AMENDMENT NO. 2 TO
AMENDED AND RESTATED 2013 CONVERTIBLE DEBT AND SECURITY AGREEMENT
 
 
This Amendment No. 2 to the Amended and Restated 2013 Convertible Debt and
Security Agreement (this “Amendment”), dated as of November 24, 2014, is entered
into among the parties executing this Agreement as Investors on the signature
pages hereto (which Investors own a majority of the outstanding principal amount
of Notes) and Beamz Interactive, Inc., a Delaware corporation (the “Company”),
and amends that certain Amended and Restated 2013 Convertible Debt and Security
Agreement dated as of February 21, 2014, as amended (the “Agreement”).
 
RECITALS
 
 
WHEREAS, the parties hereto wish to amend the Agreement;
 
NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
 
ARTICLE I.
Definitions
 
Section 1.01. Unless otherwise defined herein, all capitalized terms used in
this Amendment that are defined in the Agreement shall have the meaning given to
them in the Agreement.
 
ARTICLE II.
Amendments to Agreement
 
Section 2.01. Amendments.
 
(a) The definition of “Permanent Financing” is deleted in its entirety and
replaced with the following:
 
““Permanent Financing” means the receipt by the Company of an aggregate of
$1,400,000 or more through one or more equity investments or convertible
investments in the Company that is consummated any time after July 1, 2014 and
which may occur over the course of time and all such amounts shall be
aggregated. Such equity investments can be in the form of Common Stock,
preferred stock of the Company or convertible debt or a combination of the
foregoing.”
 
(b) Section 2.1(g) of the Agreement is deleted in its entirety and replaced with
the following:
 
“Automatic Conversion.  Upon the closing of an amount that when aggregated with
other closings meets the definition of “Permanent Financing” (the “Permanent
Financing Closing”), each holder of a Note will be given written notice thereof
(the “Closing Notice”) and the following shall apply:
 
 
 
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(i) Subject to Section 2.1(h), all of the principal balance of, and accrued but
unpaid interest on, all Notes issued prior to February 21, 2014, will
automatically and without any action on the part of Investor convert on the
books of the Company into Common Stock of the Company at the conversion price
set forth in Section 2.1(f)(i) above (the “Automatic Conversion Securities”);
provided, however, it being agreed and understood that, as a condition to
receiving the Automatic Conversion Securities Investor must deliver to the
Company the original Note being converted, which will be marked “canceled” by
the Company. Notwithstanding the foregoing, in lieu of receiving Automatic
Conversion Securities as set forth above, the holder of a Note issued prior to
February 21, 2014 may elect to extend the Maturity Date (as defined in such
Note) of the Note to December 31, 2015, by providing written notice of such
election to the Company within 14 days of receipt of the Closing Notice (the
“Election Time Period”) and in exchange for such extension the conversion rate
in Section 2.1(f)(i) above shall be lowered to $0.10 per share for such Note and
the Note will not be so automatically converted pursuant to this Section
2.1(g)(i).
 
(ii) Subject to Section 2.1(h), at any time after the expiration of the Election
Time Period, upon the written approval of Investors owning a majority of the
then outstanding principal amount of the Notes, all of the principal balance of,
and accrued but unpaid interest on, all Notes will automatically and without any
action on the part of an Investor convert on the books of the Company into
Common Stock at the applicable conversion price for such Note set forth in
Section 2.1(f)(i) or (ii) above; provided, however, it being agreed and
understood that, as a condition to receiving such securities, such automatically
converting Investor must deliver to the Company the original Note being
converted, which will be marked “canceled” by the Company.
 
(c) No Further Amendments.  Except as contemplated under Section 2.01, all other
provisions of the Agreement shall continue in full force and effect, unamended.
 
ARTICLE III.
Miscellaneous
 
Section 3.01. Headings. The headings in this Amendment are for reference only
and shall not affect the interpretation of this Amendment.
 
Section 3.02. Severability.  If any term or provision of this Amendment is
invalid, illegal or unenforceable in any jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other term or provision of
this Amendment or invalidate or render unenforceable such term or provision in
any other jurisdiction.  Upon such determination that any term or other
provision is invalid, illegal or unenforceable, the parties hereto shall
negotiate in good faith to modify this Amendment so as to effect the original
intent of the parties as closely as possible in a mutually acceptable manner in
order that the transactions contemplated hereby be consummated as originally
contemplated to the greatest extent possible.
 
 
 
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Section 3.03. Successors and Assigns.  This Amendment shall be binding upon and
shall inure to the benefit of the parties hereto and the other Investors and
their respective successors and permitted assigns.
 
Section 3.04. Counterparts.  This Amendment may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall be
deemed to be one and the same agreement.  A signed copy of this Amendment
delivered by facsimile, e-mail or other means of electronic transmission shall
be deemed to have the same legal effect as delivery of an original signed copy
of this Amendment.
 
 
 
 
 
 
 
 
 
 
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IN WITNESS WHEREOF, the parties hereto have affixed their signatures on the date
first written above.

 
BEAMZ INTERACTIVE, INC.
 
 
 
By:/s/ Charles R. Mollo
Name:           Charles R. Mollo
Title:Chief Executive Officer
   

 

 

 

 

 

 

 

 

 

[Signature Page to Amendment No. 2 to Agreement]
 
 
 
 

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SIGNATURE PAGE OF INVESTOR TO
AMENDMENT NO. 2 TO
AMENDED AND RESTATED 2013 CONVERTIBLE DEBT AND SECURITY AGREEMENT
 
Reference is hereby made to that certain Amendment No. 2 to Amended and Restated
2013 Convertible Debt and Security Agreement dated as of November 24, 2014, as
amended (the “Amendment”), by and among Beamz Interactive, Inc., a Delaware
corporation (the “Company”), and certain persons and entities who are executing
the Amendment as Investors.  Each capitalized term used herein but not expressly
defined shall have the meaning given to such term in the Agreement.
 
The undersigned accepts, joins in and agrees to be bound by, and subject to, the
Amendment as an “Investor”.  The undersigned authorizes the Company to attach to
the Amendment a copy of this Signature Page to Amendment No. 2 to evidence the
foregoing agreement of the undersigned.
 
Executed as of ___________, 2014.
 
 

 
If undersigned is an entity:
 
_____________________________________
(Print Name of Entity)
 
By: _________________________________
Printed: ______________________________
Title: ________________________________
 
 
Principal Business Address:
_____________________________________
_____________________________________
_____________________________________
 
State of Formation: ______________________

 

 
If undersigned is an individual:
 
 
By: __________________________________
Printed: _______________________________
 
 
Address:
_____________________________________
_____________________________________

 
 

 
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