Exhibit 4.1
FORM OF CONVERTIBLE PROMISSORY NOTE
| $______________ | __________, 2014 |
FOR VALUE RECEIVED, TRUE2BID, INC. and TRUE 2 BEAUTY, INC. (the “Parent Company”), both Nevada corporations, with an address at ________________________ (collectively the “Company” or “Payor”), promises to pay to the order of _______________________ (the “Payee” or the “Holder”), or registered assigns, the principal amount of ___________________________ Dollars ($_______)on ____________, 2017 (the “Maturity Date”), and unpaid interest on the unpaid principal balance hereof from the date of this Note at rate of 10% per annum, payable in full no later than on the Maturity Date. Payments of principal and interest shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public or private debts.
1. Terms of Repayment.
1.1 All payments received on account of this Note shall be applied first to the payment of accrued interest on this Note and then to the reduction of the unpaid principal balance of this Note. Interest shall be computed on the basis of a year of 360 days, for the actual number of days elapsed.
1.2 If payment of the outstanding principal amount of this Note, together with accrued unpaid interest thereon at the applicable rate of interest (as set forth herein), is not made on the Maturity Date, then interest shall accrue on the outstanding principal amount due under this Note and on any unpaid accrued interest due on this date of the payment in full of such amounts (including from and after the date of the entry of judgment in favor of the Holder in an action to collect this Note) at an annual rate equal to the lesser of __% or the maximum rate of interest permitted by applicable law.
1.3 Notwithstanding anything to the contrary contained in this Note, the Company shall not be obligated pay, and the Holder shall not be entitled to charge, collect, or receive, interest in excess of the maximum rate allowed by applicable law. During any period of time in which the interest rate specified herein exceeds such maximum rate, any amounts of interest collected by the Holder in excess of such maximum rate shall be deemed to apply to principal, and all payments of interest and principal shall be recalculated to allow for such characterization.
1.4 In the event that the date for the payment of any amount payable under this Note falls due on a Saturday, Sunday or public holiday under the laws of the State of Florida, the time for payment of such amount shall be extended to the next succeeding business day and interest shall continue to accrue on any principal amount so effected until the payment thereof on such extended due date.
| 1 |
2. ConversionRights.
2.1 RighttoConvert.TheHoldershallhavetheoption,at anytime,toconvertall orany partoftheoutstandingprincipalamountofthisNoteandaccruedandunpaidinterestintofullypaid andnon-assessablesharesoftheCommonStock(“ConversionShares”),parvalue$.001pershare,of theCompanyortheParentCompany(the“ConversionRight”)attheConversionPrice(asdefined below)determinedasprovidedinthisSection2.Promptlyafter thesurrenderofthisNote, accompaniedby aNoticeofConversionofConvertibleNoteinthe formattachedheretoasExhibit C,properlycompletedanddulyexecutedbytheHolder(a“ConversionNotice”),theCompanyshall issueanddelivertooruponthe orderofthe HolderthatnumberofsharesofCommonStockforthe balanceofthisNoteconvertedasshallbedeterminedinaccordanceherewith.
2.2 Calculation. Thenumberof sharesof CommonStockto beissuedupon each conversionofthisNoteshallbedeterminedbydividing(i) theamountofPrincipal(andaccruedand unpaid interestifelectedbytheHolder) tobe converted by(ii) theConversion Price ineffect onthedate the Conversion Noticeisdelivered totheCompany by theHolder.
2.3 Conversion Price. The conversion price shall be $0.02 per share, subject to adjustmentfromtimetotimeuponthehappeningofcertainevents(asadjusted,the“ConversionPrice”)as setforthbelow.
2.4 Subdivision. IftheCompany,atanytimewhiletheNoteremainsoutstanding,shall (i)subdivide theCommonStock(oreffectasimilartransaction),theConversionPriceshallbe proportionatelyreducedor(ii)effectareverse stocksplit orsimilar transaction, theConversionPriceshall be proportionately increased,as thecasemaybe,as of theeffectivedateof such subdivision,reverse stock split or similar transaction, or, if the Company shall take a record of holders of its Common Stock for the purpose of any such transaction, as of such record date, whichever is earlier (provided ifsuchtransactiondoesnotactuallyoccur, suchadjustmentshallnotbemade).
2.5 StockDividends. IftheCompany,atanytimewhiletheNoteisoutstanding,shallpayadividendinsharesof,ormake other distributionofsharesoftheCommonStock,thentheConversionPriceshallbeadjusted,asofthedatetheCompanyshalltake arecordoftheholdersof itsCommonStockforthepurposeofreceivingsuchdividendorotherdistribution(orifnosuch record istaken,asatthedateofsuchpaymentorotherdistribution),tothatpricedeterminedby multiplyingtheConversionPriceineffectimmediatelypriortosuchpayment orotherdistributionbyafraction(a)thenumeratorofwhichshallbethetotalnumberofsharesofCommonStock outstandingimmediatelypriortosuchdividendordistribution,and(b)thedenominatorofwhich shallbethetotalnumberofsharesofCommonStock outstandingimmediatelyaftersuchdividendor distribution.
2.6 Reclassification, ConsolidationorMerger. AtanytimewhilethisNoteremains outstanding,incaseofanyreclassificationorchangeofCommonStock(otherthanachangeinpar value,orfromparvaluetonoparvaluepershare,orfromnoparvaluepersharetoparvalue)orin caseofanyconsolidationormergeroftheCompanywithorintoanothercorporation(otherthanamergerwithanothercorporationinwhichtheCompanyisacontinuingcorporationandwhichdoes notresultinanyreclassification orchange,otherthan achangeinparvalue,orfromparvaluetono parvaluepershare,orfromnoparvaluepersharetoparvalue),orinthecaseofanysaleortransfer toanothercorporationofthepropertyoftheCompanyasanentiretyorsubstantiallyasanentirety, theCompanyorsuchsuccessororpurchasingcorporation,asthecasemaybe,shall,withoutpayment ofanyadditionalconsiderationtherefor,execute newnoteprovidingthattheholderoftheNoteshall havetherightto exercisesuchnewnote(upontermsnotlessfavorableto theholderthanthosethen applicabletotheNote)andtoreceiveuponsuchexercise,inlieuofeachshareofCommonStock theretoforeissuableuponexerciseoftheNote,thekindandamountofsharesofstock,other securities,moneyorpropertyreceivableuponsuchreclassification,change,consolidation,merger, saleortransferbytheHolderofoneshareofCommonStockissuableuponexerciseoftheNotehad theNotebeenconvertedimmediatelypriortosuchreclassification,change,consolidation,merger, saleortransfer.Suchnewnoteshallprovideforadjustmentswhichshallbeasnearlyequivalentas maybepracticabletotheadjustmentsprovidedforinthisSection2.TheprovisionsofthisSection 2.6shallsimilarlyapplytosuccessivereclassifications,changes,consolidations,mergers,salesand transfers
.
| 2 |
2.7 Share Issuance.IftheCompanyat anytimeshallissueanysharesofCommonStock oroptions,warrantsorconvertiblesecuritiesprovidingfortheissuanceofsharesofCommonStock,prior totheconversionoftheentireprincipalamountoftheNote(otherwisethanasprovidedaboveorpursuant tooptions,warrantsorotherobligationstoissuesharesoutstanding onthedatehereofasdescribedinthe Company’speriodic reportsfiled withtheSecuritiesandExchange Commission) foraconsiderationless than the Conversion Pricethatwould beineffectatthe timeofsuchissue, then, andthereaftersuccessively upon each suchissue, the Conversion Price shall bereduced tothe priceof suchshare issuance.
2.8 MethodofConversion. ExceptasotherwiseprovidedinthisNoteoragreedtoby theHolder,thisNotemaybeconvertedbytheHolderinwholeatanytimeorinpartfromtimeto timeby(i)submittingtotheCompany aConversionNotice(byfacsimiledispatchedonthe ConversionDateandconfirmedbyU.S.mailorovernightmailservicesentwithintwobusinessdays thereafter)and(ii)surrenderingthisNotewiththemailedconfirmationoftheConversionNoticeat theprincipalofficeoftheCompany.UponpartialexerciseoftheConversionRights, anewnote containingthesamedateandprovisionsasthisNoteshallbeissuedbytheCompanytotheHolder forthebalanceduehereunderwhichshallnothavebeenconverted.
2.9 RestrictionsonShares. ThisNotehasbeenissuedbytheCompanypursuanttothe exemption fromregistration undertheSecuritiesActof1933(the“Act”).ThesharesofCommonStock issuableuponconversionofthisNotemaynotbeoffered,soldorotherwisetransferredunless(i) they firstshallhavebeenregisteredundertheAct and applicablestatesecuritieslawsor(ii)the Companyshallhavebeenfurnishedwithanopinionoflegalcounsel(inform,substanceandscope reasonablyacceptabletotheCompany)totheeffectthatsuchsaleortransferisexemptfromthe registrationrequirementsoftheAct.EachcertificateforsharesofCommonStockissuableupon conversionofthisNotethathavenotbeensoregisteredandthathasnotbeensoldpursuanttoan exemptionthatpermitsremovaloftheapplicablelegend,shallbearalegend substantiallyinthe followingform,asappropriate:
| THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”). THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR SUCH OFFERS, SALES AND TRANSFERS ARE MADE PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS. |
| 3 |
UpontherequestofaholderofacertificaterepresentinganysharesofCommon Stockissuableuponconversion ofthisNote,theCompany shallremovetheforegoinglegendfromthe certificateorissuetosuchHolderanewcertificatethereforfreeofanytransferlegend,if(i)withsuchrequest,theCompanyshall have receivedanopinionofcounsel,reasonablysatisfactorytothe Makerinform,substanceandscope,totheeffectthatanysuchlegendmayberemovedfromsuch certificateor(ii) aregistrationstatementundertheActcoveringsuchsecuritiesisineffect.
2.10 ReservationofShares.TheCompanyshallatalltimeshaveauthorizedand reserved, forthepurposeofissuance,asufficientnumberofsharesofCommonStocktoprovide fortheissuanceof sharesof CommonStockunderlyingthethenoutstandingaggregateprincipalamountof theNote.
2.11 RestrictionorConversion. TheCompanyshallnoteffectanyconversionofthis Note,andtheHoldershallnothavetherighttoconvert anyportionofthisNotetotheextentthatafter givingeffecttosuch conversion, the Holder (togetherwiththe Holder’saffiliates) would beneficiallyown inexcessof 4.99% of the numberof sharesof the CommonStock outstandingimmediately after giving effect tosuchconversion. Forpurposesoftheforegoingsentence, thenumber ofsharesofCommon Stock beneficially ownedby theHolderand its affiliatesshallinclude thenumberof sharesof CommonStock issuableupon conversionof this Note withrespecttowhich the determination of such sentenceisbeing made, butshallexclude thenumberofsharesofCommonStockwhichwouldbeissuable upon(A) conversionof theremaining, non-convertedportionof thisDebenturebeneficially owned by theHolderor anyofitsaffiliates and(B)exercise orconversion ofthe unexercised ornon-converted portion ofanyother securities oftheCompany subjecttoalimitation onconversionorexercise analogoustothelimitation containedhereinbeneficially owned by theHolderor any of its affiliates. Exceptas set forthin the preceding sentence,for purposes of thisSection2, beneficial ownershipshallbecalculated in accordance with Section 13(d) of the Securities Exchange Act of 1934. The provisions of this Section may e waived by the Holderupon, at the electionof the Holder,not less than 61 days’ prior noticetothe Company,andthe provisionsof this Section shall continue to apply until such 61stday (or such later date, as determined by the Holder, as may be specified in such notice of waiver).
3. Covenants. TheCompanycovenants andagreesthatforsolongasanyportionofthe indebtednessevidencedbythisNote,whetherprincipal,accrued andunpaidinterest oranyotheramountat anytimeduehereunder,remainsunpaid,theCompanywill:
(a) Doorcausetobedoneallthingsnecessarytopreserveandkeepinfullforceand effectitscorporateexistence,rightsandfranchisesandtocomplyinallmaterialrespectswithalllaws, regulationsandordersof eachgovernmentalauthorityhavingjurisdiction overtheCompany;
(b) PromptlyfollowingtheoccurrenceofaDefault(asdefinedherein),furnishtothe Holderastatement oftheCompany’sPresidentorChiefFinancialOfficersettingforththedetails ofsuch Default and the action which the Company proposes to take with respect thereto;
(c) Atalltimesmaintaintrueandcompleterecordsandbooksofaccountinwhichallof thefinancialtransactionsof theCompanyaredulyrecordedinconformancewithGAAP;
(d) Takeallactionwhichmaybenecessaryorexpedienttoassurethat,uponconversion oftheNote,allsharesissuableuponsuchconversionorexercisewillbedulyandvalidly issued,fullypaid, non-assessableandnotsubjecttothepreemptiverightsof anystockholder;
| 4 |
(e) CooperatewiththeHolderandexecutesuchfurtherinstrumentsanddocumentsas theHoldershallreasonablyrequesttocarryouttotheirsatisfactionthetransactionscontemplated by this Note; and
�� (f) PermitPayeetovisitandinspectanyofthepropertiesoftheCompany,toexaminethebooksofaccountoftheCompany(andtomakecopiesthereofandextractstherefrom),andto discusstheaffairs,financesandaccountsoftheCompanywith,andtobeadvisedastothesameby, itsandtheirofficers,atallsuchreasonabletimesandintervalsasPayee mayreasonablyrequest.
4. Eventsof Default.If anyof thefollowingevents(eachan“Eventof Default”)shalloccur:
4.1 TheCompanyfails topay theprincipalofinterestaccruedon,oranyotheramountat anytimeowingunder,theNoteasandwhenthesamebecomes dueandpayable andsuchdefaultisnot curedwithintwodaysafternoticeof theoccurrenceof suchdefault;or
4.2 TheCompanydefaultsinthedueobservanceorperformanceoforbreachanyofits covenants containedinthisNoteandsuchdefaultisnotcuredwithin10businessdaysafternoticeofthe occurrenceof suchdefault;or
4.3 The Companyshall (i)becomeinsolvent,(ii)apply fororconsent totheappointment of,orthe takingof possessionby,areceiver,trustee orsimilarofficialoforforitselforoforforallorasubstantialpartofitsproperty,(iii)makeanassignmentforthebenefitofitscreditors,(iv) commence avoluntarycaseundertheFederalBankruptcyCode,asnoworhereafterineffect(the “Code”),(v)file apetitionseekingtotakeadvantageofanyotherbankruptcy,insolvency, moratorium,reorganizationorothersimilarlawofanyjurisdiction(“OtherLaws”),(vi)acquiesceas to,orfailtocontrovertin atimelyorappropriatemanner,aninvoluntarycasefledagainstthe CompanyundertheCode, or(vii)takeanycorporateaction infurtheranceofanyoftheforegoing;or
4.4 Aproceedingorinvoluntarycaseshallbecommenced,withouttheapplication orconsentoftheCompanyinanycourt ofcompetentjurisdiction(i)undertheCode,(ii)seeking liquidation,reorganization,dissolution,windinguporcompositionorreadjustmentofitsdebtsunder anyOtherLaws,or(iii)seekingtheappointmentofatrustee,receiveorsimilarofficialforitorfor alloranysubstantialpartofitsassets,andanysuchproceedingorcaseshallcontinueundismissed, orunstayedandineffect,for aperiod of90days;or
4.5 Afinaljudgmentforthepaymentofmoneyshallberenderedbyacourtof competentjurisdictionagainsttheCompany,andtheCompanyshallnotdischargethesame,or procureastayofexecutionthereofwithin30daysfromthedateofentrythereofandwithinsuch30 dayperiodorsuchlongerperiodduringwhichexecutionofsuchjudgmentshallhavebeenstayed, appealtherefromandcausetheexecutionthereoftobestayedduringsuchappeal,andsuch judgment,togetherwithallotherjudgmentsagainsttheCompany(includingallsubsidiaries),shall exceedintheaggregate$50,000inexcessofanyinsuranceastothesubjectmatterofsuch judgments,astowhichcoveragehasnotbeen declinedortheunderlyingclaimrejectedbythe applicableinsurer;or
4.6 TheliquidationordissolutionoftheCompanyoranyvoteinfavorthereofby theboardofdirectorsandstockholdersoftheCompany;or
| 5 |
4.7 AnattachmentorgarnishmentisleviedagainsttheassetsoftheCompanyor anySubsidiarythereofinvolvinganamountinexcessof$50,000andtheliencreatedbysuchlevyis notvacated,bondedorstayed within 10businessdaysaftersuchlienhasattachedtosuchassets; or
4.8 TheCompanydefaultsinthepayment(regardlessofamount)whendueofthe principalof,intereston,oranyotherliabilityonaccountof,anyindebtednessoftheCompany(other thanthe Note)havingan unpaidprincipalamountinexcessof$50,000,oradefaultoccursinthe performanceorobservancebytheCompany ofanycovenantorcondition(otherthanforthepaymentofmoney)containedinanynote (otherthan thisNote)oragreementevidencingorpertainingtoany suchindebtedness,whichcausesthematurityofsuchindebtednesstobeacceleratedorpermitsthe holderorholdersofsuchindebtednesstodeclarethesametobeduepriortothestatedmaturity thereof,or
4.9 Thecompanysellsallorsubstantiallyallofitsassetsormergesoris consolidatedwithanothercorporationinwhich theCompanyisnotthesurviving corporation;
then,andinanysuchevent, theHolderofthisNotemaybywrittennoticetotheCompanydeclarethe entireunpaidprincipalamountofthisNoteoutstandingtogetherwithaccruedinterestthereondue andpayable,andthesameshall,unlesssuchdefaultbecuredwithintwenty(20)daysaftersuch notice,forthwithbecomedueandpayableupontheexpirationofsuchtwenty(20)dayperiod, withoutpresentment,demand,protest,orothernotice ofanykind,allofwhich areexpresslywaived.
5. SuitsforEnforcementandRemedies. IfanyoneormoreEventsofDefaultshalloccur,the Holder mayproceedto(i)protectandenforceHolder’s rightseitherbysuitinequityorbyactionatlaw,or both,whetherforthespecificperformanceofanycovenant,conditionoragreementcontainedinthis Noteorinanyagreementordocumentreferredtohereinorinaidoftheexerciseofanypower grantedinthisNoteorinanyagreementordocumentreferredtoherein,(ii)enforcethepaymentof thisNote,or(iii)enforceanyotherlegalorequitablerightoftheHolder.Norightorremedyherein orinanyotheragreementorinstrumentconferredupontheHolderofthisNote isintendedtobe exclusiveofanyotherrightorremedy,andeachandeverysuchrightorremedyshallbecumulative andshallbeinadditiontoeveryotherrightandremedygivenhereunderornoworhereafterexisting atlaworinequity orbystatute orotherwise.
6. RestrictiononTransfer. ThisNotehasbeenacquiredforinvestmentandhasnotbeen registeredunderthesecuritieslawsoftheUnitedStatesofAmericaoranystatethereofAccordingly, neitherthis Notenorany interestthereinmay beoffered forsale, soldortransferredintheabsenceof registrationandqualificationofthisNoteunderapplicablefederal andstatesecuritieslawsoran opinionofcounseloftheHolderreasonablysatisfactorytotheCompanythatsuchregistrationand qualificationarenotrequired.
7. Prepayment.Theprincipalof thisNotemaynotbeprepaid.
8. Miscellaneous.
8.1 If, followingtheoccurrenceof anEventof Default,theHolderof thisNoteshallseek toenforcethecollection ofanyamountofprincipaland/oraccruedinterestonthisNote,thereshallbe immediatelydueandpayablebytheCompany,inadditiontothethenunpaidprincipalof,and accruedunpaidintereston,thisNote,allcostsandexpensesincurredbytheHolderofthisNotein connectiontherewith,including,withoutlimitation,reasonableattorneys’feesanddisbursements.
| 6 |
8.2 Noforbearance,indulgence,delayorfailuretoexerciseanyrightorremedywith respecttothisNoteshalloperateasawaiverorasanacquiescence inanyDefault,norshallanysingleor partialexerciseofanyright orremedy preclude anyotherorfurther exercisethereof ortheexerciseofany other right or remedy.
8.3 ThisNotemaynotbemodifiedordischarged(otherthanbypayment),exceptbya writingdulyexecutedby theCompanyandHolder.
8.4 TheheadingsofvarioussectionsandsubsectionsofthisNoteareforconvenienceof referenceonlyandshallinno waymodifyanyof thetermsor provisionsof thisNote.
8.5 Allnoticesrequiredtobegiventoanyofthepartieshereundershallbeinwriting andshallbedeemed tohavebeensufficientlygivenforallpurposeswhenpresentedpersonallytosuchparty,sent bytelecopier(withtheoriginaltimelymailed),orsent byregistered,certifiedorexpress mail,return receiptrequested,tosuchpartyatitsaddresssetforthbelow:
| If to the Company to: | ||
| True2Bid, Inc. | ||
| FAX No.: (______) ______-______ | ||
| Attn:__________, Chief Executive Officer | ||
| FAX No.: (______) ______-______ | ||
| Attn: | ||
or hereaftergiventotheotherpartyheretopursuanttotheprovisionsof thisNote.
8.6 ThisNoteinsurestothebenefitofPayee,itssuccessorsanditsassigneeofthis NoteandbindstheCompany,anditssuccessorsandassigns,andtheterms“Payee”andthe “Company”wheneveroccurringhereinshall bedeemedandconstruedtoincludesuchrespective successorsandassigns.
| 7 |
8.7 THECOMPANYANDTHEHOLDEREACH(I)AGREETHATANYSUIT, ACTIONORPROCEEDING ARISINGOUTOFORRELATINGTOTHISNOTE SHALL BE INSTITUTEDEXCLUSIVELYINTHEAPPROPRIATE STATECOURT,COUNTYOFLOS ANGELESORINTHE UNITEDSTATESDISTRICTCOURTFORTHE CENTRALDISTRICT OFCALIFORNIA,(II)WAIVEANYOBJECTIONWHICHTHECOMPANY MAYHAVENOW ORHEREAFTERBASEDUPONFORUMNONCONVENIENSORTOTHE VENUEOFANY SUCHSUIT,ACTIONORPROCEEDING, AND(III)IRREVOCABLYCONSENTTOTHE JURISDICTIONOFTHE STATECOURT, COUNTYOFLOSANGELESAND THE UNITED STATESDISTRICTCOURTFORTHE CENTRALDISTRICTOFCALIFORNIAINANYSUCH SUIT,ACTIONORPROCEEDING. THECOMPANY ANDTHEHOLDEREACHFURTHER AGREE TO ACCEPT AND ACKNOWLEDGE SERVICE OF ANYANDALLPROCESS WHICHMAYBESERVEDINANYSUCHSUIT,ACTIONORPROCEEDINGINTHESTATECOURT,COUNTYOFBROWARDORINTHEUNITEDSTATESDISTRICTCOURTFORTHESOUTHERNDISTRICTOFFLORIDAANDAGREESTHATSERVICE OFPROCESSUPONTHE COMPANYORTHE HOLDER,MAILEDBYCERTIFIEDMAIL TOTHEIRRESPECTIVEADDRESSES,SUCHSERVICETOBECOMEEFFECTIVETHREEBUSINESSDAYSAFTERSUCHMAILING,WILLBEDEEMEDINEVERY RESPECTEFFECTIVESERVICEOFPROCESSUPONTHECOMPANYORTHE HOLDER,ASTHE CASEMAYBE,INANYSUIT,ACTIONORPROCEEDING.FURTHER, BOTHTHECOMPANYANDTHEHOLDERHEREBYWAIVETRIALBYJURYINANY ACTIONTOENFORCETHISNOTEANDINCONNECTIONWITHANYDEFENSE, COUNTERCLAIMORCROSSCLAIMASSERTEDINANYSUCHACTION.
8.8 ThisNoteisexchangeable,withoutexpense,uponthesurrenderhereofbytheHolder attheprincipalexecutiveofficeoftheCompany,fortwoormorenewNotesofliketenoranddate(exceptfortheprincipalamountsthereof)representingintheaggregatethesameprincipalamountas thisNote,insuchdenominationsasshallbedesignatedbytheHolderthereofatthetimeofsuch surrender,providedthatsuchnewNotesshallbeissuableinminimumdenominationsof$100,000 andintegralmultiplesthereof.
8.9 ThisNoteshallbeconstruedinaccordancewithandgovernedbythelawsofthe Stateof__________withoutregardtoprinciplesofconflictsoflaw,andcannotbechanged, dischargedorterminatedorallybutonlybyaninstrumentinwritingsignedbythepartyagainst whomenforcementofanychange,dischargeorterminationissought.
8.10 Noforbearance,indulgence,delayorfailuretoexerciseanyrightorremedy withrespecttothisNoteshalloperateasawaiverorasanacquiescenceinanyEvent ofDefault,nor shallanysingleorpartialexerciseofanyrightorremedyprecludeanyotherorfurtherexercise thereofortheexerciseofanyotherrightorremedy.
8.11 IftheCompanyorTrue2Beauty, Inc.completesanequityorequitylinkedfinancing (the“NewFinancing”) theHoldermayexchange itsoutstandingNoteat100%ofFaceValueforthe securitiesissuedintheNewFinancing. TheConvertibleNoteconversion price andtheaccumulated interest payment rate shall all be subject to these provisions.
| PAYOR: | |||
| TRUE2BID, INC. | |||
| By: | |||
| ___________, Chief Executive Officer | |||
| TRUE2BEAUTY, INC. | |||
| By: | |||
| ___________, Chief Executive Officer | |||
| 8 |
