NEITHERTHISNOTENORTHESECURITIESINTOWHICHTHISNOTEISCONVERTIBLEHAVEBEENREGISTEREDWITHTHESECURITIESANDEXCHANGECOMMISSIONORTHESECURITIESCOMMISSIONOFANYSTATE.THESESECURITIESHAVEBEENSOLDINRELIANCEUPONANEXEMPTIONFROMREGISTRATIONUNDER THESECURITIESACTOF1933,ASAMENDED(THE"SECURITIESACT"),AND,ACCORDINGLY,MAYNOT BEOFFERED ORSOLDEXCEPTPURSUANT TOANEFFECTIVEREGISTRATIONSTATEMENTUNDERTHESECURITIESACTORPURSUANT TOANAVAILABLEEXEMPTIONFROM,ORINATRANSACTIONNOTSUBJECTTO,THEREGISTRATIONREQUIREMENTS OF THESECURITIESACTANDINACCORDANCE WITHAPPLICABLESTATESECURITIESLAWS.
MAXSOUNDCORPORATION
CONVERTIBLENOTE
IssuanceDate:February6,2013
OriginalPrincipalAmount:$333,000
NoteNo.MAXD-1ConsiderationPaidatClose:$25,000
FORVALUERECEIVED,MaxSoundCorporation.,aDelawarecorporation(the"Company"),herebypromisestopaytotheorderofVistaCapitalInvestments,LLCorregisteredassigns(the"Holder")theamountsetoutaboveastheOriginalPrincipalAmount(asreducedpursuant to thetermshereofpursuant toredemption,conversionorotherwise, the"Principal")whendue,whetherupontheMaturityDate(asdefinedbelow),acceleration,redemptionorotherwise(ineachcase inaccordancewiththetermshereof)and topayinterest("Interest") onanyoutstandingPrincipalattheapplicableInterestRatefromthedateset outaboveastheIssuance Date(the "IssuanceDate")until thesamebecomesdueandpayable,upontheMaturityDate oracceleration,conversion,redemption or otherwise(ineachcase inaccordancewiththe termshereof).
TheOriginalPrincipalAmountis$333,000(threehundredthirtythreethousand)plusaccruedandunpaidinterestandanyotherfees.TheConsiderationis$300,000(threehundredthousand)payablebywire(thereexistsa$33,000originalissuediscount(the"OID")).TheHoldershallpay$25,000ofConsiderationuponclosingofthisNote.TheHoldermaypayadditional Consideration totheBorrower in suchamountsandatsuchdatesas Holder maychoose in itssolediscretion.
THEPRINCIPALSUMDUETOHOLDERSHALLBEPRORATEDBASEDONTHECONSIDERATIONPAIDBYHOLDER(PLUSANAPPROXIMATE10%ORIGINALISSUEDISCOUNTTHATISPRORATEDBASEDONTHECONSIDERATIONPAIDBYTHE HOLDERASWELLASANYOTHERINTERESTORFEES)SUCHTHATTHEBORROWERISONLYREQUIREDTO REPAYTHEAMOUNTFUNDEDANDTHEBORROWER IS NOTREQUIREDTO REPAYANYUNFUNDEDPORTIONOF THISNOTE.
(1) GENERALTERMS
(a) PaymentofPrincipal.The"MaturityDate"shallbeoneyearfromthe date ofeachpaymentofConsideration,as maybeextendedatthe option of theHolderin theeventthat,andforsolongas,anEventofDefault(asdefinedbelow)shallhaveoccurredandbecontinuingontheMaturityDate(asmaybeextendedpursuant to thisSection 1)oranyeventshallhave occurredandbe continuingonthe Maturity Date(asmay beextended pursuant tothisSection 1)thatwith thepassage of timeand thefailure tocurewouldresult inanEventofDefault.
(b) Interest.Aone-timeinterestchargeof tenpercent(10%)("InterestRate")shallbeappliedontheIssuanceDatetotheOriginalPrincipalSum.InteresthereundershallbepaidontheMaturityDate(orsoonerasprovidedherein)totheHolderoritsassigneeinwhosenamethis Noteisregistered on therecordsoftheCompanyregardingregistration andtransfers ofNotes in cash orconvertedintoCommon Stock at the Conversion Price providedthe Equity Conditionsare satisfied.
(c) Security.ThisNoteshallnotbesecuredbyanycollateraloranyassetspledgedtotheHolder
(a) An"EventofDefault",whereverusedherein,meansanyoneofthefollowingevents(whateverthereasonandwhetheritshallbevoluntaryorinvoluntaryoreffectedbyoperationoflaworpursuant toanyjudgment,decree or order ofanycourt,oranyorder,ruleorregulation ofanyadministrative orgovernmentalbody):
(i) TheCompany'sfailuretopaytotheHolderanyamountofPrincipal,Interest,orotheramountswhenandasdueunderthis Note(including,withoutlimitation,theCompany'sfailureto payany redemptionpayments oramountshereunder)oranyotherTransactionDocument;
| (ii) | AConversionFailureasdefinedinsection3(b)(ii) |
(iii) TheCompany oranysubsidiaryoftheCompanyshallcommence,orthereshallbecommencedagainsttheCompanyoranysubsidiaryoftheCompanyunderanyapplicable bankruptcyor insolvencylawsasnoworhereafterineffect or anysuccessorthereto,or theCompany orany subsidiary ofthe Companycommencesanyotherproceedingunderanyreorganization, arrangement,adjustment of debt,relief ofdebtors, dissolution,insolvencyorliquidationorsimilarlawofanyjurisdictionwhether now orhereafter ineffectrelating to theCompany orany subsidiary of the Company orthere iscommencedagainstthe Company orany subsidiaryof the Companyanysuchbankruptcy,insolvency orother proceedingwhichremainsundismissed for a periodof 61days; or the Companyoranysubsidiaryof the Company isadjudicated insolvent orbankrupt; orany order ofrelief or otherorderapprovingany such caseor proceedingis entered; or theCompanyoranysubsidiaryofthe Companysuffersany appointment ofany custodian,privateorcourt appointedreceiveror the likefor it or anysubstantialpart of itspropertywhichcontinuesundischarged orunstayedfor a
periodofsixtyone(61)days;ortheCompanyoranysubsidiaryoftheCompanymakesageneralassignmentforthebenefitofcreditors;ortheCompanyor anysubsidiaryoftheCompanyshallfail topay, or shallstatethat it isunable topay, or shall beunable topay, itsdebts generallyas they becomedue;or the Company orany subsidiary ofthe Company shallcall ameetingof itscreditorswith aview toarrangingacomposition,adjustment orrestructuringof itsdebts; or theCompany orany subsidiaryof the Companyshallbyany act orfailure toact expresslyindicateits consent to, approvalof oracquiescence inanyof theforegoing;oranycorporate orother action istakenby the Companyorany subsidiary of the Company for thepurpose ofeffectingany of theforegoing;
(iv) TheCompany oranysubsidiaryoftheCompanyshalldefaultinanyofitsobligationsunderanyotherNoteoranymortgage,creditagreementorotherfacility,indentureagreement,factoringagreementorotherinstrumentunderwhichtheremaybeissued,or bywhichtheremaybesecuredorevidencedanyindebtednessforborrowedmoneyormoneydueunderanylong term leasing or factoringarrangementof the Companyorany subsidiaryof the Company inanamount exceeding $100,000,whether suchindebtedness now exists orshallhereafterbecreated;and
(b) TheCommonStockissuspendedordelistedfortradingontheOvertheCounterBulletinBoardmarket(the"PrimaryMarket").
| (c) | TheCompanylosesitsstatusas"DTCEligible." |
(d) TheCompanyshallbecomelateordelinquentinitsfilingrequirementsasafully-reportingissuerregisteredwiththeSecurities&ExchangeCommission.
(e) UponreceivingaNoticeofDefault,theCompanyshallhaveagraceperiodoften(10)daystocuretheDefault.
(3) CONVERSIONOFNOTE. ThisNoteshallbeconvertibleintosharesoftheCompany'sCommonStock,onthetermsandconditionssetforthinthisSection3.
(a) ConversionRight.SubjecttotheprovisionsofSection3(c), atanytimeortimesonorafter theIssuanceDate,theHoldershallbeentitledtoconvertanyportionoftheoutstandingandunpaidConversionAmount(asdefinedbelow) intofullypaidandnonassessablesharesofCommonStockinaccordance withSection3(b),attheConversionPrice (asdefined below). Thenumber ofshares of CommonStockissuable uponconversionofanyConversion Amount pursuant to thisSection3(a)shallbe equal to the quotient of dividing theConversionAmountby theConversionPrice.The Companyshall notissue anyfraction of ashareof CommonStock uponanyconversion.If theissuancewould result in theissuanceof afractionof a share of CommonStock, the Companyshallround suchfraction of a share of CommonStockuptothe nearestwholeshare. TheCompanyshallpayanyandalltransferagentfees, legalfees,costs andanyotherfeesorcoststhat may beincurredorcharged inconnectionwith theissuanceofshares of theCompany's CommonStock to theHolderarising out of orrelating to theconversion of thisNote.
(i) "ConversionAmount"meanstheportionoftheOriginalPrincipalAmountandInteresttobeconverted,plusanypenalties,redeemedorotherwisewithrespect towhich thisdetermination isbeingmade.
(ii) "ConversionPrice"shallequal70%oftheaverageofthe3lowesttrades occurringduringthetwenty(20)consecutive TradingDaysimmediatelyprecedingtheapplicableConversionDateonwhichtheHolderelectstoconvertallorpartofthisNote,subject toadjustmentasprovided in this Note.
| (b) | MechanicsofConversion. |
(i) OptionalConversion.ToconvertanyConversionAmountintosharesofCommonStockonanydate(a"ConversionDate"),theHoldershall(A)transmitbyemail,facsimile(orotherwisedeliver),forreceiptonorpriorto11:59p.m.,NewYork,NYTime,onsuchdate,acopyofanexecutednotice ofconversionin theformattachedhereto asExhibit A(the"ConversionNotice") to theCompany.On or before thethirdBusiness Dayfollowing thedateofreceiptofaConversionNotice(the"ShareDeliveryDate"),theCompanyshall(A) if legends arenotrequired to be placed oncertificates of CommonStock pursuant to thethen existing provisions ofRule 144of theSecuritiesActof1933("Rule144")andprovidedthat theTransfer Agent isparticipating in theDepositoryTrustCompany's ("DTC")FastAutomatedSecuritiesTransferProgram,credit suchaggregate numberofshares of CommonStock towhich the Holdershallbeentitled to theHolder'sor its designee'sbalanceaccountwithDTCthroughitsDepositWithdrawalAgentCommissionsystemor(B)iftheTransferAgentis notparticipatingintheDTCFastAutomatedSecuritiesTransferProgram, issueanddeliver to theaddressasspecified in theConversionNotice, acertificate,registered in thename of theHolder oritsdesignee,forthenumberofsharesofCommonStocktowhichtheHoldershallbeentitledwhichcertificatesshall notbearanyrestrictivelegendsunlessrequiredpursuantthe Rule
144.IfthisNoteisphysicallysurrenderedforconversionandtheoutstandingPrincipalofthisNoteisgreaterthanthePrincipalportionoftheConversionAmountbeingconverted,thentheCompanyshall,uponrequestoftheHolder,assoonaspracticableand innoeventlaterthanthree(3)BusinessDaysafterreceiptof thisNoteandatitsownexpense, issueanddeliver to theholder anewNoterepresenting the outstandingPrincipal notconverted.The Person orPersonsentitled toreceive thesharesof CommonStockissuable upon aconversion of thisNoteshallbetreated forallpurposes astherecord holder orholders ofsuchshares of CommonStock uponthetransmission of a ConversionNotice.
(ii) Company'sFailuretoTimelyConvert.Ifwithintwo(2)TradingDaysaftertheCompany'sreceiptofthefacsimileoremailcopyofaConversionNoticetheCompanyshallfail toissueanddelivertoHoldervia"DWAC/FAST"electronictransferthenumberofsharesofCommonStocktowhichtheHolderisentitleduponsuchholder'sconversion ofanyConversionAmount (a"ConversionFailure"),theOriginalPrincipalAmount of theNote shall increase by$2,000 perdayuntil the Companyissues anddelivers acertificateto theHolder orcredit theHolder'sbalanceaccountwithDTCfor thenumber ofshares of CommonStocktowhich theHolderisentitleduponsuchholder's conversionofanyConversion Amount(underHolder'sandCompany's expectationthat any penalty amountswilltackbackto theIssuanceDate).Company willnotbesubjecttoanypenalties once itstrans/eragentprocesses theshares to theDWACsystem.If the Companyfails to delivershares inaccordance withthetimeframe statedinthisSection,resultingina ConversionFailure,theHolder,at any
timepriortosellingallofthoseshares,mayrescindanyportion,inwholeorinpart,ofthatparticular conversionattributabletotheunsoldsharesandhavetherescindedconversionamountreturnedtothePrincipalSumwiththerescindedconversionsharesreturnedtotheCompany(underHolder'sandCompany'sexpectationsthat anyreturnedconversionamountswilltackback to theoriginal date of theNote).
(iii) DWAC/FASTEligibility.IftheCompanyfailsforanyreasontodelivertotheHoldertheSharesbyDWAC/FASTelectronictransfer(suchasbydeliveringaphysicalstockcertificate),or ifthereisaConversionFailureasdefinedinSection 3(b)(ii),and if theHolderincurs aMarket PriceLoss,thenatany timesubsequent toincurring the loss theHolder mayprovidethe Companywrittennoticeindicating theamountspayable to theHolderinrespect of theMarketPriceLossandthe Company mustmake theHolderwhole byeither ofthefollowing options at Holder'selection:
MarketPriceLoss=[(Hightradepricefortheperiodbetweentheday ofconversionandthedaythesharesclearintheHolder'sbrokerageaccount)x(Numberofsharesreceivablefromtheconversion)] -[(NetSalespricerealizedbyHolder)x(Numberofsharesreceivablefrom theconversion)].
OptionA-PayMarketPriceLossinCash.TheCompanymustpaytheMarketPriceLossbycashpayment,andanysuchcashpayment mustbemadeby thethirdbusiness dayfromthe timeof the Holder's writtennotice totheCompany.
OptionB -AddMarketPriceLosstoPrincipalSum.TheCompanymustpaytheMarketPriceLossbyaddingtheMarketPriceLosstothebalanceofthePrincipalSum(underHolder'sand theCompany'sexpectationthat anyMarket PriceLossamountswilltackback to theIssuance Date).
InthecasethatconversionsharesarenotdeliverablebyDWAC/FASTelectronictransferanadditional5%discounttotheConversionPricewillapply.
(iv) DTCEligibility.IftheCompanylosesitsstatusas"DTCEligible"foranyreason,thePrincipalAmount oftheNoteshallincreasebytenthousand dollars($15,000) (under Holder'sandCompany'sexpectationthat any PrincipalAmountincreasewilltackbacktotheIssuance Date).Inaddition,theConversionPrice shallberedefinedtoequal 50%ofthelowesttradeoccurringduringthetwentyfive(25)consecutiveTradingDaysimmediatelyprecedingtheapplicableConversionDateonwhichtheHolderelectstoconvertall orpart of thisNote, subject toadjustmentasprovided in thisNote.
(v) Book-Entry.Notwithstandinganythingtothecontrarysetforthherein,uponconversionofanyportionofthisNoteinaccordancewiththetermshereof,theHolder shall notberequiredto physicallysurrender thisNoteto theCompanyunless(A) the fullConversionAmountrepresented by thisNote is beingconverted or (B) theHolderhas provided the Companywithpriorwrittennotice(which notice maybeincluded in aConversionNotice)requestingreissuanceofthisNote uponphysicalsurrender of thisNote. The Holderand the Company shall maintainrecords showing thePrincipalandInterestconvertedand thedates ofsuchconversions or shall usesuchother method, reasonably satisfactory to the Holderand theCompany,soasnottorequirephysicalsurrenderof thisNote uponconversion.
| (c) | LimitationsonConversionsorTrading. |
(i) BeneficialOwnership.TheCompanyshallnoteffectanyconversionsofthisNoteandtheHoldershallnothavetherighttoconvertanyportionofthisNoteorreceivesharesofCommonStockaspaymentofinteresthereunder totheextentthataftergivingeffecttosuchconversionorreceiptofsuchinterestpayment,theHolder,togetherwith any affiliatethereof,wouldbeneficially own(asdetermined inaccordancewithSection 13(d) of theExchangeActandtherulespromulgatedthereunder)inexcessof4.99%ofthenumberofsharesof CommonStockoutstandingimmediatelyaftergivingeffecttosuchconversion orreceipt ofsharesaspayment ofinterest.Since theHolderwill not beobligated toreport to the Company thenumberofshares ofCommonStock itmayholdatthe time ofaconversionhereunder,unless theconversionat issuewould result in the issuanceofshares of CommonStockin excess of4.99% ofthethen outstandingsharesofCommonStock withoutregardtoanyothershareswhichmay be beneficially ownedby theHolderoranaffiliatethereof, theHoldershallhave the authorityandobligation to determinewhethertherestrictioncontained in thisSectionwilllimit anyparticularconversion hereunderand to the extentthat theHolderdeterminesthat thelimitationcontained in thisSectionapplies, thedetermination ofwhichportion of theprincipalamount of thisNoteisconvertible shall be the responsibilityandobligationoftheHolder.Ifthe Holderhasdelivered a ConversionNotice for a principalamount of thisNotethat,withoutregardtoany othersharesthat theHolder or itsaffiliatesmay beneficiallyown,wouldresult in theissuance inexcess of thepermittedamounthereunder, the Companyshallnotify theHolderofthisfactandshallhonortheconversionforthemaximumprincipal amount permittedtobeconvertedonsuchConversionDateinaccordance withSection3(a)and,anyprincipalamounttenderedforconversion inexcess of thepermittedamounthereundershallremainoutstandingunder thisNote. Theprovisions of thisSection maybewaived byaHolder (but onlyas toitselfand notto anyother Holder)upon notlessthan 65 dayspriornotice to theCompany.OtherHoldersshallbeunaffected byany suchwaiver.
(i) ShareReservation.TheCompanyshallatalltimesreserveandkeepavailableoutofitsauthorizedCommonStockthefullnumberofsharesofCommonStockissuableuponconversion ofalloutstandingamountsunderthisNote;and withinfive(5)BusinessDaysfollowingthereceipt bythe CompanyofaHolder'snotice thatsuchminimumnumber ofUnderlyingShares is not soreserved, the Company shall promptly reserve asufficient number ofshares of CommonStock to complywithsuchrequirement. The Companywill atalltimesreserve atleast3,000,000sharesof CommonStockforconversion.
(ii) Prepayment.AtanytimeaftertheIssuanceDate,theCompanyshallhavetheoption,upon10businessdays'noticetoHolder,topre-paytheentireremainingoutstandingprincipalamountofthis Noteincash,providedthat(i)theCompany shall paytheHolder 150% of thePrincipalAmountoutstanding plusInterest inrepaymenthereof, (ii)suchamount mustbepaid incash on the nextbusiness day followingsuch 10business daynoticeperiod,and(iii)theHoldermay stillconvertthisNotepursuanttothetermshereofatalltimesuntil suchprepaymentamounthasbeen received infull.Exceptas setforth in thisSection the Company may notprepay thisNote inwholeor inpart.
(iii) AllcalculationsunderthisSection3shallberoundeduptothenearest$0.00001orwholeshare.
(iv) NothinghereinshalllimitaHolder'srighttopursueactualdamagesordeclareanEventofDefaultpursuanttoSection2hereinfortheCompany'sfailuretodelivercertificatesrepresentingsharesofCommonStockuponconversionwithintheperiodspecifiedhereinandsuchHolder shall havetheright to pursueall remediesavailableto itat law or in equityincluding,withoutlimitation, adecreeofspecific performanceand/orinjunctiverelief,ineach casewithouttheneed to postabondorprovideothersecurity. Theexercise of anysuchrightsshallnotprohibittheHolderfromseekingtoenforce damagespursuanttoany otherSectionhereoforunderapplicablelaw.
(4) PIGGYBACKREGISTRATIONRIGHTS.TheCompanyshallincludeon the nextregistrationstatementthe CompanyfileswithSEC(oron thesubsequentregistrationstatementifsuchregistrationstatementiswithdrawn)allsharesissuableuponconversionofthisNote.Failure to do sowillresult inliquidateddamagesof 25% of theoutstandingprincipalbalance ofthisNote,but notlessthan $25,000, being immediately dueandpayable to theHolderatitselection intheform ofcashpayment or additiontothebalance of thisNote.
(a) Assignability.TheCompanymaynotassignthisNote.ThisNotewillbebindingupontheCompanyanditssuccessorsandwillinuretothebenefitoftheHolderanditssuccessorsandassignsandmay be assignedby theHolder toanyone of itschoosingwithoutCompany'sapproval.
(b) Lost,StolenorMutilatedNote.UponreceiptbytheCompanyofevidencereasonablysatisfactorytotheCompanyoftheloss,theft,destructionormutilationofthisNote, and, inthe caseof loss, theft ordestruction,ofanyindemnificationundertakingby theHolder to the Company in customaryform and, in the caseofmutilation, upon surrender andcancellation of thisNote, the Company shall executeanddeliver to theHolder a newNoterepresenting the outstandingPrincipal.
(6) NOTICES.Anynotices,consents,waiversorothercommunicationsrequiredorpermittedtobegivenunderthetermshereofmustbeinwritingandwillbedeemedtohavebeendelivered:(i)uponreceipt,whendeliveredpersonally; (ii)uponreceipt,whensentbyfacsimile(providedconfirmationoftransmissionismechanicallyor electronicallygeneratedandkept onfileby thesendingparty) (iii) uponreceipt,whensentby email; or (iv) one (1) Trading Dayafter depositwith a nationallyrecognizedovernight deliveryservice, ineach case properlyaddressed to the party to receive the same. Theaddressesandfacsimilenumbers forsuchcommunications shall be those setforth in thecommunicationsanddocumentsthateach partyhas provided the otherimmediately preceding the issuance of thisNote orat suchotheraddressand/orfacsimilenumberand/or to the attention ofsuchotherpersonas therecipient partyhasspecifiedbywrittennoticegiven to eachother partythree (3)BusinessDaysprior to theeffectiveness ofsuchchange.Writtenconfirmation ofreceipt (i)givenby therecipientofsuchnotice,consent,waiver orothercommunication, (ii)mechanically or electronicallygeneratedby thesender'sfacsimilemachine containing thetime,date, recipientfacsimilenumber
andanimageofthefirstpageofsuchtransmissionor(iii)providedbyanationallyrecognizedovernightdeliveryservice,shallberebuttableevidenceofpersonalservice,receiptbyfacsimileorreceiptfroma nationallyrecognizedovernight deliveryserviceinaccordancewithclause (i),
(ii)or(iii)above,respectively.
Theaddressesforsuchcommunicationsshallbe:IftotheCompany,to:
MAXSOUNDCORPORATION
2902AColoradoAvenueSantaMonica,CA90404Attn:GregHalpern
Email:greg@maxsound.com
IftotheHolder:
VISTACAPITALINVESTMENTS,LLC
4342VistaWay
La Mesa CA91941
Attn:DavidClark,ManagerEmail:dclark@vci.us.com
(7) APPLICABLELAWANDVENUE.ThisNoteshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofCalifornia,withoutgivingeffecttoconflictsoflaws thereof. Any actionbroughtby eitherparty againsttheother concerning thetransactionscontemplated bythisAgreement shallbebroughtonlyinthestatecourts ofCalifornia orinthefederalcourtslocatedinSanDiegoCounty,inthe Stateof California.Bothpartiesand the individualssigning thisAgreementagree to submit to thejurisdiction of suchcourts.
(a) WAIVER.AnywaiverbytheHolderofabreachofanyprovisionofthisNoteshallnotoperateasorbeconstruedtobeawaiverofanyotherbreachofsuchprovisionorofanybreachofanyotherprovisionofthisNote.ThefailureoftheHoldertoinsistuponstrictadherenceto anytermofthisNote ononeormoreoccasionsshallnotbeconsideredawaiver or deprivethat partyof theright thereafter to insist uponstrictadherence tothatterm or any othertermof this Note.Anywaiver mustbeinwriting.
[SignaturePageFollows]
INWITNESSWHEREOF,theCompanyhascausedthisConvertibleNotetobedulyexecutedbyadulyauthorizedofficerasofthedatesetforthabove.
COMPANY:
MAXSOUNDCORPORATION
By:
Name:Title:
HOLDER:
VISTACAPITALINVESTMENTS,LLC.
By:
Name:DavidClarkTitle:Manager
EXHIBITA-CONVERSIONNOTICE
(TobeexecutedbytheHolderinordertoConvertthe Note)
TO:
Theundersignedherebyirrevocablyelectstoconvert$oftheprincipalamountofNoteNo.intoSharesofCommonStockofaccording to theconditionsstatedtherein,as oftheConversionDatewrittenbelow.
NoteBalanceBeforeConversion
$
Conversion Date:Conversion Amounttobe
converted:$
LowTradedPrice(oflast20
tradingdays)$
ConversionFactor
ConversionPrice:$
Numberofshares ofCommonStocktobeissued:
NoteBalanceAfterConversion:$
PleaseissuethesharesofCommonStockinthefollowingnameandtothefollowingaddress:Issueto:
Authorized Signature:Name:
Title:
BrokerName:
BrokerDTCParticipantCode:AccountNumber:
