Document:

Exhibit

Exhibit 4.2

DESCRIPTION OF THE REGISTRANT'S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

The following is a general description of the common stock of Kulicke and Soffa Industries, Inc. (the “Company”) and does not purport to be complete. For a complete description of the terms and provisions of the common stock, refer to the Company's Amended and Restated Articles of Incorporation (the “Articles of Incorporation”) and Amended and Restated By-Laws (the “By-Laws”), each of which is an exhibit incorporated by reference into the Annual Report on Form 10-K of which this exhibit is a part. This summary is qualified in its entirety by reference to these documents.

Authorized Capital Stock

The authorized shares of the Company consist of two hundred million (200,000,000) shares of common stock without par value (“Common Stock”), and five million (5,000,000) shares of preferred stock without par value (“Preferred Stock”). As of  November 8, 2019, there were 63,028,039 shares of the Company’s Common Stock outstanding, and no shares of Preferred Stock were outstanding.

The Company’s board of directors may, without further action by the shareholders, issue a series of Preferred Stock and fix the rights and preference of those shares, including the dividend rights, dividend rates, conversion rights, exchange rights, voting rights, terms of redemption, redemption price or prices, liquidation and other preferences and priorities and the number of shares constituting any series or the designation of such series. The rights of the holders of Common Stock will be subject to, and may be adversely affected by, the rights of the holders of any Preferred Stock so issued. All of the five million authorized shares of Preferred Stock are currently undesignated.

Description of Common Stock

Each share of the Company’s Common Stock has the same rights and privileges. Holders of Common Stock do not have any preferences or any preemptive, conversion or exchange rights.  All of our outstanding shares of Common Stock are fully paid and nonassessable.

Voting Rights

The holders of Common Stock of the Company are entitled to vote upon all matters submitted to a vote of the Company’s shareholders and are entitled to one vote for each share of Common Stock held.

Quorum; Voting Standards

The presence of a majority of the common shares entitled to vote, represented in person or by proxy, constitutes a quorum.

In all elections for directors, the By-Laws provide that cumulative voting is allowed, meaning that holders of Common Stock may multiply the number of votes they are entitled to cast by the total number of directors to be elected at a meeting of shareholders and cast the whole number of votes for one candidate or distribute them among some or all candidates. For other routine matters, the voting standard for approval of a proposal is the affirmative vote of a majority of the total votes cast by all shareholders entitled to vote. However, in the context of some business combinations, the voting standards differ, as described further in the section below titled “Anti-Takeover Provisions of the Articles, By-Laws and Pennsylvania Law.”

Dividends

Subject to the prior rights and preferences, if any, applicable to shares of Preferred Stock or any series of Preferred Stock, the holders of Common Stock are entitled to participate ratably in dividends, payable in cash, stock or otherwise, as may be declared by the board of directors out of any funds legally available for the payment of dividends. Each such distribution will be payable to holders of record as they appear on our stock transfer books on such record dates as may be fixed by the board of directors.

Right to Receive Liquidation Distributions

If the Company voluntarily or involuntarily liquidates, dissolves or winds-up, or upon any distribution of the Company’s assets, the holders of the Company’s Common Stock will be entitled to receive, after distribution in full of the preferential amounts, if 

Exhibit 4.2

any, to be distributed to the holders of Preferred Stock or any series of Preferred Stock, all of the remaining assets available for distribution equally and ratably in proportion to the number of shares of Common Stock held by them.

Listing

The Company’s Common Stock is listed on The Nasdaq Global Market under the trading symbol “KLIC.”

Transfer Agent

American Stock Transfer and Trust Company currently is the transfer agent and registrar for our common stock, with offices in New York, New York.

Preferred Stock

The board of directors is authorized, subject to limitations prescribed by law and the Articles of Incorporation, to provide for the issuance of shares of Preferred Stock, including one or more series of Preferred Stock, and to fix, from time to time by resolution, the number of shares to be included in each such series, and the designations, preferences, qualifications, limitations, restrictions, and special or relative rights of the shares of each such series.

The board of directors, without shareholder approval, may issue one or more series of Preferred Stock with voting or conversion rights that could adversely affect the voting power or economic rights of the holders of Common Stock. If the Company issues Preferred Stock, it may have the effect of delaying, deferring or preventing a change in control.

Anti-Takeover Provisions of the Articles, By-Laws and Pennsylvania Law

Some sections of the Articles of Incorporation and By-Laws and provisions of Pennsylvania law may discourage certain transactions involving a change in control of the Company.
 
The Articles of Incorporation and By-Laws contain provisions that (i) classify the board of directors into four classes, with one class being elected each year, (ii) permit the board to issue “blank check” Preferred Stock without shareholder approval, and (iii) prohibit the Company from engaging in certain business combinations with a holder of 20% or more of our shares without super-majority board or shareholder approval. Further, under the Pennsylvania Business Corporation Law, because the By-Laws provide for a classified board of directors, shareholders may only remove directors for cause.
 
The Company has opted out of several provisions of the Pennsylvania Business Corporation Law that could have the effect of delaying or interfering with a proposed change of control, but is also subject to other provisions of that law which could have those effects. The directors are subject to a provision of the Pennsylvania Business Corporation Law that permits them to consider the interests of constituencies other than the shareholders when deciding what will be in the best interests of the Company. In addition, the Company is subject to two statutory provisions that are similar to the last provision of the Articles of Incorporation described above. These statutory provisions impose certain price and other requirements, and special approvals before a holder of 20% or more of shares may engage in certain transactions.Exhibit 4.1

    

    

    

    
      THIS NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR
        OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION
        OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

      

      

      BETTER CHOICE COMPANY INC.

       

      SUBORDINATED CONVERTIBLE PROMISSORY NOTE

      

      

      $__________________

       

      _____________, 2019

       

      FOR VALUE RECEIVED, BETTER CHOICE COMPANY INC., a Delaware corporation (the “Company”) promises to pay to _____________, or its registered assigns (“Investor”), in lawful money of the United States of America the principal sum of $_____________, or such greater or lesser amount as shall equal the then outstanding principal amount hereof.  The Company promises
        to pay interest on this note at 10.00% per annum from November 4, 2019 until the Maturity Date.  The Company will pay interest quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, or if any such day is not a
        Business Day, on the next succeeding Business Day.  Interest shall be payable 50% in cash and 50% by increasing the aggregate principal amount of the Notes (such increase being referred to herein as “PIK Interest”).

      

      

      Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from November 4, 2019 until the principal hereof is due. The first Interest Payment Date shall be March 31, 2020. 
        Interest will be computed on the basis of a 360−day year of twelve 30−day months.  All then outstanding principal, together with any then unpaid and accrued interest and other amounts payable hereunder, shall be due and payable on November 4, 2021
        (the “Maturity Date”).

      

      

      This Note is one of the Subordinated Convertible Promissory Notes designated as a Subordinated Convertible Promissory Note (collectively with such other Subordinated Convertible Promissory Notes issued by the Company, the “Notes”).

       

      
        
          	1.	
                  Definitions. As used in this Note, the following capitalized terms have the following meanings:

                

        

      

        

      

      “Change of Control” means the occurrence of any of the following:

       

      (a)          the direct or indirect sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company and its subsidiaries, taken
        as a whole, to any Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act, or any successor provision) (a “Group”) (other than to the Company or one or more
        Subsidiaries); or

       

      (b)          any Person or Group shall become the beneficial owner, directly or indirectly, of more than 50% of the voting capital stock of the Company (measured by voting power rather than number of shares).

       

      

      
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      “Conversion Price” is equal to the lower of (a) $4.00 per share or (b) the IPO Price.

       

      “Customary Documents” shall mean all or any of: a purchase agreement, an investor rights agreement, a voting agreement, a right of first refusal and co-sale agreement and/or
        other ancillary agreements, with customary representations and warranties and transfer restrictions (including, without limitation, a customary lock-up agreement in connection with an initial public offering) or other similar documents.

       

      “Halo Acquisition” shall mean the acquisition by the Company of Halo, Purely For Pets, Inc., Thriving Paws, LLC, HH-Halo LP (the “Sellers”),
        pursuant to a Stock Purchase Agreement dated October 15, 2019.

       

      “Investors” shall mean the investors that are the registered holders of the Notes.

       

      “IPO” means the listing of the Company’s common stock, par value $0.0001 (the “Common Stock”) on the NASDAQ, NYSE or other national
        securities exchange whether through a firm commitment underwritten public offering by the Company of shares of common stock pursuant to an effective registration statement under the Securities Act of 1933 or other uplist transaction permitted by
        the applicable exchange.

       

      “IPO Price” means the price at which the Company’s Common Stock was sold in an IPO.

       

      “Obligations” shall mean and include all loans, advances, debts, liabilities and obligations, howsoever arising, owed by the Company to Investor of every kind and description,
        now existing or hereafter arising under or pursuant to the terms of this Note, including all interest, fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by the Company hereunder and
        thereunder, in each case, whether direct or indirect, absolute or contingent, due or to become due, and whether or not arising after the commencement of a proceeding under Title 11 of the United States Code (11 U. S. C. Section 101 et seq.), as
        amended from time to time (including post-petition interest) and whether or not allowed or allowable as a claim in any such proceeding. Notwithstanding the foregoing, the term “Obligations” shall not include any obligations of Company under or with
        respect to any warrants to purchase Company’s capital stock.

       

      “Person” shall mean and include an individual, a partnership, a corporation (including a business trust), a joint stock company, a limited liability company, an unincorporated
        association, a joint venture or other entity or a governmental authority.

       

      “Required Investors” shall mean Investors holding more than 50% of the aggregate then outstanding principal amount of the Notes.

       

      “Trading Day” shall mean any day on which the Common Stock is traded on the Trading Market.

       

      “Trading Market” shall mean the principal securities exchange or securities market, including an over-the-counter market, on which the Common Stock is then traded in the United
        States.

      

      

      
        
          	2.	
                  Payments.

                

        

      

      

      

      (a)          Interest. Accrued interest on this Note shall be payable as set forth in the first paragraph of this Note.  In the event of a conversion hereunder, the accrued
        interest shall convert along with the outstanding principal amount.

       

      
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      (b)          Prepayment. The Company may prepay the Notes without penalty at any time prior to the Maturity Date.

       

      (c)          Change of Control. In the event of a Change of Control of the Company, each Investor shall have the option to convert all of the outstanding principal amount of
        the Notes held by such Investor into a replacement note issued by the new issuer resulting from the Change of Control in an aggregate principal amount equal to (A) 104% of the outstanding principal amount of Notes held by such Investor plus (B)
        accrued and unpaid interest.

       

      (d)          Payments Generally. The Company will make all cash payments due under this Note in immediately available funds by 1:00 p.m. ET on the date such payment is due at
        the address for such purpose specified below Investor’s signature hereto, or at such other address, or in such other manner, as an Investor or other registered holder of a Note may from time to time direct in writing.

       

      (e)          Pro Rata Treatment of Notes. Investor acknowledges and agrees that the payment of all or any portion of the then outstanding principal amount of any Note held by
        Investor and all interest thereon shall be pari passu in right of payment and in all other respects to any other Note. If Investor receives payments in excess of its pro rata share of the Company’s payments to the holders of all of the Notes, then
        Investor shall hold in trust all such excess payments for the benefit of the holders of any other Notes and shall pay such amounts held in trust to such other holders upon demand by such holders.

      

      

      3.            Events of Default. The occurrence of any of the following shall constitute an “Event of Default” under this Note:

       

      (a)          Failure to Pay. The Company shall fail to pay (i) when due any principal payment on the due date hereunder or (ii) any interest payment or other payment required
        under the terms of this Note on the due date hereunder and such payment shall not have been made within five (5) business days of the Company’s receipt of written notice to the Company of such failure to pay;

       

      (b)          Voluntary Bankruptcy or Insolvency Proceedings. The Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of
        itself or of all or a substantial part of its property, (ii) make a general assignment for the benefit of its or any of its creditors, (iii) be dissolved or liquidated, (iv) commence a voluntary case or other proceeding seeking liquidation,
        reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any
        official in an involuntary case or other proceeding commenced against it, or (v) take any action for the purpose of effecting any of the foregoing.

       

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

      

      

      4.            Rights of Investor upon Default. Upon the occurrence of any Event of Default (other than an Event of Default described in Sections 3(b) or 3(c)) and at any time
        thereafter during the continuance of such Event of Default, Investor may, with the written consent of the Required Investors, by written notice to the Company, declare all outstanding Obligations payable by the Company hereunder to be immediately
        due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything contained herein to the contrary notwithstanding. Upon the occurrence of any Event of Default described in
        Sections 3(b) and 3(c), immediately and without notice, all outstanding Obligations payable by the Company hereunder shall automatically become immediately due and payable, without presentment, demand, protest or any other notice of any kind, all
        of which are hereby expressly waived, anything contained herein to the contrary notwithstanding. In addition to the foregoing remedies, upon the occurrence and during the continuance of any Event of Default, Investor may, with the written consent
        of the Required Investors, exercise any other right, power or remedy granted to it by this Note or otherwise permitted to it by law, either by suit in equity or by action at law, or both.

       

      
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          	5.	
                  Conversion.

                

        

      

       

      (a)          Automatic Conversion on IPO. If, on or prior to the Maturity Date, the Company consummates an IPO, then the then outstanding principal amount of this Note together
        with all accrued and unpaid interest under this Note shall automatically convert into Common Stock at the Conversion Price.

       

      (b)          Elective Conversion.  At any time prior to 5:00 p.m. on the last Business Day immediately preceding the Maturity Date, each Investor shall have the option to
        convert all or part of the principal and accrued interest under the Notes into that number of shares of Common Stock equal to the quotient of (1) all principal and accrued interest under the Notes being so converted, divided by (2) the Conversion
        Price.

       

      (c)          Elective Conversion Upon Change of Control.  In lieu of receiving the new notes described in Section 2(c) above, each
        Investor shall have the option to convert all of the principal and accrued interest under the Notes into that number of shares of Common Stock equal to the quotient of (1) all principal and accrued interest under the Notes being so converted,
        divided by (2) the Conversion Price.

       

      (d)          Additional Shares of Common Stock Issuable In Certain Circumstances.  If the Company has not completed an IPO by March 31,
        2020, then upon any conversion of Notes by an Investor thereafter, such Investor shall be entitled to an additional number of shares of Common Stock at a conversion price of $4.00 per share upon conversion equal to 10% of the number of shares of
        Common Stock originally issuable upon conversion. If the IPO has not been completed by June 30, 2020, then upon any conversion of the Notes by an Investor thereafter, such Investor shall be entitled to an additional number of shares of Common Stock
        at a conversion price of $4.00 per share upon conversion equal to an additional 10% of the number of shares of Common Stock originally issuable upon conversion as increased by any amount described in the previous sentence (i.e., 20% maximum total).

       

      
        
          
            (e)          Conversion Procedures.

          

        

      

       

      (i)          Conversion Pursuant to Section 5(a). If this Note is to be automatically converted pursuant to Section 5(a), written notice shall be delivered to Investor at the address last
        shown on the records of the Company for Investor or given by Investor to the Company for the purpose of notice, notifying Investor of the general terms of the conversion to be effected, specifying the Conversion Price, the principal amount of the
        Note to be converted, together with all accrued and unpaid interest and the date on which such conversion is expected to occur and calling upon Investor to surrender to the Company, in the manner and at the place designated, this Note. Upon such
        conversion of this Note, Investor hereby agrees to execute and deliver to the Company all transaction documents entered into by other purchasers participating in the IPO, including but not limited to any Customary Documents. Investor also agrees to
        deliver the original of this Note (or a notice to the effect that the original Note has been lost, stolen or destroyed and an agreement acceptable to the Company whereby the holder agrees to indemnify the Company from any loss incurred by it in
        connection with this Note) at the closing of the IPO for cancellation; provided, however, that upon the closing of the IPO, this Note shall be deemed converted and of no further force and effect, whether or not it is delivered for cancellation as
        set forth in this sentence. Any conversion of this Note pursuant to Section 5(a) shall be deemed to have been made immediately prior to the closing of the IPO and on and after such date the Persons entitled to receive the units issuable upon such
        conversion shall be treated for all purposes as the record holder of such units.

       

      
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            (ii)         Elective Conversion.

          

        

      

       

      (1)          Prior to conversion of this Note pursuant to any elective conversion under this Section 5, Investor shall surrender this Note to the Company (or a notice to the effect that the original
        Note has been lost, stolen or destroyed and an agreement acceptable to the Company whereby the holder agrees to indemnify the Company from any loss incurred by it in connection with this Note).  If the Required Investors elect to convert the Notes
        pursuant to this Section 5 (other than an automatic conversion under Section 5(a)), the Required Investors shall give written notice to the Company at least thirty (30) days prior to the event triggering the elective conversion at the Company’s
        principal corporate office of the election to convert the same pursuant to the applicable paragraph of this Section 5, and shall state therein the amount of the then outstanding principal amount of the Notes, together with all accrued and unpaid
        interest, to be converted.

       

      (2)          Investor hereby agrees to execute and deliver to the Company upon such elective conversion of this Note all transaction documents entered into by other recipients of capital stock and,
        if applicable, any Customary Documents.

       

      (3)          The Company shall, as soon as practicable thereafter, issue and deliver to such Investor a certificate or certificates (or a notice of issuance of uncertificated units, if applicable)
        for the number of units to which Investor shall be entitled upon such conversion, including a check payable to Investor for any cash amounts payable as described in Section 6(c)(iii). Any elective conversion of this Note shall be deemed to have
        been made upon the satisfaction of all of the conditions set forth in this Section 6(c)(ii) and on and after such date the Persons entitled to receive the units issuable upon such conversion shall be treated for all purposes as the record holder of
        such units.

       

      (iii)        Fractional Units; Interest; Effect of Conversion. No fractional units shall be issued upon conversion of this Note. In lieu of the Company issuing any fractional units to
        Investor upon the conversion of this Note, the Company shall pay to Investor an amount equal to the product obtained by multiplying the applicable conversion price by the fraction of a unit not issued pursuant to the previous sentence. In addition,
        to the extent not converted into units of capital stock, the Company shall pay to Investor any interest accrued on the amount converted and on the amount to be paid by the Company pursuant to the previous sentence. Upon conversion of this Note in
        full and the payment of the amounts specified in this paragraph, the Company shall be forever released from all its Obligations and liabilities under this Note and this Note shall be deemed of no further force or effect, whether or not the original
        of this Note has been delivered to the Company for cancellation. Notwithstanding anything herein to the contrary, Investor hereby waives the right to payment for fractional units pursuant to this Section 6(c)(iii) if the aggregate amount owed to
        Investor upon conversion of this Note is less than $5.00.

       

      (f)          Notices of Record Date. In the event of any Change of Control, the Company will mail written notice of such event to Investor at least ten (10) days prior to the
        closing of a Change of Control, which notice period may be waived with the written consent of the Required Investors.

      

      

      
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          	6.	
                  Certain Adjustments

                

        

      

       

      (a)          Stock Dividends and Splits.  If the Company, at any time while this Note is outstanding: (i) pays a stock dividend or otherwise makes a distribution or
        distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of
        this Note), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by
        reclassification of shares of the Common Stock any shares of capital stock of the Company (collectively with the actions described in (i), (ii), (iii) and (iv), a “Share Reorganization”), then in each case
        the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the
        number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Note shall be proportionately adjusted such that the aggregate Conversion Price of this Note shall remain unchanged. 
        Any adjustment made pursuant to this Section 6(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the
        effective date in the case of a subdivision, combination or re-classification, but if the Company shall legally abandon any such dividend, distribution, subdivision, combination or reclassification prior to effecting such action, no adjustment
        shall be made pursuant to this Section 6(a) in respect of such action.

       

      (b)          Pro Rata Distributions.  If the Company, at any time while this Note is outstanding, shall distribute to all holders of Common Stock (and not to the Investors)
        evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than a Share Reorganization, then, in each such case, the Conversion Price shall be adjusted by
        multiplying the Conversion Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the VWAP (as defined below) determined as
        of the record date, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one
        outstanding share of the Common Stock as determined by the Board of Directors in good faith; provided that in no event shall the Conversion Price be: (i) increased as a result of the application of this Section 6(b); or (ii) decreased below
        $4.00.  Simultaneously with any adjustment to the Conversion Price pursuant to this Section 6(b), the number of shares of Common Stock that may be issuable upon conversion of this Note shall be increased proportionately, so that after such
        adjustment the aggregate Conversion Price payable hereunder for the adjusted number of shares of Common Stock shall be the same as the aggregate Conversion Price in effect immediately prior to such adjustment (without regard to any limitations on
        exercise contained herein).  In either case the adjustments shall be described in a statement provided to the Investor that holds the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share
        of Common Stock.  Such adjustments shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above, but if the Company shall legally abandon any such distribution prior to effecting
        such distribution, no adjustments shall be made pursuant to this Section 6(b) in respect of such action.  For purposes of this Section 6(b), “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if
        the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as
        reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:00 p.m. (New York City time)), (b) if the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date
        (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets
        Group, Inc.  (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as
        determined by an independent appraiser selected in good faith by the Required Investors and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

       

      
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      (c)          Calculations.  All calculations under this Section 6 shall be made to the nearest cent or rounded down to the nearest whole share, as the case may be.  For purposes
        of this Section 6, any calculation of the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall not include treasury shares, if any.  Notwithstanding anything to the contrary in this Section 6, no adjustment
        in the Conversion Price shall be required unless such adjustment would require an increase or decrease of at least $0.01 per share in such price; provided, however, that any adjustments which by reason of the immediately preceding
        sentence are not required to be made shall be carried forward and taken into account in any subsequent adjustment.  In any case in which this Section 6 shall require that an adjustment in the Conversion Price be made effective as of a record date
        for a specified event, if an Investor converts this Note after such record date, the Company may elect to defer, until the occurrence of such event, the issuance of the shares of Common Stock and other capital stock of the Company in excess of the
        shares of Common Stock and other capital stock of the Company, if any, issuable upon such exercise on the basis of the Conversion Price in effect prior to such adjustment; provided, however, that in such case the Company shall
        deliver to the Investor a due bill or other appropriate instrument evidencing the Investor’s right to receive such additional shares and/or other capital securities upon the occurrence of the event requiring such adjustment.

       

      (d)          Par Value.  Notwithstanding anything to the contrary in this Note, in no event shall the Conversion Price be reduced below the par value of the Company’s Common
        Stock.

       

      
        
          	7.	
                  Miscellaneous.

                

        

      

       

      (a)          Subordination.  This Note is subordinated to all outstanding debt of the Company including the guarantee of the second lien promissory note to be issued to the
        Sellers in the Halo Acquisition.

       

      (b)          Waivers and Amendments. Any provision of this Note may be amended, waived or modified only with the written consent of the Company and of the Required Investors; provided,
        however, that no such amendment, waiver or consent shall: (i) reduce the principal amount of any Note without the affected Investor’s written consent, or (ii) reduce the rate of interest of any Note without the affected Investor’s written
        consent. Any amendment or waiver effected in accordance with this paragraph shall be binding upon all of the parties hereto.

       

      (c)          Amendment of Note/ “Most Favored Nation.” So long as this Note is outstanding, if the Company issues any convertible
        promissory notes after the date hereof (“Other Debt”) on or prior to the Maturity Date, the Company shall provide the Investor with written notice thereof (the “Other Debt Notice”) no later than five (5) days following the issuance of such Other
        Debt, together with a copy of all documentation relating to such Other Debt and any additional information related to such Other Debt reasonably requested by the Investor (collectively, the “Other Debt Documentation”). If the Lender determines in
        its sole discretion and in good faith that all or a portion of the terms of such Other Debt (excluding principal amounts) are preferable to any of the terms of this Note (such preferable terms, the “Preferable Terms”), the Lender shall provide the
        Company with written notice (the “Investor Notice”) within thirty (30) days following its receipt of all of the Other Debt Documentation, which Investor Notice shall set forth such Preferable Terms (the “Other Debt Review Period”). Within thirty
        (30) days of receiving such Investor Notice, the Company and the Investor shall amend and restate this Note to incorporate the Preferable Terms.

      

      

      (d)          Governing Law. This Note and all actions arising out of or in connection herewith or therewith shall be governed by and construed in accordance with the laws of
        the State of New York, without regard to the conflicts of law provisions of the State of New York or of any other state.

       

      (e)          Survival. The representations, warranties, covenants and agreements made herein shall survive the execution and delivery of this Note.

      

      

      
        7

        
          

      

      (f)          Jurisdiction and Venue. Investor and the Company irrevocably consent to the exclusive jurisdiction of, and venue in, the state courts in New York County in the
        State of New York or the United Stated District Court for the State of New York, in connection with any matter based upon or arising out of this Note or the matters contemplated herein or therein, and agree that process may be served upon them in
        any manner authorized by the laws of the State of New York for such Persons.

       

      (g)          Waiver of Jury Trial; Judicial Reference. Investor hereby agrees and the Company hereby agrees to waive their respective rights to a jury trial of any claim or
        cause of action based upon or arising out of this Note.

       

      (h)          Successors and Assigns. Subject to the restrictions on transfer set forth herein, the rights and obligations of the Company and Investor under this Note shall be
        binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

       

      (i)          Transfer and Replacement of this Note. The Company will keep, at its principal executive office, books for the recordation of the Investors and recordation of
        transfer of this Note. Prior to presentation of this Note for transfer, the Company shall treat the Person in whose name this Note is recorded as the owner and holder of this Note for all purposes whatsoever, whether or not this Note shall be
        overdue, and the Company shall not be affected by notice to the contrary. Subject to any restrictions on or conditions to transfer set forth in this Note, the holder of this Note, at its option, may in person or by duly authorized attorney
        surrender the same for exchange at the Company’s chief executive office, and promptly thereafter and at the Company’s expense, except as provided below, receive in exchange therefor this Note in the principal requested by such holder, dated the
        date to which interest shall have been paid on this Note or, if no interest shall have yet been so paid, dated the date of this Note and recorded in the name of such Person or Persons as shall have been designated in writing by such holder or its
        attorney for the same principal amount as the then unpaid principal amount of this Note. Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of this Note and (a)
        in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it; or (b) in the case of mutilation, upon surrender thereof, the Company, at its expense, will execute and deliver in lieu thereof a new Note executed in the same
        manner as this Note, in the same principal amount as the unpaid principal amount of this Note and dated the date to which interest shall have been paid on this Note or, if no interest shall have yet been so paid, dated the date of this Note.

       

      (j)          Transfer of this Note or Securities Issuable on Conversion Thereof. Neither this Note nor the securities issued upon conversion thereof may be transferred by
        Investor without the prior written consent of the Company. Any shares of Common Stock of the Company into which this Note may be converted shall be subject to any transfer restrictions set forth in any Customary Documents.

      

      

      (k)          Assignment by the Company. The rights, interests or obligations of the Company hereunder may not be assigned, by operation of law or otherwise, in whole or in
        part, by the Company without the prior written consent of the Required Investors.

       

      (l)          Entire Agreement. This Note constitutes and contains the entire agreement among the Company and Investor and supersedes any and all prior agreements, negotiations,
        correspondence, understandings and communications among the parties, whether written or oral, respecting the subject matter hereof.

       

      
        8

        
          

      

      (m)          Notices. All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall be in writing and faxed, mailed,
        emailed or delivered to each party as follows: (i) if to Investor, at Investor’s address, facsimile number or electronic mail address set forth beneath Investor’s name on the signature page hereto, or at such other address, facsimile number or
        electronic mail address as Investor shall have furnished the Company in writing, or (ii) if to the Company, at the Company’s address, facsimile number or electronic mail address set forth beneath the Company’s name on the signature page hereto, or
        at such other address, facsimile number or electronic mail address as the Company shall have furnished to Investor in writing. All such notices and communications will be deemed effectively given the earlier of (i) when received, (ii) when
        delivered personally, (iii) one business day after being deposited with an overnight courier service of recognized standing, (iv) four days after being deposited in the U.S. mail, first class with postage prepaid, (v) if sent via facsimile, upon
        confirmation of facsimile transfer or (vi) if sent via electronic mail, when directed to the relevant electronic mail address, if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then
        on the recipient’s next business day.

      

      

      (n)          Expenses. The Company and Investor shall be responsible for their own legal fees and other expenses incurred in connection with the negotiation, drafting and
        execution of this Note; provided, however, that any Investor that fails to comply with its obligations under Section 6(c) shall reimburse the Company for any legal fees and other expenses incurred in connection with the enforcement
        thereof.

      

      

      (o)          Severability of this Note. If any provision of this Note shall be judicially determined to be invalid, illegal or unenforceable, the validity, legality and
        enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

      

      

      (p)          Payment. Unless converted into the Company’s equity securities pursuant to the terms hereof, payment shall be made in lawful tender of the United States.

      

      

      (q)          Usury. If any interest is paid on this Note that is deemed to be in excess of the then legal maximum rate, then that portion of the interest payment representing
        an amount in excess of the then legal maximum rate shall be deemed a payment of principal and applied against the principal of this Note.

      

      

      (r)          Waivers. The Company hereby waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and all other notices or
        demands relative to this instrument.

      

      

      (s)          Counterparts. This Note may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and
        the same agreement. Facsimile or similar electronic copies (including .PDF format) of signed signature pages will be deemed binding originals.

       

      (Signature Page Follows)

      

      
        9

        
          

      

      The parties have caused this Note to be duly executed and delivered as of the date first written above.

       

      COMPANY:

       

      BETTER CHOICE COMPANY INC.

      a Delaware corporation

      

      

      	
              By:

            	 	
              

              

            
	
              Name:

            	 
	
              Title:

            	 

       

      	
              Address:

            	 
	 	 
	 	 
	 	 
	 	 
	 	 

       

      
        10

        
          

      

      
        INVESTOR:

        

        

        [investor name]

         

      

      	
              By: 

            	 	 
	
              

              

            	
              (Signature)

            	 

      

      

      	
              Name: 

            	 	 
	
              

              

            	
              (Print name of Investor)

            	 

      

      

      	
              Title: 

            	 	 
	
              

              

            	
              (If signing on behalf of an entity)

            	 

      

      

      
        	
                Address:

              	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	
                Email:

              	 
	 	 
	 	 
	
                Phone:

              	 
	 	 

         

         

        

        
          11

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