Document:

THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED, TRANSFERRED,
SOLD, ASSIGNED, PLEDGED, HYPOTHECATED, OR OTHERWISE DISPOSED OF IN CONTRAVENTION OF SECTION
5 OF SUCH ACT.

 

Throwdown
Industries Holdings, LLC

Throwdown
Industries, LLC

Throwdown
Industries, INC.

XFIT
BRANDS, INC.

 

$2,620,098.37

 

14.00%
Senior Secured Fixed Rate Note due June 12, 2017

 

	Registered	New
    York, New York
	 	 
	No.
    R-4	Dated:
    October 20, 2015

 

Each of
Throwdown Industries Holdings, LLC, a Delaware limited liability company (“Holdings”), Throwdown Industries,
LLC, a Delaware limited liability company (“TD LLC”), XFit Brands, Inc., a Nevada corporation (“XFit
Brands”), and Throwdown Industries, Inc., a California corporation (“TDI” and, together with Holdings,
XFit Brands and TD LLC, each, an “Obligor” and, collectively, the “Obligors”), for value
received, hereby jointly and severally promises to pay to PIMCO Funds: Private Account Portfolio Series: PIMCO High Yield Portfolio,
a separate investment portfolio of PIMCO Funds, a Massachusetts business trust (the “Purchaser”), the principal
sum of TWO MILLION SIX HUNDRED TWENTY THOUSAND NINETY-EIGHT DOLLARS AND THIRTY-SEVEN CENTS ($2,620,098.37) on June 12, 2017 or
such earlier date on which this Note is accelerated pursuant to the Note Purchase Agreement or subject to optional redemption
by Holdings, on behalf of the Obligors, as described herein (the “Maturity Date”) (or, if such day is not a
Business Day, on the next succeeding Business Day with the same force and effect as if made on the date such payment was due,
and no interest will accrue as a result of such delay), in such coin or currency of the United States of America as at the time
of payment shall be legal tender for the payment of public and private debts, in immediately available funds, and to pay interest
on the unpaid balance of said principal sum (as increased on account of any deferred and capitalized interest) at the rate of
14.00% per annum (computed on the basis of a 360-day year of twelve 30-day months), in like coin or currency and funds, from and
including the date hereof, on the 20th day of each calendar month, commencing on November 20, 2015, and on the maturity
date and each other date on which principal is due and payable (each, a “Payment Date”) until payment of such
principal sum has been made or duly provided for; provided, that unless a Default or an Event of Default (each as defined
in the Note Purchase Agreement) has occurred or Holdings, on behalf of the Obligors, otherwise elects in accordance with the Note
Purchase Agreement, the Obligors shall pay cash interest for each Payment Date at a per annum rate of 9.00%, and the additional
interest that otherwise would have been payable in cash on the applicable Payment Date shall instead be added to the outstanding
principal balance of the Notes in accordance with the Note Purchase Agreement. Amounts payable on each Payment Date shall be payable
to the holder in whose name this Note is registered on the applicable Payment Date.

 

    	 

     

    

 

Such interest
will accrue from, and including, October 20, 2015 or the most recent Payment Date (whether or not such Payment Date was a Business
Day) for which interest was paid to, but excluding, the relevant Payment Date. If any Payment Date falls on a day that is not
a Business Day, the payment due on such day will be postponed to the next succeeding Business Day, with the same force and effect
as if made on the date such payment was due, and no interest will accrue as a result of such delay.

 

“Business
Day” is any day which is not a Saturday or Sunday or a day on which banking institutions in New York, New York are authorized
or obligated by law or executive order to close.

 

This
Note is one of a duly authorized issue of $2,620,098.37 aggregate principal amount of 14.00% Senior Secured Fixed Rate Notes due
June 12, 2017 (the “Notes”) of the Obligors. This Note is issued pursuant to and subject to the Note Purchase
Agreement, dated as of June 10, 2014 (as amended, supplemented or otherwise modified from time to time, the “Note Purchase
Agreement”) between the Obligors and the Purchaser, and is secured by certain collateral pledged by the Obligors pursuant
to the Pledge and Security Agreement, dated as of June 10, 2014, between the Obligors and the Purchaser, as amended, supplemented
or otherwise modified from time to time.

 

1. Payment.
Payment of principal and interest as provided herein shall be made for the benefit of the registered owner hereof on the applicable
Payment Date or on the Maturity Date, as the case may be, in each case by wire transfer to the account designated in writing to
Holdings by such registered owner.

 

2.Redemption.
Holdings, on behalf of the Obligors, may redeem the Notes, in whole or in part, at any time, at its option, at a redemption price
equal to the Applicable Percentage of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest on the
principal amount of Notes to be redeemed to, but excluding, the redemption date. If less than all of the Notes are to be redeemed,
the Notes shall be redeemed on a pro rata basis. The “Applicable Percentage” means (i) in the case of a redemption
on or prior to June 12, 2016, 107% or (ii) in the case of a redemption after June 12, 2016, 100%.

 

Notice of
any such redemption must be mailed by first-class mail or electronically delivered to the registered holder of the Notes to be
redeemed no less than 30 days prior to the redemption date and shall specify the designated redemption date and the aggregate
principal amount to be redeemed thereon. Notice of redemption having been given, the Notes to be so redeemed shall, on the redemption
date, become due and payable at the redemption price provided for herein, and from and after such date (unless the Obligors shall
default in the payment of the redemption price and accrued interest) such Notes shall cease to bear interest.

 

    	 

     

    

 

In the event
of redemption of this Note in part only, a new Note or Notes for the unredeemed portion hereof will be issued in the name of the
holder or holders hereof.

 

3.Registration,
Transfer, Exchange and Denominations of Notes. So long as any of the Notes remain outstanding and unpaid, the Obligors will
cause to be maintained in the United States, an office or agency where the Notes may be presented for payment, transfer or exchange
as provided in this Note. Such office or agency is presently located at the office of Holdings located at 25731 Commercentre Drive,
Lake Forest, CA 92630, and the Obligors agree to give prompt written notice of any change in such office or agency to each holder
of Notes then outstanding. The Obligors shall keep, or engage a third party registrar to keep, a register or registers in which,
subject to such reasonable regulations as it may prescribe, the Obligors or such registrar, as the case may be, shall register
the names and addresses of the holders of Notes in registered form and shall register the transfer of Notes in registered form
as provided in this Note.

 

Whenever
any Note or Notes shall be presented at such office or agency for exchange or registration of transfer, the Obligors shall execute
and, in exchange therefor and upon cancellation thereof, shall deliver a new Note or Notes registered in such name or names and
in such denominations as may be requested and in the same aggregate principal amount and dated as of the interest payment date
to which interest has been paid on, or, if no interest has yet been so paid, then dated the date of, the Note or Notes so surrendered.

 

No transfer
of any Note shall be registered unless evidenced by a written instrument of transfer duly executed by the registered owner in
person or by his duly authorized attorney, and received by Holdings not less than three (3) Business Days prior to the requested
transfer date or such shorter period as Holdings shall agree upon.

 

4. Governing
Law. This Note shall be governed by and construed in accordance with the laws of the State of New York (without regard to
its conflicts of law provisions other than sections 5-1401 and 5-1402 of the General Obligations Law).

 

5.WAIVER
OF JURY TRIAL. EACH OF THE OBLIGORS AND THE HOLDER HEREBY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF, OR RELATING TO, THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

    	 

     

    

 

IN
WITNESS WHEREOF, each of the Obligors has caused this Note to be duly executed in its company name.

 

	 	THROWDOWN
    INDUSTRIES HOLDINGS, LLC
	 	 	 
	 	By:	/s/
    David E. Vautrin
	 	Name:	David
    E. Vautrin
	 	Title:	CEO
	 	 	 
	 	THROWDOWN
    INDUSTRIES, LLC
	 	 	 
	 	By:	/s/
    David E. Vautrin
	 	Name:	David
    E. Vautrin
	 	Title:	CEO
	 	 	 
	 	THROWDOWN
    INDUSTRIES, INC.
	 	 	 
	 	By:	/s/
    David E. Vautrin
	 	Name:	David
    E. Vautrin
	 	Title:	CEO
	 	 	 
	 	XFIT
    BRANDS, INC.
	 	 	 
	 	By:	/s/
    David E. Vautrin
	 	Name:	David
    E. Vautrin
	 	Title:	CEO

 

Dated:
October 20, 2015nlsnnv-ex41_24.htm

EXHIBIT 4.1

SEVENTH SUPPLEMENTAL INDENTURE

Supplemental Indenture (this “Supplemental Indenture”), dated as of August 17, 2015, between Affinnova, Inc. (the “Guaranteeing Subsidiary”), an affiliate of Nielsen Finance LLC, a Delaware limited liability company and Nielsen Finance Co., a Delaware corporation (the “Issuers”), and Law Debenture Trust Company of New York, as trustee (the “Trustee”).

W I T N E S S E T H

WHEREAS, the Issuers and the Guarantors (as defined in the Indenture referred to below) have heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of April 11, 2014, as amended, modified or supplemented from time to time, providing for the issuance of an unlimited aggregate principal amount of Senior Notes due 2022 (the “Notes”);

WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (the “Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

(1)Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

(2)Agreement to Guarantee.  The Guaranteeing Subsidiary hereby agrees as follows:

(a)Along with all Guarantors named in the Indenture, to jointly and severally unconditionally guarantee to each Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of the Indenture, the Notes or the obligations of the Issuers hereunder or thereunder, that:

(i)the principal of and interest, premium and Additional Interest, if any, on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of and interest on the Notes, if any, if lawful, and all other obligations of the Issuers to the Holders or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and

(ii)in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise.  Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors and the Guaranteeing Subsidiary shall be jointly and severally obligated to pay the same immediately.  This is a guarantee of payment and not a guarantee of collection.

096412-0028-11068-Active.17725971.2

(b)The obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Issuers, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor.

(c)The following is hereby waived:  diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Issuers, any right to require a proceeding first against the Issuers, protest, notice and all demands whatsoever.

(d)This Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes, the Indenture and this Supplemental Indenture, and the Guaranteeing Subsidiary accepts all obligations of a Guarantor under the Indenture.

(e)If any Holder or the Trustee is required by any court or otherwise to return to the Issuers, the Guarantors (including the Guaranteeing Subsidiary), or any custodian, trustee, liquidator or other similar official acting in relation to either the Issuers or the Guarantors, any amount paid either to the Trustee or such Holder, this Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect.

(f)The Guaranteeing Subsidiary shall not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby.

(g)As between the Guaranteeing Subsidiary, on the one hand, and the Holders and the Trustee, on the other hand, (x) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 of the Indenture for the purposes of this Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (y) in the event of any declaration of acceleration of such obligations as provided in Article 6 of the Indenture, such obligations (whether or not due and payable) shall forthwith become due and payable by the Guaranteeing Subsidiary for the purpose of this Guarantee.

(h)The Guaranteeing Subsidiary shall have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of the Holders under this Guarantee.

(i)Pursuant to Section 10.02 of the Indenture, after giving effect to all other contingent and fixed liabilities that are relevant under any applicable Bankruptcy or fraudulent conveyance laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under Article 10 of the Indenture, this new Guarantee shall be limited to the maximum amount permissible such that the obligations of such Guaranteeing Subsidiary under this Guarantee will not constitute a fraudulent transfer or conveyance.

(j)This Guarantee shall remain in full force and effect and continue to be effective should any petition be filed by or against the Issuers for liquidation, reorganization, should the Issuers become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant part of the Issuers’ assets, and shall, to the fullest extent permitted by law, continue to be effective or be reinstated, as the case may be, if at any 

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096412-0028-11068-Active.17725971.2

time payment and performance of the Notes are, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee on the Notes and Guarantee, whether as a “voidable preference”, “fraudulent transfer” or otherwise, all as though such payment or performance had not been made.  In the event that any payment or any part thereof, is rescinded, reduced, restored or returned, the Note shall, to the fullest extent permitted by law, be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

(k)In case any provision of this Guarantee shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

(l)This Guarantee shall be a general unsecured senior obligation of such Guaranteeing Subsidiary, ranking pari passu with any other future Senior Indebtedness of the Guaranteeing Subsidiary, if any.

(m)Each payment to be made by the Guaranteeing Subsidiary in respect of this Guarantee shall be made without set-off, counterclaim, reduction or diminution of any kind or nature.

(3)Execution and Delivery.  The Guaranteeing Subsidiary agrees that the Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes.

(4)Merger, Consolidation or Sale of All or Substantially All Assets.

(a)Except as otherwise provided in Section 5.01(c) of the Indenture, the Guaranteeing Subsidiary may not consolidate or merge with or into or wind up into (whether or not an Issuer or Guaranteeing Subsidiary is the surviving corporation), or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets, in one or more related transactions, to any Person unless:

(i)(A) the Guaranteeing Subsidiary is the surviving corporation or the Person formed by or surviving any such consolidation or merger (if other than the Guaranteeing Subsidiary) or to which such sale, assignment, transfer, lease, conveyance or other disposition will have been made is a corporation organized or existing under the laws of the jurisdiction of organization of the Guaranteeing Subsidiary, as the case may be, or the laws of the United States, any state thereof, the District of Columbia, or any territory thereof (the Guaranteeing Subsidiary or such Person, as the case may be, being herein called the “Successor Person”);

(B)the Successor Person, if other than the Guaranteeing Subsidiary, expressly assumes all the obligations of the Guaranteeing Subsidiary under the Indenture and the Guaranteeing Subsidiary’s related Guarantee pursuant to supplemental indentures or other documents or instruments in form reasonably satisfactory to the Trustee;

(C)immediately after such transaction, no Default exists; and

(D)the Issuers shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such consolidation, merger or transfer and such supplemental indentures, if any, comply with the Indenture; or

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096412-0028-11068-Active.17725971.2

(ii)the transaction is made in compliance with Section 4.10 of the Indenture;

(b)Subject to certain limitations described in the Indenture, the Successor Person will succeed to, and be substituted for, the Guaranteeing Subsidiary under the Indenture and the Guaranteeing Subsidiary’s Guarantee.  Notwithstanding the foregoing, the Guaranteeing Subsidiary may merge into or transfer all or part of its properties and assets to another Guarantor or the Issuers.

(5)Releases.  The Guarantee of the Guaranteeing Subsidiary shall be automatically and unconditionally released and discharged, and no further action by the Guaranteeing Subsidiary, the Issuers or the Trustee is required for the release of the Guaranteeing Subsidiary’s Guarantee, upon:

(1)(A)  any sale, exchange or transfer (by merger or otherwise) of the Capital Stock of the Guaranteeing Subsidiary (including any sale, exchange or transfer), after which the Guaranteeing Subsidiary is no longer a Restricted Subsidiary or all or substantially all the assets of the Guaranteeing Subsidiary which sale, exchange or transfer is made in compliance with the applicable provisions of the Indenture;

(B)the release or discharge of the guarantee by the Guaranteeing Subsidiary of the Senior Credit Facilities or the guarantee which resulted in the creation of the Guarantee, except a discharge or release by or as a result of payment under such guarantee;

(C)the proper designation of the Guaranteeing Subsidiary as an Unrestricted Subsidiary; or

(D)the Issuers exercising their Legal Defeasance option or Covenant Defeasance option in accordance with Article 8 of the Indenture or the Issuers’ obligations under the Indenture being discharged in accordance with the terms of the Indenture; and

(2)the Guaranteeing Subsidiary delivering to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for in the Indenture relating to such transaction have been complied with.

(6)No Recourse Against Others.  No director, officer, employee, incorporator or stockholder of the Guaranteeing Subsidiary shall have any liability for any obligations of the Issuers or the Guarantors (including the Guaranteeing Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.  

(7)Governing Law.  THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

(8)Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

(9)Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

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096412-0028-11068-Active.17725971.2

(10)The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary.

(11)Subrogation.  The Guaranteeing Subsidiary shall be subrogated to all rights of Holders of Notes against the Issuers in respect of any amounts paid by the Guaranteeing Subsidiary pursuant to the provisions of Section 2 hereof and Section 10.01 of the Indenture; provided that, if an Event of Default has occurred and is continuing, the Guaranteeing Subsidiary shall not be entitled to enforce or receive any payments arising out of, or based upon, such right of subrogation until all amounts then due and payable by the Issuers under the Indenture or the Notes shall have been paid in full.

(12)Benefits Acknowledged.  The Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set forth in the Indenture.  The Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to this Guarantee are knowingly made in contemplation of such benefits.

(13)Successors.  All agreements of the Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in Section 2(k) hereof or elsewhere in this Supplemental Indenture.  All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

 

5

096412-0028-11068-Active.17725971.2

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

Affinnova, Inc.

	
 
	
By:
	
/s/ Harris Black____________________                                 
Name:  Harris Black
Title:    Vice President and Secretary

 

[Seventh Supplemental Indenture to 5.000% Senior Notes Indenture]

096412-0028-11068-Active.17725971.2

 

LAW DEBENTURE TRUST COMPANY OF NEW YORK, as Trustee

	
 
	
By:
	
/s/ Frank Godino_______________
Name: Frank Godino
Title:   Vice President

	
 
	

	
 

 

[Seventh Supplemental Indenture to 5.000% Senior Notes Indenture]

096412-0028-11068-Active.17725971.2

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