Document:

SECURITIES
PURCHASE AGREEMENT

 

This
SECURITIES PURCHASE AGREEMENT
(the “Agreement”), dated
as of May 5,
2015, by and
between Rich Pharmaceuticals,
Inc.,
a Nevada corporation,
with headquarters located
at 9595 Wilshire
Blvd., Beverly Hills,
CA 90212 (the
“Company”), and LG
CAPITAL FUNDING, LLC, a
New York limited
liability company, with
its address at
1218 Union Street, Suite
#2, Brooklyn, NY
11225 (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”);

 

B.                                         
Buyer desires
to purchase and
the Company desires
to issue and
sell, upon the terms
and conditions set
forth in this
Agreement two 8%
convertible notes of
the Company, in the
forms attached hereto
as Exhibit A
and B in
the aggregate principal
amount of $137,800.00 (with
the first note
being in the
amount of $68,900.00
and the second
note being in
the amount of $68,900.00)
(together with any
note(s) issued in
replacement thereof or
as a dividend
thereon or otherwise with
respect thereto in
accordance with the
terms thereof, the
“Note”), convertible into
shares of common
stock, $0.001 par
value per share,
of the Company
(the “Common Stock”),
upon the terms
and subject to
the limitations and
conditions set forth
in such Note.
The Notes shall contain
a 6% original
issue discount such
that the purchase
price of each
Note shall be $65,000.00. The first
of the two notes (the “First Note”) shall be paid for by the Buyer as set forth
herein. The second note
(the “Second Note”)
shall initially be
paid for by
the issuance of an offsetting $65,000.00
secured note issued to the Company by the Buyer (“Buyer Note”), provided that prior to conversion of
the Second Note, the Buyer must have paid off the Buyer Note in
cash such that
the Second Note
may not be
converted until it
has been paid
for in cash.

 

C.                 
The Buyer
wishes to purchase,
upon the terms
and conditions stated
in this Agreement, such
principal amount of
Note as is
set forth immediately
below its name
on the signature pages
hereto; and

 

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

 

1.                   
Purchase and
Sale of Note.

 

a.                  
Purchase of
Note. On each
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 Note 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 Note
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 Note
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 Note
on behalf of the Company, to the Buyer, against delivery of such Purchase Price.

 

c.                  
Closing Date.
The date and
time of the
first issuance and
sale of the Note
pursuant to this
Agreement (the “Closing
Date”) shall be
on or about
May 5, 2015,
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. Subsequent
Closings shall occur
when the Buyer
Note is repaid.
The Closing of the
Second Note shall
be on or
before the dates
specified in the
Buyer Note.

 

 

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
Note and the
shares of Common
Stock issuable upon
conversion of or
otherwise pursuant to the
Note, such shares
of Common Stock
being collectively referred
to herein as
the “Conversion Shares” and,
collectively with the
Note, the “Securities”)
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; provided, however,
that by making the
representations herein, the
Buyer does not
agree to hold
any of the
Securities for any minimum
or other specific
term and reserves
the right to
dispose of the Securities
at any time
in accordance with or pursuant to a registration statement or an exemption under the 1933 Act.

 

b.                  
Accredited Investor
Status. The Buyer
is an “accredited
investor” as that term
is defined in
Rule 501(a) of
Regulation D (an
“Accredited Investor”).

 

c.                  
Reliance on
Exemptions. The Buyer
understands that the Securities
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 Securities.

 

d.                 
Information. The
Buyer and its
advisors, if any,
have been, and
for so long as
the Note remain
outstanding will continue
to be, furnished
with all materials
relating to the business,
finances and operations
of the Company
and materials relating
to the offer
and sale of the
Securities which have
been requested by
the Buyer or
its advisors. The
Buyer and its advisors,
if any, have
been, and for
so long as
the Note remain
outstanding will continue
to be, afforded the
opportunity to ask questions
of the Company. 
Notwithstanding the foregoing,
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. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives
shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section
3 below. The
Buyer understands that
its investment in
the Securities involves
a significant degree of risk. The Buyer is not aware of any facts that may constitute a breach of any of the Company's representations
and warranties made herein.

    	2

    	 

    

e.                  
Governmental Review.
The Buyer understands
that no United States
federal or state
agency or any
other government or
governmental agency has
passed upon or made
any recommendation or
endorsement of the
Securities.

 

f.                   
Transfer or
Re-sale.
The Buyer understands
that (i)
the sale or
re- sale of
the Securities has
not been and
is not being
registered under the
1933 Act or
any applicable state securities
laws, and the
Securities may not
be transferred unless
(a) the Securities are
sold pursuant to
an effective registration
statement under the
1933 Act, (b)
the Buyer shall have delivered to the
Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance
and scope customary for opinions
of counsel in comparable transactions
to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such
registration, which opinion shall be accepted by the Company, (c) the Securities are
sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule)
(“Rule 144”) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section
2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule
144, or (e) the Securities are sold pursuant to
Regulation S under
the 1933 Act
(or a successor
rule) (“Regulation S”),
and the Buyer
shall have delivered to the Company, at the cost of the Buyer, an opinion of
counsel that shall be in form, substance and scope
customary for opinions
of counsel in
corporate transactions, which
opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only
in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances
in which the seller (or the person through whom
the sale is
made) may be
deemed to be
an underwriter (as
that term is
defined in the 1933 Act) may
require compliance with some other
exemption under the 1933 Act
or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation
to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption
thereunder (in each case). Notwithstanding the foregoing or anything else
contained herein to the contrary, the
Securities may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

 

g.                  
Legends. The
Buyer understands that
the Note and,
until such time as
the Conversion Shares
have been registered
under the 1933
Act may be
sold pursuant to
Rule 144 or Regulation
S without any
restriction as to
the number of
securities as of
a particular date that
can then be
immediately sold, the
Conversion Shares may
bear a restrictive
legend in substantially the
following form (and
a stop-transfer order
may be placed
against transfer of
the certificates for such
Securities):

    	3

    	 

    

“NEITHER
THE ISSUANCE AND
SALE OF THE
SECURITIES REPRESENTED BY
THIS  CERTIFICATE  NOR 
THE SECURITIES INTO
WHICH THESE
SECURITIES ARE EXERCISABLE
HAVE BEEN
REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE,
 SOLD, TRANSFERRED OR  ASSIGNED

(I)
IN THE ABSENCE
OF (A) AN
EFFECTIVE REGISTRATION STATEMENT
FOR THE  SECURITIES 
UNDER  THE SECURITIES
ACT OF 1933,
AS AMENDED, OR
(B) AN OPINION
OF COUNSEL (WHICH COUNSEL SHALL BE
SELECTED BY THE HOLDER), IN A  GENERALLY
ACCEPTABLE  FORM, THAT REGISTRATION
IS NOT REQUIRED
UNDER SAID ACT OR
(II) UNLESS SOLD
PURSUANT TO RULE 
144  OR  RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN OR FINANCING ARRANGEMENT SECURED
BY THE SECURITIES.”

 

The
legend set forth
above shall be
removed and the
Company shall issue
a certificate without such
legend to the
holder of any
Security upon which
it is stamped,
if, unless otherwise required
by applicable state
securities laws, (a)
such Security is
registered for sale
under an effective registration
statement filed under
the 1933 Act
or otherwise may
be sold pursuant
to Rule 144 or
Regulation S without
any restriction as
to the number
of securities 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 Security
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 Securities,
including those represented by a certificate(s) from
which the legend
has been removed,
in compliance with
applicable prospectus delivery requirements, if any. In the event that the Company
does not accept the opinion of counsel provided
by the Buyer
with respect to
the transfer of
Securities pursuant to
an exemption from registration, such as Rule 144 or Regulation S, within 2 business
days, it will be considered an Event of Default under the Note.

 

h.                  
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.

 

i.                   
Residency. The
Buyer is a
resident of the
jurisdiction set forth immediately
below the Buyer’s
name on the
signature pages hereto.

 

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

    	4

    	 

    

a.                  
Organization and
Qualification. The Company
and each of
its subsidiaries, 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.

 

b.                  
Authorization; Enforcement.
(i) The Company
has all requisite corporate
power and authority
to enter into
and perform this
Agreement, the Note
and to consummate the
transactions contemplated hereby
and thereby and
to issue the
Securities, in accordance with
the terms hereof
and thereof, (ii)
the execution and
delivery of this
Agreement, the Note by
the Company and
the consummation by
it of the
transactions contemplated hereby
and thereby (including
without limitation, the
issuance of the
Note and the
issuance and reservation for
issuance of the
Conversion Shares issuable
upon conversion or
exercise thereof) 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 Note,
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.                  
Issuance of
Shares. The Conversion
Shares are duly
authorized and reserved for
issuance and, upon
conversion of the
Note in accordance
with its respective terms,
will be validly
issued, fully paid
and non-assessable, and
free from all
taxes, liens, claims and
encumbrances with respect
to the issue
thereof and shall
not be subject
to preemptive rights or
other similar rights
of shareholders of
the Company and
will not impose
personal liability upon the
holder thereof.

 

d.                 
Acknowledgment of
Dilution. The Company
understands and acknowledges the
potentially dilutive effect
to the Common
Stock upon the
issuance of the Conversion
Shares upon conversion
of the Note.
The Company further
acknowledges that its obligation
to issue Conversion
Shares upon conversion
of the Note
in accordance with
this Agreement, the Note
is absolute and
unconditional regardless of
the dilutive effect
that such issuance may
have on the
ownership interests of
other shareholders of
the Company.

    	5

    	 

    

e.                  
No Conflicts.
The execution, delivery
and performance of
this Agreement, the Note
by the Company
and the consummation
by the Company
of the transactions contemplated
hereby and thereby
(including, without limitation,
the issuance and
reservation for issuance of
the Conversion Shares)
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 securities 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). All consents, authorizations,
orders, filings and
registrations which the
Company is required
to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof. The Company is not in violation of the requirements of
the Over-the-Counter Markets (the “OTC Markets”) for OTC Pink Status and does not reasonably anticipate that the Common
Stock will be not reported by
the OTC Markets in the
foreseeable future, nor are
the Company’s securities “chilled” by FINRA.
The Company and its subsidiaries are unaware of any facts or circumstances which might
give rise to any
of the foregoing.

 

f.                   
Absence of
Litigation. Except as
disclosed in the
Company’s public filings, 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’s filings with
the SEC contains
a summary description of
any pending or,
to the knowledge
of the Company,
threatened proceeding against or
affecting the Company or any of its subsidiaries, without regard to whether it would 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.

 

g.                  
Acknowledgment Regarding
Buyer’ Purchase of
Securities. The Company acknowledges
and agrees that
the Buyer is
acting solely in
the capacity of
arm’s length purchasers with
respect to this
Agreement and the
transactions contemplated hereby.
The Company further acknowledges
that the Buyer
is not acting
as a financial
advisor or fiduciary
of the Company (or
in any similar
capacity) with respect
to this Agreement
and the transactions contemplated
hereby and any
statement made by
the Buyer or
any of its
respective representatives or agents
in connection with
this Agreement and
the transactions contemplated hereby
is not advice
or a recommendation and
is merely incidental to
the Buyer’ purchase of
the Securities. The Company further represents to the Buyer that the Company’s decision to enter into this Agreement
has been based solely on the independent evaluation of
the Company and its representatives.

    	6

    	 

    

h.                  
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 security or
solicited any offers
to buy any
security under circumstances
that would require registration
under the 1933
Act of the
issuance of the
Securities to the
Buyer. The issuance of
the Securities to
the Buyer will
not be integrated
with any other
issuance of the Company’s
securities (past, current
or future) for
purposes of any
shareholder approval provisions applicable
to the Company
or its securities.

 

i.                   
Title to
Property. The Company
and its subsidiaries
have good and marketable
title in fee
simple to all
real property and
good and marketable
title to all
personal property owned by
them which is
material to the
business of the
Company and its
subsidiaries, in each case
free and clear
of all liens,
encumbrances and defects
except such as
are described in Schedule
3(i) or such
as would not
have a material
adverse effect. Any
real property and facilities
held under lease
by the Company
and its subsidiaries
are held by
them under valid, subsisting
and enforceable leases
with such exceptions
as would not
have a material
adverse effect.

 

j.                   
Bad Actor. No
officer or director of the Company
would be disqualified under Rule
506(d) of the
Securities Act as
amended on the
basis of being
a "bad actor" as
that term is
established in the
September 19, 2013
Small Entity Compliance
Guide published by the
Securities and Exchange
Commission.

 

 

k.                  
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 the Note.

 

		4.	COVENANTS.

 

a.                  
Expenses. At
the Closing, the
Company shall reimburse
Buyer for expenses incurred
by them in
connection with the
negotiation, preparation, execution,
delivery and performance of
this Agreement and
the other agreements
to be executed
in connection herewith (“Documents”),
including, without limitation,
reasonable attorneys’ and
consultants’ fees and expenses,
transfer agent fees,
fees for stock
quotation services, fees
relating to any amendments
or modifications of
the Documents or
any consents or
waivers of provisions
in the Documents, fees
for the preparation
of opinions of counsel,
escrow fees, and
costs of restructuring the transactions
contemplated by the Documents. When possible, the Company must pay these fees directly,
otherwise the Company must make immediate payment
for reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission
of an invoice by the Buyer. The Company’s obligation with respect to this transaction is to reimburse Buyer’ expenses
shall be $3,000 in legal fees (and similar amounts for the Second Note) which shall be deduced from each Note when funded.

    	7

    	 

    

b.                  
Listing. The
Company shall promptly
secure the listing
of the Conversion Shares
upon each national
securities exchange or
automated quotation system,
if any, upon which
shares of Common
Stock are then
listed (subject to
official notice of
issuance) and, so long
as the Buyer
owns any of
the Securities, shall
maintain, so long
as any other
shares of Common Stock
shall be so
listed, such listing
of all Conversion
Shares from time
to time issuable upon
conversion of the
Note. The Company
will obtain and, so
long as the
Buyer owns any of the Securities, maintain the trading of its Common Stock on
the OTC Markets or any equivalent replacement exchange, the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap
Market (“Nasdaq SmallCap”), the New York Stock Exchange (“NYSE”), or the American Stock
Exchange (“AMEX”) and will
comply in all respects
with the Company’sreporting, filing and other obligations under the bylaws
or rules of the Financial Industry Regulatory Authority
(“FINRA”) and such
exchanges, as applicable. The
Company shall promptly provide to the Buyer copies of any notices it receives
from the OTC MARKETS and any other exchanges or quotation systems on which the Common Stock is then listed regarding the
continued eligibility of
the Common Stock
for listing on
such exchanges and
quotation systems.

 

c.                  
Corporate
Existence.
So long as
the Buyer beneficially
owns any Note,
the Company shall
maintain its corporate
existence and shall
not sell all
or substantially all of the
Company’s assets, except
in the event
of a merger
or consolidation or
sale of all
or substantially all of the Company’s
assets, where the surviving or
successor entity in such transaction (i)
assumes the Company’s
obligations hereunder and
under the agreements
and instruments entered into
in connection herewith
and (ii) is
a publicly traded
corporation whose Common Stock
is listed for
trading on the
OTC Markets, Nasdaq,
Nasdaq SmallCap, NYSE
or AMEX.

 

d.                 
No Integration.
The Company shall
not make any
offers or sales of
any security (other
than the Securities)
under circumstances that
would require registration
of the Securities being
offered or sold
hereunder under the
1933 Act or
cause the offering
of the Securities to
be integrated with
any other offering
of securities by
the Company for
the purpose of any
stockholder approval provision
applicable to the
Company or its
securities.

 

e.                  
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
the Note.

    	8

    	 

    

		5.	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
New York
or in the
federal courts located
in the state
and county of
New York. 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 conveniens. 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 or any other Transaction Document by mailing a copy thereof via registered or certified
mail or overnight delivery
(with evidence of
delivery) 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; Signatures
by Facsimile. 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. This Agreement,
once executed by
a party, may be
delivered to the
other party hereto
by facsimile transmission
of a copy
of this Agreement bearing
the signature of
the party so
delivering this Agreement.

 

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.

    	9

    	 

    

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:

If
to the Company,
to:

Rich
Pharmaceuticals, Inc. 9595 Wilshire
Blvd.

Beverly
Hills, Ca 90212

Attn:
Ben Chang, CEO

 

If
to the Buyer:

LG
CAPITAL FUNDING,
LLC

1218
Union Street, Suite
#2,

Brooklyn,
NY 11225

Attn:
Joseph Lerman

 

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 Securities
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.                  
Third Party
Beneficiaries. This Agreement
is intended for
the benefit of the
parties hereto and
their respective permitted
successors and assigns,
and is not
for the benefit of,
nor may any
provision hereof be
enforced by, any
other person.

 

i.                   
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.

    	10

    	 

    

j.                   
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.

 

k.                  
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.

 

l.                   
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.

    	11

    	 

    

 

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

 

Rich Pharmaceuticals,
Inc.

 

By: /s/ Ben Chang

Ben Chang, CEO

 

LG CAPITAL
FUNDING, LLC.

 

By: /s/ Joseph Lerman

Name: Joseph Lerman

Title:Manager

 

AGGREGATE
SUBSCRIPTION AMOUNT:

	Aggregate Principal Amount of Note:	$137,800.00
	Aggregate Purchase Price:	 
	Note 1: $68,900.00 less $3,900.00 in OID, less $3,000.00 in legal fees and $12,500.00 to Steven James Davis, a Professional Corporation
	Note 2: $68,900.00 less $3,900.00 in OID, less $3,000.00 in legal fees

    	12

    	 

    

 EXHIBIT
A

144
NOTE - $68,900

    	13

    	 

    

 EXHIBIT
B BACK END NOTE
1

$68,900

    	14THIS 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 RULESAND
REGULATIONS PROMULGATED THEREUNDER (THE
 "1933 ACT”)

 

US $68,900.00

 

 

RICH
PHARMACEUTICALS, INC.

8%
CONVERTIBLE REDEEMABLE NOTE DUE
MAY 5, 2016

 

 

FOR VALUE
RECEIVED, Rich Pharmaceuticals,
Inc. (the “Company”)
promises to pay to
the order of
LG CAPITAL FUNDING,
LLC and its
authorized successors and
permitted as- signs
("Holder"), the aggregate
principal face amount
of Sixty Eight
Thousand Nine Hundred Dollars
exactly (U.S. $68,900.00)
on May 5,
2016 ("Maturity Date")
and to pay
interest on the principal
amount outstanding hereunder
at the rate
of 8% per
annum commencing on
May 5, 2015. This
Note contains a
6% original issue
discount such that
the purchase price
of the note
is $65,000. 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 outstand- ing 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 subject
to the following
additional provisions:

 

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, 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 58%
of the average
of the three
lowest trading prices
of the Common Stock
as reported on
the National Quotations
Bureau OTCQB exchange
which the Company’s shares
are traded or
any exchange upon
which the Common
Stock may be
traded in the future
("Exchange"), for the
ten prior trading
days including the
day upon which
a Notice of Conversion
is received by the
Company (provided such Notice
of Conversion is delivered by
fax or other electronic
method of communication
to the Company
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.
Once the Holder has received such shares of Common Stock, the Holder shall surrender this Note to the
Company, executed by
the Holder evidencing
such Holder's intention
to convert this
Note or a specified
portion hereof, and
accompanied by proper
assignment hereof in blank. 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. In the
event the Company
experiences a DTC
“Chill” on its
shares, the conversion price shall be decreased to 48% instead of 58% while that “Chill” is in effect.
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. The interest
rate, conversion discount and lookback period
will be adjusted for the benefit of
the Holder if the company offers
a more favorable interest rate (including
an OID) conversion discount or lookback
period to another
party while this
note is in
effect (a “Ratchet”).
However, if the
Company completes its S1 registration
statement with the Holder in the 180 days after the
issuance of the Note, the Ratchet shall be removed.

    	2

    	 

    

(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").
The 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)                
The Notes may
be prepaid with
the following penalties:
(i) if the
note is prepaid within
90 days of
the issuance date,
then at 140%
of the face
amount plus any
accrued interest; (ii) if
the note is
prepaid within 91
days after the
issuance date but
less than 180
days after the
issuance date, then
at 150% of
the face amount
plus any accrued
interest. This Note
may not be prepaid
after the 180th day.
Such redemption must
be closed and
funded within 3
days of giving notice
of redemption of
the right to
redeem shall be
null and void.

 

(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 un- paid 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 deter- mined by
the Board of Directors of the
Company or successor person or entity
acting in good faith.

    	3

    	 

    

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
material 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 material
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
with- in sixty (60)
days after such
appointment; or

 

(f)                  
Any governmental agency
or any court
of competent jurisdiction
at the in- stance
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

    	4

    	 

    

(g)                  
Unless such
judgment or litigation
has been previously
disclosed in the Company’s
filings with the
Securities and Exchange
Commission, 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.

 

		(h)	Intentionally Deleted;
or

 

(i)                   
The Company
shall have its
Common Stock delisted
from an exchange (including
the OTC Markets) or, if the Common
Stock trades on an exchange, then
trading in the Common Stock shall
be suspended for
more than 10
consecutive days;

 

		(j)	Intentionally Deleted;

 

(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, with- in 3
business days of
the request of
the Holder; or

 

(m)                
The Company
shall not be
“current” (which includes
the benefit of
any ex- tension period)
in its filings
with the Securities
and Exchange Commission;
or

 

Then,
or at any
time thereafter, unless
cured within 5
days, and in
each and every
such case, un- less
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, with- out
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 permit- ted 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.  In case of a breach
of Section 8(i), the outstanding
principal due under this Note shall increase by 50%. If this Note is not paid at maturity, the out- standing principal due under
this Note shall increase by 10%.

 

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.

    	5

    	 

    

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,
dis- charged 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 issu-
er. Further. The
Company will instruct
its counsel to
either (i) write
a 144- 3(a)
(9) 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 678,817,000 shares of
its Common Stock
for conversions under
this Note (the
“Share Reserve”). The reserve
shall be replenished
as needed to
allow for conversions
of this Note.
Upon full con- version
of this Note,
the any shares
remaining in the
Share Reserve shall
be cancelled. The company
should at all
times reserve a
minimum of four
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
shall pay for
all costs associated
with the issuance of
the shares, if
such amounts are
to be paid
by the Holder,
it may deduct
such amounts from
the Conversion Price.

 

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 Nevada
applicable to contracts
made and wholly
to be performed
within the State
of Nevada 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.
This Agreement may
be executed in
counterparts, and the facsimile
transmission of an
executed counterpart to this
Agreement shall be
effective as an
original.

    	6

    	 

    

IN
WITNESS WHEREOF, the
Company has caused
this Note to
be duly executed
by an officer
thereunto duly authorized.

 

 

Dated: May 5, 2015

 

RICH PHARMACEUTICALS,
INC.

 

By: /s/ Ben Chang

Ben Chang

Title: CEO

    	7

    	 

    

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
intoShares of Common
Stock of Rich
Pharmaceuticals, 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:
 

    	8

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