Document:

Exhibit
A

 

BOND
PURCHASE AGREEMENT

 

This
BOND PURCHASE AGREEMENT (the “Agreement”), dated as of ______________, by and between LEADER CAPITAL HOLDINGS
CORP., a Nevada corporation, with its address at Room 2201, Malaysia Building, 50 Gloucester Road, Wan Chai Hong Kong (the
“Company”), and ______________, with its address at _________________________________________________ (the “Buyer”).

 

WHEREAS:

 

	A.	The
    Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
    afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
    under the Securities Act of 1933, as amended (the “1933 Act”); and
	 	 
	B.	Buyer
    desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement a
    Bond (the “Bond”) of the Company, in the form attached hereto as Exhibit A, in the aggregate principal amount
    of US$600,000.00.

 

NOW
THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

	1.	Purchase
    and Sale of Bond.

 

	 	a.	Purchase
    of Bond. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase
    from the Company such principal amount of Bond as is set forth immediately below the Buyer’s name on the signature pages
    hereto.
	 	 	 
	 	b.	Form
    of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Bond to be issued and
    sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available
    funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Bond in
    the principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature
    pages hereto, and (ii) the Company shall deliver such duly executed Bond on behalf of the Company, to the Buyer, against delivery
    of such Purchase Price.

 

    	 

    	 

    

 

	 	c.	Closing
    Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and Section 7 below,
    the date and time of the issuance and sale of the Bond pursuant to this Agreement (the “Closing Date”) shall be
    05:00 p.m., Hong Kong time (GMT+8) on or about _______________, or such other mutually agreed upon time. The closing of the
    transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as
    may be agreed to by the parties.

 

	2.	Buyer’s
    Representations and Warranties. The Buyer represents and warrants to the Company that:

 

	 	a.	Investment
    Purpose. As of the date hereof, the Buyer is purchasing the bond for its own account and not with a present view towards the
    public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act.
	 	 	 
	 	b.	The
    Buyer has been informed by the Company that there is an exemption from registration for the issuance of the bond.
	 	 	 
	 	c.	Reliance
    on Exemptions. The Buyer understands that the bonds are being offered and sold to it in reliance upon specific exemptions
    from the registration requirements of United States federal and state securities laws and that the Company is relying upon
    the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments
    and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility
    of the Buyer to acquire the bond.
	 	 	 
	 	d.	Information.
    The Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information unless
    such information is disclosed to the public prior to or promptly following such disclosure to the Buyer.
	 	 	 
	 	e.	Legends.
    The Buyer understands that the Bond may bear a restrictive legend in substantially the following form:

 

“THE
BONDS REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED
UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECUR
ITIES LAWS OR (2) THE ISSUER OF SUCH BONDS RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH BONDS, WHICH COUNSEL AND OPINION
ARE REASONABLY ACCEPTABLE TO THE ISSUER’S TRANSFER AGENT, THAT SUCH BONDS MAY BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR
OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.”

 

The
legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any bond
upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Bond is registered for sale
under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to an exemption from registration
without any restriction as to the number of bonds as of a particular date that can then be immediately sold, or (b) such holder
provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale or transfer of such bond may be made without registration under the 1933 Act, which
opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all bonds, including
those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery
requirements, if any.

 

	 	f.	Authorization;
    Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf
    of the Buyer , and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its
    terms.

 

    	 

    	 

    

 

	3.	Representations
    and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

	 	a.	Organization
    and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly
    existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority
    (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased,
    used, operated and conducted. “Subsidiaries” means any corporation or other organization, whether incorporated
    or unincorporated, in which the Company owns, directly or indirectly, any equity or other ownership interest.
	 	 	 
	 	b.	Authorization;
    Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the
    Bond and to consummate the transactions contemplated hereby and thereby and to issue the Bonds, in accordance with the terms
    hereof and thereof, (ii) the execution and delivery of this Agreement, the Bond by the Company and the consummation by it
    of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Bond) have been duly
    authorized by the Company’s Board of Directors and no further consent or authorization of the Company, its Board of
    Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its
    authorized representative, and such authorized representative is the true and official representative with authority to sign
    this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement
    constitutes, and upon execution and delivery by the Company of the Bond, each of such instruments will constitute, a legal,
    valid and binding obligation of the Company enforceable against the Company in accordance with its terms.
	 	 	 
	 	c.	Intentionally
    Omitted.
	 	 	 
	 	d.	Intentionally
    Omitted.
	 	 	 
	 	e.	No
                                         Conflicts. The execution, delivery and performance of this Agreement, the Bond by the
                                         Company and the consummation by the Company of the transactions contemplated hereby and
                                         thereby will not (i) conflict with or result in a violation of any provision of the Certificate
                                         of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach
                                         of any provision of, or constitute a default (or an event which with notice or lapse
                                         of time or both could become a default) under, or give to others any rights of termination,
                                         amendment, acceleration or cancellation of, any agreement, indenture, patent, patent
                                         license or instrument to which the Company or any of its Subsidiaries is a party, or
                                         (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
                                         federal and state securities laws and regulations and regulations of any self-regulatory
                                         organizations to which the Company or its Bonds are subject) applicable to the Company
                                         or any of its Subsidiaries or by which any property or asset of the Company or any of
                                         its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations,
                                         amendments, accelerations, cancellations and violations as would not, individually or
                                         in the aggregate, have a Material Adverse Effect). The businesses of the Company and
                                         its Subsidiaries, if any, are not being conducted, and shall not be conducted so long
                                         as the Buyer owns any of the bonds, in violation of any law, ordinance or regulation
                                         of any governmental entity. “Material Adverse Effect” means any material
                                         adverse effect on the business, operations, assets, financial condition or prospects
                                         of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions
                                         contemplated hereby or by the agreements or instruments to be entered into in connection
                                         herewith.

        

 

    	 

    	 

    

 

	 	f.	SEC
    Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
    to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the
    “1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial
    statements and schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein,
    being hereinafter referred to herein as the “SEC Documents” ). Upon written request, the Company will deliver
    to the Buyer true and complete copies of the SEC Documents, except for such exhibits and incorporated documents. As of their
    respective dates or if amended, as of the dates of the amendments, the SEC Documents complied in all material respects with
    the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents,
    and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact
    or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in
    light of the circumstances under which they were made, not misleading. None of the statements made in any such SEC Documents
    is, or has been, required to be amended or updated under applicable law (except for such statements as have been amended or
    updated in subsequent filings prior the date hereof). As of their respective dates or if amended, as of the dates of the amendments,
    the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable
    accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements
    have been prepared in accordance with United States generally accepted accounting principles, consistently applied, during
    the periods involved and fairly present in all material respects the consolidated financial position of the Company and its
    consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the
    periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). The Company is subject
    to the reporting requirements of the 1934 Act.
	 	 	 
	 	g.	Absence
    of Certain Changes. Since November 30, 2018, except as set forth in the SEC Documents, there has been no material adverse
    change and no material adverse development in the assets, liabilities, business, properties, operations, financial condition,
    results of operation s, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.
	 	 	 
	 	h.	Absence
    of Litigation. Except as set forth in the SEC Documents, there is no action, suit, claim, proceeding, inquiry or investigation
    before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge
    of the Company or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their
    officers or directors in their capacity as such, that could have a Material Adverse Effect. The Company and its Subsidiaries
    are unaware of any facts or circumstances which might give rise to any of the foregoing.
	 	 	 
	 	i.	No
    Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly
    or indirectly made any offers or sales in any bond or solicited any offers to buy any bond under circumstances that would
    require registration under the 1933 Act of the issuance of the bonds to the Buyer. The issuance of the bonds to the Buyer
    will not be integrated with any other issuance of the Company’s bonds (past, current or future) for purposes of any
    shareholder approval provisions applicable to the Company or its bonds.
	 	 	 
	 	j.	No
    Brokers. The Company has taken no action, other than the payment of a finder’s fee as disclosed to the Buyer, which
    would give rise to any claim by any person for brokerage commissions, transaction fees or similar payments relating to this
    Agreement or the transactions contemplated hereby.
	 	 	 
	 	k.	No
    Investment Company. The Company is not, and upon the issuance and sale of the Bonds as contemplated by this Agreement will
    not be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment
    Company’’). The Company is not controlled by an Investment Company.
	 	 	 
	 	l.	Breach
    of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth
    in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered
    an Event of default under Section 3 of the Bond.

 

    	 

    	 

    

 

	4.	COVENANTS.

 

	 	a.	Best
    Efforts. The Company shall use its best efforts to satisfy timely each of the conditions described in Section 7 of this Agreement.
	 	 	 
	 	b.	Form
    D; Blue Sky Laws. The Company agrees to timely make any filings required by federal and state laws as a result of the closing
    of the transactions contemplated by this Agreement.
	 	 	 
	 	c.	Use
    of Proceeds. The Company shall use the proceeds for general working capital purposes.
	 	 	 
	 	d.	Intentionally
    Omitted.
	 	 	 
	 	e.	Corporate
    Existence. So long as the Buyer beneficially owns any bond, the Company shall maintain its corporate existence and shall not
    sell all or substantially all of the Company’s assets, except with the prior written consent of the Buyer.
	 	 	 
	 	f.	Breach
    of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies
    available to the Buyer pursuant to this Agreement, it will be considered an event of default under Section 3.4 of the Bond.
	 	 	 
	 	g.	Failure
    to Comply with the 1934 Act. So long as the Buyer beneficially owns the Bond, the Company shall comply with the reporting
    requirements of the 1934 Act; and the Company shall continue to be subject to the reporting requirements of the 1934 Act.
	 	 	 
	 	h.	Trading
    Activities. Neither the Buyer nor its affiliates has an open short position in the common stock of the Company and the Buyer
    agrees that it shall not, and that it will cause its affiliates not to, engage in any short sales of or hedging transactions
    with respect to the common stock of the Company.

 

	5.	Intentionally
    Omitted.
	 	 
	6.	Condition
    to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Bond to the Buyer
    at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions thereto,
    provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its
    sole discretion:

 

	 	a.	The
    Buyer shall have executed this Agreement and delivered the same to the Company.
	 	 	 
	 	b.	The
    Buyer shall have delivered the Purchase Price in accordance with Section l(b) above.
	 	 	 
	 	c.	The
    representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made and
    as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific
    date), and the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements
    and conditions required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing
    Date.
	 	 	 
	 	d.	No
    litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
    or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
    authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by
    this Agreement.

 

    	 

    	 

    

 

	7.	Conditions
    to The Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to purchase the Bond at the Closing is
    subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that these conditions
    are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

 

	 	a.	The
    Company shall have executed this Agreement and delivered the same
    to the Buyer.
	 	 	 
	 	b.	The
    Company shall have delivered to the Buyer the duly executed bond (in such denominations as the Buyer shall request) in accordance
    with Section l(b) above.
	 	 	 
	 	c.	The
    representations and warranties of the Company shall be true and correct in all material respects as of the date when made
    and as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific
    date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements
    and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing
    Date. The Buyer shall have received a certificate or certificates, executed by the chief executive officer of the Company,
    dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer
    including, but not limited to certificates with respect to the Board of Directors’ resolutions relating to the transactions
    contemplated hereby.
	 	 	 
	 	d.	No
    litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
    or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
    authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by
    this Agreement.
	 	 	 
	 	e.	No
    event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but
    not limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its
    1934 Act reporting obligations.

 

	8.	Governing
    Law; Miscellaneous.

 

	 	a.	Governing
    Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada without regard to
    principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
    by this Agreement shall be brought only in the state courts of Nevada (Clark County) or in the federal courts located in the
    Nevada. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted
    hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non-convenience. The
    Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable
    attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection
    herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative
    to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any
    such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any
    other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process
    being served in any suit, action or proceeding in connection with this Agreement, the Bond or any related document or agreement
    by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of deliver y) to such party
    at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient
    service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
    in any other manner permitted by law.

 

    	 

    	 

    

 

	 	b.	Counterparts.
    This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall
    constitute one and the same agreement and shall become effective when counterparts have been signed by each party and delivered
    to the other party.
	 	 	 
	 	c.	Headings.
    The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation
    of, this Agreement.
	 	 	 
	 	d.	Severability.
    In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law,
    then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified
    to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall
    not affect the validity or enforceability of any other provision hereof.
	 	 	 
	 	e.	Entire
    Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties
    with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the
    Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision
    of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the
    Buyer.
	 	 	 
	 	f.	Notices.
    All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in
    writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or
    certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
    or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such
    party shall have specified most recently by written notice. Any notice or other communication required or permitted to be
    given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated
    by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal
    business hours where such notice is to be received), or the first business day following such delivery (if delivered other
    than on a business day during normal business hours where such notice is to be received) or (b) on the second business day
    following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt
    of such mailing, whichever shall first occur. The addresses for such communications shall be as set forth in the heading of
    this Agreement. Each party shall provide notice to the other party of any change in address.
	 	 	 
	 	g.	Successors
    and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
    Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written
    consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that purchases
    Bonds in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the
    1934 Act, without the consent of the Company.
	 	 	 
	 	h.	Survival.
    The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive
    the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company
    agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage
    arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties
    and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement , including advancement
    of expenses as they are incurred.
	 	 	 
	 	i.	Further
    Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
    execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably
    request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
    contemplated hereby.

 

	 	j.	No
    Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
    their mutual intent, and no rules of strict construction will be applied against any party.
	 	k.	Remedies.
    The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating
    the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law
    for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened
    breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available
    remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining,
    preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the
    necessity of showing economic loss and without any bond or other security being required.

 

	9.	In
    case of any discrepancy between the English version and the Chinese version, the English version shall prevail.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above
written.

 

The
Company

 

	SIGNED
    by Lin, Yi-Hsiu	)	 
	for
    and on behalf of LEADER CAPITAL HOLDINGS CORP.	)

        )
	 
	 	)	 
	whose
    signature(s) is/are verified by / in the presence of:	)

        )
	 
	 	)	 
	 	)	 
	Signature
    of witness:	 	 
	 	 	 
	 	 	 
	Name
    of witness:	 	 
	 	 	 

 

The
Buyer

 

	SIGNED
    by __________________	)	 
	whose
    signature(s) is/are verified by / in the presence of:	)

        )

        )
	 
	 	)	 
	Signature
    of witness:	)	 
	 	)	 
	 	 	 
	Name
    of witness:	 	 
	 	 	 

 

	AGGREGATE SUBSCRIPTION AMOUNT:	 	 
	Aggregate Principal Amount of Bond:	 	US$600,000.00
	Aggregate Purchase Price:	 	US$600,000.00evio_ex41.htm

EXHIBIT 4.1 
 
 
	 
	THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE “1933 ACT”) 	 

 
US $76,650.00  
SIGNAL BAY, INC.
8% CONVERTIBLE SECURED REDEEMABLE NOTE
DUE MAY 18, 2017
 
FOR VALUE RECEIVED, Signal Bay, Inc. (the “Company”) promises to pay to the order of LG CAPITAL FUNDING, LLC and its authorized successors and permitted assigns (“Holder”), the aggregate principal face amount of Seventy Six Thousand Six Hundred Fifty Dollars exactly (U.S. $76,650.00) on May 18, 2017 (“Maturity Date”) and to pay interest on the principal amount outstanding hereunder at the rate of 8% per annum commencing on May 18, 2016. The Company acknowledges this Note was issued with a 5% original issue discount (OID) and as such the issuance price was $73,000. The interest will be paid to the Holder in whose name this Note is registered on the records of the Company regarding registration and transfers of this Note. The principal of, and interest on, this Note are payable at 1218 Union Street, Suite #2, Brooklyn, NY 11225, initially, and if changed, last appearing on the records of the Company as designated in writing by the Holder hereof from time to time. The Company will pay each interest payment and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing on the records of the Company. The forwarding of such check or wire transfer shall constitute a payment of outstanding principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein. This Note is a secured Note, secured by all the assets of the Company. 
 
This Note is subject to the following additional provisions:
_____
Initials
	 
	1
	
 
	 

 
1. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be made for such registration or transfer or exchange, except that Holder shall pay any tax or other governmental charges payable in connection therewith.
 
2. The Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.
 
3. This Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended (“Act”) and applicable state securities laws. Any attempted transfer to a non-qualifying party shall be treated by the Company as void. Prior to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this Note is duly registered on the Company’s records as the owner hereof for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this Note electing to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth in Section 4(a), and any prospective transferee of this Note, also is required to give the Company written confirmation that this Note is being converted (“Notice of Conversion”) in the form annexed hereto as Exhibit A. The date of receipt (including receipt by telecopy) of such Notice of Conversion shall be the Conversion Date. 
 
4. (a) The Holder of this Note is entitled, at its option, at any time after 6 months, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company’s common stock (the “Common Stock”) at a price (“Conversion Price”) for each share of Common Stock equal to 55% of the lowest trading price of the Common Stock as reported on the National Quotations Bureau OTC marketplace which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future (“Exchange”), for the twenty prior trading days including the day upon which a Notice of Conversion is received by the Company or its transfer agent (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company or its transfer agent after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). If the shares have not been delivered within 3 business days, the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering the shares of Common Stock to the Holder within 3 business days of receipt by the Company of the Notice of Conversion. Accrued but unpaid interest shall be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. To the extent the Conversion Price of the Company’s Common Stock closes below the par value per share, the Company will take all steps necessary to solicit the consent of the stockholders to reduce the par value to the lowest value possible under law. The Company agrees to honor all conversions submitted pending this increase. In the event the Company experiences a DTC “Chill” on its shares, the conversion price shall be decreased to 45% instead of 55% while that “Chill” is in effect. If the Company violates Section 4(e) of the Securities Purchase Agreement, the conversion discount shall be increased by 20% to reflect a net conversion discount of 65%. In no event shall the Holder be allowed to effect a conversion if such conversion, along with all other shares of Company Common Stock beneficially owned by the Holder and its affiliates would exceed 9.9% of the outstanding shares of the Common Stock of the Company. 
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(b) Interest on any unpaid principal balance of this Note shall be paid at the rate of 8% per annum. Interest shall be paid by the Company in Common Stock (“Interest Shares”). Holder may, at any time, send in a Notice of Conversion to the Company for Interest Shares based on the formula provided in Section 4(a) above. The dollar amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice. 
 
(c) During the first six months this Note is in effect, the Company may redeem this Note by paying to the Holder an amount as follows: (i) if the redemption is within the first 90 days this Note is in effect, then for an amount equal to 115% of the unpaid principal amount of this Note along with any interest that has accrued during that period, (ii) if the redemption is after the 90th day this Note is in effect, but less than the 180th day this Note is in effect, then for an amount equal to 135% of the unpaid principal amount of this Note along with any accrued interest accrued during that period. This Note may not be redeemed after 180 days. The redemption must be closed and paid for within 3 business days of the Company sending the redemption demand or the redemption will be invalid and the Company may not redeem this Note.
 
(d) Upon (i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock split or stock dividend, or (iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving entity (other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred to as a “Sale Event”), then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the Conversion Price.
 
(e) In case of any Sale Event (not to include a sale of all or substantially all of the Company’s assets) in connection with which this Note is not redeemed or converted, the Company shall cause effective provision to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification, capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the holders of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor person or entity acting in good faith.
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5. No provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.
 
6. The Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.
 
7. The Company agrees to pay all costs and expenses, including reasonable attorneys’ fees and expenses, which may be incurred by the Holder in collecting any amount due under this Note.
 
8. If one or more of the following described “Events of Default” shall occur:
 
(a) The Company shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the Company; or
 
(b) Any of the representations or warranties made by the Company herein or in any certificate or financial or other written statements heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note, or the Securities Purchase Agreement under which this note was issued shall be false or misleading in any respect; or
 
(c) The Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note or any other note issued to the Holder; or
 
(d) The Company shall (1) become insolvent; (2) admit in writing its inability to pay its debts generally as they mature; (3) make an assignment for the benefit of creditors or commence proceedings for its dissolution; (4) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; (5) file a petition for bankruptcy relief, consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable; or
 
(e) A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment; or
 
(f) Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties or assets of the Company; or
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(g) One or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of fifteen (15) days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or
 
(h) The Company shall have defaulted on or breached any term of any other note of similar debt instrument into which the Company has entered and failed to cure such default within the appropriate grace period; or
 
(i) The Company shall have its Common Stock delisted from a market (including the OTC marketplace) or, if the Common Stock trades on an exchange, then trading in the Common Stock shall be suspended for more than 10 consecutive days or ceases to file its 1934 act reports with the SEC; 
 
(j) If a majority of the members of the Board of Directors of the Company on the date hereof are no longer serving as members of the Board; 
 
(k) The Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business days of its receipt of a Notice of Conversion; or
 
(l) The Company shall not replenish the reserve set forth in Section 12, within 3 business days of the request of the Holder; or
 
(m) The Company shall not be “current” in its filings with the Securities and Exchange Commission; or
 
(n) The Company shall lose the “bid” price for its stock in a market (including the OTC marketplace or other exchange)
 
Then, or at any time thereafter, unless cured within 5 days, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder’s sole discretion, the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce any and all of the Holder’s rights and remedies provided herein or any other rights or remedies afforded by law. Upon an Event of Default, interest shall accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law. In the event of a breach of Section 8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the Company. This penalty shall increase to $500 per day beginning on the 10th day. The penalty for a breach of Section 8(n) shall be an increase of the outstanding principal amounts by 20%. In case of a breach of Section 8(i), the outstanding principal due under this Note shall increase by 50%. Further, if a breach of Section 8(m) occurs or is continuing after the 6 month anniversary of the Note, then the Holder shall be entitled to use the lowest closing bid price during the delinquency period as a base price for the conversion. For example, if the lowest closing bid price during the delinquency period is $0.01 per share and the conversion discount is 50% the Holder may elect to convert future conversions at $0.005 per share. If this Note is not paid at maturity, the outstanding principal due under this Note shall increase by 10%.
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If the Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging an attorney, then if the Holder prevails in such action, the Holder shall be reimbursed by the Company for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding. 
 
Make-Whole for Failure to Deliver Loss. At the Holder’s election, if the Company fails for any reason to deliver to the Holder the conversion shares by the by the 3rd business day following the delivery of a Notice of Conversion to the Company and if the Holder incurs a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice indicating the amounts payable to the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows:
Failure to Deliver Loss = [(High trade price at any time on or after the day of exercise) x (Number of conversion shares)]
 
The Company must pay the Failure to Deliver Loss by cash payment, and any such cash payment must be made by the third business day from the time of the Holder’s written notice to the Company.
 
9. In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.
 
10. Neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.
 
11. The Company represents that it is not a “shell” issuer and has never been a “shell” issuer or that if it previously has been a “shell” issuer that at least 12 months have passed since the Company has reported form 10 type information indicating it is no longer a “shell issuer. Further. The Company will instruct its counsel to either (i) write a 144 opinion to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel.
 
12. The Company shall issue irrevocable transfer agent instructions reserving 800,000,000 shares of its Common Stock for conversions under this Note (the “Share Reserve”). Upon full conversion of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all transfer agent costs associated with issuing and delivering the share certificates to Holder. If such amounts are to be paid by the Holder, it may deduct such amounts from the Conversion Price. The company should at all times reserve a minimum of five times the amount of shares required if the note would be fully converted. The Holder may reasonably request increases from time to time to reserve such amounts. The Company will instruct its transfer agent to provide the outstanding share information to the Holder in connection with its conversions.
 
13. The Company will give the Holder direct notice of any corporate actions, including but not limited to name changes, stock splits, recapitalizations etc. This notice shall be given to the Holder as soon as possible under law. 
 
14. This Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be performed within the State of New York and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York or in the Federal courts sitting in the county or city of New York. This Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original. 
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IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by an officer thereunto duly authorized.
 
	 	SIGNAL BAY, INC.
	
	 		 	 
	Dated: ____________	By:	/s/	
	 
	Title:
		 
	 	 		 
	 	 	 	 

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EXHIBIT A 
 
NOTICE OF CONVERSION
 
(To be Executed by the Registered Holder in order to Convert the Note)
 
The undersigned hereby irrevocably elects to convert $___________ of the above Note into _________ Shares of Common Stock of Signal Bay, Inc. (“Shares”) according to the conditions set forth in such Note, as of the date written below.
 
If Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable with respect thereto.
 
Date of Conversion: _________________________________________________________________
Applicable Conversion Price: ___________________________________________________________
Signature: __________________________________________________________________________
[Print Name of Holder and Title of Signer]
Address: ___________________________________________________________________________
 
SSN or EIN: ________________________________
Shares are to be registered in the following name: ______________________________________________________
 
Name: ____________________________________________________________________
Address: __________________________________________________________________
Tel: ______________________________
Fax: ______________________________
SSN or EIN: ________________________
 
Shares are to be sent or delivered to the following account:
 
Account Name: _____________________________________________________________
Address: __________________________________________________________________
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