Document:

Exhibit 4.2

 

 

THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") SHALL HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS.  THIS LEGEND SHALL BE ENDORSED UPON ANY NOTE ISSUED IN EXCHANGE FOR THIS NOTE.  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.

	
Principal Amount: $_________

	
Issue Date:  December 24, 2014

CALA ENERGY CORP.

10% SENIOR PROMISSORY NOTE

            FOR VALUE RECEIVED, CALA ENERGY CORP., a corporation organized under the laws of the State of Nevada (hereinafter called "Borrower" or the "Company"), hereby promises to pay [_________],or his permitted registered assigns or successors in interest or order (the "Holder"), without demand, the sum of Twelve Thousand Dollars (US$_______) (the "Principal Amount"), with simple interest at the annual rate of ten percent (10%) on the Maturity Date (as hereinafter defined) if and to the extent not sooner paid or converted.  The "Maturity Date" of this Note shall be the date that is the earlier of (i) December 31, 2015 or (ii) the closing of any debt, equity or derivative financing with gross proceeds to the Borrower of $200,000 of greater (a "Qualified Offering")  subject to early repayment or acceleration as provided in Section 2 hereof.

This Note is one of three separate identical Notes issued at or about the date hereof, for an aggregate principal amount of $36,000 all of which shall be repaid and treated pari pasu with one another and ssenior in priority and repayment to all other notes or similar debts of the Borrower, unless agreed to otherwise by the Holder(s) thereof.  This Note is a senior obligation of the Borrower, and constitutes an unconditional obligation of Borrower for the payment of money. The following terms shall apply to this Note:

ARTICLE I

INTEREST

 

1.1.              Interest Rate.   Interest on this Note shall be simple interest and accrue at the annual rate of ten percent (10%) per annum.  Interest will be payable on the Maturity Date, accelerated or otherwise, at which time the Principal Amount and remaining accrued but unpaid interest shall be due and payable, or sooner as described below.  All computations of interest payable hereunder shall be on the basis of a 365-day year and actual days elapsed in the period for which such interest is payable. Accrued interest on the outstanding Principal Amount shall be due and payable on the Maturity Date in cash.

1.2.              Default Interest Rate.  Following the occurrence and during the continuance of an Event of Default (as defined below), which, if susceptible to cure is not cured within the cure periods (if any) set forth in Article II, otherwise then commencing from the end of the applicable cure period the annual interest rate on this Note shall (subject to the limitations set forth in Section 3.7) be the lesser of ten percent (18%) per annum or the highest rate permissible by law, and be due on demand.

ARTICLE II

EVENTS OF DEFAULT

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EVENTS OF DEFAULT

The occurrence of any of the following events of default (each, an "Event of Default") shall, at the option of the Holder hereof, make all sums of principal and interest then remaining unpaid hereon and all other amounts payable hereunder immediately due and payable, upon demand, without presentment, or grace period, all of which hereby are expressly waived, except as set forth below:

2.1            Failure to Pay Principal or Interest.  The Borrower fails to pay any the Principal Amount, interest or other sum due under this Note when due (including, without limitation, failure to repay the Note and interest in full upon the happening of a Qualified Offering),  and such failure continues for a period of five (5) calendar days after receipt by the Borrower of written notice of such default.

2.2            Breach of Covenant.  The Borrower materially breaches any covenant or other term or condition of this Note in any material respect and such breach, if subject to cure, continues for a period of 10 business days after written notice to the Borrower from the Holder.

2.3            Breach of Representations and Warranties.  Any material representation or warranty of the Borrower made herein or in its reports as filed with the Securities and Exchange Commission, shall be false or misleading in any material respect as of the Issue Date, except to the extent such representation or warranty is made as of a different date in which case such representation or warranty shall have been false or misleading in any material respect as of such date.

2.4            Receiver or Trustee.  The Borrower or any subsidiary of Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for them or for a substantial part of their property or business; or such a receiver or trustee shall otherwise be appointed and not dismissed within 30 calendar days.

2.5            Judgments.  Any money judgment, writ or similar final process shall be entered or filed against Borrower or any subsidiary of Borrower or any of their property or other assets for more than $25,000 and shall remain unvacated, unbonded, unappealed, unsatisfied, or unstayed for a period of 30 calendar days.

2.6            Non-Payment.   A default by the Borrower under any one or more obligations (including, without limitation, any office lease or pre-existing loan currently outstanding) in an aggregate monetary amount in excess of $10,000 for more than 30 calendar days after the due date, unless the Borrower is contesting the validity of such obligation in good faith and has segregated cash funds equal to not less than one-half of the contested amount.

2.7            Bankruptcy.  Bankruptcy, insolvency, reorganization, or liquidation proceedings or other proceedings or relief under any bankruptcy law or any law, or the issuance of any notice in relation to such event, for the relief of debtors shall be instituted by or against the Borrower or any Subsidiary of Borrower and if instituted against them are not dismissed within 60 calendar days of initiation.

2.8            Sale of Assets;Acquisisiton of Business. A disposition of all or substantially all of the assets of the Borrower, change in the business of the Borrower or acquisition of assets by the Borrower resulting in a material change in its business.

2.9            Use of Proceeds. Proceeds of this Note not being utilized substantially in accordance with the intended uses agreed to by the parties in writing, and for no other purposes.

2.10            Delisting of Common Stock.   The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTCBB, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, the Archipelago Exchange, or the American Stock Exchange, or shall fail to comply in all material responses with the reporting requirements of the Securities Act of 1933, as amended,  or Securities and Exchange Act of 1934, as amended.

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      2.11             Stop Trade.  An SEC/FINRA or judicial stop trade order or other market trading suspension that lasts for five or more consecutive trading days.

ARTICLE III

MISCELLANEOUS

3.1            Failure or Indulgence Not Waiver.  No failure or delay on the part of Holder hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.  All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

3.2            Notices.  All notices and other communications required or permitted hereunder shall be in writing and shall be effective when delivered personally, provided that a copy is mailed by registered mail, return receipt requested, or when received by the addressee, if sent by Express Mail, Federal Express or other express delivery service (receipt requested) in each case to the appropriate address set forth below:

If to the Borrower:                        Cala Energy Corp.

777 South Post Oak Lane

One Riverway, Suite 1700, PMB 1554

Houston Texas 77056

Attention:

Fax:

            With a copy to:                                           ________________

                                                                                                ________________

                                                                                                ________________

                                                                                                ________________

                                                                                                Attention:  _______________, Esq.

                          If to the Purchaser:

c/o_________________

___________________

___________________

Fax:

eMail:

With a copy to:                               Mark Crone, Esq.

CKR Law, LLP

1330 Avenue of the Americas

New York, New York 10019

Fax:212-400-6901

3.3            Amendment Provision.  The term "Note" and all reference thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended or supplemented or reissued, then as so amended or supplemented or reissued.

3.4            Assignees.  This Note, and the conversion rights described herein, shall not be assignable by the Holder without the prior written consent of the Borrower, which shall not be unreasonably withheld. Subject to the restrictions of the preceding sentence, the rights and obligations of the Borrower and the Holder shall be binding upon and benefit the successors, assign, heirs, administrators and transferees of the parties.

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3.5            Cost of Collection.  In the event that Holder is required to take legal or other action to enforce its rights or obtain collection under this Note,  Borrower shall pay the Holder hereof all costs of collection, or enforcement of the terms hereof, including attorneys' fees.

3.6            Governing Law.  This Note shall be governed by and construed in accordance with the laws of the State of New York.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the State Supreme Court of the State of New York, County of New York.  Both parties and the individual signing this Agreement on behalf of the Borrower agree to submit to the jurisdiction of such courts.  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 Note 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 unenforceability of any other provision of this Note.  THE PARTIES IRREVOCABLY WAIVE THE RIGHT TO TRIAL BY JURY.

3.7            Maximum Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law.  In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum permitted by such law (such as, without limitation, the usury laws), any payments in excess of such maximum shall be credited against amounts owed by the Borrower to the Holder and thus refunded to the Borrower, or if no further amounts are owed by the Borrower to the Holder, shall be refunded to the Borrower.  Borrower hereby irrevocable consents to the reformation of this Note, as may be necessary by a court of law, so as to enable enforcement of this Note pursuant to summary judgment or summary proceeding.  For avoidance of doubt, in the event that, for any reason, a finding by a court having jurisdiction over this Note is made that limits enforceability as a result of excessive interest or other origination or investment banking fees pursuant to the laws of any jurisdiction, then, such defense shall not be deemed to bar a summary proceeding or summary judgment on the Note but rather, the Note shall be fully and absolutely enforceable as to all principal and, the court having jurisdiction shall, after an inquest, have power to reform the Note so as to reduce interest amount to such amount as is immediately enforceable pursuant to summary judgment or summary proceeding and grant such award, plus any legal or enforcement fees of Holder(s).

3.8.            Construction and Enforcement. Each party acknowledges that its legal counsel participated in the preparation of this Note and, therefore, stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Note to favor any party against the other. This Note reflects an investment made by Holder or its assignor to the Borrower.  This Note is intended as, and shall be deemed an unconditional obligation of Borrower for the payment of money only and, without limitation to any other remedies of Holder (such as, without limitation, summary judgment after initiation of a proceeding, or equitable remedies), shall be enforceable against Borrower by summary proceeding pursuant to New York Civil Procedure Law and Rules Section 3213 or any similar rule or statute in the jurisdiction where enforcement is sought.  For purposes of such rule or statute, any other document or agreement to which Holder and Borrower are parties or which Borrower delivered to Holder, which may be convenient or necessary to determine Holder's rights hereunder or Borrower's obligations to Holder are deemed a part of this Note, whether or not such other document or agreement was delivered together herewith or was executed apart from this Note.

3.9            Redemption.  This Note may be prepaid by the Borrower, in whole or in part, at any time and from time to time, without premium or penalty, upon 15 days' prior written notice to the Holder.

3.10            Issuance of Replacement Note.  Upon any loss or destruction of this Note, a replacement Note containing the same date and provisions of this Note shall be issued by the Company to the Holder for the outstanding Principal Amount of this Note and accrued interest which shall not have been converted or paid.

 

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3.11            Representations and Warranties; Due Authority.  The Borrower warrants and represents that: (i) the Borrower has the due authority to enter into, issue and perform its obligations under this Note, (ii) the entry into this Note has been duly authorized by the board of directors of the Borrower and all and all corporate actions and consents (including third party consents) necessary for the execution, delivery and performance by Borrower of its obligations hereunder have been obtained, (iii) the issuance by the Borrower of this Note does not conflict with or result in a default under, the Borrower's Articles of Incorporation, as amended and restated to date (including any certificates of designation thereto), its By-laws or any shareholders agreement to which it is a party or any other agreement to which the Borrower is a party or order that it is subject to.  This Note is fully enforceable against the Borrower.

3.12            Non-Business Days.  Whenever any payment or any action to be made shall be due on a Saturday, Sunday or a public holiday under the laws of the State of New York, such payment may be due or action shall be required on the next succeeding business day and, for such payment, such next succeeding day shall be included in the calculation of the amount of accrued interest payable on such date.

[Signature pages follow]

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IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by an authorized officer as of the ____ day of October 2013.

CALA ENERGY CORP.

By:________________________________

Name:

Title:

[Signature Page to 10% Senior Promissory Note of Cala Energy Corp.]

6Exhibit 10.1

 

FOUNDERS' AGREEMENT

FOUNDERS' AGREEMENT, dated as of the 31st day of July, 2014 (this "Agreement"), among Lingerie Fighting Championships, Inc., a Nevada corporation (the "Corporation"). Mohammed Ismail (the "Shareholder").

WHEREAS, the Shareholder desires to enter into an agreement with respect to the restrictions of the transfer of the capital stock of the Corporation and certain other matters.

NOW, THEREFORE, in consideration of the premises and the mutual agreements and covenants hereinafter set forth, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

Section 1.1 Term. The term of this Agreement ("Term") shall commence on the date hereof and shall continue in full force and effect until the earlier of such time as each Shareholder holds record or beneficial title to the shares of capital stock of the Corporation or three years after the date hereof.

Section 1.2 Issuance of Shares. The Corporation is willing to issue to the Shareholder 650,000 shares of common stock (the "Shares1') on the terms and conditions provided for in this Agreement.

Section 2.1 Transfer Restrictions: Permitted Transferees.

(a)          The Shareholder shall not, directly or indirectly, sell, exchange, pledge, transfer, gift, grant an irrevocable proxy with respect to, devise, assign or in any other way dispose of, encumber or grant a security interest in (hereinafter referred to as "Transfer"), any capital stock of the Corporation or any interest therein or any certificates representing any Shares, whether now or hereafter owned, directly or indirectly, by the Shareholder, nor, if applicable, permit the Transfer, whether directly or indirectly, of any interest in a Shareholder, nor shall the Shareholder attempt to do so, except as expressly permitted by this Agreement. The Corporation shall not transfer on its books any Shares or issue any stock certificates unless the terms and conditions hereof have been complied with. Any purported Transfer in violation of this Agreement shall be invalid.

 

(b)          Notwithstanding anything contained herein to the contrary, the prior written consent of the Corporation shall not be required for a Transfer of all or part of a Shareholder's Shares to a Permitted Transferee, provided that, in all cases, any Permitted Transferee that receives any Shares shall hold such Shares subject to all of the terms and conditions of this Agreement, and shall, as a condition of receiving such Shares, execute and deliver documentation required by the Corporation confirming that they shall be bound by this Agreement. A "Permitted Transferee" means (i) the parents, grandparents, brothers, sisters, descendants (whether natural or adopted) and spouse of the specified individual; (ii) any trust created solely for the benefit of any individual described in clauses (i) above; (iii) any executor or administrator for any of the individuals or their respective estates described in clauses (i) and (ii) above; (iv) any partnership or limited liability company solely of the individuals described in clauses (i) through (iii) above; (v) any tax exempt corporate foundation created by any of the persons or entities described in clauses (i) through (iv) above exclusively engaged in charitable purposes; and (vi) any corporation or other entity all of the share capital or other equity interests are owned solely by such individual and/or any of the individuals described in clause (i) above.

 

 

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(c)        Notwithstanding anything contained herein to the contrary, any Transfer to a Permitted Transferee shall consist solely of a transfer of the economic interest of the Transferred Shares, but shall not under any circumstance include a Transfer of the voting rights associated with such Transferred Shares.

(d)        Notwithstanding anything contained herein to the contrary, the restrictions contained in Section 2.1 shall terminate and have no further force and effect eighteen (18) months after the Corporation becomes a public company registered with the Securities and Exchange Commission.

Section 2.3 Legend. So long as this Agreement remains in effect, there shall be noted conspicuously upon each stock certificate representing Shares, the following statements:

"The shares represented by this certificate are subject to a certain Founders' Agreement dated as of July 31, 2014, a copy of which is on file at the principal office of the Corporation. Any sale, pledge, transfer, assignment or any other disposition or encumbrance of the shares represented by this certificate in violation of said Agreement shall be invalid."

"The shares represented by this certificate have not been registered under the Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction. The shares may not be transferred except pursuant to an effective registration statement under such Act and other applicable securities laws, or pursuant to an exemption therefrom."

Section 2.4 Securities Law Compliance. Any Transfer of Shares shall be made in full compliance with applicable federal and state securities law, including, without limitation, to the extent applicable, the rules and regulations promulgated under the Securities Act of 1933, as amended. Any Permitted Transferee of Shares under this Agreement shall provide documentation satisfactory to counsel to the Corporation that he is acquiring Shares for his own account, for investment purposes only and not with a view to their resale or distribution.

Section 2.5 Due Execution: No Conflict. The Shareholder represents and warrants, and the Corporation represents and warrants to the Shareholder, that the execution and delivery of this Agreement by him and the performance of his obligations hereunder are not in violation of, and do not conflict with or constitute a default under, any of the terms and provisions of any agreement, indenture or instrument to which he is bound or any law, regulation, order, decree or judgment to which he or she is subject; and that this Agreement constitutes the valid and binding obligation of such person, enforceable against him in accordance with the terms hereof.

Section 2.6 Investment Intent. The Shareholder represents and warrants to the Corporation that the Shares have been acquired for his own account for investment purposes only and not with a view to the distribution or resale thereof. The Shareholder agrees that he will not distribute, resell or offer the Shares or any interest therein unless registered pursuant to the Securities Act of 1933, as amended, and any applicable state securities laws, or unless an exemption from registration is available thereunder.

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Section 2.7 No Market. The Shareholder is aware that there is no market for the Shares, that it is unlikely that any such market will ever develop, and that it may not be possible to liquidate the Shareholder's investment, and, in any event, that there are substantial restrictions on the transferability of the Shares under applicable federal and state securities law and the provisions of this Agreement.

Section 3.1 Opportunities. The Shareholder, on behalf of himself and his respective affiliates, shall conduct the Business and all derivative and related Businesses solely through, and for the benefit of, the Corporation. All opportunities within the scope of the Business involving third parties shall belong to and be carried out for the account of the Corporation. "Business" shall mean being directly or indirectly involved in an integrated media and entertainment business, principally engaged in the production and distribution of content through various channels including television rights agreements, pay-per-view event programming, live events, licensing of various LFC themed products and the sale of consumer products featuring our brands.

Section 3.2 Confidentiality. The Shareholder shall retain in strict confidence, and shall not use for any purpose whatsoever, or divulge, disseminate or disclose to any third party (other than in furtherance of the business purposes of the Corporation or as may be required by law) all proprietary or confidential information relating to the Corporation's business, including, without limitation, product information, financial information, product availability, development plans, distribution methods and channels, pricing information, business methods, management information systems and software, customer lists, supplier lists, leads, solicitations and contacts, know-how, show-how, inventions, improvements, specifications, trade secrets, agreements, research and development, business plans and marketing plans of the Corporation, whether or not any of the foregoing are copyrightable or patentable.

                                 Section 3.3 Non-Competition. The Shareholder, on behalf of himself and his respective affiliates hereby severally warrants, covenants and agrees that, neither he nor his affiliates will, during the applicable Restrictive Covenant Period (as defined below), directly or indirectly, without the prior written consent of the Corporation, engage in or be interested in any business which directly or indirectly is competitive with the Business nor during such period or thereafter, shall he or his affiliates retain or hire (on behalf of himself or any other person or entity) any person or entity who is or was an employee, consultant or agent of the Corporation. A party shall be deemed to be directly or indirectly interested in a business if he shall be engaged or affiliated directly or indirectly with such business as a stockholder, director, officer, employee, salesman, sales representative, agent, broker, partner, individual proprietor, lender, consultant or otherwise, but not if such interest is limited solely to the ownership of five percent (5%) or less of the equity or debt securities of any Corporation whose shares are listed for trading on a national securities exchange or quoted on the National Association of Securities Dealers Automated Quotation System. For purposes of this Agreement, the "Restrictive Covenant Period" shall be for so long as the Shareholder holds any Shares of the Corporation and until he has ceased to be a Shareholder of the Corporation and for a period of one (1) year thereafter.

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Section 3.4 Blue Penciling. If any provision of Section 3.3 shall be held to be contrary to law or invalid or unenforceable in any respect or any jurisdiction, or as to any one or more periods of time, areas or business activities, the remaining provisions shall not be affected but shall remain in full force and effect as to the other and remaining parts, and any such invalid or unenforceable provisions shall be deemed, without further action on the part of the parties hereto, modified, amended and limited to the extent necessary to render the same valid and enforceable.

Section 3.5 Specific Performance. The parties recognize and acknowledge that the Shares are closely held and the market therefor is limited and that, accordingly, in the event of a breach or default by one or more of the parties hereto of the terms and conditions of this Agreement, the damages to the remaining parties to this Agreement, or any one or more of them, may be impossible to ascertain and such parties will not have an adequate remedy at law. In the event of any such breach or default in the performance of the terms and provisions of this Agreement, any aggrieved party or parties shall be entitled to institute and prosecute proceedings in any court of competent jurisdiction, either at law or in equity, without the necessity to post a bond or prove special damages, to enforce the specific performance of the terms and conditions of this Agreement, to enjoin further violations of the provisions of this Agreement and/or to obtain damages. Such remedies shall however be cumulative and not exclusive and shall be in addition to any other remedies which any party may have under this Agreement or at law.

Section 4.1 Binding Agreement. This Agreement shall be binding upon and inure to the benefit of the parties hereto and the respective successors, personal representatives, heirs and assigns; provided, however, that none of the parties hereto may assign any of his or its rights or obligations under this Agreement.

Section 4.2 Governing Law. This Agreement shall be construed and enforced in accordance with the internal laws of the State of Nevada.

Section 4.3 References: Counsel. The headings in this Agreement are for convenience of reference only and not for any other purpose. The Shareholder acknowledges and agrees that he has received or has had the opportunity to receive independent legal counsel of its own choice and that he has been sufficiently apprised of his rights and responsibilities with regard to the substance of this Agreement.

Section 4.4 Further Assurances. The parties shall execute and deliver such further instruments and documents as may be required to carry out the intended purposes of this Agreement.

                                 Section 4.5 Counterparts. This Agreement may be executed in counterparts and by facsimile or other electronic means, each of which shall be an original but all of which shall constitute a single instrument.

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IN WITNESS WHEREOF, the undersigned have executed and delivered this Founders' Agreement as of the date first written above.

	 	LINGERIE FIGHTING CHAMPIONSHIPS, INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ Shaun Donnelly	 
	 	 	Name: Shaun Donnelly	 
	 	 	Title: Chief Executive Officer	 
	 	 	 	 

 

	 		 
	 	 	 	 
	
 

	
 

	/s/ Mohammed Ismail	 
	 	 	Mohammed Ismail	 
	 	 		 
	 	 	 	 

           

 

 

 

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