issued, or by which there may be secured
or evidenced any indebtedness, for money borrowed by the Company or for money borrowed the repayment of which is guaranteed by
the Company, whether such indebtedness or guarantee now exists or shall be created hereafter; (vii) if the Company is subject
to any Bankruptcy Event; (viii) any failure of the Company to satisfy its “filing” obligations under Securities Exchange
Act of 1934, as amended (the “1934 Act”) and the rules and guidelines issued by OTC Markets News Service, OTCMarkets.com
and their affiliates; (ix) failure of the Company to remain in good standing under the laws of its state of domicile; (x) any
failure of the Company to provide the Holder with information related to its corporate structure including, but not limited to,
the number of authorized and outstanding shares, public float, etc. within 1 Trading Day of request by Holder; (xi) failure by
the Company to maintain the Required Reserve in accordance with the terms of Section 1.00(e); (xii) failure of Company’s
Common Stock to maintain a closing bid price in its Principal Market for more than 3 consecutive Trading Days; (xiii) any delisting
from a Principal Market for any reason; (xiv) failure by Company to pay any of its Transfer Agent fees in excess of $2,000 or
to maintain a Transfer Agent of record; (xv) failure by Company to notify Holder of a change in Transfer Agent within 24 hours
of such change; (xvi) any trading suspension imposed by the United States Securities and Exchange Commission (the “SEC”)
under Sections 12(j) or 12(k) of the 1934 Act; (xvii) failure by the Company to meet all requirements necessary to satisfy the
availability of Rule 144 to the Holder or its assigns, including but not limited to the timely fulfillment of its filing requirements
as a fully-reporting issuer registered with the SEC, requirements for XBRL filings, and requirements for disclosure of financial
statements on its website; (xviii) failure of the Company to abide by the Use of Proceeds or failure of the Company to inform
the Holder of a change in the Use of Proceeds; or (xix) failure of the Company to abide by the terms of the right of first refusal
contained in Section 4.00(k).

 

(b)
Remedies. If an Event of Default occurs, the outstanding Principal Amount of this Note owing in respect thereof through
the date of acceleration, shall become, at the Holder’s election, immediately due and payable in cash at the “Mandatory
Default Amount”. The Mandatory Default Amount means 40% of the outstanding Principal Amount of this Note, will be automatically
added to the Principal Sum of the Note and tack back to the Effective Date for purposes of Rule 144. Commencing 5 days after the
occurrence of any Event of Default that results in the eventual acceleration of this Note, this Note shall accrue additional interest,
in addition to the Note’s “guaranteed” interest, at a rate equal to the lesser of 20% per annum or the maximum
rate permitted under applicable law. In connection with such acceleration described herein, the Holder need not provide, and the
Issuer hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without
expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it
under applicable law. Such acceleration may be rescinded and annulled by the Holder at any time prior to payment hereunder and
the Holder shall have all rights as a holder of the note until such time, if any, as the Holder receives full payment pursuant
to this Section 2.00(b). No such rescission or annulment shall affect any subsequent event of default or impair any right consequent
thereon. Nothing herein shall limit the Holder’s right to pursue any other remedies available to it at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Issuer’s failure
to timely deliver certificates representing shares of Common Stock upon conversion of the Note as required pursuant to the terms
hereof.

 

    	 	4	 

    	 	 	 

    

 

(c)
Conversion Right. At any time and from time to time after a default occurs solely due to the fact the Note is not retired
on or before the Maturity Date (“Maturity Default”), subject to the terms hereof and restrictions and limitations
contained herein, the Holder shall have the right, at the Holder’s sole option, to convert in whole or in part the outstanding
and unpaid Principal Amount under this Note into shares of Common Stock at the Maturity Default Conversion Price. The “Maturity
Default Conversion Price” shall be equal to the lower of: (a) the Conversion Price or (b) 65% of the average
of the two lowest trading prices of the Company’s common stock during the 20 consecutive Trading Days prior to the date
on which Holder elects to convert all or part of the Note. For the purpose of calculating the Maturity Default Conversion Price
only, any time after 4:00 pm Eastern Time (the closing time of the Principal Market) shall be considered to be the beginning of
the next Business Day. If the Company is placed on “chilled” status with the DTC, the discount shall be increased
by 10%, i.e., from 35% to 45%, until such chill is remedied. If the Company is not DWAC eligible through their Transfer
Agent and DTC’s FAST system, the discount will be increased by 5%, i.e., from 35% to 40%. In the case of both,
the discount shall be a cumulative increase of 15%, i.e., from 35% to 50%.

 

Section
3.00 Representations and Warranties of Holder.

 

Holder
hereby represents and warrants to the Company that:

 

(a)
Holder is an “accredited investor,” as such term is defined in Regulation D of the Securities Act of 1933, as amended
(the “1933 Act”), and will acquire this Note and the Underlying Shares (collectively, the “Securities”)
for its own account and not with a view to a sale or distribution thereof as that term is used in Section 2(a)(11) of the 1933
Act, in a manner which would require registration under the 1933 Act or any state securities laws. Holder has such knowledge and
experience in financial and business matters that such Holder is capable of evaluating the merits and risks of the Securities.
Holder can bear the economic risk of the Securities, has knowledge and experience in financial business matters and is capable
of bearing and managing the risk of investment in the Securities. Holder recognizes that the Securities have not been registered
under the 1933 Act, nor under the securities laws of any state and, therefore, cannot be resold unless the resale of the Securities
is registered under the 1933 Act or unless an exemption from registration is available. Holder has carefully considered and has,
to the extent Holder believes such discussion necessary, discussed with its professional, legal, tax and financial advisors, the
suitability of an investment in the Securities for its particular tax and financial situation and its advisers, if such advisors
were deemed necessary, and has determined that the Securities are a suitable investment for it. Holder has not been offered the
Securities by any form of general solicitation or advertising, including, but not limited to, advertisements, articles, notices
or other communications published in any newspaper, magazine, or other similar media or television or radio broadcast or any seminar
or meeting where, to Holders’ knowledge, those individuals that have attended have been invited by any such or similar means
of general solicitation or advertising. Holder has had an opportunity to ask questions of and receive satisfactory answers from
the Company, or any person or persons acting on behalf of the Company, concerning the terms and conditions of the Securities and
the Company, and all such questions have been answered to the full satisfaction of Holder. The Company has not supplied Holder
any information regarding the Securities or an investment in the Securities other than as contained in this Agreement, and Holder
is relying on its own investigation and evaluation of the Company and the Securities and not on any other information.

 

(b)
The Holder is a limited liability company duly organized, validly existing and in good standing under the laws of the state of
its incorporation and has all requisite corporate power and authority to carry on its business as now conducted. The Holder is
duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have
a material adverse effect on its business or properties.

 

(c)
All corporate action has been taken on the part of the Holder, its officers, directors and stockholders necessary for the authorization,
execution and delivery of this Note. The Holder has taken all corporate action required to make all of the obligations of the
Holder reflected in the provisions of this Note, valid and enforceable obligations.

 

    	 	5	 

    	 	 	 

    

 

(d)
Each certificate or instrument representing Securities will be endorsed with the following legend (or a substantially similar
legend), unless or until registered under the 1933 Act or exempt from registration:

 

THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES,
THE TRANSFER IS MADE IN COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR
THE HOLDER OF THESE SECURITIES WHICH IS REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR
HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

 

Section
4.00 General.

 

(a)
Payment of Expenses. The Company agrees to pay all reasonable charges and expenses, including attorneys’ fees and
expenses, which may be incurred by the Holder in successfully enforcing this Note and/or collecting any amount due under this
Note.

 

(b)
Assignment, Etc. The Holder may assign or transfer this Note to any transferee at its sole discretion. This Note shall
be binding upon the Company and its successors and shall inure to the benefit of the Holder and its successors and permitted assigns.

 

(c)
Amendments. This Note may not be modified or amended, or any of the provisions of this Note waived, except by written agreement
of the Company and the Holder.

 

(d)
Funding Window. The Company agrees that it will not enter into a convertible debt financing transaction, including 3(a)9
and 3(a)10 transactions, with any party other than the Holder for a period of 90 Trading Days following the Effective Date and
each Additional Consideration Date, as relevant. The Company agrees that this is a material term of this Note and any breach of
this Section 4.00(d) will result in a default of the Note.

 

(e)
Terms of Future Financings. So long as this Note is outstanding, upon any issuance by the Company or any of its subsidiaries
of any convertible debt security (whether such debt begins with a convertible feature or such feature is added at a later date)
with any term more favorable to the holder of such security or with a term in favor of the holder of such security that was not
similarly provided to the Holder in this Note, then the Company shall notify the Holder of such additional or more favorable term
and such term, at the Holder’s option, shall become a part of this Note and its supporting documentation.. The types of
terms contained in the other security that may be more favorable to the holder of such security include, but are not limited to,
terms addressing conversion discounts, conversion look back periods, interest rates, original issue discount percentages and warrant
coverage.

 

(f)
Governing Law; Jurisdiction.

 

(i)
Governing Law. This Note will be governed by, and construed and interpreted in
accordance with, the laws of the Commonwealth of Puerto Rico without regard to any conflicts of laws or provisions thereof that
would otherwise require the application of the law of any other jurisdiction.

 

(ii)
Jurisdiction and Venue. Any dispute, claim,
suit, action or other legal proceeding arising out of or relating to this Note or the rights and obligations of each of the parties
shall be brought only in the San Juan, Puerto Rico or in the federal courts of the United States of America located in San Juan,
Puerto Rico.

 

(iii)
No Jury Trial. The Company hereto knowingly and voluntarily waives any and all rights it may have to a trial by jury with
respect to any litigation based on, or arising out of, under, or in connection with, this Note.

 

    	 	6	 

    	 	 	 

    

 

(iv)
Delivery of Process by the Holder to the Company. In the event of an action or proceeding by the Holder against the Company,
and only by the Holder against the Company, service of copies of summons and/or complaint and/or any other process that may be
served in any such action or proceeding may be made by the Holder via U.S. Mail, overnight delivery service such as FedEx or UPS,
email, fax, or process server, or by mailing or otherwise delivering a copy of such process to the Company at its last known attorney
as set forth in its most recent SEC filing.

 

(v)
Notices. Any notice required or permitted hereunder (including Conversion Notices) must be in writing and either personally
served, sent by facsimile or email transmission, or sent by overnight courier. Notices will be deemed effectively delivered at
the time of transmission if by facsimile or email, and if by overnight courier the business day after such notice is deposited
with the courier service for delivery.

 

(g)
No Bad Actor. No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act of 1933,
as amended, on the basis of being a “bad actor” as that term is established in the September 13, 2013 Small Entity
Compliance Guide published by the SEC.

 

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

 

(i)
Securities Laws Disclosure; Publicity. The Company shall (a) by 9:30 a.m. Eastern Time on the Trading Day immediately following
the Date of Execution, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file
a Current Report on Form 8-K, including a copy of this Note as an exhibit thereto, with the SEC within the time required by the
1934 Act. From and after the filing of such press release, the Company represents to the Holder that it shall have publicly disclosed
all material, non-public information delivered to the Holder by the Company, or any of its officers, directors, employees, or
agents in connection with the transactions contemplated by this Note. The Company and the Holder shall consult with each other
in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company nor the Holder
shall issue any such press release nor otherwise make any such public statement without the prior consent of the Company, with
respect to any press release of the Holder, or without the prior consent of the Holder, with respect to any press release of the
Company, none of which consents shall be unreasonably withheld, delayed, denied, or conditioned except if such disclosure is required
by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or
communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of the Holder, or include the name
of the Holder in any filing with the SEC or any regulatory agency or Principal Market, without the prior written consent of the
Holder, except to the extent such disclosure is required by law or Principal Market regulations, in which case the Company shall
provide the Holder with prior notice of such disclosure permitted hereunder.

 

The
Company agrees that this is a material term of this Note and any breach of this Section 4.00(i) will result in a default of the
Note.

 

    	 	7	 

    	 	 	 

    

 

(j)
Attempted Below-par Issuance. In the event that (i) any requested conversion hereunder shall be at a Conversion Price that
is less than then-current par value of the Company’s Common Stock and that any or all of such requested conversion would
be precluded by state law or otherwise and (ii) within three business days of the requested conversion, the Company shall not
have reduced its par value such that all of the requested conversion may then be accomplished, then the Company and the Holder
agree to the following conversion protocol: the Holder shall generate and transmit to the Company (X) a “preliminary”
Conversion Notice for the full number of shares of Common Stock of the above-referenced conversion at the Conversion Price without
regard to any below-par value conversion issues; (Y) a “par value” Conversion Notice for the number of shares of Common
Stock for the above-referenced conversion with the Conversion Price increased from the Conversion Price set forth in the “preliminary”
Conversion Notice to a Conversion Price at par value; and (Z) a “liquidated damages” Conversion Notice for that number
of shares of Common Stock that represents the difference between the number of shares of Common Stock in the “preliminary”
Conversion Notice and the number of shares of Common Stock in the “par value” Conversion Notice and the Conversion
Price of such “liquidated damages Common Shares” would be the par value of the Common Stock. The Company acknowledges
that any failure by it to provide the Holder with its full conversion rights under this Note (as a result of a proposed “below
par” conversion) will cause the Holder to incur substantial economic damages and losses of types and in amounts that are
impossible to compute and ascertain with certainty as a basis for recovery by the Holder of actual damages and that liquidated
damages would represent a fair, reasonable, and appropriate estimate thereof. Accordingly, in the event that the Holder is precluded
from exercising any or all of its conversion rights hereunder as a result of a proposed “below par” conversion, the
Company agrees that, in lieu of actual damages for such failure, liquidated damages may be assessed and recovered by the Holder
without being required to present any evidence of the amount or character of actual damages sustained by reason thereof. The amount
of such liquidated damages shall be an amount equivalent to the trading price (without discount) utilized in the “preliminary”
Conversion Notice multiplied by the number of shares calculated on the “liquidated damages” Conversion Notice. Such
amount shall be assessed and become immediately due and payable to the Holder (at its election) in the form of a cash payment,
an addition to the Principal Sum of this Note, or the immediate issuance of that number of shares of Common Stock as calculated
on the “liquidated damages” Conversion Notice. Such liquidated damages are intended to represent estimated actual
damages and are not intended to be a penalty, but, by virtue of their genesis and subject to the election of the Holder (as set
forth in the immediately preceding sentence), will be automatically added to the Principal Sum of the Note and tack back to the
Effective Date for purposes of Rule 144.

 

(k)
Right of First Refusal. From and after the date of this Note and at all times hereafter while the Note is outstanding,
the Parties agree that, in the event that the Company receives any written or oral proposal (the “Proposal”)
containing one or more offers to provide additional capital or equity or debt financing (the “Financing Amount”),
the Company agrees that it shall provide a copy of all documents received relating to the Proposal together with a complete and
accurate description of the Proposal to the Holder and all amendments, revisions, and supplements thereto (the “Proposal
Documents”) no later than 3 business days from the receipt of the Proposal Documents. Following receipt of the Proposal
Documents from the Company, the Holder shall have the right (the “Right of First Refusal”), but not the obligation,
for a period of 5 business days thereafter (the “Exercise Period”), to invest, at similar or better terms to
the Company, an amount equal to or greater than the Financing Amount, upon written notice to the Company that the Holder is exercising
the Right of First Refusal provided hereby. In furtherance of the Right of First Refusal, the Company agrees that it will cooperate
and assist the Holder in conducting a due diligence investigation of the Company and its corporate and financial affairs and promptly
provide the Holder with information and documents that the Holder may reasonably request so as to allow the Holder to make an
informed investment decision. However, the Company and the Holder agree that the Holder shall have no more than 5 business days
from and after the expiration of the Exercise Period to exercise its Right of First Refusal hereunder. This Right of First Refusal
shall extend to all purchases of debt held by, or assigned to or from, current stockholders, vendors, or creditors, all transactions
under Sections 3(a)9 and/or 3(a)10 or the Securities Act of 1933, as amended, and all equity line-of-credit transactions. In the
event that the Company does enter into, or makes any issuance of Common Stock related to a 3(a)(9) Transaction or a 3(a)(10) Transaction
while this note is outstanding, without giving Right of First Refusal to the Holder, a liquidated damages charge of 25% of the
outstanding principal balance of this Note, but not less than $25,000, will be assessed and will become immediately due and payable
to the Holder at its election in the form of cash payment or addition to the balance of this Note. Such liquidated damages will
be automatically added to the Principal Sum of the Note and tack back to the Effective Date for purposes of Rule 144.

 

[Signatures
on Following Page]

 

    	 	8	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Fixed Convertible Promissory Note to be duly executed on the day and in the year
first above written.

 

	 	KINERJAPAY
    CORP.
	 	 	 
	 	By:	/s/
    Edwin Ng                            
	 	Name:	Edwin
    Ng
	 	Title:	Chairman
    and CEO
	 	 	 
	 	Email: edwinng@kinerjapay.com
	 	 
	 	Address: Jl. Multatuli, No. 8A, Medan, Indonesia 20151

 

This
Fixed Convertible Promissory Note dated November 9, 2017 is accepted this 9th day of November, 2017 by

 

TANGIERS
GLOBAL, LLC

 

	By:	/s/
    Michael Sobeck	 
	Name:	Michael
    Sobeck 	 
	Title:	Managing
    Member	 

 

    	 	9	 

    	 	 	 

    

 

EXHIBIT
A

 

FORM
OF CONVERSION NOTICE

 

(To
be executed by the Holder in order to convert all or part of that certain $330,000 Fixed Convertible Promissory Note identified
as the Note)

 

	DATE:	____________________________	 
	FROM:	Tangiers
    Global, LLC (the “Holder”)	 

 

	 	Re:	$330,000
    Fixed Convertible Promissory Note (this “Note”) originally issued by KinerjaPay Corp., a Delaware corporation,
    to Tangiers Global, LLC on November___, 2017.

 

The
undersigned on behalf of Tangiers Global, LLC, hereby elects to convert $_______________________ of the aggregate
outstanding Principal Amount (as defined in the Note) indicated below of this Note into shares of Common Stock, $0.0001 par value
per share, of KinerjaPay Corp. (the
“Company”), according to the conditions hereof, as of the date written below. If shares are to be issued in
the name of a person other than undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering
herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged
to the holder for any conversion, except for such transfer taxes, if any. The undersigned represents as of the date hereof that,
after giving effect to the conversion of this Note pursuant to this Conversion Notice, the undersigned will not exceed the “Restricted
Ownership Percentage” contained in this Note.

 

	Conversion
    information:	 
	 	Date
    to Effect Conversion
	 	 
	 	 
	 	Aggregate
    Principal Sum of Note Being Converted
	 	 
	 	 
	 	Aggregate
    Interest/Fees of Principal Amount Being Converted
	 	 
	 	 
	 	Remaining
    Principal Balance
	 	 
	 	 
	 	Number
    of Shares of Common Stock to be Issued
	 	 
	 	 
	 	Applicable
    Conversion Price
	 	 
	 	 
	 	Signature
	 	 
	 	 
	 	Name
	 	 
	 	 
	 	Address

 

    	 	10	 

    	 	 	 

    

 

EXHIBIT
B

 

WRITTEN
CONSENT OF THE BOARD OF DIRECTORS OF

 

KINERJAPAY
CORP.

 

The
undersigned, being the sole director of KinerjaPay Corp., a Delaware corporation (the “Company”), acting pursuant
to the Bylaws of the Corporation, does hereby consent to, approve and adopt the following preamble and resolutions:

 

Convertible
Note with Tangiers Global, LLC

 

The
board of directors of the Company has reviewed and authorized the following documents relating to the issuance of a Fixed Convertible
Promissory Note in the amount of $330,000 with Tangiers Global, LLC.

 

The
documents agreed to and dated November 9, 2017 are as follows:

 

10%
Fixed Convertible Promissory Note of KinerjaPay Corp.

Irrevocable
Transfer Agent Instructions

Certificate
of Corporate Secretary

Disbursement
Instructions

Schedule
1 – Use of Proceeds

 

The
board of directors further authorizes and approves the issuance of shares to the Holder at Conversion prices that are set forth
in the 10% Fixed Convertible Promissory Note and that may be below the Company’s then current par value.

 

IN
WITNESS WHEREOF, the undersigned sole member of the board of the Company executed this written consent as of November 9, 2017.

 

	 	/s/:
    Edwin ng	 
	By:	Edwin
    Ng	 
	Its:	Chairman
    and Sole Director	 

 

    	 	11	 

    	 	 	 

    

 

EXHIBIT
C

 

CERTIFICATE
OF CORPORATE SECRETARY OF

 

KINERJAPAY
CORP.

 

(Two
Pages)

 

The
undersigned, Amir Uziel, is the duly elected Interim Corporate Secretary of KinerjaPay Corp., a Delaware corporation (the
“Company”).

 

I
hereby warrant and represent that I have undertaken a complete and thorough review of the Company’s corporate and financial
books and records, including, but not limited to, the Company’s records relating to the following:

 

	 	(A)	The
issuance of that certain convertible promissory note dated November___, 2017 (the “NoteIssuanceDate”) issued
to Tangiers Global, LLC (the “Holder”) in the stated original principal amount of $330,000 (the “Note”);
	 	 	 
	 	(B)	The
    Company’s Board of Directors duly approved the issuance of the Note to the Holder;
	 	 	 
	 	(C)	The
    Company has not received and does not contemplate receiving any new consideration from any persons in connection with any
    later conversion of the Note and the issuance of the Company’s Common Stock upon any said conversion;
	 	 	 
	 	(D)	To
    my best knowledge and after completing the aforementioned review of the Company’s stockholder and corporate records,
    I am able to certify that the Holder (and the persons affiliated with the Holder) are not officers, directors, or directly
    or indirectly, ten percent (10.00%) or more stockholders of the Company and none of said persons has had any such status in
    the one hundred (100) days immediately preceding the date of this Certificate;
	 	 	 
	 	(E)	The
    Company’s Board of Directors have approved duly adopted resolutions approving the Irrevocable Instructions to the Company’s
    Stock Transfer Agent dated November___, 2017;
	 	 	 
	 	(F)	Mark
    the appropriate selection:
	 	 	 
	 	 	X
    The Company represents that it is not a “shell company,” as that term is defined in Section 12b-2 of the
    Securities Exchange Act of 1934, as amended, and has never been a shell company, as so defined; or
	 	 	 
	 	 	___
    The Company represents that (i) it was a “shell company,” as that term is defined in Section 12b-2 of the Securities
    Exchange Act of 1934, as amended, (ii) since ______, 201__, it has no longer been a shell company, as so defined, and (iii)
    on _______, 201__, it provided Form 10-type information in a filing with the United States Securities and Exchange Commission.
	 	 	 
	 	(G)	I
    understand the constraints imposed under Rule 144 on those persons who are or may be deemed to be “affiliates,”
    as that term is defined in Rule 144(a)(1) of the Securities Act of 1933, as amended.
	 	 	 
	 	(H)	I
    understand that all of the representations set forth in this Certificate will be relied upon by counsel to Tangiers Global,
    LLC in connection with the preparation of a legal opinion.

 

I
hereby affix my signature to this Notarized Certificate and hereby confirm the accuracy of the statements made herein.

 

	Signed:	Amir
    Uziel	 	Date:	November
    9, 2017
	 	 	 	 	 
	Name:	Amir
    Uziel	 	Title:	Interim
    Secretary

 

SUBSCRIBED
AND SWORN TO BEFORE ME ON THIS 9th DAY OF 

 

November
2017.

 

	 	 	Commission
    Expires:______________ 
	 	 	 
	____________________________________
    	 	 
	Notary
    Public 	 	 

 

    	 	12	 

    	 	 	 

    

 

EXHIBIT
D

 

	TO:	Tangiers
    Global, LLC
	FROM:	KinerjaPay
    Corp.
	DATE:	November
    9, 2017
	RE:	Disbursement
    of Funds

 

Pursuant
to that certain Fixed Convertible Promissory Note between the parties listed above and dated November 9, 2017, a disbursement
of funds will take place in the amount and manner described below:

 

	Please
    disburse to:	 
	Amount
    to disburse:	$150,000
	Form
    of distribution	Wire
	Name	KinerjaPay
    Corp.
	Company
    Address	 

         

         

	Wire
    Instructions:	Bank:
        JP MORGAN CHASE BANK

        ABA
        Routing Number: O21000021

        Account
        Number: 786621503

        SWIFT
        Code: CHASUS33

        Account
        Name: KINERJAPAY CORP.

        Phone:
        917-957-9092

 

	 	TOTAL:
    $150,000

 

For:
KinerjaPay Corp.

 

	By:
    	/s/
    Edwin Ng	 	Dated:
    November 9, 2017
	Name:	Edwin
    Ng	 	 
	Its:
    	Chairman
    and CEO	 	 

 

    	 	13	 

    	 	 	 

    

 

EXHIBIT
E

 

COMPANY
CAPITALIZATION TABLE AS OF October 31, 2017

 

COMMON
STOCK AND COMMON STOCK EQUIVALENTS

ISSUED,
OUTSTANDING AND RESERVED

 

	DESCRIPTION	 	AMOUNT	 
	Authorized Common Stock	 	 	             	 
	Authorized Capital Stock	 	 	 	 
	Authorized Common Stock	 	 	 	 
	Issued Common Stock	 	 	 	 
	Outstanding Common Stock	 	 	 	 
	Treasury Stock	 	 	 	 
	*Authorized, but unissued	 	 	 	 
	 	 	 	 	 
	Authorized Preferred Stock	 	 	 	 
	Issued Preferred Stock	 	 	 	 
	 	 	 	 	 
	Reserved for Equity Incentive Plans	 	 	 	 
	Reserved for Convertible Debt	 	 	 	 
	Reserved for Options and Warrants	 	 	 	 
	Reserved for Other Purposes	 	 	 	 
	 	 	 	 	 
	TOTAL COMMON STOCK AND COMMON STOCK EQUIVALENTS OUTSTANDING	 	 	 	 

 

*
This number includes all shares reserved for Convertible Debt

 

Note:
If not applicable, enter “n/a” or “zero” in Column 2.

 

    	 	14	 

    	 	 	 

    

 

CURRENT
DEBT AND LIABILITIES TABLE

]

 

CONVERTIBLE
PROMISSORY NOTE BALANCES AND PROMISSORY NOTE BALANCES

 

	DESCRIPTION	 	ISSUANCE DATE	 	 	AMOUNT	 
	Convertible Promissory Note	 	 	            	 	 	 	          	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Promissory Note	 	 	   	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Other Debt and Liabilities	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

Note:
If not applicable, enter “n/a” or “zero” in Column 2.

 

To
my best knowledge and after completing the aforementioned review of the Company’s stockholder and corporate records, I am
able to certify the accuracy of the statements made herein.

 

KINERJAPAY
CORP.

 

	By:	/s/
    Edwin Ng	 	Dated:
    November 9, 2017
	Name:	Edwin
    Ng	 	 
	Title:	Chairman
        and CEO

        
	 	 

 

    	 	15	 

    	 	 	 

    

 

SCHEDULE
1

 

USE
OF PROCEEDS

 

Pursuant
to that certain Fixed Convertible Promissory Note between the parties listed above and dated November 9, 2017, the Company covenants
that it will within          month(s) of the Effective Date of the Note, it shall
use approximately $150,000 of the proceeds in the manner set forth below (the “Use of Proceeds”):

 

	 
	 
	 
	 
	 
	 
	 

 

 

KINERJAPAY
CORP.

 

	By:	/s/
    Edwin Ng	 	Dated:
    November 9, 2017
	Name:	Edwin
    Ng	 	 
	Title:
    	Chairman
    and CEO	 	 

 

    	 	16CERTIFICATE
OF DESIGNATIONS, PREFERENCES AND RIGHTS OF THE

SERIES A CONVERTIBLE PREFERRED STOCK OF

KINERJAPAY CORP.

 

I,
Edwin Ng, hereby certify that I am the Chief Executive Officer of KinerjaPay Corp. (the “Company”), a corporation
organized and existing under the Delaware General Corporation Law (the “DGCL”), and further do hereby certify:

 

That
pursuant to the authority expressly conferred upon the Board of Directors of the Company (the “Board”) and
by the Company’s Certificate of Incorporation, as amended (the “Certificate of Incorporation”), the Board
on January 2, 2018 adopted the following resolutions creating a series of 400,000shares of Preferred Stock designated as “Series
A Convertible Preferred Stock”, none of which shares have been issued:

 

RESOLVED,
that the Board designates the Series A Convertible Preferred Stock and the number of shares constituting such series, and fixes
the rights, powers, preferences, privileges and restrictions relating to such series in addition to any set forth in the Certificate
of Incorporation as follows:

 

TERMS
OF SERIES A CONVERTIBLE PREFERRED STOCK

 

1.
Designation and Number of Shares. There shall hereby be created and established a series of preferred stock of the Company
designated as “Series A Convertible Preferred Stock” (the “Preferred Shares”). The authorized number
of Preferred Shares shall be Four Hundred Thousand(400,000) shares. Each Preferred Share shall have a par value of $0.0001. Capitalized
terms not defined herein shall have the meaning as set forth in Section 17 below. No dividends shall accrue or be payable with
respect to the Preferred Shares except as set forth in Section 8 below.

 

2.
Ranking. All shares of capital stock of the Company, both common stock and any other series of preferred stock, shall be
junior in rank to all Preferred Shares with respect to the preferences as to dividends, distributions and payments upon the liquidation,
dissolution and winding up of the Company (collectively, the “Junior Stock”). The rights of all such shares
of capital stock of the Company shall be subject to the rights, powers, preferences and privileges of the Preferred Shares. In
the event of the merger or consolidation of the Company with or into another corporation, the Preferred Shares shall maintain
their relative rights, powers, designations, privileges and preferences provided for herein and no such merger or consolidation
shall result inconsistent therewith. For the avoidance of doubt, in no circumstance will a Preferred Share have any rights subordinate
or otherwise inferior to the rights of shares of any Junior Stock (as defined below).

 

3.
Conversion.

 

(a)
Holder’s Conversion Right. Subject to the provisions of Section 3(e),at any time or times on or after the Initial
Issuance Date, each holder of a Preferred Share (each, a “Holder” and collectively, the “Holders”)
shall be entitled to convert any whole number of Preferred Shares into validly issued, fully paid and non-assessable shares of
Common Stock accordance with Section 3(c) at the Conversion Rate (as defined below).

 

(b)
Conversion Rate. The number of validly issued, fully paid and non-assessable shares of Common Stock issuable upon conversion
of each Preferred Share pursuant to Section 3(a) shall be determined according to the following formula (the “Conversion
Rate”):

 

Conversion
Amount

Conversion
Price

 

No
fractional shares of Common Stock are to be issued upon the conversion of any Preferred Shares. If the issuance would result in
the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of a share of Common Stock up to
the nearest whole share.

 

(c)
Mechanics of Conversion. The conversion of each Preferred Share shall be conducted in the following manner:

 

    	1

    	 

    

 

(i)
Holder’s Conversion. To convert a Preferred Share into one (1) validly issued, fully paid and non-assessable share
of Common Stock, on any date (a “Conversion Date”), a Holder shall deliver (whether via facsimile or otherwise),
for receipt on or prior to 11:59 p.m., New York time, on such date, a copy of an executed notice of conversion of the share(s)
of Preferred Shares subject to such conversion in the form attached hereto as Exhibit I (the “Conversion
Notice”) to the Company. If required by Section 3(c)(vi), within five (5) Trading Days following a conversion of any
such Preferred Shares as aforesaid, such Holder shall surrender to a nationally recognized overnight delivery service for delivery
to the Company the original certificates representing the share(s) of Preferred Shares (the “Preferred Share Certificates”)
so converted as aforesaid.

 

(ii)
Company’s Response. On or before the first (1st) Trading Day following the date of receipt of a Conversion
Notice, the Company shall transmit by facsimile or email transmission which must be confirmed with a facsimile transmission an
acknowledgment of confirmation, in the form attached hereto as Exhibit II, of receipt of such Conversion Notice
to such Holder and the Company’s transfer agent (the “Transfer Agent”), which confirmation shall constitute
an instruction to the Transfer Agent to process such Conversion Notice in accordance with the terms herein with respect to the
shares of Common Stock. On or before the second (2nd) Trading Day following the date of receipt by the Company of such
Conversion Notice, the Company shall (1) provided that (x) the Transfer Agent is participating in the Depository Trust Company
(“DTC”) Fast Automated Securities Transfer Program and (y) Common Stock shares to be so issued are otherwise
eligible for resale pursuant to Rule 144 promulgated under the Securities Act of 1933, as amended, credit such aggregate number
of shares of Common Stock to which such Holder shall be entitled to such Holder’s or its designee’s balance account
with DTC through its Deposit/Withdrawal at Custodian system, or (2) if either of the immediately preceding clauses (x) or (y)
are not satisfied, issue and deliver (via reputable overnight courier) to the address as specified in such Conversion Notice,
a certificate, registered in the name of such Holder or its designee, for the number of shares of Common Stock to which such Holder
shall be entitled. If the number of Preferred Shares represented by the Preferred Share Certificate(s) submitted for conversion
pursuant to Section 3(c)(vi) is greater than the number of Preferred Shares being converted, then the Company shall if requested
by such Holder, as soon as practicable and in no event later than three (3) Trading Days after receipt of the Preferred Share
Certificate(s) and at its own expense, issue and deliver to such Holder (or its designee) a new Preferred Share Certificate representing
the number of Preferred Shares not converted.

 

(iii)
Record Holder. The Person or Persons entitled to receive the shares of Common Stock issuable upon a conversion of Preferred
Shares shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

(iv)
Company’s Failure to Timely Convert. If the Company shall fail, for any reason or for no reason, to issue to a Holder
within two (2) Trading Days after the Company’s receipt of a Conversion Notice (whether via facsimile or otherwise) (the
“Share Delivery Deadline”), a certificate for the number of shares of Common Stockto which such Holder is entitled
and register such shares of Common Stock on the Company’s share register or to credit such Holder’s or its designee’s
balance account with DTC for such number of shares of Common Stock to which such Holder is entitled upon such Holder’s conversion
of any Preferred Shares (as the case may be) (a “Conversion Failure”), then, in addition to all other remedies
available to such Holder, such Holder, upon written notice to the Company, may void its Conversion Notice with respect to, and
retain or have returned (as the case may be) any Preferred Shares that have not been converted pursuant to such Holder’s
Conversion Notice, provided that the voiding of a Conversion Notice shall not affect the Company’s obligations to make any
payments which have accrued prior to the date of such notice pursuant to the terms of this Certificate of Designations or otherwise.
In addition to the foregoing, if within three (3) Trading Days after the Company’s receipt of a Conversion Notice (whether
via facsimile or otherwise), the Company shall fail to issue and deliver a certificate to such Holder and register such shares
of Common Stock on the Company’s share register or credit such Holder’s or its designee’s balance account with
DTC for the number of shares of Common Stock to which such Holder is entitled upon such Holder’s conversion hereunder (as
the case may be), and if on or after such second (2nd) Trading Day such Holder (or any other Person in respect, or
on behalf, of such Holder) purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction
of a sale by such Holder of all or any portion of the number of shares of Common Stock, or a sale of a number of shares of Common
Stock equal to all or any portion of the number of shares of Common Stock, issuable upon such conversion that such Holder so anticipated
receiving from the Company, then, in addition to all other remedies available to such Holder, the Company shall, within two (2)
Business Days after such Holder’s request, which request shall include reasonable documentation of all fees, costs and expenses,
and in such Holder’s discretion, either (i) pay cash to such Holder in an amount equal to such Holder’s total purchase
price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including,
without limitation, by any other Person in respect, or on behalf, of such Holder) (the “Buy-In Price”), at
which point the Company’s obligation to so issue and deliver such certificate or credit such Holder’s balance account
with DTC for the number of shares of Common Stock to which such Holder is entitled upon such Holder’s conversion hereunder
(as the case may be) (and to issue such shares of Common Stock) shall terminate, or (ii) promptly honor its obligation to so issue
and deliver to such Holder a certificate or certificates representing such shares of Common Stock or credit such Holder’s
balance account with DTC for the number of shares of Common Stock to which such Holder is entitled upon such Holder’s conversion
hereunder (as the case may be) and pay cash to such Holder in an amount equal to the excess (if any) of the Buy-In Price over
the product of (A) such number of shares of Common Stock multiplied by (B) the lowest Closing Sale Price of the Common Stock on
any Trading Day during the period commencing on the date of the applicable Conversion Notice and ending on the date of such issuance
and payment under this clause (ii). Immediately following the voiding of a Conversion Notice as aforesaid, the Conversion Price
of any Preferred Shares returned or retained by such Holder for failure to timely convert shall be adjusted to the lesser of (I)
the Conversion Price relating to the voided Conversion Notice and (II) the lowest Closing Sale Price of the Common Stock during
the period beginning on the Conversion Date and ending on the date such Holder voided the Conversion Notice, subject to further
adjustment as provided in this Certificate of Designations. In addition to Holder’s other available remedies, the Company
shall pay to Holder, in cash, as partial liquidated damages and not as a penalty, for each $1,000 of shares of Common Stock (based
on the aggregate Conversion Price of the Preferred Shares for which conversion had been requested, $10 per Trading Day for each
Trading Day following the Share Delivery Deadline and increasing to $20 per Trading Day after the fifth Trading Day until such
shares of Common Stock are delivered and registered. Nothing herein shall limit Holder’s right to pursue actual damages
for the Company failure to timely deliver certificates representing Common Stock as required hereby and Holder shall have the
right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief.

 

    	2

    	 

    

 

(v)
Pro Rata Conversion; Disputes. In the event the Company receives a Conversion Notice from more than one Holder, if applicable,
for the same Conversion Date and the Company can convert some, but not all, of such Preferred Shares submitted for conversion,
the Company shall convert from each Holder electing to have Preferred Shares converted on such date a pro rata amount of such
Holder’s Preferred Shares submitted for conversion on such date based on the number of Preferred Shares submitted for conversion
on such date by such Holder relative to the aggregate number of Preferred Shares submitted for conversion on such date. In the
event of a dispute as to the number of shares of Common Stock issuable to a Holder in connection with a conversion of Preferred
Shares, the Company shall issue to such Holder the number of shares of Common Stocknot in dispute and resolve such dispute in
accordance with the Purchase Agreement.

 

(vi)
Book-Entry. Notwithstanding anything to the contrary set forth in this Section 3, upon conversion of any Preferred Shares
in accordance with the terms hereof, no Holder thereof shall be required to physically surrender the certificate representing
the Preferred Shares to the Company following conversion thereof unless (A) the full or remaining number of Preferred Shares represented
by the certificate are being converted (in which event such certificate(s) shall be delivered to the Company as contemplated by
this Section 3(c)(vi) or (B) such Holder has provided the Company with prior written notice (which notice may be included in a
Conversion Notice) requesting reissuance of Preferred Shares upon physical surrender of any Preferred Shares. Each Holder and
the Company shall maintain records showing the number of Preferred Shares so converted by such Holder and the dates of such conversions
or shall use such other method, reasonably satisfactory to such Holder and the Company, so as not to require physical surrender
of the certificate representing the Preferred Shares upon each such conversion. In the event of any dispute or discrepancy, such
records of such Holder establishing the number of Preferred Shares to which the record holder is entitled shall be controlling
and determinative in the absence of manifest error. A Holder and any transferee or assignee, by acceptance of a certificate, acknowledge
and agree that, by reason of the provisions of this paragraph, following conversion of any Preferred Shares, the number of Preferred
Shares represented by such certificate may be less than the number of Preferred Shares stated on the face thereof. Each certificate
for Preferred Shares shall bear the following legend:

 

    	3

    	 

    

 

ANY
TRANSFEREE OR ASSIGNEE OF THIS CERTIFICATE SHOULD CAREFULLY REVIEW THE TERMS OF THE CORPORATION’S CERTIFICATE OF DESIGNATIONS
RELATING TO THE SHARES OF SERIES A PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE, INCLUDING SECTION 3(c)(vi) THEREOF. THE NUMBER
OF SHARES OF SERIES A PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE MAY BE LESS THAN THE NUMBER OF SHARES OF SERIES A PREFERRED
STOCK STATED ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(vi) OF THE CERTIFICATE OF DESIGNATIONS RELATING TO THE SHARES OF SERIES
A PREFERRED STOCK REPRESENTED BY THIS CERTIFICATE.

 

(d)
Taxes. The Company shall pay any and all documentary, stamp, transfer (but only in respect of the registered holder thereof),
issuance and other similar taxes that may be payable with respect to the issuance and delivery of shares of Common Stock upon
the conversion of Preferred Shares.

 

(e)
Limitation on Beneficial Ownership. Notwithstanding anything to the contrary contained in this Certificate of Designations,
the Preferred Shares held by a Holder shall not be convertible by such Holder, and the Company shall not effect any conversion
of any Preferred Shares held by such Holder, to the extent (but only to the extent) that such Holder or any of its affiliates
would beneficially own in excess of 9.99% (the “Maximum Percentage”) of the Common Stock. To the extent the
above limitation applies, the determination of whether the Preferred Shares held by such Holder shall be convertible (vis-à-vis
other convertible, exercisable or exchangeable securities owned by such Holder or any of its affiliates) and of which such securities
shall be convertible, exercisable or exchangeable (as among all such securities owned by such Holder and its affiliates) shall,
subject to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company for conversion,
exercise or exchange (as the case may be). No prior inability of a Holder to convert Preferred Shares, or of the Company to issue
shares of Common Stock to such Holder, pursuant to this Section 3(e) shall have any effect on the applicability of the provisions
of this Section 3(e) with respect to any subsequent determination of convertibility or issuance (as the case may be). For purposes
of this Section 3(e), beneficial ownership and all determinations and calculations (including, without limitation, with respect
to calculations of percentage ownership) shall be determined in accordance with Section 13(d) of the 1934 Act and the rules and
regulations promulgated thereunder. The provisions of this Section 3(e) shall be implemented in a manner otherwise than in strict
conformity with the terms of this Section 3(e) to correct this Section 3(e) (or any portion hereof) which may be defective or
inconsistent with the intended Maximum Percentage beneficial ownership limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such Maximum Percentage limitation. The limitations contained in this Section
3(e) shall apply to a successor holder of Preferred Shares. For any reason at any time, upon the written or oral request of a
Holder, the Company shall within one (1) Business Day confirm orally and in writing to such Holder the number of shares of Common
Stock then outstanding, including by virtue of any prior conversion or exercise of convertible or exercisable securities into
Common Stock, including, without limitation, pursuant to this Certificate of Designations or securities issued pursuant to the
other Transaction Documents. By written notice to the Company, any Holder may increase or decrease the Maximum Percentage to any
other percentage not in excess of 9.99% specified in such notice; provided that (i) any such increase will not be effective until
the 61st day after such notice is delivered to the Company, and (ii) any such increase or decrease will apply only to such Holder
sending such notice and not to any other Holder.

 

4.
Adjustments.

 

(a)
Adjustment of Conversion Price upon Subdivision or Combination of Common Stock. Without limiting any provision of Section
8 if the Company at any time on or after the Initial Issuance Date subdivides (by any stock split, stock dividend, recapitalization
or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Conversion Price
in effect immediately prior to such subdivision will be proportionately reduced. Without limiting any provision of Section 8,
if the Company at any time on or after the Initial Issuance Date combines (by combination, reverse stock split or otherwise) one
or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately
prior to such combination will be proportionately increased. Any adjustment pursuant to this Section 4 shall become effective
immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this Section
4 occurs during the period that a Conversion Price is calculated hereunder, then the calculation of such Conversion Price shall
be adjusted appropriately to reflect such event.

 

    	4

    	 

    

 

(b)
Rights Upon Fundamental Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless:
(i) the Successor Entity assumes in writing all of the obligations of the Company under this Certificate of Designations and the
other Transaction Documents in accordance with the provisions of this Section 4(b) pursuant to written agreements in form and
substance satisfactory to the Required Holders and approved by the Required Holders prior to such Fundamental Transaction, including
agreements to deliver to each holder of Preferred Shares in exchange for such Preferred Shares a security of the Successor Entity
evidenced by a written instrument substantially similar in form and substance to this Certificate of Designations, including,
without limitation, having a stated value and dividend rate equal to the stated value and dividend rate of the Preferred Shares
held by the Holders and having similar ranking to the Preferred Shares, and reasonably satisfactory to the Required Holders and
(ii) the Successor Entity (including its Parent Entity) is a publicly traded corporation whose shares of common stock are quoted
on or listed for trading on an Eligible Market. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall
succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Certificate
of Designations and the other Transaction Documents referring to the “Company” shall refer instead to the Successor
Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this
Certificate of Designations and the other Transaction Documents with the same effect as if such Successor Entity had been named
as the Company herein and therein. In addition to the foregoing, upon consummation of a Fundamental Transaction, the Successor
Entity shall deliver to each Holder confirmation that there shall be issued upon conversion of the Preferred Shares at any time
after the consummation of such Fundamental Transaction, in lieu of the shares of Common Stock(or other securities, cash, assets
or other property (except such items still issuable under Section 4(a), which shall continue to be receivable thereafter)) issuable
upon the conversion of the Preferred Shares prior to such Fundamental Transaction, such shares of publicly traded common stock
(or their equivalent) of the Successor Entity (including its Parent Entity) that each Holder would have been entitled to receive
upon the happening of such Fundamental Transaction had all the Preferred Shares held by each Holder been converted immediately
prior to such Fundamental Transaction (without regard to any limitations on the conversion of the Preferred Shares contained in
this Certificate of Designations), as adjusted in accordance with the provisions of this Certificate of Designations. The provisions
of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard
to any limitations on the conversion of the Preferred Shares.

 

(c)
For so long as Preferred Shares are outstanding, the Company will not amend the terms of any securities or Common Stock Equivalents
or of any agreement outstanding or in effect as of the date of this Agreement pursuant to which same were or may be acquired without
the consent of the Holder, if the result of such amendment would be at an effective price per share of Common Stock less than
the Conversion Price in effect at the time of such amendment. For so long as Preferred Shares are outstanding, the Company will
not issue any Common Stock or Common Stock Equivalents at an effective issue price lower than the then in effect Conversion Price
without the consent of the Holder. The restrictions and limitations in this Section 4(c) are in addition to any other rights of
the Holder. If, at any time while the Preferred Shares are outstanding, Company or any Subsidiary, as applicable, sells or grants
any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any sale, grant
or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person to acquire
shares of Common Stock at an effective price per share that is lower than the then Conversion Price in effect (such lower price,
the “Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if the holder of
the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments,
reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share
which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share
that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on
such date of the Dilutive Issuance), then the Conversion Price shall be reduced to equal the Base Conversion Price. Such adjustment
shall be made whenever such Common Stock or Common Stock Equivalents are issued. The repricing of any existing convertible note,
including the Tangier Note, shall also be a Dilutive Issuance. Notwithstanding the foregoing, no adjustment will be made under
this Section 4(c) in respect to any currently outstanding warrants issued by the Company that are exercised pursuant to the terms
of such warrant in effect as of the issue date of the Preferred Shares. For purposes of clarification, whether or not Company
provides a Dilutive Issuance Notice pursuant to this Section 4(c), upon the occurrence of any Dilutive Issuance, the Holder is
entitled to receive a number of Conversion Preferred Shares based upon the Base Conversion Price on or after the date of such
Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion Price in the Notice of Conversion.
“Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder
thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant
or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder
thereof to receive, Common Stock. For purposes of determining the total consideration for a convertible instrument (including
a right to purchase equity of the Company) issued, subject to an original issue or similar discount or which principal amount
is directly or indirectly increased after issuance, the consideration will be deemed to be the actual cash amount received by
the Company in consideration of the original issuance of such convertible instrument.

 

    	5

    	 

    

 

5.
Authorized Shares.

 

(a)
Reservation. The Company shall initially reserve out of its authorized and unissued Common Stock a number of shares of
Common Stock equal to 100% of the Conversion Rate (including a number of Warrant Shares) with respect to the Conversion Amount
of each Preferred Share as of the Initial Issuance Date (assuming for purposes hereof, that all the Preferred Shares issuable
pursuant to the Purchase Agreement have been issued, such Preferred Shares are convertible at the Conversion Price and without
taking into account any limitations on the conversion of such Preferred Shares set forth in herein). So long as any of the Preferred
Shares are outstanding, the Company shall take all action necessary to reserve and keep available out of its authorized and unissued
shares of Common Stock, solely for the purpose of effecting the conversion of the Preferred Shares, as of any given date, 100%
of the number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all of the Preferred
Shares issued or issuable pursuant to the Purchase Agreement, assuming for purposes hereof, that all the Preferred Shares issuable
pursuant to the Purchase Agreement have been issued and without taking into account any limitations on the issuance of securities
set forth herein), provided that at no time shall the number of shares of Common Stock so available be less than the number of
shares required to be reserved by the previous sentence (without regard to any limitations on conversions contained in this Certificate
of Designations) (the “Required Amount”). The initial number of shares of Common Stock reserved for conversions
of the Preferred Shares and each increase in the number of shares so reserved shall be allocated pro rata among the Holders based
on the number of Preferred Shares held by each Holder on the Initial Issuance Date or increase in the number of reserved shares
(as the case may be) (the “Authorized Share Allocation”). In the event a Holder shall sell or otherwise transfer
any of such Holder’s Preferred Shares, each transferee shall be allocated a pro rata portion of such Holder’s Authorized
Share Allocation. Any shares of Common Stock reserved and allocated to any Person which ceases to hold any Preferred Shares shall
be allocated to the remaining Holders of Preferred Shares, pro rata based on the number of Preferred Shares then held by such
Holders.

 

(b)
Insufficient Authorized Shares. If, notwithstanding Section 5(a) and not in limitation thereof, at any time while any of
the Preferred Shares remain outstanding the Company does not have a sufficient number of authorized and unissued shares of Common
Stock to satisfy its obligation to have available for issuance upon conversion of the Preferred Shares at least a number of shares
of Common Stock and Warrant Shares equal to the Required Amount (an “Authorized Share Failure”), then the Company
shall immediately take all reasonable action necessary to increase the Company’s authorized shares of Common Stock to an
amount sufficient to allow the Company to reserve and have available the Required Amount for all of the Preferred Shares then
outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence
of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such Authorized Share Failure,
the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common
Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best
efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its Board
of Directors to recommend to the stockholders of the Company that they approve such proposal. Nothing contained in this Section
5 shall limit any obligations of the Company under any provision of the Purchase Agreement.

 

6.
Voting Rights. Holders of Preferred Shares shall have no voting rights, except as required by law (including without limitation,
the DGCL) and as expressly provided in this Certificate of Designations. Subject to Section 3(e), to the extent that under the
DGCL holders of the Preferred Shares are entitled to vote on a matter with holders of shares of Common Stock, voting together
as one class, each Preferred Share shall entitle the holder thereof to cast that number of votes per share as is equal to the
number of shares of Common Stock into which it is then convertible (subject to the ownership limitations specified in Section
3(e) hereof) using the record date for determining the stockholders of the Company eligible to vote on such matters as the date
as of which the Conversion Price is calculated. Holders of the Preferred Shares shall be entitled to written notice of all stockholder
meetings or written consents (and copies of proxy materials and other information sent to stockholders) with respect to which
they would be entitled by vote, which notice would be provided pursuant to the Company’s bylaws and the DGCL.

 

    	6

    	 

    

 

7.
Liquidation, Dissolution, Winding-Up. In the event of a Liquidation Event, the Holders shall be entitled to receive in
cash out of the assets of the Company, whether from capital or from earnings available for distribution to its stockholders (the
“Liquidation Funds”), before any amount shall be paid to the holders of any of shares of Junior Stock, an amount
per Preferred Share equal to the amount per share such Holder would receive if such Holder converted such Preferred Shares into
Common Stock immediately prior to the date of such payment, provided that if the Liquidation Funds are insufficient to pay the
full amount due to the Holders and holders of shares of Parity Stock, then each Holder and each holder of Parity Stock shall receive
a percentage of the Liquidation Funds equal to the full amount of Liquidation Funds payable to such Holder and such holder of
Parity Stock as a liquidation preference, in accordance with their respective certificate of designations (or equivalent), as
a percentage of the full amount of Liquidation Funds payable to all holders of Preferred Shares and all holders of shares of Parity
Stock. To the extent necessary, the Company shall cause such actions to be taken by each of its Subsidiaries so as to enable,
to the maximum extent permitted by law, the proceeds of a Liquidation Event to be distributed to the Holders in accordance with
this Section 7. All the preferential amounts to be paid to the Holders under this Section 7 shall be paid or set apart for payment
before the payment or setting apart for payment of any amount for, or the distribution of any Liquidation Funds of the Company
to the holders of shares of Junior Stock in connection with a Liquidation Event as to which this Section 7 applies.

 

8.
Participation. In addition to any adjustments pursuant to Section 4, the Holders shall, as holders of Preferred Shares,
be entitled to receive such dividends paid and distributions made to the holders of shares of Common Stock to the same extent
as if such Holders had converted each Preferred Share held by each of them into shares of Common Stock (without regard to any
limitations on conversion herein or elsewhere) and had held such shares of Common Stock on the record date for such dividends
and distributions. Payments under the preceding sentence shall be made concurrently with the dividend or distribution to the holders
of shares of Common Stock (provided, however, to the extent that a Holder’s right to participate in any such dividend or
distribution would result in such Holder exceeding the Maximum Percentage, then such Holder shall not be entitled to participate
in such dividend or distribution to such extent (or the beneficial ownership of any such shares of Common Stock as a result of
such dividend or distribution to such extent) and such dividend or distribution to such extent shall be held in abeyance for the
benefit of such Holder until such time, if ever, as its right thereto would not result in such Holder exceeding the Maximum Percentage).

 

9.
Vote to Change the Terms of or Issue Preferred Shares. In addition to any other rights provided by law, except where the
vote or written consent of the holders of a greater number of shares is required by law or by another provision of the Certificate
of Incorporation, without first obtaining the affirmative vote at a meeting duly called for such purpose or the written consent
without a meeting of the Required Holders, voting together as a single class, the Company shall not: (a) amend or repeal any provision
of, or add any provision to, its Certificate of Incorporation or bylaws, or file any certificate of designations or certificate
of amendment, if such action would adversely alter or change in any respect the preferences, rights, privileges or powers, or
restrictions provided for the benefit, of the Preferred Shares, regardless of whether any such action shall be by means of amendment
to the Certificate of Incorporation or by merger, consolidation or otherwise; or (b) without limiting any provisions of Section
12, whether or not prohibited by the terms of the Preferred Shares, circumvent a right of the Preferred Shares.

 

10.
Lost or Stolen Certificates. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of any certificates representing Preferred Shares (as to which a written certification and the
indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of an indemnification
undertaking by the applicable Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender
and cancellation of the certificate(s), the Company shall execute and deliver new certificate(s) of like tenor and date.

 

    	7

    	 

    

 

11.
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Certificate
of Designations shall be cumulative and in addition to all other remedies available under this Certificate of Designations and
any of the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive
relief), and no remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy.
Nothing herein shall limit any Holder’s right to pursue actual and consequential damages for any failure by the Company
to comply with the terms of this Certificate of Designations. The Company covenants to each Holder that there shall be no characterization
concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments,
conversion and the like (and the computation thereof) shall be the amounts to be received by a Holder and shall not, except as
expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges
that a breach by it of its obligations hereunder will cause irreparable harm to the Holders and that the remedy at law for any
such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, each Holder
shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened
breach, without the necessity of showing economic loss and without any bond or other security being required, to the extent permitted
by applicable law. The Company shall provide all information and documentation to a Holder that is requested by such Holder to
enable such Holder to confirm the Company’s compliance with the terms and conditions of this Certificate of Designations.

 

12.
Noncircumvention. The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of
Incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution,
issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Certificate of Designations, and will at all times in good faith carry out all the provisions of this Certificate
of Designations and take all action as may be required to protect the rights of the Holders. Without limiting the generality of
the foregoing or any other provision of this Certificate of Designations, the Company (i) shall not increase the par value of
any shares of Common Stock receivable upon the conversion of any Preferred Shares above the Conversion Price then in effect, (ii)
shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid
and non-assessable shares of Common Stock upon the conversion of Preferred Shares and (iii) shall, so long as any Preferred Shares
are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock,
solely for the purpose of effecting the conversion of the Preferred Shares, the maximum number of shares of Common Stock as shall
from time to time be necessary to effect the conversion of the Preferred Shares then outstanding (without regard to any limitations
on conversion contained herein).

 

13.
Failure or Indulgence Not Waiver. No failure or delay on the part of a 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 privilege. No waiver shall be effective unless it is in writing
and signed by an authorized representative of the waiving party. This Certificate of Designations shall be deemed to be jointly
drafted by the Company and all Holders and shall not be construed against any Person as the drafter hereof.

 

14.
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 Trading Day during normal business hours where
such notice is to be received), or the first Trading Day following such delivery (if delivered other than on a Trading Day during
normal business hours where such notice is to be received) or (b) on the second Trading 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: (i) if to the Company, to: KinerjaPay Corp., No.8A, Jl. Multatuli, Medan 20151
Indonesia , Attn: Edwin Ng,Chief Executive Officer, email: edwinng@kinerjapay.co, with a copy by fax or email only to (which shall
not constitute notice): Law Office of Richard Rubin, 40 Wall Street, New York, New York 10005, Attn: Richard Rubin, Esq., facsimile:
212-658-9867, email: rrubin@parkavenuegroup.us and (ii) if to the Purchaser, to: the addresses and fax numbers indicated on the
signature pages hereto, with an additional copy by fax only to (which shall not constitute notice): Grushko&Mittman, P.C.,
515 Rockaway Avenue, Valley Stream, New York 11581, Attn: Barbara R. Mittman, Esq. and Ed Grusko, facsimile: (212) 697-3575, email:
barbara@grushkomittman.com and ed@grushkomittman.com.

 

    	8

    	 

    

 

15.
Preferred Shares Register. The Company shall maintain at its principal executive offices (or such other office or agency
of the Company as it may designate by notice to the Holders), a register for the Preferred Shares, in which the Company shall
record the name, address and facsimile number of the Persons in whose name the Preferred Shares have been issued, as well as the
name and address of each transferee. The Company may treat the Person in whose name any Preferred Shares is registered on the
register as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary, but in all events recognizing
any properly made transfers.

 

16.
Stockholder Matters; Amendment.

 

(a)
Stockholder Matters. Any stockholder action, approval or consent required, desired or otherwise sought by the Company pursuant
to the DGCL, the Certificate of Incorporation, this Certificate of Designations or otherwise with respect to the issuance of Preferred
Shares may be effected by written consent of the Company’s stockholders or at a duly called meeting of the Company’s
stockholders, all in accordance with the applicable rules and regulations of the DGCL. This provision is intended to comply with
the applicable Sections of the DGCL permitting stockholder action, approval and consent affected by written consent in lieu of
a meeting.

 

(b)
Amendment. This Certificate of Designations or any provision hereof may be amended by obtaining the affirmative vote at
a meeting duly called for such purpose, or written consent without a meeting in accordance with the DGCL, of the Required Holders,
voting separate as a single class, and with such other stockholder approval, if any, as may then be required pursuant to the DGCL
and the Certificate of Incorporation.

 

17.
Certain Defined Terms. For purposes of this Certificate of Designations, the following terms shall have the following meanings:

 

(a)
“1934 Act” means the Securities Exchange Act of 1934, as amended.

 

(b)
“Bloomberg” means Bloomberg, L.P.

 

(c)
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City
of New York are authorized or required by law to remain closed.

 

(d)
“Closing Sale Price” means, for any security as of any date, the last closing trade price, respectively, for
such security on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended
hours basis and does not designate the closing trade price (as the case may be) then the last trade price of such security prior
to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange
or trading market for such security, the last trade price of such security on the principal securities exchange or trading market
where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last trade price of such
security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no
last trade price is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of
any market makers for such security as reported in the OTC Pink Market operated by OTC Markets Group Inc. If the Closing Sale
Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security
on such date shall be the fair market value as mutually determined by the Company and the applicable Holder. If the Company and
such Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved in accordance
with the procedures in the Purchase Agreement. All such determinations shall be appropriately adjusted for any stock dividend,
stock split, stock combination or other similar transaction during such period.

 

(e)
“Common Stock” means (i) the Company’s shares of common stock, $0.0001 par value per share, and (ii)
any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification
of such common stock.

 

(f)
“Conversion Amount” means, with respect to each Preferred Share, as of the applicable date of determination,
the Stated Value thereof.

 

(g)
“Conversion Price” means, with respect to each Preferred Share, as of any Conversion Date or other applicable
date of determination,$1,25, subject to adjustment as provided herein.

 

    	9

    	 

    

 

(h)
“Convertible Securities” means any stock or other security (other than Options) that is at any time and under
any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the
holder thereof to acquire, any shares of Common Stock.

 

(i)
“Eligible Market” means The New York Stock Exchange, the NYSE MKT, the Nasdaq Global Select Market, the Nasdaq
Global Market or the Principal Market.

 

(j)
“Fundamental Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly,
in one or more related transactions, (A) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries
is the surviving corporation) any other Person, or (B) sell, lease, license, assign, transfer, convey or otherwise dispose of
all or substantially all of its respective properties or assets to any other Person, or (C) allow any other Person to make a purchase,
tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company
(not including any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated
with the Persons making or party to, such purchase, tender or exchange offer), or (D) consummate a stock or share purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with any other Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company
(not including any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination),
or (E) reorganize, recapitalize or reclassify the Common Stock, or (ii) any “person” or “group” (as these
terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder)
is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of
50% of the aggregate ordinary voting power represented by issued and outstanding Voting Stock of the Company.

 

(k)
“Initial Issuance Date” means January 2, 2018.

 

(l)
“Liquidation Event” means, whether in a single transaction or series of transactions, the voluntary or involuntary
liquidation, dissolution or winding up of the Company or such Subsidiaries the assets of which constitute all or substantially
all of the assets of the business of the Company and its Subsidiaries, taken as a whole.

 

(m)
“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible
Securities.

 

(n)
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and
whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such
Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation
of the Fundamental Transaction.

 

(o)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

 

(p)
“Principal Market” means the OTC Bulletin Board, the OTCQB, or the OTCQX (or any successor of the foregoing).

 

(q)
“Purchase Agreement” means that certain Stock Purchase Agreement, dated as of January__, 2018, by and among
the Company and the Purchaser with respect to the Preferred Shares.

 

(r)
“Securities” means, collectively, the Preferred Shares and the shares of Common Stock issuable upon conversion
of the Preferred Shares.

 

(s)
“Stated Value” means $1.25 per Preferred Share.

 

    	10

    	 

    

 

(t)
“Subsidiary” means any Person in which the Company, directly or indirectly, (i) owns a majority of the outstanding
capital stock or holds a majority of equity or similar interest of such Person or (ii) controls or operates all or any part of
the business, operations or administration of such Person.

 

(u)
“Successor Entity” means the Person (or, if so elected by the Required Holders, the Parent Entity) formed by,
resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Required Holders, the Parent Entity)
with which such Fundamental Transaction shall have been entered into.

 

(v)
“Trading Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market
on which the Common Stock is then traded, provided that “Trading Day” shall not include any day on which the Common
Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from
trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such
day is otherwise designated as a Trading Day in writing by the Required Holders.

 

(w)
“Transaction Documents” means this Certificate of Designations, the Purchase Agreement and each of the other
agreements and instruments entered into or delivered by the Company or any of the Holders in connection with the transactions
contemplated thereby, all as may be amended from time to time in accordance with the terms hereof or thereof.

 

[signature
page follows]

 

    	11

    	 

    

 

IN
WITNESS WHEREOF, the Corporation has caused this Certificate of Designations of Series A Convertible Preferred Stock of KinerjaPay
Corp. to be signed by its Chief Executive Officer on this 2nd day of January 2018.

 

	 	KINERJAPAY
    CORP.
	 	 

        
	 
	 	 	/s/:
    Edwin Ng 
	 	Name:	Edwin
    Ng  
	 	Title:	Chief
    Executive Officer   

 

[Signature
Page to Certificate of Designations of Series A Convertible Preferred Stock]

 

    	 

    	 

    

 

EXHIBIT
I

 

KINERJAPAY
CORP.

CONVERSION
NOTICE

 

Reference
is made to the Certificate of Designations, Preferences and Rights of the Series A Convertible Preferred Stock of KinerjaPay Corp.
(the “Certificate of Designations”). In accordance with and pursuant to the Certificate of Designations, the
undersigned hereby elects to convert the number of shares of Series A Convertible Preferred Stock, $0.0001 par value per share
(the “Preferred Shares”), of KinerjaPay Corp., a Delaware corporation (the “Company”), indicated
below into shares of common stock, $0.0001 value per share (the “Common Stock”), of the Company, as of the
date specified below.

 

	 	Date
    of Conversion:	 

 

	 	Number
    of Preferred Shares to be converted:	 

 

	 	Share
    certificate no(s). of Preferred Shares to be converted:	 

 

	 	Tax
    ID Number (If applicable):	 

 

	 	Conversion
    Price:	 

 

	 	Number
    of shares of Common Stock to be issued: ______________________	 

 

Please
issue the shares of Common Stock into which the Preferred Shares are being converted in the following name and to the following
address:

 

Issue
to: _________________________________________

_________________________________________

 

Address:
_________________________________________

 

Telephone
Number: ________________________________

 

Facsimile
Number: _________________________________

 

Holder:
__________________________________________

 

By:
_____________________________________________

Title:
___________________________________________

 

Dated:_____________________________

 

Account
Number (if electronic book entry transfer): __________________________________

 

Transaction
Code Number (if electronic book entry transfer): __________________________

 

    	 

    	 

    

 

EXHIBIT
II

 

ACKNOWLEDGMENT

 

The
Company hereby acknowledges this Conversion Notice and hereby directs __________ to issue the above indicated number of shares
of Common Stock in accordance with the Irrevocable Transfer Agent Instructions dated __________, 20____ from the Company and acknowledged
and agreed to by _____________.

 

	 	KINERJAPAY
    CORP.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00283-of-00352.parquet"}]]