Document:

EXHIBIT 4.1

 

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

 

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

 

8%
CONVERTIBLE PROMISSORY NOTE 

 

OF

 

GIGGLES
N’ HUGS, INC.

 

Issuance
Date: December 21, 2015

Total
Face Value of Note: $161,250

 

This
Note is a duly authorized Convertible Promissory
Note of Giggles N’ Hugs, Inc. a corporation duly organized and existing under the laws of the State of Nevada (the
“Company”), designated as the Company’s 8% Convertible Promissory Note due December 21, 2016 (“Maturity
Date”) in the principal amount of $161,250 (the “Note”).

 

For
Value Received, the Company hereby promises to
pay to the order of Iconic Holdings, LLC or its registered assigns or successors-in-interest (“Holder”)
the Principal Sum of $161,250 (the “Principal Sum”) and to pay “guaranteed” interest on the principal
balance hereof at an amount equivalent to 10% of the Principal Sum, to the extent such Principal Sum and “guaranteed”
interest and any other interest, fees, liquidated damages and/or items due to Holder herein have been repaid or converted into
the Company’s Common Stock (the “Common Stock”), in accordance with the terms hereof. The sum of $150,000
shall be remitted and delivered to the Company, and $11,250 shall be retained by the Purchaser through an original issue discount
(the “OID”) for due diligence and legal bills related to this transaction.

 

In
addition to the “guaranteed” interest referenced above, and in the Event of Default pursuant to Section 2(a), additional
interest will accrue from the date of the Event of Default at the rate equal to the lower of 18% per annum or the highest rate
permitted by law (the “Default Rate”).

 

    	1

    	 

    

 

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

 

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

 

	Days
    Since Effective Date	 	Prepayment
    Amount
	Under
    30	 	110%
    of Principal Amount
	31-60	 	115%
    of Principal Amount
	61-90	 	120%
    of Principal Amount
	91-120	 	125%
    of Principal Amount
	121-150	 	130%
    of Principal Amount
	151-180	 	135%
    of Principal Amount

 

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

 

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

 

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

 

“Conversion
Price” shall be equal to 65% of the lowest volume weighted average price (the “VWAP”) of the Company’s
common stock during the 10 consecutive trading days prior to the date on which Holder elects to convert all or part of the Note.
For the purpose of calculating the Conversion Price only, any time after 4:00 pm Eastern Time (the closing time of the Principal
Market) shall be considered to be the beginning of the next Business Day. If the Company is placed on “chilled” status
with the Depository Trust Company (“DTC”), the discount shall be increased by 10%, i.e., from
35% to 45%, until such chill is remedied. If the Company is not Deposits and Withdrawal at Custodian (“DWAC”)
eligible through their Transfer Agent and DTC’s Fast Automated Securities Transfer (“FAST”) system, the
discount will be increased by 5%, i.e., from 35% to 40%. In the case of both, the discount shall be a cumulative
increase of 15%, i.e., from 35% to 50%. Any default of this Note not remedied within the applicable cure period
will result in a permanent additional 10% increase, i.e., from 35% to 45%, in addition to any other discount, as
provided above, to the Conversion Price discount. Notwithstanding anything contained herein to the contrary, the Conversion Price
shall never be less than the Floor.

 

    	2

    	 

    

 

“Conversion
Price Floor” shall be set at $0.08 (the “Floor”).

 

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

 

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

 

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

 

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

 

The
following terms and conditions shall apply to this Note:

 

Section
1.00Conversion.

 

(a)Conversion
Right. Subject to the terms hereof and restrictions and limitations contained herein, the Holder shall have the right, at
the Holder’s sole option, at any time and from time to time to convert in whole or in part the outstanding and unpaid Principal
Amount under this Note into shares of Common Stock as per the Conversion Formula. The date of any conversion notice (“Conversion
Notice”) hereunder shall be referred to herein as the “Conversion Date”. 

 

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

 

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

 

    	3

    	 

    

 

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

 

(e)Reservation
of Underlying Securities. The Company covenants that it will at all times reserve and keep available for Holder, out of its
authorized and unissued Common Stock solely for the purpose of issuance upon conversion of this Note, free from preemptive rights
or any other actual contingent purchase rights of persons other than the Holder, one times the number of shares of Common
Stock as shall be issuable (taking into account the adjustments under this Section 1, but without regard to any ownership limitations
contained herein) upon the conversion of this Note (consisting of the Principal Amount) to Common Stock (the “Required
Reserve”). The Company covenants that all shares of Common Stock that shall be issuable will, upon issue, be duly authorized,
validly issued, fully-paid, non-assessable and freely-tradable (if eligible). If the amount of shares on reserve in Holder’s
name at the Company’s transfer agent for this Note shall drop below the Required Reserve, the Company will, within 2 Trading
Days of notification from Holder, instruct the transfer agent to increase the number of shares so that the Required Reserve is
met. In the event that the Company does not instruct the transfer agent to increase the number of shares so that the Required
Reserve is met, the Holder will be allowed, if applicable, to provide this instruction as per the terms of the Irrevocable Transfer
Agent Instructions attached to this Note. The Company agrees that the maintenance of the Required Reserve is a material term of
this Note and any breach of this Section 1.00(e) will result in a default of the Note.

 

The
Company agrees that this is a material term of this Note and any breach of this Section 1.00(e) will result in a default of the
Note.

 

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

 

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

 

    	4

    	 

    

 

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

 

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

 

(j)Make-Good
Provision. If, at the time a Conversion Notice is submitted by the Holder, the trading price of the Company’s common
stock is below $0.11, this Make-Good Provision will go into effect (the “Make-Good”). Once the Make-Good is in effect,
the Company agrees to pay the Holder the difference, in cash, of: a) 135% of the portion of the Principal Amount being converted
per the Conversion Notice and b) the Principal Amount being converted per the Conversion Notice/$0.08 x closing price of the Company’s
common stock at the time of conversion. The Company will have 10 business days from receiving written notice to make this cash
payment. However, if the balance owed by the Company per this Make-Good is greater than $25,000, the holder agrees to allow the
Company 40 business days from the date of the Conversion Notice to make full payment. The Company and Holder agree that if the
Stock price rises above $0.11 at any time while the cash balance is outstanding and owed to the Holder by Company, the Holder
will have the ability to convert the outstanding balance into free trading shares of the Company at the Conversion Price, per
its rights in the Note and in accordance with applicable law.

 

Section
2.00Defaults and Remedies.

 

(a)Events
of Default. An “Event of Default” is: (i) a default in payment of any amount due hereunder which default
continues for more than 5 Trading Days after the due date; (ii) a default in the timely issuance of underlying shares upon and
in accordance with terms of Section 2.00, which default continues for 2 Trading Days after the Company has failed to issue shares
or deliver stock certificates within the 3rd Trading Day following the Conversion Date; (iii) failure by the Company for 3 days
after notice has been received by the Company to comply with any material provision of this Note; (iv) failure of the Company
to remain compliant with DTC, thus incurring a “chilled” status with DTC; (v) if the Company is subject to any Bankruptcy
Event; (vi) any failure of the Company to satisfy its “filing” obligations under Securities Exchange Act of 1934,
as amended (the “1934 Act”) and the rules and guidelines issued by OTC Markets News Service, OTCMarkets.com and their
affiliates; (vii) any failure of the Company to provide the Holder with information related to its corporate structure including,
but not limited to, the number of authorized and outstanding shares, public float, etc. within 1 Trading Day of request by Holder;
(viii) failure by the Company to maintain the Required Reserve in accordance with the terms of Section 1.00(e); (ix) failure of
Company’s Common Stock to maintain a closing bid price in its Principal Market above a price of $.09 for more than 5 consecutive
Trading Days; (x) any delisting from a Principal Market for any reason; (xi) failure by Company to pay any of its Transfer Agent
fees in excess of $2,000 or to maintain a Transfer Agent of record; (xii) any trading suspension imposed by the Securities and
Exchange Commission (“SEC”) under Sections 12(j) or 12(k) of the 1934 Act; (xiii) failure by the Company to
meet all requirements necessary to satisfy the availability of Rule 144 to the Holder or its assigns, including but not limited
to the timely fulfillment of its filing requirements as a fully-reporting issuer registered with the SEC, requirements for XBRL
filings, and requirements for disclosure of financial statements on its website; or (xiv) any breach of the Make-Good Provision
outlined in Section 1.00 (j).

 

    	5

    	 

    

 

(b)Remedies.
If an event of default occurs, the outstanding Principal Amount of this Note owing in respect thereof through the date of acceleration,
shall become, at the Holder’s election, immediately due and payable in cash at the “Mandatory Default Amount”.
The Mandatory Default Amount means 125% of the outstanding Principal Amount of this Note. Commencing 5 days after the occurrence
of any Event of Default that results in the eventual acceleration of this Note, this Note shall accrue additional interest, in
addition to the Note’s “guaranteed” interest, at a rate equal to the lesser of 18% per annum or the maximum
rate permitted under applicable law. In connection with such acceleration described herein, the Holder need not provide, and the
Issuer hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without
expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it
under applicable law. Such acceleration may be rescinded and annulled by the Holder at any time prior to payment hereunder and
the Holder shall have all rights as a holder of the note until such time, if any, as the Holder receives full payment pursuant
to this Section 2.00(b). No such rescission or annulment shall affect any subsequent event of default or impair any right consequent
thereon. Nothing herein shall limit the Holder’s right to pursue any other remedies available to it at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Issuer’s failure
to timely deliver certificates representing shares of Common Stock upon conversion of the Note as required pursuant to the terms
hereof.

 

Section
3.00General.

 

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

 

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

 

(c)Funding
Window. The Company agrees that it will not enter into a convertible debt financing transaction with any party other than
the Holder for a period of 15 Trading Days following the Effective Date. The Company agrees that this is a material term of this
Note and any breach of this will result in a default of the Note.

 

(d)Piggyback
Registration Rights. The Company shall include on the next eligible registration statement that the Company files with the
SEC (or on the subsequent registration statement if such registration statement is withdrawn) all shares issuable upon conversion
of this Note. Failure to do so will result in liquidated damages of 30% of the outstanding Principal Sum of this Note, but not
less than $20,000, being immediately due and payable to the Holder at its election in the form of a cash payment or an addition
to the Principal Sum of this Note.

 

    	6

    	 

    

 

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

 

(f)Governing
Law; Jurisdiction.

 

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

 

(ii)Jurisdiction
and Venue. Any dispute or claim arising to or in any way related to this Note or the rights and obligations of each of the
parties shall be brought only in the state courts of California or in the federal courts located in San Diego County, California.

 

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

 

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

 

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

 

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

 

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

 

    	7

    	 

    

 

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

 

	 	GIGGLES
    N’ HUGS, INC.
	 	 	 
	 	By:	/s/
    Joey Parsi
	 	Name:	Joey
    Parsi
	 	Title:
    	Chief
    Executive Officer 
	 	Email:	joey@gigglesnhugs.com
	 	Address:
    	10250
    Santa Monica Blvd, Suite #155
	 	 	Los
    Angeles, CA 90067

 

This
Convertible Promissory Note of December 21, 2015 is accepted this ____ day of ______, 2015 by

 

	Iconic
    Holdings, LLC	 
	 	 	 
	By:	 	 
	Name:		 
	Title:	Manager	 

 

    	8

    	 

    

 

EXHIBIT
A

 

FORM
OF CONVERSION NOTICE

 

(To
be executed by the Holder in order to convert all or part of that certain $161,250 Convertible Promissory Note identified as the
Note)

 

	DATE:		 
	 	 	 
	FROM:	Iconic
    Holdings, LLC	 

 

	 	Re:	$161,250
    Convertible Promissory Note (this “Note”) originally issued by Giggles N’ Hugs, Inc., a Nevada corporation,
    to Iconic Holdings, LLC on December 21, 2015.

 

The
undersigned on behalf of Iconic Holdings, LLC, hereby elects to convert $_______________________ of the aggregate
outstanding Principal Sum (as defined in the Note) indicated below of this Note into shares of Common Stock, $0.001 par value
per share, of Giggles N’ Hugs, Inc. (the “Company”), according to the conditions hereof, as of the date written
below. If shares are to be issued in the name of a person other than undersigned, the undersigned will pay all transfer taxes
payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company
in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any. The
undersigned represents as of the date hereof that, after giving effect to the conversion of this Note pursuant to this Conversion
Notice, the undersigned will not exceed the “Restricted Ownership Percentage” contained in this Note.

 

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

 

    	9

    	 

    

 

EXHIBIT
B

 

WRITTEN
CONSENT OF THE BOARD OF DIRECTORS OF

 

GIGGLES
N’ HUGS, INC.

 

The
undersigned, being directors of Giggles N’ Hugs, Inc., a Nevada corporation (the “Company”), acting pursuant
to the Bylaws of the Corporation, do hereby consent to, approve and adopt the following preamble and resolutions:

 

Convertible
Note with Iconic Holdings, LLC

 

The
board of directors of the Company has reviewed and authorized the following documents relating to the issuance of a Convertible
Promissory Note in the amount of $161,250 with Iconic Holdings, LLC.

 

The
documents agreed to and dated December 21, 2015 are as follows:

 

8%
Convertible Promissory Note of Giggles N’ Hugs, Inc.

Irrevocable
Transfer Agent Instructions

Notarized
Certificate of Corporate Secretary

Disbursement
Instructions

 

IN
WITNESS WHEREOF, the undersign member(s) of the board of the Company executed this unanimous written consent as of December 21,
2015.

 

	 	 
	By:
    	 
	Its:
    	 
	 	 
	 	 
	By:
    	 
	Its:
    	 

 

    	10

    	 

    

 

EXHIBIT
C

 

NOTARIZED
CERTIFICATE OF CORPORATE SECRETARY OF

 

GIGGLES
N’ HUGS, INC.

 

(Two
Pages)

 

The
undersigned, _______________________ is the duly elected Corporate Secretary of Giggles N’ Hugs, Inc., a Nevada corporation
(the “Company”).

 

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

 

	 	(A)	The
    issuance of that certain convertible promissory note dated December 21, 2015 (the “Note Issuance Date”) issued
    to Iconic Holdings, LLC (the “Holder”) in the stated original principal amount of $161,250 (the “Note”);
	 	 	 
	 	(B)	The
    Company’s Board of Directors duly approved the issuance of the Note to the Holder;
	 	 	 
	 	(C)	The
    Company has not received and does not contemplate receiving any new consideration from any persons in connection with any
    later conversion of the Note and the issuance of the Company’s Common Stock upon any said conversion;
	 	 	 
	 	(D)	To
    my best knowledge and after completing the aforementioned review of the Company’s stockholder and corporate records,
    I am able to certify that the Holder (and the persons affiliated with the Holder) are not officers, directors, or directly
    or indirectly, ten percent (10.00%) or more stockholders of the Company and none of said persons has had any such status in
    the one hundred (100) days immediately preceding the date of this Certificate;
	 	 	 
	 	(E)	The
    Company’s Board of Directors have approved duly adopted resolutions approving the Irrevocable Instructions to the Company’s
    Stock Transfer Agent dated December 21, 2015;
	 	 	 
	 	(F)	Mark
    the appropriate selection:

 

___
The Company represents that it is not a “shell company,” as that term is defined in Section 12b-2 of the Securities
Exchange Act of 1934, as amended, and has never been a shell company, as so defined; or

 

___
The Company represents that (i) it was a “shell company,” as that term is defined in Section 12b-2 of the Securities
Exchange Act of 1934, as amended, (ii) since ______, 201__, it has no longer been a shell company, as so defined, and (iii) on
_______, 201__, it provided Form 10-type information in a filing with the Securities and Exchange Commission.

 

    	11

    	 

    

 

	 	(G)	I
    understand the constraints imposed under Rule 144 on those persons who are or may be deemed to be “affiliates,”
    as that term is defined in Rule 144(a)(1) of the Securities Act of 1933, as amended.
	 	 	 
	 	(H)	I
    understand that all of the representations set forth in this Certificate will be relied upon by counsel to Iconic Holdings,
    LLC in connection with the preparation of a legal opinion.

 

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

 

	Signed:	 	 	Date:	 
	 	 	 	 	 
	Name:	 	 	Title:
    	 

 

SUBSCRIBED
AND SWORN TO BEFORE ME ON THIS ________ DAY OF ____________________ 2015.

 

Commission
Expires:______________

____________________________________

Notary
Public

 

    	12

    	 

    

 

EXHIBIT
D

 

	TO:	Iconic
    Holdings, LLC
	 	 
	FROM:	Giggles
    N’ Hugs, Inc.
	 	 
	DATE:	December
    21, 2015
	 	 
	RE:	Disbursement
    of Funds

 

Pursuant
to that certain Note Purchase Agreement between the parties listed above and dated December 21, 2015, a disbursement of funds
will take place in the amount and manner described below:

 

	Please
    disburse to:	 
	Amount
    to disburse:	$138,750
	Form
    of distribution	Wire
	Name	Giggles
    N’ Hugs, Inc.
	Company
    Address	 

         

         

	Wire
    Instructions:	Bank:

        ABA
        Routing Number:

        Account
        Number:

        SWIFT
        Code:

        Account
        Name:

        Phone:

 

	Please
    disburse to:	 
	Amount
    to disburse:	$11,250
	Form
    of distribution	Wire
	Name	Equinox
    Securities
	Company
    Address	 

         

         

	Wire
    Instructions:	Bank:

        ABA
        Routing Number:

        Account
        Number:

        SWIFT
        Code:

        Account
        Name:

        Phone:

	 	 
	 	TOTAL:
    $150,000

 

For:
Giggles N’ Hugs, Inc.

 

	By:
    	/s/
    Joey Parsi 	 	Dated:
    December 21, 2015
	Name:	Joey
    Parsi	 	 
	Its:	Chief
    Executive Officer 	 	 

 

    	13EXHIBIT 4.2

 

PROMISSORY
NOTE

 

	U.S.
    $265,000.00	December
    18, 2015

 

FOR
VALUE RECEIVED, Giggles N’ Hugs, Inc., a Nevada corporation (“Borrower”),
promises to pay in lawful money of the United States of America to the order of St. George
Investments LLC, a Utah limited liability company, or its successors or assigns (“Lender”), the principal
sum of $265,000.00, together with all other amounts due under this Promissory Note (this “Note”). This Note
is issued pursuant to that certain Note Purchase Agreement of even date herewith between Borrower and Lender (the “Purchase
Agreement”).

 

1.
PAYMENT. Borrower shall pay to Lender the entire outstanding balance of this Note on or before the date that is six (6)
months from the date hereof. Borrower will make all payments of sums due hereunder to Lender at Lender’s address set forth
in the Purchase Agreement, or at such other place as Lender may designate in writing. Unless otherwise agreed or required by applicable
law, payments will be applied first to any unpaid collection costs and late charges, then to accrued interest and finally to principal.

 

2.
INTEREST. Interest shall not accrue on the unpaid principal balance of this Note unless an Event of Default (as defined
below) occurs. Upon the occurrence of an Event of Default, the outstanding balance of this Note shall bear interest at the lesser
of the rate of twenty-two percent (22%) per annum or the maximum rate permitted by applicable law, compounding daily and calculated
on the basis of a 360-day year, from the date the applicable Event of Default occurred until paid.

 

3.
ORIGINAL ISSUE DISCOUNT; TRANSACTION EXPENSES. This Note carries an original issue discount of $60,000.00. In addition,
Borrower agrees to pay $5,000.00 to Lender to cover Lender’s legal fees, accounting costs, due diligence, monitoring and
other transaction costs incurred in connection with the purchase and sale of this Note, all of which amounts are included in the
initial principal balance of this Note and are fully earned and payable as of the date hereof (subject only to the prepayment
discount set forth in Section 4 below).

 

4.
PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments
of less than all principal, fees and interest outstanding will not, unless agreed to by Lender in writing, relieve Borrower of
any of Borrower’s obligations hereunder. Should Borrower make any prepayment in accordance with the schedule set forth below,
the amount payable shall be the amount set forth below under the heading “Prepayment Amount,” and upon Lender’s
timely receipt of such amount, this Note shall be deemed paid in full notwithstanding the fact that such payment may be less than
the initial outstanding balance of this Note:

 

	 	Prepayment
    Deadline	 	Prepayment
    Amount
	 	 	 	
	 	Borrower
    pays the entire outstanding balance of this Note on or before the date that is ninety (90) days from the date this Note is
    issued (the “Prepayment Opportunity Date”)	 	$235,000.00
    (which reflects a $30,000.00 discount to the original outstanding balance)

 

If
Borrower does not repay the entire outstanding balance of this Note on or before the Prepayment Opportunity Date, it shall receive
no prepayment discount and must pay the entire outstanding balance of this Note in full on or before the maturity date.

 

5.
SECURITY. This Note is unsecured.

 

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6.
EVENT OF DEFAULT. The occurrence and continuance of any of the following shall constitute an “Event of Default”
under this Note:

 

6.1.
Failure to Pay. Borrower shall fail to pay when due, whether at stated maturity, upon acceleration or otherwise, any principal
or interest payment, or any other payment required under the terms of this Note on the date due.

 

6.2.
Breaches of Covenants. Borrower or any other person or entity fails to comply with or to perform when due any other term,
obligation, covenant, or condition contained in this Note, in the Purchase Agreement, any other Transaction Document (as defined
in the Purchase Agreement), or in any other agreement securing payment of this Note.

 

6.3.
Representations and Warranties. Any representation or warranty made by Borrower to Lender in this Note, the Purchase Agreement,
any other Transaction Document, or any related agreement shall be false, incorrect, incomplete or misleading in any material respect
when made or furnished.

 

6.4.
Voluntary Bankruptcy or Insolvency Proceedings. Borrower shall (i) apply for or consent to the appointment of a receiver,
trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) be unable, or admit in writing
its inability, to pay its debts generally as they mature, (iii) make a general assignment for the benefit of its or any of its
creditors, (iv) be dissolved or liquidated, or (v) commence a voluntary case or other proceeding seeking liquidation, reorganization
or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in
effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary
case or other proceeding commenced against it.

 

6.5.
Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator, or
custodian of Borrower or of all or a substantial part of its property, or an involuntary case or other proceedings seeking liquidation,
reorganization, or other relief with respect to Borrower or its debts under any bankruptcy, insolvency or other similar law now
or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged
within sixty (60) days of commencement.

 

6.6.
Government Action. If any governmental or regulatory authority takes or institutes any action that will materially affect
Borrower’s financial condition, operations or ability to pay or perform Borrower’s obligations under this Note.

 

6.7.
Judgment. A judgment or judgments for the payment of money in excess of the sum of $100,000.00 in the aggregate shall be
rendered against Borrower and either (i) the judgment creditor executes on such judgment or (ii) such judgment remains unpaid
or undischarged for more than sixty (60) days from the date of entry thereof or such longer period during which execution of such
judgment shall be stayed during an appeal from such judgment.

 

6.8.
Attachment. Any execution or attachment shall be issued whereby any substantial part of the property of Borrower shall
be taken or attempted to be taken and the same shall not have been vacated or stayed within thirty (30) days after the issuance
thereof.

 

6.9.
Cross Default. Borrower breaches or any event of default occurs under any term or provision of any Other Agreement (as
defined hereafter). For purposes hereof, “Other Agreement” means collectively, (i) all existing and future
agreements and instruments between, among or by Borrower (or an affiliate), on the one hand, and Lender (or an affiliate), on
the other hand, and (ii) any financing agreement or a material agreement that affects Borrower’s ongoing business operations.

 

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7.
ACCELERATION; REMEDIES.

 

7.1.
At any time following the occurrence of an Event of Default (other than an Event of Default referred to in Sections 6.4 and 6.5),
Lender may, by written notice to Borrower, declare all unpaid principal, plus all accrued interest and other amounts due hereunder
to be immediately due and payable at the Mandatory Default Amount (as defined below) without presentment, demand, protest or any
other notice of any kind, all of which are hereby expressly waived, anything contained herein to the contrary notwithstanding.
Upon the occurrence or existence of any Event of Default described in Sections 6.4 and 6.5, immediately and without notice, all
outstanding unpaid principal, plus all accrued interest and other amounts due hereunder shall automatically become immediately
due and payable at the Mandatory Default Amount, without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived, anything contained herein to the contrary notwithstanding. In addition to the foregoing remedies,
upon the occurrence or existence of any Event of Default, Lender may exercise any other right, power or remedy permitted to it
by law, either by suit in equity or by action at law, or both. For purposes hereof, the term “Mandatory Default Amount”
means an amount equal to 120% of the outstanding balance of this Note as of the date the applicable Event of Default occurred,
plus all interest, fees, and charges that may accrue on such outstanding balance thereafter.

 

7.2.
Upon the occurrence of a Change in Control (as defined below), and without further notice to Borrower, all unpaid principal, plus
all accrued interest and other amounts due hereunder, shall become immediately due and payable. For purposes hereof, a “Change
in Control” means a sale of all or substantially all of a Borrower’s assets, or a merger, consolidation, significant
equity financing, or other capital reorganization of Borrower with or into another company; provided however that a merger,
consolidation, significant equity financing, or other capital reorganization in which the holders of more than fifty percent (50%)
of the equity of Borrower outstanding immediately prior to such transaction continue to hold (either by the voting securities
remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the
total voting power represented by the voting securities of Borrower, or such surviving entity, outstanding immediately after such
transaction shall not constitute a Change in Control.

 

8.
UNCONDITIONAL OBLIGATION; NO OFFSET. Borrower acknowledges that this Note is an unconditional, valid, binding and enforceable
obligation of Borrower not subject to offset, deduction or counterclaim of any kind. Borrower hereby waives any rights of offset
it now has or may have hereafter against Lender, its successors and assigns, and agrees to make all payments due hereunder in
accordance with the terms of this Note.

 

9.
NO USURY. Notwithstanding any other provision contained in this Note or in any instrument given to evidence the obligations
evidenced hereby: (a) the rates of interest and charges provided for herein and therein shall in no event exceed the rates and
charges which result in interest being charged at a rate equaling the maximum allowed by law; and (b) if, for any reason whatsoever,
Lender ever receives as interest in connection with the transaction of which this Note is a part an amount which would result
in interest being charged at a rate exceeding the maximum allowed by law, such amount or portion thereof as would otherwise be
excessive interest shall automatically be applied toward reduction of the unpaid principal balance then outstanding hereunder
and not toward payment of interest.

 

10.
ATTORNEYS’ FEES. If this Note is placed in the hands of an attorney for collection or enforcement prior to commencing
arbitration or legal proceedings, or is collected or enforced through any arbitration or legal proceeding, or Lender otherwise
takes action to collect amounts due under this Note or to enforce the provisions of this Note, then Borrower shall pay the costs
incurred by Lender for such collection, enforcement or action including, without limitation, attorneys’ fees and disbursements.

 

11.
GOVERNING LAW; VENUE. This Note shall be construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Note shall be governed by, the internal laws of the State of Utah, without giving
effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set forth in the Purchase
Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

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12.
ARBITRATION OF DISPUTES. Borrower agrees that any dispute arising under this Note shall be subject to the Arbitration Provisions
(as defined in the Purchase Agreement) set forth as an exhibit to the Purchase Agreement.

 

13.
WAIVERS. Borrower hereby waives presentment, notice of nonpayment, notice of dishonor, protest, demand and diligence.

 

14.
LOSS OR MUTILATION. On receipt by Borrower of evidence reasonably satisfactory to Borrower of the loss, theft, destruction
or mutilation of this Note and, in the case of any such loss, theft or destruction of this Note, on delivery of an indemnity agreement
reasonably satisfactory in form and amount to Borrower or, in the case of any such mutilation, on surrender and cancellation of
such Note, Borrower at its expense will execute and deliver, in lieu thereof, a new Note of like tenor.

 

15.
NOTICES. Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled “Notices”
in the Purchase Agreement, the terms of which are incorporated herein by this reference.

 

16.
AMENDMENT AND WAIVER. This Note and its terms and conditions may be amended, waived or modified only in writing by Borrower
and Lender.

 

17.
SEVERABILITY. If any part of this Note is construed to be in violation of any law, such part shall be modified to achieve
the objective of the parties to the fullest extent permitted and the balance of this Note shall remain in full force and effect.

 

18.
ASSIGNMENTS. Borrower may not assign this Note without the prior written consent of Lender. This Note may be offered, sold,
assigned or transferred by Lender without the consent of Borrower.

 

19.
FINAL NOTE. This Note, together with the other Transaction Documents, contains the complete understanding and agreement
of Borrower and Lender and supersedes all prior representations, warranties, agreements, arrangements, understandings, and negotiations.
THIS NOTE, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF ANY ALLEGED PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.

 

20.
Waiver of Jury Trial. BORROWER IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT
MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR THE RELATIONSHIPS
OF THE PARTIES HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON
LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, BORROWER ACKNOWLEDGES THAT IT KNOWINGLY AND VOLUNTARILY IS WAIVING
SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

 

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21.
TIME IS OF THE ESSENCE. Time is of the essence of this Note and each and every provision hereof in which time is an element.

 

22.
LIQUIDATED DAMAGES. Lender and Borrower agree that in the event Borrower fails to comply with any of the terms or provisions
of this Note, Lender’s damages would be uncertain and difficult (if not impossible) to accurately estimate because of the
parties’ inability to predict future interest rates and other relevant factors. Accordingly, Lender and Borrower agree that
any fees, balance adjustments, default interest or other charges assessed under this Note are not penalties but instead are intended
by the parties to be, and shall be deemed, liquidated damages.

 

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IN
WITNESS WHEREOF, Borrower has caused this Note to be issued as of the date first set forth above.

 

	 	BORROWER:
	 	 
	 	Giggles
    N’ Hugs, Inc.
	 	 	 
	 	By:
    	 
	 	Name:
    	 
	 	Title:
    	 

 

[Signature Page to Promissory Note]

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