Document:

Blueprint

 

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this
“Agreement”), dated as of
September 26, 2019 (the “Execution Date”), is
entered into by and between PREMIER
BIOMEDICAL, INC., a Nevada corporation (the
“Company”), and
GREEN COAST CAPITAL INTERNATIONAL
SA, a Panama
Corporation (together with its permitted assigns, the
“Buyer”). Capitalized
terms used herein and not otherwise defined herein shall have the
respective meanings set forth in that certain Equity Purchase
Agreement by and between the parties hereto, dated as of the
Execution Date (as amended, restated, supplemented or otherwise
modified from time to time, the “Purchase
Agreement”).

 

WHEREAS:

 

The
Company has agreed, upon the terms and subject to the conditions of
the Purchase Agreement, to sell to the Buyer up to Five Million
Dollars ($5,000,000.00) of Put Shares and to induce the Buyer to
enter into the Purchase Agreement, the Company has agreed to
provide certain registration rights under the Securities Act of
1933, as amended, and the rules and regulations thereunder, or any
similar successor statute (collectively, the “Securities Act”), and
applicable state securities laws.

 

NOW, THEREFORE, in consideration of the promises
and the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Company and the Buyer hereby agree as
follows:

 

1.

DEFINITIONS.

 

As used
in this Agreement, the following terms shall have the following
meanings:

 

a.

“Investor”
means the Buyer, any transferee or assignee thereof to whom the
Buyer assigns its rights under this Agreement in accordance
with Section 9
and who agrees to become bound by the
provisions of this Agreement, and any transferee or assignee
thereof to whom a transferee or assignee assigns its rights under
this Agreement in accordance with Section 9
and who agrees to become bound by the
provisions of this Agreement.

 

b.

“Person”
means any individual or entity including but not limited to any
corporation, a limited liability company, an association, a
partnership, an organization, a business, an individual, a
governmental or political subdivision thereof or a governmental
agency.

 

c.

“Register,”
“Registered,”
and “Registration”
refer to a registration effected by preparing and filing one or
more registration statements of the Company in compliance with the
Securities Act and/or pursuant to Rule 415 under the Securities Act
or any successor rule providing for the offering securities on a
continuous basis (“Rule
415”), and the
declaration or ordering of effectiveness of such registration
statement(s) by the United States Securities and Exchange
Commission (the “SEC”).

 

 

 

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d.

“Registrable
Securities” means all of
the Commitment Shares and Put Shares which have been, or which may,
from time to time be issued, including without limitation all of
the shares of Common Stock which have been issued or will be issued
to the Investor under the Purchase Agreement (without regard to any
limitation or restriction on purchases), and any and all shares of
capital stock issued or issuable with respect to the Put Shares and
the Commitment Shares (as such terms are defined in the Purchase
Agreement) issued or issuable to the Investor, and shares of Common
Stock issued to the Investor with respect to the Put Shares,
Commitment Shares and the Purchase Agreement as a result of any
stock split, stock dividend, recapitalization, exchange or similar
event or otherwise, without regard to any limitation on purchases
under the Purchase Agreement.

 

e.

“Registration
Statement” means one or
more registration statements of the Company on Form S-1 covering
only the sale of the Registrable Securities.

 

2.

REGISTRATION.

 

a.

Mandatory
Registration. The Company
shall, by December 26, 2019, file with the SEC an initial
Registration Statement covering the maximum number of Registrable
Securities as shall be permitted to be included thereon (in such
amounts as to the specific Registrable Securities included therein
as identified by the Investor and its legal counsel) in accordance
with applicable SEC rules, regulations and interpretations so as to
permit the resale of such Registrable Securities by the Investor,
including but not limited to under Rule 415 under the Securities
Act at then prevailing market prices (and not fixed prices), as
mutually determined by both the Company and the Investor in
consultation with their respective legal counsel (the
“Initial Registration
Statement”). The Initial
Registration Statement shall register only the Registrable
Securities. The Company shall use its reasonable best efforts to
have the Initial Registration Statement and any amendment thereto
declared effective by the SEC at the earliest possible date (in any
event, within one hundred twenty (120) calendar days after the
Execution Date).

 

b.

Rule 424
Prospectus. In addition to the
Initial Registration Statement, the Company shall, as required by
applicable securities regulations, from time to time file with the
SEC, pursuant to Rule 424 promulgated under the Securities Act,
such prospectuses and prospectus supplements to be used in
connection with sales of the Registrable Securities under each
Registration Statement. The Investor and its counsel shall have a
reasonable opportunity to review and comment upon such prospectuses
prior to its filing with the SEC, and the Company shall give due
consideration to all such comments. The Investor shall use its
reasonable best efforts to comment upon any prospectus within two
(2) business days from the date the Investor receives the final
pre-filing version of such prospectus.

 

c.

Sufficient Number of
Shares Registered. In the event
the number of shares available under the Initial Registration
Statement is insufficient to cover all of the Registrable
Securities, the Company shall amend the Initial Registration
Statement or file a new Registration Statement (a
“New Registration
Statement”), so as to
cover all of such Registrable Securities (subject to the
limitations set forth in Section
2(f)) as soon as practicable,
but in any event not later than ten (10) business days after the
necessity therefor arises, subject to any limits that may be
imposed by the SEC pursuant to Rule 415 under the Securities Act.
The Company shall use its reasonable best efforts to cause such
amendment and/or New Registration Statement to become effective as
soon as practicable following the filing
thereof.

 

 

 

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d.

Piggyback
Registration. In the event that
any of the Registrable Securities have not been included in the
Initial Registration Statement or a New Registration Statement, and
the Company initially files any other registration statement under
the Securities Act (other than on Form S-4, Form S-8, or with
respect to other employee related plans or rights offerings) (an
“Other Registration
Statement”), then the
Company shall include in such Other Registration Statement first
all of the Commitment Shares, second all of such Put Shares that
have not been previously Registered, and third any other securities
the Company wishes to include in such Other Registration Statement.
The Company agrees that it shall not file any such Other
Registration Statement unless all of the Put Shares and Commitment
Shares have been included in such Other Registration Statement or
otherwise have been Registered for resale as described
above.

 

e.

Effectiveness.
The Investor and its counsel shall have a reasonable opportunity to
review and comment upon any Registration Statement and any
amendment or supplement to such Registration Statement and any
related prospectus prior to its filing with the SEC, and the
Company shall give due consideration to all reasonable comments.
The Investor shall furnish all information reasonably requested by
the Company for inclusion therein. The Company shall use reasonable
best efforts to keep all Registration Statements effective,
including but not limited to pursuant to Rule 415 promulgated under
the Securities Act and available for use by the Investor for the
resale of all of the Registrable Securities covered thereby at all
times until the earlier of (i) the date as of which the Investor
may sell all of the Registrable Securities without restriction
pursuant to Rule 144 promulgated under the Securities Act without
any restrictions (including any restrictions under Rule 144(c) or
Rule 144(i)) and (ii) the date on which the Investor shall have
sold all the Registrable Securities covered thereby and no Put
Shares remain issuable under the Purchase Agreement (the
“Registration
Period”). Each
Registration Statement (including any amendments or supplements
thereto and prospectuses contained therein) shall not contain any
untrue statement of a material fact or omit to state a material
fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they
were made, not misleading.

 

f.

Offering.
If the staff of the SEC (the “Staff”)
or the SEC seeks to characterize any offering pursuant to a
Registration Statement filed pursuant to this Agreement as
constituting an offering of securities that does not permit such
Registration Statement to become or remain effective and be used
for resales by the Investor under Rule 415 at then-prevailing
market prices (and not fixed prices) by comment letter or
otherwise, or if after the filing of the Initial Registration
Statement with the SEC pursuant to Section
2(a), the Company is otherwise
required by the Staff or the SEC to reduce the number of
Registrable Securities included in such initial Registration
Statement, then the Company shall reduce the number of Registrable
Securities to be included in such Initial Registration Statement
(with the prior consent, which shall not be unreasonably withheld,
of the Investor and its legal counsel as to the specific
Registrable Securities to be removed therefrom) until such time as
the Staff and the SEC shall so permit such Registration Statement
to become effective and be used as aforesaid. In the event of any
reduction in Registrable Securities pursuant to this paragraph, the
Company shall file one or more New Registration Statements in
accordance with Section 2(c)
until such time as all Registrable
Securities have been included in Registration Statements that have
been declared effective and the prospectus contained therein is
available for use by the Investor. Notwithstanding any provision
herein or in the Purchase Agreement to the contrary, the
Company’s obligations to register Registrable Securities (and
any related conditions to the Investor’s obligations) shall
be qualified as necessary to comport with any requirement of the
SEC or the Staff as addressed in this Section
2(f).

 

 

 

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3.

RELATED
OBLIGATIONS.

 

With
respect to a Registration Statement and whenever any Registrable
Securities are to be Registered pursuant to Section 2, including on any
Other Registration Statement, the Company shall use its reasonable
best efforts to effect the registration of the Registrable
Securities in accordance with the intended method of disposition
thereof and, pursuant thereto, the Company shall have the following
obligations:

 

a.

The
Company shall prepare and file with the SEC such amendments
(including post-effective amendments on Form S-1) and supplements
to any registration statement and the prospectus used in connection
with such registration statement, which prospectus is to be filed
pursuant to Rule 424 promulgated under the Securities Act, as may
be necessary to keep the Registration Statement or any Other
Registration Statement effective at all times during the
Registration Period, and, during such period, comply with the
provisions of the Securities Act with respect to the disposition of
all Registrable Securities of the Company covered by the
Registration Statement or any Other Registration Statement until
such time as all of such Registrable Securities shall have been
disposed of in accordance with the intended methods of disposition
by the seller or sellers thereof as set forth in such registration
statement.

 

b.

The
Company shall permit the Investor to review and comment upon each
Registration Statement or any Other Registration Statement and all
amendments and supplements thereto at least two (2) business days
prior to their filing with the SEC, and not file any document in a
form to which Investor reasonably objects. The Investor shall use
its reasonable best efforts to comment upon the Registration
Statement or any Other Registration Statement and any amendments or
supplements thereto within two (2) business days from the date the
Investor receives the final version thereof. The Company shall
furnish to the Investor, without charge, and within one (1)
business day, any comments and/or any other correspondence from the
SEC or the Staff to the Company or its representatives relating to
the Registration Statement or any Other Registration Statement. The
Company shall respond to the SEC or the Staff, as applicable,
regarding the resolution of any such comments and/or correspondence
as promptly as practicable and in any event within two weeks upon
receipt thereof.

 

c.

Upon
request of the Investor, the Company shall furnish to the Investor,
(i) promptly after the same is prepared and filed with the SEC, at
least one copy of such registration statement and any amendment(s)
thereto, including financial statements and schedules, all
documents incorporated therein by reference and all exhibits, (ii)
upon the effectiveness of any registration statement, a copy of the
prospectus included in such registration statement and all
amendments and supplements thereto (or such other number of copies
as the Investor may reasonably request) and (iii) such other
documents, including copies of any preliminary or final prospectus,
as the Investor may reasonably request from time to time in order
to facilitate the disposition of the Registrable Securities owned
by the Investor. For the avoidance of doubt, any filing available
to the Investor via the SEC’s live EDGAR system shall be
deemed “furnished to the Investor”
hereunder.

 

 

 

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d.

The Company shall use reasonable best efforts to
(i) register and qualify the Registrable Securities covered by a
registration statement under such other securities or “blue
sky” laws of Florida and such other jurisdictions in the
United States as the Investor reasonably requests, (ii) prepare and
file in those jurisdictions, such amendments (including
post-effective amendments) and supplements to any such
registrations and qualifications as may be necessary to maintain
the effectiveness thereof during the Registration Period, (iii)
take such other actions as may be necessary to maintain such
registrations and qualifications (including all Registration
Statements) in effect at all times during the Registration Period,
and (iv) take all other actions reasonably necessary or advisable
to qualify the Registrable Securities for sale in such
jurisdictions; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to (x)
qualify to do business in any jurisdiction where it would not
otherwise be required to qualify but for this Section
3(d), (y) subject itself to
general taxation in any such jurisdiction, or (z) file a general
consent to service of process in any such jurisdiction. The Company
shall promptly notify the Investor who holds Registrable Securities
of the receipt by the Company of any notification with respect to
the suspension of the registration or qualification of any of the
Registrable Securities for sale under the securities or “blue
sky” laws of any jurisdiction in the United States or its
receipt of actual notice of the initiation or threatening of any
proceeding for such purpose.

 

e.

The
Company shall, as promptly as practicable, notify the Investor in
writing of the happening of any event or existence of such facts as
a result of which the prospectus included in any registration
statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not
misleading, and promptly prepare a supplement or amendment to such
registration statement to correct such untrue statement or
omission, and deliver a copy of such supplement or amendment to the
Investor (or such other number of copies as the Investor may
reasonably request). The Company shall also promptly notify the
Investor in writing (i) when a prospectus or any prospectus
supplement or post-effective amendment has been filed, and when a
registration statement or any post-effective amendment has become
effective (notification of such effectiveness shall be delivered to
the Investor by email or facsimile on the same day of such
effectiveness and by overnight mail), (ii) of any request by the
SEC for amendments or supplements to any registration statement or
related prospectus or related information, and (iii) of the
Company’s reasonable determination that a post-effective
amendment to a registration statement would be
appropriate.

 

f.

The
Company shall use its reasonable best efforts to prevent the
issuance of any stop order or other suspension of effectiveness of
any registration statement, or the suspension of the qualification
of any Registrable Securities for sale in any jurisdiction and, if
such an order or suspension is issued, to obtain the withdrawal of
such order or suspension at the earliest possible moment and to
notify the Investor of the issuance of such order and the
resolution thereof or its receipt of actual notice of the
initiation or threat of any proceeding for such purpose. In
addition, if the Company shall receive any comment letter from the
SEC relating to any Registration Statement under which Registrable
Securities are Registered, Company shall notify the Investor of the
issuance of such order and use its reasonable best efforts to
address such comments in a manner satisfactory to the
SEC.

 

 

 

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g.

The
Company shall (i) cause all the Registrable Securities to be listed
on each securities exchange on which securities of the same class
or series issued by the Company are then listed, if any, if the
listing of such Registrable Securities is then permitted under the
rules of such exchange, or (ii) secure designation and quotation of
all the Registrable Securities on the Principal Market. The Company
shall pay all fees and expenses in connection with satisfying its
obligation under this Section.

 

h.

To the extent that the Company’s securities
are eligible to be treated as DWAC Shares at the time of the
Execution Date, the Company shall cooperate with the Investor to
facilitate the timely preparation and delivery of DWAC Shares
representing the Registrable Securities to be offered pursuant to
any Registration Statement. “DWAC
Shares” means shares of
Common Stock that are (i) issued in electronic form, (ii) freely
tradable and transferable and without restriction on resale and
(iii) timely credited by the Company to the Investor’s or its
designee’s specified DWAC account with The Depository Trust
Company (“DTC”) under the DTC/FAST Program, or any
similar program hereafter adopted by DTC performing substantially
the same function.

 

i.

The
Company shall at all times maintain the services of its Transfer
Agent and registrar with respect to its Common Stock.

 

j.

If
reasonably requested by the Investor, the Company shall (i)
immediately incorporate in a prospectus supplement or
post-effective amendment such information as the Investor believes
should be included therein relating to the sale and distribution of
Registrable Securities, including, without limitation, information
with respect to the number of Registrable Securities being sold,
the purchase price being paid therefor and any other terms of the
offering of the Registrable Securities; (ii) make all required
filings of such prospectus supplement or post-effective amendment
as soon as practicable upon notification of the matters to be
incorporated in such prospectus supplement or post-effective
amendment; and (iii) supplement or make amendments to any
Registration Statement.

 

k.

The
Company shall use its reasonable best efforts to cause the
Registrable Securities covered by any Registration Statement to be
Registered with or approved by such other governmental agencies or
authorities as may be necessary to consummate the disposition of
such Registrable Securities.

 

l.

Within one (1) business day after any Registration
Statement which includes Registrable Securities is ordered
effective by the SEC, or any prospectus supplement or
post-effective amendment including Registrable Securities is filed
with the SEC, the Company shall deliver, and shall cause legal
counsel for the Company to deliver, to the Transfer Agent for such
Registrable Securities (with copies to the Investor) confirmation
that such Registration Statement has been declared effective by the
SEC in the form attached hereto as Exhibit
A. Thereafter, if requested by
the Investor at any time, the Company shall require its counsel to
deliver to the Investor a written confirmation whether or not (i)
the effectiveness of such Registration Statement has lapsed at any
time for any reason (including, without limitation, the issuance of
a stop order), (ii) any comment letter has been issued by the SEC,
and (iii) whether or not the Registration Statement is current and
available to the Investor for sale of all of the Registrable
Securities.

 

 

 

6

 

 

 

 

m.

The
Company shall take all other reasonable actions necessary to
expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to any Registration Statement.

 

4.

OBLIGATIONS OF THE
INVESTOR.

 

a.

The
Company shall notify the Investor in writing of the information the
Company reasonably requires from the Investor in connection with
any Registration Statement hereunder. The Investor shall furnish to
the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the
Registrable Securities held by it as shall be reasonably required
to effect the Registration of such Registrable Securities and shall
execute such documents in connection with such Registration as the
Company may reasonably request. Notwithstanding the foregoing, the
Registration Statement shall contain the “Selling
Stockholder” and “Plan of Distribution” sections
in substantially the form provided to the Company by the
Investor.

 

b.

The
Investor agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and
filing of any Registration Statement hereunder.

 

c.

The Investor agrees that, upon receipt of any
notice from the Company of the happening of any event or existence
of facts of the kind described in Section 3(f)
or the first sentence of
3(e), the Investor will
immediately discontinue disposition of Registrable Securities
pursuant to any Registration Statement(s) covering such Registrable
Securities until withdrawal of a stop order contemplated by
Section
3(f) or the Investor’s
receipt of the copies of the supplemented or amended prospectus
contemplated by Section
3(e). Notwithstanding anything
to the contrary, the Company shall cause its Transfer Agent to
promptly issue DWAC Shares in accordance with the terms of the
Purchase Agreement in connection with any sale of Registrable
Securities with respect to which an Investor has entered into a
contract for sale prior to the Investor’s receipt of a notice
from the Company of the happening of any event of the kind
described in Section 3(f)
or the first sentence of
Section
3(e) and for which the Investor
has not yet settled.

 

5.

EXPENSES OF
REGISTRATION.

 

All
reasonable expenses, other than sales or brokerage commissions,
incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without
limitation, all registration, listing and qualifications fees,
printers and accounting fees, and fees and disbursements of counsel
for the Company, shall be paid by the The Investor up to
$25,000.00.

 

 

 

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6.

INDEMNIFICATION.

 

a.

To the fullest extent permitted by law, the
Company will, and hereby does, indemnify, hold harmless and defend
the Investor, each Person, if any, who controls or is under common
control with the Investor, the members, the directors, officers,
partners, employees, agents, representatives of the Investor and
each Person, if any, who is an “affiliate” of the
Investor within the meaning of the Securities Act or the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”) (each, an
“Indemnified
Person”), against any
losses, claims, damages, liabilities, judgments, fines, penalties,
charges, costs, attorneys’ fees, amounts paid in settlement
or expenses, joint or several, (collectively,
“Claims”),
incurred in investigating, preparing or defending any action,
claim, suit, inquiry, proceeding, investigation or appeal taken
from the foregoing by or before any court or governmental,
administrative or other regulatory agency, body or the SEC, whether
pending or threatened, whether or not an Indemnified Person is or
may be a party thereto (“Indemnified
Damages”), to which any
of them may become subject insofar as such Claims (or actions or
proceedings, whether commenced or threatened, in respect thereof)
arise out of or are based upon: (i) any untrue statement or alleged
untrue statement of a material fact in a Registration Statement,
any Other Registration Statement or any post-effective amendment
thereto or in any filing made in connection with the qualification
of the offering under the securities or other “blue
sky” laws of any jurisdiction in which Registrable Securities
are offered (“Blue Sky
Filing”), or the omission
or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading,
(ii) any untrue statement or alleged untrue statement of a material
fact contained in the final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto
with the SEC) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in
light of the circumstances under which the statements therein were
made, not misleading, (iii) any violation or alleged violation by
the Company of the Securities Act, the Exchange Act, any other law,
including, without limitation, any state securities law, or any
rule or regulation thereunder relating to the offer or sale of the
Registrable Securities pursuant to a Registration Statement or any
Other Registration Statement or (iv) any material violation by the
Company of this Agreement (the matters in the foregoing clauses (i)
through (iv) being, collectively, “Violations”).
The Company shall reimburse each Indemnified Person promptly as
such expenses are incurred and are due and payable, for any
reasonable legal fees or other reasonable expenses incurred by them
in connection with investigating or defending any such Claim.
Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section
6(a): (i) shall not apply to a
Claim by an Indemnified Person arising out of or based upon a
Violation which occurs in reliance upon and in conformity with
information about the Investor furnished in writing to the Company
by such Indemnified Person expressly for use in connection with the
preparation of a Registration Statement, any Other Registration
Statement or any such amendment thereof or supplement thereto, if
such prospectus was timely made available by the Company pursuant
to Section 3(c)
or Section
3(e); (ii) with respect to any
superseded prospectus, shall not inure to the benefit of any such
person from whom the person asserting any such Claim purchased the
Registrable Securities that are the subject thereof (or to the
benefit of any person controlling such person) if the untrue
statement or omission of material fact contained in the superseded
prospectus was corrected in the revised prospectus, as then amended
or supplemented, if such revised prospectus was timely made
available by the Company pursuant to Section 3(c)
or Section
3(e), and the Indemnified
Person was promptly advised in writing not to use the incorrect
prospectus prior to the use giving rise to a violation and such
Indemnified Person, notwithstanding such advice, used it; (iii)
shall not be available to the extent such Claim is based on a
failure of the Investor to deliver or to cause to be delivered the
prospectus made available by the Company, if such prospectus was
timely made available by the Company pursuant to
Section
3(c) or Section
3(e); and (iv) shall not apply
to amounts paid in settlement of any Claim if such settlement is
effected without the prior written consent of the Company, which
consent shall not be unreasonably withheld. Such indemnity shall
remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person and shall survive
the transfer of the Registrable Securities by the Investor pursuant
to Section
9.

 

 

 

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b.

Promptly after receipt by an Indemnified Person
under this Section 6
of notice of the commencement of any
action or proceeding (including any governmental action or
proceeding) involving a Claim, such Indemnified Person shall, if a
Claim in respect thereof is to be made against the Company under
this Section
6, deliver to the Company a
written notice of the commencement thereof, and the Company shall
have the right to participate in, and, to the extent the Company so
desires, to assume control of the defense thereof with counsel
mutually satisfactory to the Company and the Indemnified Person;
provided, however, that an Indemnified Person shall have the right
to retain its own counsel with the fees and expenses to be paid by
the Company, if, in the reasonable opinion of counsel retained by
the Company, the representation by such counsel of the Indemnified
Person and the Company would be inappropriate due to actual or
potential differing interests between such Indemnified Person and
any other party represented by such counsel in such proceeding. The
Indemnified Person shall cooperate fully with the Company in
connection with any negotiation or defense of any such action or
Claim by the Company and shall furnish to the Company all
information reasonably available to the Indemnified Person which
relates to such action or Claim. The indemnifying party shall keep
the Indemnified Person fully apprised at all times as to the status
of the defense or any settlement negotiations with respect thereto.
The Company shall not be liable for any settlement of any action,
Claim or proceeding effectuated without its written consent,
provided, however, that the Company shall not unreasonably
withhold, delay or condition its consent. The Company shall not,
without the consent of the Indemnified Person, consent to entry of
any judgment or enter into any settlement or other compromise which
does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Person of a release from
all liability in respect to such Claim or litigation. Following
indemnification as provided for hereunder, the Company shall be
subrogated to all rights of the Indemnified Person with respect to
all third parties, firms or corporations relating to the matter for
which indemnification has been made. The failure to deliver written
notice to the Company within a reasonable time of the commencement
of any such action shall not relieve the Company of any liability
to the Indemnified Person under this Section
6, except to the extent that
the Company is prejudiced in its ability to defend such
action.

 

c.

The indemnification required by this
Section
6 shall be made by periodic
payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or
Indemnified Damages are incurred.

 

d.

The
indemnity agreements contained herein shall be in addition to (i)
any cause of action or similar right of the Indemnified Person
against the Company or others, and (ii) any liabilities the Company
may be subject to pursuant to the law.

 

7.

CONTRIBUTION.

 

To the
extent any indemnification by the Company is prohibited or limited
by law, the Company agrees to make the maximum contribution with
respect to any amounts for which it would otherwise be liable under
Section 6 to the
fullest extent permitted by law; provided, however, that: (i) no
seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any seller
of Registrable Securities who was not guilty of fraudulent
misrepresentation; and (ii) contribution by any seller of
Registrable Securities shall be limited in amount to the net amount
of proceeds received by such seller from the sale of such
Registrable Securities.

 

 

 

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8.

REPORTS AND DISCLOSURE
UNDER THE SECURITIES ACTS.

 

With a
view to making available to the Investor the benefits of Rule 144
promulgated under the Securities Act or any other similar rule or
regulation of the SEC that may at any time permit the Investor to
sell securities of the Company to the public without registration
(“Rule
144”), the Company agrees, at the Company’s sole
expense, to:

 

a.

make
and keep “current public information” available, as
such term is understood and defined in Rule 144;

 

b.

file
with the SEC in a timely manner all reports and other documents
required of the Company under the Securities Act and the Exchange
Act;

 

c.

furnish
to the Investor so long as the Investor owns Registrable
Securities, promptly upon request, (i) a written statement by the
Company that it has complied with the reporting and or disclosure
provisions of Rule 144, the Securities Act and the Exchange Act,
(ii) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the
Company, and (iii) such other information as may be reasonably
requested to permit the Investor to sell such securities pursuant
to Rule 144 without registration; and

 

d.

take
such additional action as is requested by the Investor to enable
the Investor to sell the Registrable Securities pursuant to Rule
144, including, without limitation, delivering all such legal
opinions, consents, certificates, resolutions and instructions to
the Company’s Transfer Agent as may be requested from time to
time by the Investor at the Company’s expense and otherwise
fully cooperate with Investor and Investor’s broker to effect
such sale of securities pursuant to Rule 144.

 

The
Company agrees that damages may be an inadequate remedy for any
breach of the terms and provisions of this Section 8 and that Investor
shall, whether or not it is pursuing any remedies at law, be
entitled to equitable relief in the form of a preliminary or
permanent injunctions, without having to post any bond or other
security, upon any breach or threatened breach of any such terms or
provisions.

 

9.

ASSIGNMENT OF
REGISTRATION RIGHTS.

 

The
Company shall not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the
Buyer, or any Investor as assignee pursuant to this Section 9. The Buyer, or any
Investor, may not assign its rights under this Agreement without
the written consent of the Company other than to an affiliate of
such Investor.

 

10.

AMENDMENT OF
REGISTRATION RIGHTS.

 

No
provision of this Agreement may be amended or waived by the parties
from and after the date that is one Business Day immediately
preceding the initial filing of the Initial Registration Statement
with the SEC. Subject to the immediately preceding sentence, no
provision of this Agreement may be (i) amended other than by a
written instrument signed by both parties hereto or (ii) waived
other than in a written instrument signed by the party against whom
enforcement of such waiver is sought. Failure of any party to
exercise any right or remedy under this Agreement or otherwise, or
delay by a party in exercising such right or remedy, shall not
operate as a waiver thereof.

 

 

 

10

 

 

11.

MISCELLANEOUS.

 

a.

A
Person is deemed to be a holder of Registrable Securities whenever
such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions,
notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis
of instructions, notice or election received from the registered
owner of such Registrable Securities.

 

b.

Any
notices, consents, waivers or other communications required or
permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon
receipt, when delivered personally; (ii) upon receipt, when sent by
email (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party) 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 (iii) one
(1) business day after timely deposit with a nationally recognized
overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses for such communications
shall be:

 

If to
the Company:

 

Premier
Biomedical, Inc.

P.O.
Box 25

Jackson
Center, PA 16133

Email:
info@premierbiomedical.com

Attention: William
Hartman, President, Chief Executive Officer

 

with a
copy to:

 

Clyde
Snow & Sessions, PC

201 S.
Main Street, Suite 1300

Salt
Lake City, UT 84111

Email:
bal@clydesnow.com

Attn:
Brian A. Lebrecht

 

If to
the Investor:

 

Green
Coast Capital International SA

Plaza
2000 10th
fl, 50th
st

Panama
City, Rep of Panama

E-mail:
investments@greencoast-capital.com

Attention: Kevin
Bobryk, President

 

 

or at
such other address and/or email address and/or to the attention of
such other person as the recipient party has specified by written
notice given to each other party three (3) business days prior to
the effectiveness of such change. Written confirmation of receipt
(A) given by the recipient of such notice, consent, waiver or other
communication, (B) mechanically or electronically generated by the
sender’s email account containing the time, date, recipient
email address, as applicable, and an image of the first page of
such transmission or (C) provided by a nationally recognized
overnight delivery service, shall be rebuttable evidence of
personal service, receipt by email or receipt from a nationally
recognized overnight delivery service in accordance with clause
(i), (ii) or (iii) above, respectively.

 

 

 

11

 

 

c.

All
questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by the internal
laws of the State of Nevada, without giving effect to any choice of
law or conflict of law provision or rule (whether of the State of
Nevada or any other jurisdictions) that would cause the application
of the laws of any jurisdictions other than the State of
Nevada.

 

d.

 Any disputes, Claims, or controversies
hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein shall be referred to and
resolved solely and exclusively by binding arbitration to be
conducted before the Judicial Arbitration and Mediation Service
(“JAMS”),
or its successor pursuant the expedited procedures set forth in the
JAMS Comprehensive Arbitration Rules and Procedures (the
“Rules”),
including Rules 16.1 and 16.2 of those Rules. The arbitration shall
be held in New York, New York, before a tribunal consisting of
three (3) arbitrators each of whom will be selected in accordance
with the “strike and rank” methodology set forth in
Rule 15. Either party to this Agreement may, without waiving any
remedy under this Agreement, seek from any federal or state court
sitting in the State of Nevada any interim or provisional relief
that is necessary to protect the rights or property of that party,
pending the establishment of the arbitral tribunal. The costs and
expenses of such arbitration shall be paid by and be the sole
responsibility of the Company, including but not limited to the
Investor’s attorneys’ fees and each arbitrator’s
fees. The arbitrators' decision must set forth a reasoned basis for
any award of damages or finding of liability. The arbitrators'
decision and award will be made and delivered as soon as reasonably
possibly and in any case within sixty (60) days' following the
conclusion of the arbitration hearing and shall be final and
binding on the parties and may be entered by any court having
jurisdiction thereof.

 

e.

If
any provision of this Agreement shall be invalid or unenforceable
in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this
Agreement in that jurisdiction or the validity or enforceability of
any provision of this Agreement in any other
jurisdiction.

 

f.

EACH PARTY HEREBY IRREVOCABLY
WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE
ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

g.

This
Agreement and the Purchase Agreement constitute the entire
agreement among the parties hereto with respect to the subject
matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred
to herein and therein. This Agreement and the Purchase Agreement
supersede all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof and
thereof.

 

h.

Subject to the requirements of Section
9, this Agreement shall inure
to the benefit of and be binding upon the successors and permitted
assigns of each of the parties hereto.

 

 

12

 

 

i.

The
headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning
hereof.

 

j.

This
Agreement may be executed in identical counterparts, each of which
shall be deemed an original but all of which shall constitute one
and the same agreement. This Agreement, once executed by a party,
may be delivered to the other party hereto by facsimile
transmission or by e-mail in a “.pdf” format data file
of a copy of this Agreement bearing the signature of the party so
delivering this Agreement.

 

k.

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.

 

l.

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.

 

m.

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

 

* * * * * *

 

 

 

 

13

 

 

IN WITNESS WHEREOF, the parties have
caused this Agreement to be duly executed as of the Execution
Date.

 

THE COMPANY:

 

Premier
Biomedical, Inc.

 

By:

Name:
William Hartman

Title:
President, Chief Executive Officer

 

BUYER:

 

Green
Coast Capital International SA

 

By:

Name:
Kevin Bobryk

Title:
President

 

 

 

14

 

 

EXHIBIT A

 

TO REGISTRATION RIGHTS AGREEMENT

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

______,
2019

 

Direct
Transfer LLC

500
Perimeter Park Drive Suite D

Morrisville,
NC 27560

 

Re:
EFFECTIVENESS OF
REGISTRATION STATEMENT

 

Ladies
and Gentlemen:

 

We are
counsel to Premier Biomedical,
Inc., a Nevada corporation (the “Company”), and have
represented the Company in connection with that certain Equity
Purchase Agreement, dated as of September 26, 2019 (the
“Purchase
Agreement”), entered into by and between the Company
and Green Coast Capital International SA (the “Buyer”) pursuant to which
the Company has agreed to issue to the Buyer shares of the
Company’s Common Stock, $0.00001 par value (the
“Common
Stock”), in an amount up to Five Million Dollars
($5,000,000.00) (the “Put Shares”), in
accordance with the terms of the Purchase Agreement. In connection
with the transactions contemplated by the Purchase Agreement, the
Company has registered with the U.S. Securities & Exchange
Commission the following shares of Common Stock:

 

(1)

 Put
Shares to be issued to the Buyer upon purchase from the Company by
the Buyer from time to time in accordance with the Purchase
Agreement; and

 

(2)

 Commitment
Shares which were issued to the Buyer pursuant to the Purchase
Agreement.

 

Pursuant to the
Purchase Agreement, the Company also has entered into a
Registration Rights Agreement, of even date with the Purchase
Agreement with the Buyer (the “Registration Rights
Agreement”) pursuant to which the Company agreed,
among other things, to register the Put Shares and Commitment
Shares under the Securities Act of 1933, as amended (the
“Securities
Act”). In connection with the Company’s
obligations under the Purchase Agreement and the Registration
Rights Agreement, on [], 2019, the Company filed a
Registration Statement (File No. 333-[]) (the “Registration Statement”)
with the Securities and Exchange Commission (the
“SEC”)
relating to the resale of the Put Shares and/or the Commitment
Shares.

 

In
connection with the foregoing, we advise you that a member of the
SEC’s staff has advised us by telephone that the SEC has
entered an order declaring the Registration Statement effective
under the Securities Act at [ ] [A.M./P.M.] on [], 2019 and we have no
knowledge, after telephonic inquiry of a member of the SEC’s
staff, that any stop order suspending its effectiveness has been
issued or that any proceedings for that purpose are pending before,
or threatened by, the SEC and the Put Shares and Commitment Shares
are available for resale under the Securities Act pursuant to the
Registration Statement and may be issued without any restrictive
legend.

 

Very
truly yours,

[Company
Counsel]

 

By:                                                                

 

cc:            

Green Coast Capital
International SA

 

 

15Blueprint

 

Exhibit 10.3

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
CONVERTIBLE 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.

 

	

Principal
Amount: $150,000.00

	

Issue Date: October 3, 2019

	

Purchase Price: $25,000.00

	
 

 

CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED, Premier
Biomedical, Inc., an Nevada corporation (hereinafter called
the “Borrower” or “Company”) (Trading
Symbol: BIEI), hereby promises to pay to the order of Green Coast Capital International SA, a
Panama Corporation, or registered assigns (the
“Holder”) the sum of US$150,000.00 ,and any interest as
set forth herein, on October 3, 2020 (the “Maturity
Date”), and to pay interest on the unpaid principal balance
hereof at the rate of twelve percent (12%) (the “Interest
Rate”) per annum from the date hereof (the “Issue
Date”) until the same becomes due and payable, whether at
maturity or upon acceleration or by prepayment or otherwise. This
Note is issued as a commitment fee pursuant to the Securities
Purchase Agreement dated on or around September 26th, 2019 between the
Company and the Holder.

 

 

This
Note may not be prepaid in whole or in part except as otherwise
explicitly set forth herein. Any amount of principal or interest on
this Note which is not paid when due shall bear interest at the
rate of the lesser of (i) twenty-four percent (24%) per annum or
(ii) the maximum amount allowed by law from the due date thereof
until the same is paid (the “Default Interest”).
Interest shall commence accruing on the date that the Note is fully
paid and shall be computed on the basis of a 365-day year and the
actual number of days elapsed. All payments due hereunder (to the
extent not converted into Common Stock, $0.00001 par value per
share (the “Common Stock”) in accordance with the terms
hereof) shall be made in lawful money of the United States of
America.

 

All
payments shall be made at such address as the Holder shall
hereafter give to the Borrower by written notice made in accordance
with the provisions of this Note. Whenever any amount expressed to
be due by the terms of this Note is due on any day which is not a
business day, the same shall instead be due on the next succeeding
day which is a business day and, in the case of any interest
payment date which is not the date on which this Note is paid in
full, the extension of the due date thereof shall not be taken into
account for purposes of determining the amount of interest due on
such date. As used in this Note, the term “business
day” shall mean any day other than a Saturday, Sunday or a
day on which commercial banks in the city of New York, New York are
authorized or required by law or executive order to remain closed.
Each capitalized term used herein, and not otherwise defined, shall
have the meaning ascribed thereto in that certain Securities
Purchase Agreement dated the date hereof, pursuant to which this
Note was originally issued (the “Purchase
Agreement”).

 

 

1

 

 

 

 

This
Note is 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 Borrower and
will not impose personal liability upon the holder
thereof.

 

The
following terms shall also apply to this Note:

 

ARTICLE
I. CONVERSION RIGHTS

 

1.1 
Conversion Right.
The Holder shall have the right, in its sole and absolute
discretion, from time to time, and at any time on or following the
date of Maturity and ending on the later of (i) the Maturity Date
and (ii) the date of payment of the Default Amount (as defined in
Article III) pursuant to Section 1.6(a) or Article III, each in
respect of the remaining outstanding principal amount of this Note
to convert all or any part of the outstanding and unpaid principal
amount of this Note into fully paid and non-assessable shares of
Common Stock, as such Common Stock exists on the Issue Date, or any
shares of capital stock or other securities of the Borrower into
which such Common Stock shall hereafter be changed or reclassified
at the Conversion Price (as defined below) determined as provided
herein (a “Conversion”); provided, however, that in no event shall
the Holder be entitled to convert any portion of this Note in
excess of that portion of this Note upon conversion of which the
sum of (1) the number of shares of Common Stock beneficially owned
by the Holder and its affiliates (other than shares of Common Stock
which may be deemed beneficially owned through the ownership of the
unconverted portion of the Notes or the unexercised or unconverted
portion of any other security of the Borrower subject to a
limitation on conversion or exercise analogous to the limitations
contained herein) and (2) the number of shares of Common Stock
issuable upon the conversion of the portion of this Note with
respect to which the determination of this proviso is being made,
would result in beneficial ownership by the Holder and its
affiliates of more than 4.99% of the outstanding shares of Common
Stock. For purposes of the proviso to the immediately preceding
sentence, beneficial ownership shall be determined in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and Regulations 13D-G
thereunder, except as otherwise provided in clause (1) of such
proviso, provided,
further,
however, that the
limitations on conversion may be waived by the Holder (up to a
maximum of 9.99%) upon, at the election of the Holder, not less
than 61 days’ prior notice to the Borrower, and the
provisions of the conversion limitation shall continue to apply
until such 61st day (or such later date, as determined by the
Holder, as may be specified in such notice of waiver). The number
of shares of Common Stock to be issued upon each conversion of this
Note shall be determined by dividing the Conversion Amount (as
defined below) by the applicable Conversion Price then in effect on
the date specified in the notice of conversion, in the form
attached hereto as Exhibit A (the “Notice of
Conversion”), delivered to the Borrower by the Holder in
accordance with Section 1.4 below; provided that the Notice of
Conversion is submitted by facsimile or e-mail (or by other means
resulting in, or reasonably expected to result in, notice) to the
Borrower before 11:59 p.m., New York, New York time on such
conversion date (the “Conversion Date”).

 

The
term “Conversion Amount” means, with respect to any
conversion of this Note, the sum of (1) the principal amount of
this Note to be converted in such conversion, plus (2) at the Holder’s
option, accrued and unpaid interest, if any, on such principal
amount at the interest rates provided in this Note to the
Conversion Date, provided however, that the Borrower shall have the
right to pay any or all interest in cash, plus (3) at the Holder’s
option, Default Interest, if any, on the amounts referred to in the
immediately preceding clauses (1) and/or (2), plus (4) any Additional
Principal for such Conversions, plus (5) at the Holder’s
option, any amounts owed to the Holder pursuant to any other
provision of this Note, all subject to the 4.99% (or up to 9.99% if
increased as provided above) limitation discussed
above.

 

 

2

 

 

 

 

1.2 
Conversion
Price.

 

(a)   
Calculation of Conversion
Price. Subject to the adjustments described herein, the
conversion price (the “Conversion Price”) shall equal
the lowest Trading Price (as defined below) during the previous
fifteen (15) Trading Day period ending on the latest complete
Trading Day prior to the date of this Note, unless, in an event of
default, the conversion price shall be the Alternate Conversion
Price (as defined herein)(subject to equitable adjustments for
stock splits, stock dividends or rights offerings by the Borrower
relating to the Borrower’s securities or the securities of
any subsidiary of the Borrower, combinations, recapitalization,
reclassifications, extraordinary distributions and similar events).
The “Alternate Conversion Price” shall mean 60%
multiplied by the Market Price (as defined herein) (representing a
discount rate of 40%). “Market Price” means the lowest
Trading Price (as defined below) for the Common Stock during the
fifteen (15) Trading Day period ending on the latest complete
Trading Day prior to the Conversion Date. “Trading
Price” means, for any security as of any date the lowest
trade price on the OTC Market as reported by a Reporting Service
designated by the Holder or, if the OTC Market is not the principal
trading market for such security, the lowest trade price of such
security on the principal securities exchange or trading market
where such security is listed or traded or, if no closing bid price
of such security is available in any of the foregoing manners, the
average of the closing bid prices of any market makers for such
security that are listed in the “pink sheets” by the
National Quotation Bureau, Inc. If the Trading Price cannot be
calculated for such security on such date in the manner provided
above, the Trading Price shall be the fair market value as mutually
determined by the Borrower and the holders of a majority in
interest of the Notes being converted for which the calculation of
the Trading Price is required in order to determine the Conversion
Price of such Notes. “Trading Day” shall mean any day
on which the Common Stock is tradable for any period on the OTC
Market or on the principal securities exchange or other securities
market on which the Common Stock is then being traded. The Borrower
shall be responsible for the fees of its transfer agent and all DTC
fees associated with any such issuance. In the event of any dispute
or discrepancy, the records of the Holder shall be controlling and
determinative in the absence of manifest error. Holder shall be
entitled to deduct $1,000.00 from the conversion amount in each
Notice of Conversion to cover Holder’s deposit fees
associated with each Notice of Conversion.

 

Each
time, while this Note is outstanding, the Borrower enters into a
Section 3(a)(9) transaction (including but not limited to the
issuance of new promissory notes or of a replacement promissory
note), or Section 3(a)(10) transaction, in which any 3rd party has the right
to convert monies owed to that 3rd party (or receive
shares pursuant to a settlement or otherwise) at a discount to
market greater than the Alternate Conversion Price in effect at
that time (prior to all other applicable adjustments in the Note),
then the Alternate Conversion Price shall be automatically adjusted
to such greater discount percentage (prior to all applicable
adjustments in this Note) until this Note is no longer outstanding.
Each time, while this Note is outstanding, the Borrower enters into
a Section 3(a)(9) transaction (including but not limited to the
issuance of new promissory notes or of a replacement promissory
note), or Section 3(a)(10) transaction, in which any 3rd party has a look
back period greater than the look back period in effect under the
Note at that time, then the Holder’s look back period shall
automatically be adjusted to such greater number of days until this
Note is no longer outstanding. The Borrower shall give written
notice to the Holder, with the adjusted Alternate Conversion Price
and/or adjusted look back period (each adjustment that is
applicable due to the triggering event), within one (1) business
day of an event that requires any adjustment described in the two
immediately preceding sentences.

 

 

3

 

 

 

 

(b)            

Adjustment to Conversion Price.
At any time after the Issue Date, (i) if in the case that the
Borrower’s Common Stock is not deliverable by DWAC (including
if the Borrower’s transfer agent has a policy prohibiting or
limiting delivery of shares of the Borrower’s Common Stock
specified in a Notice of Conversion), (ii) if the Borrower ceases
to be a reporting company pursuant or subject to the Exchange Act,
(iii) if the Borrower loses a market (including the OTCBB, OTCQB or
an equivalent replacement exchange) for its Common Stock, (iv) if
the Borrower fails to maintain its status as “DTC
Eligible” for any reason, (v) if the Conversion Price is less
than one cent ($0.0001), (vi) if the Note cannot be converted into
free trading shares on or after six months from the Issue Date,
(vii) if at any time the Borrower does not maintain or replenish
the Reserved Amount (as defined herein) within three (3) business
days of the request of the Holder, (viii) if the Borrower fails to
maintain the listing of the Common Stock on at least one of the OTC
Markets or an equivalent replacement exchange, the Nasdaq National
Market, the Nasdaq Small Cap Market, the New York Stock Exchange,
or the NYSE MKT, (ix) if the Borrower fails to comply with the
reporting requirements of the Exchange Act; the reporting
requirements necessary to satisfy the availability of Rule 144 to
the Holder or its assigns, including but not limited to the timely
fulfillment of its filing requirements as a fully-reporting issuer
registered with the SEC, the requirements for XBRL filings, the
requirements for disclosure of financial statements on its website,
(x) if the Borrower effectuates a reverse split of its Common Stock
without twenty (20) days prior written notice to the Holder, (xi)
if OTC Markets changes the Borrower’s designation to
‘No Information’ (Stop Sign), ‘Caveat
Emptor’ (Skull and Crossbones), or ‘OTC’,
‘Other OTC’ or ‘Grey Market’ (Exclamation
Mark Sign), (xii) the restatement of any financial statements filed
by the Borrower with the SEC for any date or period from two years
prior to the Issue Date of this Note and until this Note is no
longer outstanding, if the result of such restatement would, by
comparison to the unrestated financial statement, have constituted
a material adverse effect on the rights of the Holder with respect
to this Note or the Purchase Agreement, (xiii) any cessation of
trading of the Common Stock on at least one of the OTC Markets or
an equivalent replacement exchange, the Nasdaq National Market, the
Nasdaq Small Cap Market, the New York Stock Exchange, or the NYSE
MKT, and such cessation of trading shall continue for a period of
five consecutive (5) Trading Days, and/or (xiv) the Borrower loses
the “bid” price for its Common Stock ($0.0001 on
the “Ask” with zero market makers on the
“Bid” per Level 2), and/or (xv) if the Holder is
notified in writing by the Company or the Company’s transfer
agent that the Company does not have the necessary amount of
authorized and issuable shares of Common Stock available to satisfy
the issuance of Shares pursuant to a Conversion Notice, then the
Holder shall be entitled to increase, by 5% for each occurrence,
cumulative or otherwise, the discount to the Conversion Price shall
apply for all future conversions under the Note. The Holder
maintains the option and sole discretion to increase by Five
Thousand and No/100 United States Dollars ($5,000) per each
occurrence described above (under Holder’s and
Borrower’s expectation that any principal amount increase
will tack back to the Issue Date) the principal amount of the Note
instead of applying further discounts to the Conversion Price.
Under no circumstances shall the principal amount exceed an
additional Twenty-Five Thousand and No/100 United States Dollars
($25,000) or the Conversion Price be less than 30% multiplied by
the Market Price due to cumulative effect.

 

(c)            

DTC Chill. If in the case that
the Borrower’s Common Stock is “chilled” for
deposit into the DTC system and only eligible for clearing deposit,
then an additional 15% discount to the Conversion Price shall apply
for all future conversions under all Notes while the
“chill” is in effect. 

 

 

4

 

 

 

 

(d)            

[Intentionally Omitted].

 

(e)            

Par Value
Adjustments. To the extent the
Conversion Price of the Borrower’s Common Stock closes below
the par value per share, the Borrower will take all steps necessary
to solicit the consent of the stockholders to reduce the par value
to the lowest value possible under law. The Borrower agrees to
honor all conversions submitted pending this adjustment, provided,
however, that the Holder, in its sole and absolute discretion may
elect to instead to set the Conversion Price to par value for such
Conversion(s) and the Conversion Amount for such Conversion(s)
shall be increased to include Additional Principal, where
“Additional Principal” means such additional amount to
be added to the Conversion Amount to the extent necessary to cause
the number of Conversion Shares issuable upon such Conversion(s) to
equal the same number of Conversion Shares as would have been
issued had the Conversion Price not been set to par value pursuant
to this Section 1.2(e).

 

(f)            

Conversion Price During Major
Announcements. Notwithstanding anything contained in the
preceding section to the contrary, in the event the Borrower (i)
makes a public announcement that it intends to consolidate or merge
with any other corporation (other than a merger in which the
Borrower is the surviving or continuing corporation and its capital
stock is unchanged) or sell or transfer all or substantially all of
the assets of the Borrower or (ii) any person, group or entity
(including the Borrower) publicly announces a tender offer to
purchase 50% or more of the Borrower's Common Stock (or any other
takeover scheme) (the date of the announcement referred to in
clause (i) or (ii) is hereinafter referred to as the "Announcement
Date"), then the Conversion Price shall, effective upon the
Announcement Date and continuing through the Adjusted Conversion
Price Termination Date (as defined below), be equal to the lower of
(x) the Conversion Price which would have been applicable for a
Conversion occurring on the Announcement Date and (y) the
Conversion Price that would otherwise be in effect. From and after
the Adjusted Conversion Price Termination Date, the Conversion
Price shall be determined as set forth in this Section. For
purposes hereof, "Adjusted Conversion Price Termination Date" shall
mean, with respect to any proposed transaction or tender offer (or
takeover scheme) for which a public announcement as contemplated by
this Section has been made, the date upon which the Borrower (in
the case of clause (i) above) or the person, group or entity (in
the case of clause (ii) above) consummates or publicly announces
the termination or abandonment of the proposed transaction or
tender offer (or takeover scheme) which caused this Section 1.2(d)
to become operative.

 

(g)               
Pro Rata Conversion;
Disputes. In the event of a dispute as to the number of
shares of Common Stock issuable to the Holder in connection with a
conversion of this Note, the Borrower shall issue to the Holder the
number of shares of Common Stock not in dispute and resolve such
dispute in accordance with Section 4.13.

 

1.3 
Authorized Shares.
The Borrower covenants that during the period the conversion right
exists, the Borrower will reserve from its authorized and unissued
Common Stock a sufficient number of shares, free from preemptive
rights, to provide for the issuance of Common Stock upon the full
conversion of this Note issued pursuant to the Purchase Agreement.
The Borrower is required at all times to have authorized and
reserved five (5) times the number of shares that is actually
issuable upon full conversion of the Note (based on the Conversion
Price of the Notes in effect from time to time) (the
“Reserved Amount”). Initially, the Company will
instruct the Transfer Agent to reserve 90,000,000 shares of Common Stock in the
name of the Holder for issuance upon conversion hereof. The
Reserved Amount shall be increased from time to time in accordance
with the Borrower’s obligations pursuant to Section 3(d) of
the Purchase Agreement. The Borrower represents that upon issuance,
such shares will be duly and validly issued, fully paid and
non-assessable. In addition, if the Borrower shall issue any
securities or make any change to its capital structure which would
change the number of shares of Common Stock into which the Notes
shall be convertible at the then current Conversion Price, the
Borrower shall at the same time make proper provision so that
thereafter there shall be a sufficient number of shares of Common
Stock authorized and reserved, free from preemptive rights, for
conversion of the outstanding Notes. If, at any time the Borrower
does not maintain the Reserved Amount it will be considered an
Event of Default under Section 3.2 of the Note, and the then
outstanding principal due under this Note shall increase by Seven
Thousand Five Hundred and No/100 United States Dollars
($7,500).

 

 

5

 

 

 

 

The
Borrower (i) acknowledges that it has irrevocably instructed its
transfer agent to issue certificates for the Common Stock issuable
upon conversion of this Note, and (ii) agrees that its
issuance of this Note shall constitute full authority to its
officers and agents who are charged with the duty of executing
stock certificates to execute and issue the necessary certificates
for shares of Common Stock in accordance with the terms and
conditions of this Note.

  

1.4 
Method of
Conversion.

 

(a)   
Mechanics of
Conversion. Subject to Section 1.1, this Note may be
converted by the Holder in whole or in part at any time on or
following the Issue Date, by (A) submitting to the Borrower a
Notice of Conversion (by facsimile, e-mail or other reasonable
means of communication dispatched on the Conversion Date prior to
11:59 p.m., New York, New York time) and (B) subject to
Section 1.4(b), surrendering this Note at the principal office of
the Borrower.

 

(b)  
Surrender of Note Upon
Conversion. Notwithstanding anything to the contrary set
forth herein, upon conversion of this Note in accordance with the
terms hereof, the Holder shall not be required to physically
surrender this Note to the Borrower unless the entire unpaid
principal amount of this Note is so converted. The Holder and the
Borrower shall maintain records showing the principal amount so
converted and the dates of such conversions or shall use such other
method, reasonably satisfactory to the Holder and the Borrower, so
as not to require physical surrender of this Note upon each such
conversion. In the event of any dispute or discrepancy, such
records of the Borrower shall, prima facie, be controlling and
determinative in the absence of manifest error. Notwithstanding the
foregoing, if any portion of this Note is converted as aforesaid,
the Holder may not transfer this Note unless the Holder first
physically surrenders this Note to the Borrower, whereupon the
Borrower will forthwith issue and deliver upon the order of the
Holder a new Note of like tenor, registered as the Holder (upon
payment by the Holder of any applicable transfer taxes) may
request, representing in the aggregate the remaining unpaid
principal amount of this Note. The Holder and any assignee, by
acceptance of this Note, acknowledge and agree that, by reason of
the provisions of this paragraph, following conversion of a portion
of this Note, the unpaid and unconverted principal amount of this
Note represented by this Note may be less than the amount stated on
the face hereof.

 

(c)         Book
Entry upon Conversion. Notwithstanding anything to the
contrary set forth herein, upon conversion of this Note in
accordance with the terms hereof, the Holder shall not be required
to physically surrender this Note to the Borrower unless the entire
unpaid principal amount of this Note is so converted. The Holder
and the Borrower shall maintain records showing the principal
amount so converted and the dates of such conversions or shall use
such other method, reasonably satisfactory to the Holder and the
Borrower, so as not to require physical surrender of this Note upon
each such conversion. In the event of any dispute or discrepancy,
such records of the Borrower shall, prima facie, be controlling and
determinative in the absence of manifest error. Notwithstanding the
foregoing, if any portion of this Note is converted as aforesaid,
the Holder may not transfer this Note unless the Holder first
physically surrenders this Note to the Borrower, whereupon the
Borrower will forthwith issue and deliver upon the order of the
Holder a new Note of like tenor, registered as the Holder (upon
payment by the Holder of any applicable transfer taxes) may
request, representing in the aggregate the remaining unpaid
principal amount of this Note. The Holder and any assignee, by
acceptance of this Note, acknowledge and agree that, by reason of
the provisions of this paragraph, following conversion of a portion
of this Note, the unpaid and unconverted principal amount of this
Note represented by this Note may be less than the amount stated on
the face hereof.

 

 

 

6

 

 

 

 

(d)   
Payment of Taxes.
The Borrower shall not be required to pay any tax which may be
payable in respect of any transfer involved in the issue and
delivery of shares of Common Stock or other securities or property
on conversion of this Note in a name other than that of the Holder
(or in street name), and the Borrower shall not be required to
issue or deliver any such shares or other securities or property
unless and until the person or persons (other than the Holder or
the custodian in whose street name such shares are to be held for
the Holder’s account) requesting the issuance thereof shall
have paid to the Borrower the amount of any such tax or shall have
established to the satisfaction of the Borrower that such tax has
been paid.

 

(e)  
Delivery of Common Stock
Upon Conversion. Upon receipt by the Borrower from the
Holder of a facsimile transmission or e-mail (or other reasonable
means of communication) of a Notice of Conversion meeting the
requirements for conversion as provided in this Section 1.4, the
Borrower shall issue and deliver or cause to be issued and
delivered to or upon the order of the Holder certificates for the
Common Stock issuable upon such conversion within two (2) business
days after such receipt (the “Deadline”) (and, solely
in the case of conversion of the entire unpaid principal amount
hereof, surrender of this Note) in accordance with the terms hereof
and the Purchase Agreement.

 

(f)   
Obligation of Borrower to
Deliver Common Stock. Upon receipt by the Borrower of a
Notice of Conversion, the Holder shall be deemed to be the holder
of record of the Common Stock issuable upon such conversion, the
outstanding principal amount and the amount of accrued and unpaid
interest on this Note shall be reduced to reflect such conversion,
and, unless the Borrower defaults on its obligations under this
Article I, all rights with respect to the portion of this Note
being so converted shall forthwith terminate except the right to
receive the Common Stock or other securities, cash or other assets,
as herein provided, on such conversion. If the Holder shall have
given a Notice of Conversion as provided herein, the
Borrower’s obligation to issue and deliver the certificates
for Common Stock shall be absolute and unconditional, irrespective
of the absence of any action by the Holder to enforce the same, any
waiver or consent with respect to any provision thereof, the
recovery of any judgment against any person or any action to
enforce the same, any failure or delay in the enforcement of any
other obligation of the Borrower to the holder of record, or any
setoff, counterclaim, recoupment, limitation or termination, or any
breach or alleged breach by the Holder of any obligation to the
Borrower, and irrespective of any other circumstance which might
otherwise limit such obligation of the Borrower to the Holder in
connection with such conversion. The Conversion Date specified in
the Notice of Conversion shall be the Conversion Date so long as
the Notice of Conversion is received by the Borrower before 11:59
p.m., New York, New York time, on such date.

 

(g)   
Delivery of Common Stock
by Electronic Transfer. In lieu of delivering physical
certificates representing the Common Stock issuable upon
conversion, provided the Borrower is participating in the
Depository Trust Company (“DTC”) Fast Automated
Securities Transfer (“FAST”) program, upon request of
the Holder and its compliance with the provisions contained in
Section 1.1 and in this Section 1.4, the Borrower shall use its
commercially reasonable best efforts to cause its transfer agent to
electronically transmit the Common Stock issuable upon conversion
to the Holder by crediting the account of Holder’s Prime
Broker with DTC through its Deposit Withdrawal At Custodian
(“DWAC”) system.

  

 

 

7

 

 

 

(h)  
Failure to Deliver Common
Stock Prior to Delivery Deadline. Without in any way
limiting the Holder’s right to pursue other remedies,
including actual damages and/or equitable relief, the parties agree
that if delivery of the Common Stock issuable upon conversion of
this Note is not delivered by the Deadline (other than a failure
due to the circumstances described in Section 1.3 above, which
failure shall be governed by such Section) the Borrower shall pay
to the Holder $1,000 per day in cash, for each day beyond the
Deadline that the Borrower fails to deliver such Common Stock until
the Borrower issues and delivers a certificate to the Holder or
credit the Holder's balance account with OTC for the number of
shares of Common Stock to which the Holder is entitled upon such
Holder's conversion of any Conversion Amount (under Holder's and
Borrower's expectation that any damages will tack back to the Issue
Date). Such cash amount shall be paid to Holder by the fifth day of
the month following the month in which it has accrued or, at the
option of the Holder (by written notice to the Borrower by the
first day of the month following the month in which it has
accrued), shall be added to the principal amount of this Note, in
which event interest shall accrue thereon in accordance with the
terms of this Note and such additional principal amount shall be
convertible into Common Stock in accordance with the terms of this
Note. The Borrower agrees that the right to convert is a valuable
right to the Holder. The damages resulting from a failure, attempt
to frustrate, and interference with such conversion right are
difficult if not impossible to qualify. Accordingly, the parties
acknowledge that the liquidated damages provision contained in this
Section 1.4(i) are justified. 

 

(i)                
Rescindment of a Notice of
Conversion.  If (i) the Borrower fails to respond to
Holder within one (1) business day from the Conversion Date
confirming the details of Notice of Conversion, (ii) the Borrower
fails to provide any of the shares of the Borrower’s Common
Stock requested in the Notice of Conversion within two (2) business
days from the Conversion Date specified therein, (iii) the Holder
is unable to procure a legal opinion required to have the shares of
the Borrower’s Common Stock issued unrestricted and/or
deposited to sell for any reason related to the Borrower’s
standing, (iv) the Holder is unable to deposit the shares of the
Borrower’s Common Stock requested in the Notice of Conversion
for any reason related to the Borrower’s standing, (v) at any
time after a missed Deadline, at the Holder’s sole
discretion, (vi) if, within three (3) business days of the
transmittal of the Notice of Conversion to the Borrower, the Common
Stock has a closing bid which is 5% or lower than that set forth in
the Notice of Conversion, or (vii) if OTC Markets changes the
Borrower's designation to ‘Limited Information’
(Yield), ‘No Information’ (Stop Sign), ‘Caveat
Emptor’ (Skull & Crossbones), ‘OTC’,
‘Other OTC’ or ‘Grey Market’ (Exclamation
Mark Sign) or other trading restriction on the day of or any day
after the Conversion Date, then the Holder maintains the option and
sole discretion to rescind the applicable Notice of Conversion
(“Rescindment”) pursuant to which such Conversion
Shares were issuable with a “Notice of Rescindment.”
This Note shall remain convertible before and after the Maturity
Date hereof until this Note is repaid or converted in
full.

 

1.5 
Concerning the
Shares. The shares of Common Stock issuable upon conversion
of this Note may not be sold or transferred unless (i) such shares
are sold pursuant to an effective registration statement under the
Act or (ii) the Borrower or its transfer agent shall have been
furnished with an opinion of counsel (which opinion shall be in
form, substance and scope customary for opinions of counsel in
comparable transactions) to the effect that the shares to be sold
or transferred may be sold or transferred pursuant to an exemption
from such registration or (iii) such shares are sold or
transferred pursuant to Rule 144 under the Act (or a successor
rule) (“Rule 144”) or (iv) such shares are transferred
to an “affiliate” (as defined in Rule 144) of the
Borrower who agrees to sell or otherwise transfer the shares only
in accordance with this Section 1.5 and who is an Accredited
Investor (as defined in the Purchase Agreement). Except as
otherwise provided in the Purchase Agreement (and subject to the
removal provisions set forth below), until such time as the shares
of Common Stock issuable upon conversion of this Note have been
registered under the Act or otherwise may be sold pursuant to Rule
144 without any restriction as to the number of securities as of a
particular date that can then be immediately sold, each certificate
for shares of Common Stock issuable upon conversion of this Note
that has not been so included in an effective registration
statement or that has not been sold pursuant to an effective
registration statement or an exemption that permits removal of the
legend, shall bear a legend substantially in the following form, as
appropriate:

 

 

8

 

 

 

 

“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 Borrower shall
issue to the Holder a new certificate therefore free of any
transfer legend if (i) the Borrower or its transfer agent shall
have received 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 Common Stock may
be made without registration under the Act, which opinion shall be
reasonably accepted by the Borrower so that the sale or transfer is
effected or (ii) in the case of the Common Stock issuable upon
conversion of this Note, such security is registered for sale by
the Holder under an effective registration statement filed under
the Act or otherwise may be sold pursuant to Rule 144 without any
restriction as to the number of securities as of a particular date
that can then be immediately sold. In the event that the Borrower
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, at the Deadline, it
will be considered an Event of Default pursuant to Section 3.2 of
the Note.

 

1.6 
Effect of Certain
Events.

 

(a)   
Effect of Merger,
Consolidation, Etc. At the option of the Holder, the sale,
conveyance or disposition of all or substantially all of the assets
of the Borrower, the effectuation by the Borrower of a transaction
or series of related transactions in which more than 50% of the
voting power of the Borrower is disposed of, or the consolidation,
merger or other business combination of the Borrower with or into
any other Person (as defined below) or Persons when the Borrower is
not the survivor shall either: (i) be deemed to be an Event of
Default (as defined in Article III) pursuant to which the Borrower
shall be required to pay to the Holder upon the consummation of and
as a condition to such transaction an amount equal to the Default
Amount (as defined in Article III) or (ii) be treated pursuant to
Section 1.6(b) hereof. “Person” shall mean any
individual, corporation, limited liability company, partnership,
association, trust or other entity or organization.

 

 

 

9

 

 

 

(b)  
Adjustment Due to Merger,
Consolidation, Etc. If, at any time when this Note is issued
and outstanding and prior to conversion of all of the Notes, there
shall be any merger, consolidation, exchange of shares,
recapitalization, reorganization, or other similar event, as a
result of which shares of Common Stock of the Borrower shall be
changed into the same or a different number of shares of another
class or classes of stock or securities of the Borrower or another
entity, or in case of any sale or conveyance of all or
substantially all of the assets of the Borrower other than in
connection with a plan of complete liquidation of the Borrower,
then the Holder of this Note shall thereafter have the right to
receive upon conversion of this Note, upon the basis and upon the
terms and conditions specified herein and in lieu of the shares of
Common Stock immediately theretofore issuable upon conversion, such
stock, securities or assets which the Holder would have been
entitled to receive in such transaction had this Note been
converted in full immediately prior to such transaction (without
regard to any limitations on conversion set forth herein), and in
any such case appropriate provisions shall be made with respect to
the rights and interests of the Holder of this Note to the end that
the provisions hereof (including, without limitation, provisions
for adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Note) shall thereafter be
applicable, as nearly as may be practicable in relation to any
securities or assets thereafter deliverable upon the conversion
hereof. The Borrower shall not affect any transaction described in
this Section 1.6(b) unless (a) it first gives, to the extent
practicable, thirty (30) days prior written notice (but in any
event at least fifteen (15) days prior written notice) of the
record date of the special meeting of shareholders to approve, or
if there is no such record date, the consummation of, such merger,
consolidation, exchange of shares, recapitalization, reorganization
or other similar event or sale of assets (during which time the
Holder shall be entitled to convert this Note) and (b) the
resulting successor or acquiring entity (if not the Borrower)
assumes by written instrument the obligations of this Section
1.6(b). The above provisions shall similarly apply to successive
consolidations, mergers, sales, transfers or share
exchanges.

 

(c)   
Adjustment Due to
Distribution. If the Borrower shall declare or make any
distribution of its assets (or rights to acquire its assets) to
holders of Common Stock as a dividend, stock repurchase, by way of
return of capital or otherwise (including any dividend or
distribution to the Borrower’s shareholders in cash or shares
(or rights to acquire shares) of capital stock of a subsidiary
(i.e., a spin-off)) (a “Distribution”), then the Holder
of this Note shall be entitled, upon any conversion of this Note
after the date of record for determining shareholders entitled to
such Distribution, to receive the amount of such assets which would
have been payable to the Holder with respect to the shares of
Common Stock issuable upon such conversion had such Holder been the
holder of such shares of Common Stock on the record date for the
determination of shareholders entitled to such
Distribution.

 

(d)   
Notice of
Adjustments. Upon the occurrence of each adjustment or
readjustment of the Conversion Price as a result of the events
described in this Section 1.6, the Borrower, at its expense, shall
promptly compute such adjustment or readjustment and prepare and
furnish to the Holder a certificate setting forth such adjustment
or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based. The Borrower shall, upon the
written request at any time of the Holder, furnish to such Holder a
like certificate setting forth (i) such adjustment or readjustment,
(ii) the Conversion Price at the time in effect and (iii) the
number of shares of Common Stock and the amount, if any, of other
securities or property which at the time would be received upon
conversion of the Note.

 

1.7 
[Intentionally
Omitted].

 

 

 

10

 

 

 

1.8 
Status as
Shareholder. Upon submission of a Notice of Conversion by a
Holder, (i) the shares covered thereby (other than the shares, if
any, which cannot be issued because their issuance would exceed
such Holder’s allocated portion of the Reserved Amount or
Maximum Share Amount) shall be deemed converted into shares of
Common Stock and (ii) the Holder’s rights as a Holder of such
converted portion of this Note shall cease and terminate, excepting
only the right to receive certificates for such shares of Common
Stock and to any remedies provided herein or otherwise available at
law or in equity to such Holder because of a failure by the
Borrower to comply with the terms of this Note. Notwithstanding the
foregoing, if a Holder has not received certificates for all shares
of Common Stock prior to the third (3rd) business day after the
expiration of the Deadline with respect to a conversion of any
portion of this Note for any reason, then (unless the Holder
otherwise elects to retain its status as a holder of Common Stock
by so notifying the Borrower) the Holder shall regain the rights of
a Holder of this Note with respect to such unconverted portions of
this Note and the Borrower shall, as soon as practicable, return
such unconverted Note to the Holder or, if the Note has not been
surrendered, adjust its records to reflect that such portion of
this Note has not been converted. In all cases, the Holder shall
retain all of its rights and remedies (including, without
limitation, (i) the right to receive Conversion Default Payments
pursuant to Section 1.3 to the extent required thereby for such
Conversion Default and any subsequent Conversion Default and (ii)
the right to have the Conversion Price with respect to subsequent
conversions determined in accordance with Section 1.3) for the
Borrower’s failure to convert this Note.

 

1.9 
Prepayment. Subject
to the terms of this Note, and provided that an Event of Default
has not occurred under this Note, the Borrower may prepay the
amounts outstanding hereunder pursuant to the following terms and
conditions:

 

(a)   
At any time during the period beginning on the Issue Date and
ending on the date which is one hundred eighty (180) days following
the Issue Date, the Borrower shall have the right, exercisable on
not less than three (3) Trading Days prior written notice to the
Holder of the Note, to prepay the outstanding Note in full by
making a payment to the Holder of an amount in cash equal to the
sum of: (i) the then outstanding principal amount of this Note
plus
(ii) accrued and unpaid interest on the unpaid principal
amount of this Note plus (iii) Default Interest, if
any, in accordance with Article III, plus (iv) any Additional
Principal, plus (v)
at the Holder’s option, any amounts owed to the Holder
pursuant to any other provision of this Note, plus (vi) $1000.00 to reimburse
Holder for the fees associated with the Returnable
Shares.

 

(b)
After the expiration of one hundred eighty (180) days following the
date of the Note, the Borrower shall have no right of
prepayment.

 

Any
notice of prepayment hereunder (an “Optional Prepayment
Notice”) shall be delivered to the Holder of the Note at its
registered addresses and shall state: (1) that the Borrower is
exercising its right to prepay the Note, and (2) the date of
prepayment which shall be not more than three (3) Trading Days from
the date of the Optional Prepayment Notice. On the date fixed for
prepayment (the “Optional Prepayment Date”), the
Borrower shall make payment of the applicable prepayment amount to
or upon the order of the Holder as specified by the Holder in
writing to the Borrower at least one (1) business day prior to the
Optional Prepayment Date.

 

Upon
confirmation by Holder that the prepayment has been received by the
Holder and that all amounts outstanding under this Note are paid in
full, the Holder shall return the Returnable Shares back to the
Company’s treasury. If the Borrower delivers an Optional
Prepayment Notice and fails to pay the applicable prepayment amount
due to the Holder of the Note within two (2) business days
following the Optional Prepayment Date, then the Borrower shall
forever forfeit its right to prepay any part of the Note pursuant
to this Section 1.9 and the Holder shall no longer be required to
return the Returnable Shares to the Borrower under any
circumstances.

 

 

11

 

 

 

 

ARTICLE
II. CERTAIN COVENANTS

 

2.1 
Distributions on Capital
Stock. So long as the Borrower shall have any obligation
under this Note, the Borrower shall not without the Holder’s
written consent (a) pay, declare or set apart for such payment, any
dividend or other distribution (whether in cash, property or other
securities) on shares of capital stock other than dividends on
shares of Common Stock solely in the form of additional shares of
Common Stock or (b) directly or indirectly or through any
subsidiary make any other payment or distribution in respect of its
capital stock except for distributions pursuant to any
shareholders’ rights plan which is approved by a majority of
the Borrower’s disinterested directors.

 

2.2 
Restriction on Stock
Repurchases. So long as the Borrower shall have any
obligation under this Note, the Borrower shall not without the
Holder’s written consent redeem, repurchase or otherwise
acquire (whether for cash or in exchange for property or other
securities or otherwise) in any one transaction or series of
related transactions any shares of capital stock of the Borrower or
any warrants, rights or options to purchase or acquire any such
shares.

 

2.3 
Borrowings; Liens.
So long as the Borrower shall have any obligation under this Note,
the Borrower shall not, without the Holder’s written consent,
create, incur, assume guarantee, endorse, contingently agree to
purchase or otherwise become liable upon the obligation of any
person, firm, partnership, joint venture or corporation, except by
the endorsement of negotiable instruments for deposit or
collection, or suffer to exist any liability for borrowed money,
except (a) borrowings in existence or committed on the date hereof
and of which the Borrower has informed Holder in writing prior to
the date hereof, (b) indebtedness to trade creditors financial
institutions or other lenders incurred in the ordinary course of
business, (c) borrowings, the proceeds of which shall be used to
repay this Note, or (ii) enter into, create or incur any liens,
claims or encumbrances of any kind, on or with respect to any of
its property or assets now owned or hereafter acquired or any
interest therein or any income or profits therefrom, securing any
indebtedness occurring after the date hereof.

  

2.4 
Sale of Assets. So
long as the Borrower shall have any obligation under this Note, the
Borrower shall not, without the Holder’s written consent,
sell, lease or otherwise dispose of any significant portion of its
assets outside the ordinary course of business. Any consent to the
disposition of any assets may be conditioned on a specified use of
the proceeds of disposition.

 

2.5 
Advances and Loans.
So long as the Borrower shall have any obligation under this Note,
the Borrower shall not, without the Holder’s written consent,
lend money, give credit or make advances to any person, firm, joint
venture or corporation, including, without limitation, officers,
directors, employees, subsidiaries and affiliates of the Borrower,
except loans, credits or advances (a) in existence or committed on
the date hereof and which the Borrower has informed Holder in
writing prior to the date hereof, (b) made in the ordinary course
of business or (c) not in excess of $100,000. Notwithstanding the
foregoing, the Holder acknowledges that, as disclosed by the
Borrower in its Form 8-K filed with the SEC on January 14, 2019 and
its Annual Report for its year-ended December 31, 2018 filed on
April 24, 2019, the Borrower’s business plan includes
implementing a “peer-to-peer” lending program and
similar lending programs utilizing, among other funds, a portion of
the subscription proceeds from the issuance and sale of its Series
F and Series G Convertible Preferred Stock (the “Lending
Programs”). The Holder further acknowledges that such Lending
Programs shall not be subject to the provisions of this Section
2.5.

 

 

12

 

 

 

 

2.6 
Section 3(a)(9) or
3(a)(10) Transaction. So long as this Note is outstanding,
the Borrower shall not enter into any transaction or arrangement
structured in accordance with, based upon, or related or pursuant
to, in whole or in part, either Section 3(a)(9) of the Securities
Act (a “3(a)(9) Transaction”) or Section 3(a)(l0) of
the Securities Act (a “3(a)(l0) Transaction”). In the
event that the Borrower does enter into, or makes any issuance of
Common Stock related to a 3(a)(9) Transaction or a 3(a)(l0)
Transaction while this note is outstanding, a liquidated damages
charge of 25% of the outstanding principal balance of this Note,
but not less than Fifteen Thousand Dollars ($15,000), will be
assessed and will become immediately due and payable to the Holder
at its election in the form of a cash payment or added to the
balance of this Note (under Holder's and Borrower's expectation
that this amount will tack back to the Issue Date). Notwithstanding
the foregoing, this Section 2.6 shall not apply to the issuance of
Preferred Stock as disclosed in the Borrower’s SEC Documents
(as defined in the Securities Purchase Agreement between the
Borrower and Holder dated May 9, 2019), or the conversion of
aforesaid shares of the Preferred Stock into shares of Common
Stock.

 

2.7 
Preservation of Existence,
etc. The Borrower shall maintain and preserve, and cause
each of its Subsidiaries to maintain and preserve, its existence,
rights and privileges, and become or remain, and cause each of its
Subsidiaries (other than dormant Subsidiaries that have no or
minimum assets) to become or remain, duly qualified and in good
standing in each jurisdiction in which the character of the
properties owned or leased by it or in which the transaction of its
business makes such qualification necessary.

 

2.8 
Non-circumvention.
The Borrower hereby covenants and agrees that the Borrower will
not, by amendment of its Certificate or Articles of Incorporation
or Bylaws, or through any reorganization, transfer of assets,
consolidation, merger, scheme of arrangement, dissolution, issue or
sale of securities, or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms of this
Note, and will at all times in good faith carry out all the
provisions of this Note and take all action as may be required to
protect the rights of the Holder.

 

2.9     
Charter. So long as
the Borrower shall have any obligations under this Note, the
Borrower shall not amend its charter documents, including without
limitation its certificate of incorporation and bylaws, in any
manner that materially and adversely affects any rights of the
Holder.

 

2.10            

Repayment from Proceeds. While
any portion of this Note is outstanding, if the Company receives
cash proceeds from any source or series of related or unrelated
sources, including but not limited to, from payments from
customers, the issuance of equity or debt, the conversion of
outstanding warrants of the Borrower, the issuance of securities
pursuant to an equity line of credit of the Borrower or the sale of
assets, the Borrower shall, within one (1) business day of
Borrower’s receipt of such proceeds, inform the Holder of
such receipt, following which the Holder shall have the right in
its sole discretion to require the Borrower to immediately apply
all or any portion of such proceeds to repay all or any portion of
the outstanding amounts owed under this Note. Failure of the
Borrower to comply with this provision shall constitute an Event of
Default. In the event that such proceeds are received by the Holder
prior to the Maturity Date, the required prepayment shall be
subject to the terms of Section 1.9 herein. The Holder expressly
agrees that this Section 2.10 shall not apply to the receipt by the
Company (Borrower) of the subscription proceeds from the issuance
and sale of the Series F and Series G Preferred Stock.

 

 

13

 

 

 

 

ARTICLE
III. EVENTS OF DEFAULT

 

If any
of the following events of default (each, an “Event of
Default”) shall occur:

 

3.1 
Failure to Pay Principal
or Interest. The Borrower fails to pay the principal hereof
or interest thereon when due on this Note, whether at maturity,
upon acceleration or otherwise. Any amount of principal on this
Note which is not paid when due shall bear interest at the rate of
Twenty Four percent (24%) per annum from the due date thereof until
the same is paid (“Default Interest”).

 

3.2 
Conversion and the
Shares. The Borrower fails to reserve the Reserved Amount
required for Holder at all times, issue shares of Common Stock to
the Holder (or announces or threatens in writing that it will not
honor its obligation to do so) upon exercise by the Holder of the
conversion rights of the Holder in accordance with the terms of
this Note, fails to transfer or cause its transfer agent to
transfer (issue) (electronically or in certificated form) any
certificate for shares of Common Stock issued to the Holder upon
conversion of or otherwise pursuant to this Note as and when
required by this Note, the Borrower directs its transfer agent not
to transfer or delays, impairs, and/or hinders its transfer agent
in transferring (or issuing) (electronically or in certificated
form) any certificate for shares of Common Stock to be issued to
the Holder upon conversion of or otherwise pursuant to this Note as
and when required by this Note, or fails to remove (or directs its
transfer agent not to remove or impairs, delays, and/or hinders its
transfer agent from removing) any restrictive legend (or to
withdraw any stop transfer instructions in respect thereof) on any
certificate for any shares of Common Stock issued to the Holder
upon conversion of or otherwise pursuant to this Note as and when
required by this Note (or makes any written announcement, statement
or threat that it does not intend to honor the obligations
described in this paragraph) and any such failure shall continue
uncured (or any written announcement, statement or threat not to
honor its obligations shall not be rescinded in writing) for two
(2) business days after the Holder shall have delivered a Notice of
Conversion. It is an obligation of the Borrower to remain current
in its obligations to its transfer agent. It shall be an event of
default of this Note, if a conversion of this Note is delayed,
hindered or frustrated due to a balance owed by the Borrower to its
transfer agent. If at the option of the Holder, the Holder advances
any funds to the Borrower’s transfer agent in order to
process a conversion, such advanced funds shall be paid by the
Borrower to the Holder within forty-eight (48) hours of a demand
from the Holder.  

 

3.3 
Breach of
Covenants. The Borrower breaches any material covenant or
other material term or condition contained in this Note and any
collateral documents including but not limited to the Purchase
Agreement.

 

3.4 
Breach of Representations
and Warranties. Any representation or warranty of the
Borrower made herein or in any agreement, statement or certificate
given in writing pursuant hereto or in connection herewith
(including, without limitation, the Purchase Agreement), shall be
false or misleading in any material respect when made and the
breach of which has (or with the passage of time will have) a
material adverse effect on the rights of the Holder with respect to
this Note or the Purchase Agreement.

 

3.5 
Receiver or
Trustee. The Borrower or any subsidiary of the Borrower
shall make an assignment for the benefit of creditors or commence
proceedings for its dissolution, or apply for or consent to the
appointment of a receiver or trustee for it or for a substantial
part of its property or business, or such a receiver or trustee
shall otherwise be appointed for the Borrower or for a substantial
part of its property or business without its consent and shall not
be discharged within sixty (60) days after such
appointment. 

 

 

14

 

 

 

 

3.6            

Bankruptcy. Bankruptcy,
insolvency, reorganization or liquidation proceedings or other
proceedings, voluntary or involuntary, for relief under any
bankruptcy law or any law for the relief of debtors shall be
instituted by or against the Borrower or any subsidiary of the
Borrower, or the Borrower admits in writing its inability to pay
its debts generally as they mature, or have filed against it an
involuntary petition for bankruptcy relief, all under federal or
state laws as applicable or the Borrower admits in writing its
inability to pay its debts generally as they mature, or have filed
against it an involuntary petition for bankruptcy relief, all under
international, federal or state laws as applicable.

 

3.7      Liquidation.
Any dissolution, liquidation, or winding up of Borrower or any
substantial portion of its business.

 

3.8     Cessation
of Operations. Any cessation of operations by Borrower or
Borrower admits it is otherwise generally unable to pay its debts
as such debts become due, provided, however, that any disclosure of
the Borrower’s ability to continue as a “going
concern” shall not be an admission that the Borrower cannot
pay its debts as they become due.

 

3.9    Maintenance
of Assets. The failure by Borrower to maintain any material
intellectual property rights, personal, real property or other
assets which are necessary to conduct its business (whether now or
in the future).

 

3.10            

Cross-Default. 
Notwithstanding anything to the contrary contained in this Note or
the other related or companion documents, a breach or default by
the Borrower of any covenant or other term or condition contained
in any of the Other Agreements (as defined herein), after the
passage of all applicable notice and cure or grace periods, shall,
at the option of the Holder, be considered a default under this
Note and the Other Agreements, in which event the Holder shall be
entitled (but in no event required) to apply all rights and
remedies of the Holder under the terms of this Note and the Other
Agreements by reason of a default under said Other Agreement or
hereunder. “Other Agreements” means, collectively, all
agreements and instruments between, among or by: (1) the Borrower,
and (2) the Holder or any other third party, including,
without limitation, promissory notes; provided, however, the term
“Other Agreements” shall not include this Note. Each of
the loan transactions will be cross-defaulted with each other loan
transaction and with all other existing and future debt of Borrower
to the Holder.

 

3.11            

[Intentionally Omitted].

 

3.12   Judgments.
Any money judgment, writ or similar process shall be entered or
filed against the Borrower or any subsidiary of the Borrower or any
of its property or other assets for more than $100,000.00, and
shall remain unvacated, unbonded or unstayed for a period of twenty
(20) days unless otherwise consented to by the Holder, which
consent will not be unreasonably withheld.

 

3.13            

Replacement of Transfer Agent.
In the event that the Borrower proposes to replace its transfer
agent and (i) the Borrower fails to obtain written approval from
the Holder prior to the effective date of such replacement, or (ii)
the Borrower fails to provide, prior to the effective date of such
replacement, a fully executed Irrevocable Transfer Agent
Instructions in a form as initially delivered pursuant to the
Purchase Agreement (including but not limited to the provision to
irrevocably reserve shares of Common Stock in the Reserved Amount)
signed by the successor transfer agent to Borrower and the
Borrower.

 

 

15

 

 

 

 

3.14            

Bid Price. If the Borrower
loses the “bid” price for its Common Stock
($0.0001 on the “Ask” with zero market makers on the
“Bid” per Level 2) and/or a market (including the
OTCBB, OTCQB or an equivalent replacement exchange) for its Common
Stock.

 

3.15            

Intentionally
omitted.

 

3.16            

Market
Capitalization. 

The Borrower fails
to maintain an average market capitalization of at least $200,000
during any five (5) consecutive Trading Day period, which shall be
calculated by multiplying (i) the closing bid price of the
Borrower’s Common Stock during the five (5) Trading Day
period immediately preceding the respective date of calculation by
(ii) the total shares of the Borrower’s Common Stock issued
and outstanding on the Trading Day immediately preceding the
respective date of calculation.

 

3.17            

Maximum
Conversion.   

If at any time
while this Note is outstanding, and assuming the beneficial
ownership limitations contained in this Note did not apply to this
specific calculation, the Holder could convert the amounts
outstanding under Note into more than 4.99% of the outstanding
shares of Common Stock of the Company as of the date of calculation
(including any beneficial ownership associated with the Returnable
Shares held at the time of such calculation).

 

3.18            

[Intentionally Omitted].

 

3.19            

OTC Marketplace Segments. If
(i) the Common Stock of the Borrower or the Borrower itself has any
notation on the OTC Markets Group website (www.otcmarkets.com)
other than “Current Information,” including but not
limited to “Limited Information” (Yield Sign) or
“No Information” (Stop Sign), or if the Common Stock of
the Borrower is shown only as quoted on the “grey
markets,” and (ii) by reason thereof, the Holder is unable to
obtain a standard “144 legal opinion” from an attorney
reasonably acceptable to The Holder, its brokerage firm, and the
Company’s transfer agent in order to facilitate the
Holder’s conversion of any of the Borrower’s
obligations hereunder into shares of the Borrower’s Common
Stock and thereupon deposit such shares into the Holder’s
brokerage account.

 

3.20            

Dilutive
Issuance.    

If at any time
while this Note is outstanding, the Company issues any of its
Common Stock at a price per share price lower than the Conversion
Price then in effect.

 

3.21             

Inside Information. Any attempt
by the Borrower or its officers, directors, and/or affiliates to
transmit, convey, disclose, or any actual transmittal, conveyance,
or disclosure by the Borrower or its officers, directors, and/or
affiliates of material non-public information concerning the
Borrower, to the holder or its successors and assigns, which is not
immediately cured by Borrower’s filing of a Form 8-K pursuant
to Regulation FD on that same date.

 

3.22            

Intentionally left
blank.

 

3.23 Prior
Notes.  If, at any time on or after the Issue Date, the
Borrower alters the conversion terms of any promissory note that
was issued on or before the day immediately prior to the Issue
Date.

 

 

 

16

 

 

 

3.24 Failure
to Comply with the Exchange Act. The Borrower shall fail to
comply with the reporting requirements of the Exchange Act
(including but not limited to becoming delinquent in its filings);
and/or the Borrower shall cease to be subject to the reporting
requirements of the Exchange Act.

 

Upon
the occurrence of any Event of Default specified in Sections 3.1,
3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12, 3.13,
3.14, 3.15, 3.16, 3.17, 3.18, 3.19, 3.20, 3.21, 3.22, 3.23, and/or
3.24, the Holder shall no longer be required to return the
Returnable Shares to the Borrower under any circumstances and the
Note shall become immediately due and payable and the Borrower
shall pay to the Holder, in full satisfaction of its obligations
hereunder, an amount equal to (i) 130% (EXCEPT WITH RESPECT TO
SECTION 3.2, IN WHICH CASE 130% SHALL BE REPLACED WITH 200%)
times the
sum of (w) the then
outstanding principal amount of this Note plus (x) accrued and unpaid
interest on the unpaid principal amount of this Note to the date of
payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if
any, on the amounts referred to in clauses (w) and/or (x)
plus (z) any
amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g)
hereof (the then outstanding principal amount of this Note to the
date of payment plus the amounts referred to in
clauses (x), (y) and (z) shall collectively be known as the
“Default Amount”) and all other amounts payable
hereunder shall immediately become due and payable, all without
demand, presentment or notice, all of which hereby are expressly
waived, together with all costs, including, without limitation,
legal fees and expenses, of collection, and the Holder shall be
entitled to exercise all other rights and remedies available at law
or in equity. This requirement by the Borrower shall automatically
apply upon the occurrence of an Event of Default without the need
for any party to give any notice or take any other
action.

 

The
Holder shall have the right at any time to convert the Default
Amount, in whole or in part, at the Conversion Price in effect at
the time of conversion, subject to the beneficial ownership
limitations contained in the Note.

 

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 Borrower for its attorneys' fees and
other costs and expenses incurred in the investigation, preparation
and prosecution of such action or proceeding.

 

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 Borrower for its attorneys' fees and
other costs and expenses incurred in the investigation, preparation
and prosecution of such action or proceeding.

 

ARTICLE
IV. MISCELLANEOUS

 

4.1 
Failure or Indulgence Not
Waiver. No failure or delay on the part of the Holder 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 privileges. All
rights and remedies existing hereunder are cumulative to, and not
exclusive of, any rights or remedies otherwise
available.

 

4.2 
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:

 

 

17

 

   

If to
the Borrower, to:

 

Premier
Biomedical, Inc.

P.O.
Box 25

Jackson
Center, PA 16133

E-mail:
info@premierbiomedical.com

 

  with a
copy to:

 

Clyde
Snow & Sessions, PC

201 S.
Main Street, Suite 1300

Salt
Lake City, UT 84111

Email:
bal@clydesnow.com

Attn:
Brian A. Lebrecht

 

 

If to
the Holder:

 

Green
Coast Capital International S.A.

Plaza
2000, 10th
fl, 50th
st

Panama
City, Rep. of Panama

E-mail:
investments@greencoast-capital.com

   

4.3 
Amendments. This
Note and any provision hereof may only be amended by an instrument
in writing signed by the Borrower and the Holder. The term
“Note” and all reference thereto, as used throughout
this instrument, shall mean this instrument (and the other Notes
issued pursuant to the Purchase Agreement) as originally executed,
or if later amended or supplemented, then as so amended or
supplemented.

 

4.4 
Assignability. The
Holder may assign or transfer this Note to any transferee at its
sole discretion. This Note shall be binding upon the Borrower and
its successors and assigns, and shall inure to be the benefit of
the Holder and its successors and assigns. Each transferee of this
Note must be an “accredited investor” (as defined in
Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note
to the contrary, this Note may be pledged as collateral in
connection with a bona
fide margin account or other lending arrangement. The Holder
and any assignee, by acceptance of this Note, acknowledge and agree
that following conversion of a portion of this Note, the unpaid and
unconverted principal amount of this Note represented by this Note
may be less than the amount stated on the face hereof. The Borrower
shall not assign any of its rights or obligations under this Note
without the signed written consent of the Holder.

 

4.5 
Cost of Collection.
If default is made in the payment of this Note, the Borrower shall
pay the Holder hereof reasonable costs of collection, including
reasonable attorneys’ fees. 

 

 

18

 

   

4.6 
 Governing
Law. This Note shall be governed by and construed in
accordance with the laws of the State of Nevada without regard to
principles of conflicts of laws. The parties hereby warrant and
represent that the selection of Nevada law as governing under this
Note (i) has a reasonable nexus to each of the Parties and to the
transactions contemplated by the Note; and (ii) does not offend any
public policy of Nevada, or of any other state, federal, or other
jurisdiction.  Any action
brought by either party against the other arising out of or related
to this Note, or any other agreements between the parties, shall be
commenced only in the state or federal courts of general
jurisdiction located in the State of Nevada, except that all such
disputes between the parties shall be subject to alternative
dispute resolution through binding arbitration at the
Holder’s sole discretion and election (regardless of which
party initiates the legal proceedings). The parties to
this Note 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
parties agree that, in connection with any such arbitration
proceeding, each shall submit or file any claim which would
constitute a compulsory counterclaim within the same proceeding as
the claim to which it relates. Any such claim that is not submitted
or filed in such proceeding shall be waived and such party will
forever be barred from asserting such a claim. Both parties agree
to submit to the jurisdiction of such courts or to such arbitration
panel, as the case may be.

 

Any
disputes, Claims, or controversies hereunder or in connection
herewith or with any transaction contemplated hereby or discussed
herein shall be referred to and resolved solely and exclusively by
binding arbitration to be conducted before the Judicial Arbitration
and Mediation Service (“JAMS”), or its successor
pursuant the expedited procedures set forth in the JAMS
Comprehensive Arbitration Rules and Procedures (the
“Rules”), including Rules
16.1 and 16.2 of those Rules. The arbitration shall be held in New
York, New York, before a tribunal consisting of three (3)
arbitrators each of whom will be selected in accordance with the
“strike and rank” methodology set forth in Rule 15.
Either party to this Agreement may, without waiving any remedy
under this Agreement, seek from any federal or state court sitting
in the State of Nevada any interim or provisional relief that is
necessary to protect the rights or property of that party, pending
the establishment of the arbitral tribunal. The costs and expenses
of such arbitration shall be paid by and be the sole responsibility
of the Company, including but not limited to the Investor’s
attorneys’ fees and each arbitrator’s fees. The
arbitrators' decision must set forth a reasoned basis for any award
of damages or finding of liability. The arbitrators' decision and
award will be made and delivered as soon as reasonably possibly and
in any case within sixty (60) days' following the conclusion of the
arbitration hearing and shall be final and binding on the parties
and may be entered by any court having jurisdiction
thereof.

 

THE BORROWER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO,
AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE
OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

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 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
Note or any other related 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 Note 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. 

 

 

 

19

 

 

4.7 
Certain Amounts.
Whenever pursuant to this Note the Borrower is required to pay an
amount in excess of the outstanding principal amount (or the
portion thereof required to be paid at that time) plus accrued and
unpaid interest plus Default Interest on such interest, the
Borrower and the Holder agree that the actual damages to the Holder
from the receipt of cash payment on this Note may be difficult to
determine and the amount to be so paid by the Borrower represents
stipulated damages and not a penalty and is intended to compensate
the Holder in part for loss of the opportunity to convert this Note
and to earn a return from the sale of shares of Common Stock
acquired upon conversion of this Note at a price in excess of the
price paid for such shares pursuant to this Note. The Borrower and
the Holder hereby agree that such amount of stipulated damages is
not plainly disproportionate to the possible loss to the Holder
from the receipt of a cash payment without the opportunity to
convert this Note into shares of Common Stock.

 

4.8 
Purchase Agreement.
By its acceptance of this Note, each party agrees to be bound by
the applicable terms of the Purchase Agreement.

 

4.9 
Notice of Corporate
Events. Except as otherwise provided below, the Holder of
this Note shall have no rights as a Holder of Common Stock unless
and only to the extent that it converts this Note into Common
Stock. The Borrower shall provide the Holder with prior
notification of any meeting of the Borrower’s shareholders
(and copies of proxy materials and other information sent to
shareholders). In the event of any taking by the Borrower of a
record of its shareholders for the purpose of determining
shareholders who are entitled to receive payment of any dividend or
other distribution, any right to subscribe for, purchase or
otherwise acquire (including by way of merger, consolidation,
reclassification or recapitalization) any share of any class or any
other securities or property, or to receive any other right, or for
the purpose of determining shareholders who are entitled to vote in
connection with any proposed sale, lease or conveyance of all or
substantially all of the assets of the Borrower or any proposed
liquidation, dissolution or winding up of the Borrower, the
Borrower shall mail a notice to the Holder, at least twenty (20)
days prior to the record date specified therein (or thirty (30)
days prior to the consummation of the transaction or event,
whichever is earlier), of the date on which any such record is to
be taken for the purpose of such dividend, distribution, right or
other event, and a brief statement regarding the amount and
character of such dividend, distribution, right or other event to
the extent known at such time. The Borrower shall make a public
announcement of any event requiring notification to the Holder
hereunder substantially simultaneously with the notification to the
Holder in accordance with the terms of this Section 4.9 including,
but not limited to, name changes, recapitalizations, etc. as soon
as possible under law.

 

4.10         
Usury. If
Notwithstanding any provision in this Note or the related
transaction documents to the contrary, the total
liability for payments of interest and payments in the
nature of interest, including, without limitation,
all charges, fees, exactions, or other sums which may at any
time be deemed to be interest, shall not exceed the limit
imposed by the usury laws of the jurisdiction
governing this Note or any other applicable law. In the
event the total liability of payments of interest and payments in
the nature of interest, including,
without limitation, all charges, fees, exactions or
other sums which may at any time be deemed to be interest,
shall, for any
reason whatsoever, result in an effective rate
of interest, which for any month or other interest payment period
exceeds the limit imposed by the usury laws of the
jurisdiction governing this Note, all sums in excess of those
lawfully collectible as interest for the period in question
shall, without further agreement or notice by, between,
or to any party hereto, be applied to the reduction
of the outstanding principal balance due hereunder
immediately upon receipt of such sums by the Holder
hereof, with the same force and effect as though the
Company had specifically designated such excess sums to be
so applied to the reduction of the principal
balance then outstanding, and the Holder
hereof had agreed to accept such sums as a
penalty-free payment of principal; provided, however,
that the Holder may, at any time and from time to time, elect,
by notice in writing to the Company, to waive,
reduce, or limit the collection of any sums in
excess of those lawfully collectible as
interest, rather than accept such sums as a
prepayment of the principal balance then
outstanding. It is the intention of the parties that
the Company does not intend or expect to pay,
nor does the Holder intend or expect to
charge or collect any interest under this
Note greater than the highest non-usurious rate
of interest which may be charged under applicable
law.

 

 

 

20

 

 

4.11         
Remedies. The
Borrower acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Holder, by vitiating
the intent and purpose of the transaction contemplated hereby.
Accordingly, the Borrower acknowledges that the remedy at law for a
breach of its obligations under this Note will be inadequate and
agrees, in the event of a breach or threatened breach by the
Borrower of the provisions of this Note, that the Holder 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 Note and to enforce specifically the terms and
provisions thereof, without the necessity of showing economic loss
and without any bond or other security being required. No provision
of this Note shall alter or impair the obligation of the Borrower,
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.

 

4.12         
Severability. 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 to
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.

 

4.13         
Dispute Resolution.
In the case of a dispute as to the determination of the Conversion
Price, Conversion Amount, any prepayment amount or Default Amount,
Issue, Closing or Maturity Date, the closing bid price, or fair
market value (as the case may be) or the arithmetic calculation of
the Conversion Price or the applicable prepayment amount(s) (as the
case may be), the Borrower or the Holder shall submit the disputed
determinations or arithmetic calculations via facsimile (i) within
two (2) Business Days after receipt of the applicable notice giving
rise to such dispute to the Borrower or the Holder or (ii) if no
notice gave rise to such dispute, at any time after the Holder
learned of the circumstances giving rise to such dispute. If the
Holder and the Borrower are unable to agree upon such determination
or calculation within two (2) Business Days of such disputed
determination or arithmetic calculation (as the case may be) being
submitted to the Borrower or the Holder, then the Borrower shall,
within two (2) Business Days, submit via facsimile (a) the disputed
determination of the Conversion Price, the closing bid price, the
or fair market value (as the case may be) to an independent,
reputable investment bank selected by the Borrower and approved by
the Holder or (b) the disputed arithmetic calculation of the
Conversion Price, Conversion Amount, any prepayment amount or
Default Amount, to an independent, outside accountant selected by
the Holder that is reasonably acceptable to the Borrower. The
Borrower shall cause at its expense the investment bank or the
accountant to perform the determinations or calculations and notify
the Borrower and the Holder of the results no later than ten (10)
Business Days from the time it receives such disputed
determinations or calculations. Such investment bank’s or
accountant’s determination or calculation shall be binding
upon all parties absent demonstrable error.

 

4.14         
[Intentionally
Omitted].

 

4.15         
[Intentionally
Omitted].

 

4.16            

Disclosure. Upon receipt or
delivery by the Company of any notice in accordance with the terms
of this Note, unless the Company has in good faith determined that
the matters relating to such notice do not constitute material,
non-public information relating to the Company or any of its
Subsidiaries, the Company shall within one (1) Trading Day after
any such receipt or delivery, publicly disclose such material,
non-public information on a Current Report on Form 8-K or
otherwise. In the event that the Company believes that a notice
contains material, non-public information relating to the Company
or any of its Subsidiaries, the Company so shall indicate to such
Holder contemporaneously with delivery of such notice, and in the
absence of any such indication, the Holder shall be allowed to
presume that all matters relating to such notice do not constitute
material, non-public information relating to the Company or its
Subsidiaries.

 

4.17                       

Intentionally Left
Blank.

 

 

[signature page to follow]

 

 

 

21

 

 

 

IN
WITNESS WHEREOF, Borrower has caused this Note to be signed in its
name by its duly authorized officer as of the date first above
written.

 

 

Premier
Biomedical, Inc.

 

 

By:
_______________________________

Name:
William Hartman

Title:
President, Chief Executive Officer

 

 

 

 

 

22

 

 

 

 

EXHIBIT
A

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert $_________________principal
amount of the Note (defined below) together with $________________
of accrued and unpaid interest thereto, totaling $_____________
into that number of shares
of Common Stock to be issued pursuant to the conversion of the
Note (“Common Stock”) as set forth below, of
Premier Biomedical, Inc. an Nevada corporation (the
“Borrower”), according to the conditions of the
convertible note of the Borrower dated as of September 9, 2019 (the
“Note”), as of the date written below. No fee will be
charged to the Holder for any conversion, except for transfer
taxes, if any.

 

Box
Checked as to applicable instructions:

 

[ ]
        The Borrower shall
electronically transmit the Common Stock issuable pursuant to this
Notice of Conversion to the account of the undersigned or its
nominee with DTC through its Deposit Withdrawal At Custodian system
(“DWAC Transfer”).

 

Name of
DTC Prime Broker:

Account
Number:

 

[ ]
      The undersigned hereby requests
that the Borrower issue a certificate or certificates for the
number of shares of Common Stock set forth below (which numbers are
based on the Holder’s calculation attached hereto) in the
name(s) specified immediately below or, if additional space is
necessary, on an attachment hereto:

 

Name:
Green Coast Capital International SA

Address:
_________________________________

 

Date of
Conversion: 

_____________

 

Applicable
Conversion Price:

$____________

 

Number
of Shares of Common Stock to be Issued

Pursuant to
Conversion of the Notes:  ______________

 

Amount
of Principal Balance Due remaining

Under
the Note after this conversion:  ______________

 

Accrued
and unpaid interest remaining:

                                            

             $____________

Default
Amounts & Penalties remaining (if applicable):

                                                       

                       

             $____________

 

Green
Coast Capital International SA

 

By:_____________________________

Name:
_________________________

Title:
Principal

Date:
___________________________

 

 

23

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