Document:

EXHIBIT 10.2

 

	
THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT”)

 

 US $82,687.00 

 

PREMIER BIOMEDICAL, INC.

8% CONVERTIBLE REDEEMABLE NOTE

DUE JANUARY 29, 2016

 

FOR VALUE RECEIVED, Premier Biomedical, Inc. (the “Company”) promises to pay to the order of LG CAPITAL FUNDING, LLC and its authorized successors and permitted assigns ("Holder"), the aggregate principal face amount of Eighty Two Thousand Six Hundred Eighty Seven Dollars exactly (U.S. $82,687.00) on January 29, 2016 ("Maturity Date") and to pay interest on the principal amount outstanding hereunder at the rate of 8% per annum commencing on January 29, 2015. This Note contains a 5% original issue discount such that the purchase price is $78,750.00. The interest will be paid to the Holder in whose name this Note is registered on the records of the Company regarding registration and transfers of this Note. The principal of, and interest on, this Note are payable at 1218 Union Street, Suite #2, Brooklyn, NY 11225, initially, and if changed, last appearing on the records of the Company as designated in writing by the Holder hereof from time to time. The Company will pay each interest payment and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be deducted or withheld, to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing on the records of the Company. The forwarding of such check or wire transfer shall constitute a payment of outstanding principal hereunder and shall satisfy and discharge the liability for principal on this Note to the extent of the sum represented by such check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

 

This Note is subject to the following additional provisions:

 

1. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be made for such registration or transfer or exchange, except that Holder shall pay any tax or other governmental charges payable in connection therewith.

 

	 
	
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2. The Company shall be entitled to withhold from all payments any amounts required to be withheld under applicable laws.

 

3. This Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended ("Act") and applicable state securities laws. Any attempted transfer to a non-qualifying party shall be treated by the Company as void. Prior to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this Note is duly registered on the Company's records as the owner hereof for all other purposes, whether or not this Note be overdue, and neither the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this Note electing to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth in Section 4(a), and any prospective transferee of this Note, also is required to give the Company written confirmation that this Note is being converted ("Notice of Conversion") in the form annexed hereto as Exhibit A. The date of receipt (including receipt by facsimile) of such Notice of Conversion shall be the Conversion Date.

 

4. (a) The Holder of this Note is entitled, at its option, at any time after 6 months, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock (the "Common Stock"), at a price ("Conversion Price") for each share of Common Stock equal to the higher of (i) $0.001 cents per share (the “Initial Floor”) or (ii) 70% of the average of the 2 lowest closing bid prices of the Common Stock as reported on the National Quotations Bureau OTCQB exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future ("Exchange"), for the fifteen prior trading days including the day upon which a Notice of Conversion is received by the Company (provided such Notice of Conversion is delivered by fax or other electronic method of communication to the Company after 4 P.M. Eastern Standard or Daylight Savings Time if the Holder wishes to include the same day closing price). If the shares have not been delivered within 3 business days, the Notice of Conversion may be rescinded. Such conversion shall be effectuated by the Company delivering the shares of Common Stock to the Holder within 3 business days of receipt by the Company of the Notice of Conversion. Once the Holder has received such shares of Common Stock, the Holder shall surrender this Note to the Company, executed by the Holder evidencing such Holder's intention to convert this Note or a specified portion hereof, and accompanied by proper assignment hereof in blank. Accrued, but unpaid interest shall be subject to conversion. No fractional shares or scrip representing fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. In the event the Company experiences a DTC “Chill” on its shares, the conversion price shall be decreased to 60% instead of 70% while that “Chill” is in effect. In no event shall the Holder be allowed to effect a conversion if such conversion, along with all other shares of Company Common Stock beneficially owned by the Holder and its affiliates would exceed 9.9% of the outstanding shares of the Common Stock of the Company.

 

	 
	
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(b) Interest on any unpaid principal balance of this Note shall be paid at the rate of 8% per annum. Interest shall be paid by the Company in Common Stock ("Interest Shares"). Holder may, at any time, send in a Notice of Conversion to the Company for Interest Shares based on the formula provided in Section 4(a) above. The dollar amount converted into Interest Shares shall be all or a portion of the accrued interest calculated on the unpaid principal balance of this Note to the date of such notice.

 

(c) The Notes may be prepaid with the following penalties:

 

	
PREPAY DATE

	
PREPAY AMOUNT

	
30 days

	
115% of principal plus accrued interest

	
31- 60 days

	
121% of principal plus accrued interest

	
61-90 days

	
126% of principal plus accrued interest

	
91-120 days

	
132% of principal plus accrued interest

	
121-150 days

	
138% of principal plus accrued interest

	
151-180 days

	
140% of principal plus accrued interest

 

This Note may not be prepaid after the 180th day. Such redemption must be closed and funded within 3 days of giving notice of redemption of the right to redeem shall be null and void.

 

(d) Upon (i) a transfer of all or substantially all of the assets of the Company to any person in a single transaction or series of related transactions, (ii) a reclassification, capital reorganization or other change or exchange of outstanding shares of the Common Stock, other than a forward or reverse stock split or stock dividend, or (iii) any consolidation or merger of the Company with or into another person or entity in which the Company is not the surviving entity (other than a merger which is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred to as a "Sale Event"), then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash for 150% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the election of the Holder, such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into shares of Common Stock immediately prior to such Sale Event at the Conversion Price.

 

(e) In case of any Sale Event (not to include a sale of all or substantially all of the Company’s assets) in connection with which this Note is not redeemed or converted, the Company shall cause effective provision to be made so that the Holder of this Note shall have the right thereafter, by converting this Note, to purchase or convert this Note into the kind and number of shares of stock or other securities or property (including cash) receivable upon such reclassification, capital reorganization or other change, consolidation or merger by a holder of the number of shares of Common Stock that could have been purchased upon exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing provisions shall similarly apply to successive Sale Events. If the consideration received by the holders of Common Stock is other than cash, the value shall be as determined by the Board of Directors of the Company or successor person or entity acting in good faith.

 

	 
	
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5. No provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Note at the time, place, and rate, and in the form, herein prescribed.

 

6. The Company hereby expressly waives demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all sums owing and to be owing hereto.

 

7. The Company agrees to pay all costs and expenses, including reasonable attorneys' fees and expenses, which may be incurred by the Holder in collecting any amount due under this Note.

 

8. If one or more of the following described "Events of Default" shall occur:

 

(a) The Company shall default in the payment of principal or interest on this Note or any other note issued to the Holder by the Company; or

 

(b) Any of the representations or warranties made by the Company herein or in any certificate or financial or other written statements heretofore or hereafter furnished by or on behalf of the Company in connection with the execution and delivery of this Note, or the Securities Purchase Agreement under which this note was issued shall be false or misleading in any respect; or

 

(c) The Company shall fail to perform or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note or any other note issued to the Holder; or

 

(d) The Company shall (1) become insolvent; (2) admit in writing its inability to pay its debts generally as they mature; (3) make an assignment for the benefit of creditors or commence proceedings for its dissolution; (4) apply for or consent to the appointment of a trustee, liquidator or receiver for its or for a substantial part of its property or business; (5) file a petition for bankruptcy relief, consent to the filing of such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable; or

 

(e) A trustee, liquidator or receiver shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged within sixty (60) days after such appointment; or

 

(f) Any governmental agency or any court of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial portion of the properties or assets of the Company; or

 

(g) One or more money judgments, writs or warrants of attachment, or similar process, in excess of fifty thousand dollars ($50,000) in the aggregate, shall be entered or filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for a period of fifteen (15) days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or

 

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

 

(j) If a majority of the members of the Board of Directors of the Company on the date hereof are no longer serving as members of the Board;

 

(k) The Company shall not deliver to the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 3 business days of its receipt of a Notice of Conversion; or

 

(l) The Company shall not replenish the reserve set forth in Section 12, within 3 business days of the request of the Holder.

 

(m) The Company shall not be “current” in its filings with the Securities and Exchange Commission; or

 

(n) The Company shall lose the “bid” price for its stock and a market (including the OTCBB marketplace or other exchange)

 

Then, or at any time thereafter, unless cured within 5 days, and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the Holder may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any kind (other than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments contained to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce any and all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law. Upon an Event of Default, interest shall accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by current law, then at the highest rate of interest permitted by law. In the event of a breach of Section 8(k) the penalty shall be $250 per day the shares are not issued beginning on the 4th day after the conversion notice was delivered to the Company. This penalty shall increase to $500 per day beginning on the 10th day. The penalty for a breach of Section 8(n) shall be an increase of the outstanding principal amounts by 20%. In case of a breach of Section 8(i), the outstanding principal due under this Note shall increase by 50%. If this Note is not paid at maturity, the outstanding principal due under this Note shall increase by 10%.

 

If the Holder shall commence an action or proceeding to enforce any provisions of this Note, including, without limitation, engaging an attorney, then if the Holder prevails in such action, the Holder shall be reimbursed by the Company for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

	 
	
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Make-Whole for Failure to Deliver Loss. At the Holder’s election, if the Company fails for any reason to deliver to the Holder the conversion shares by the by the 3rd business day following the delivery of a Notice of Conversion to the Company and if the Holder incurs a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice indicating the amounts payable to the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows:

 

Failure to Deliver Loss = [(High trade price at any time on or after the day of exercise) x (Number of conversion shares)]

 

The Company must pay the Failure to Deliver Loss by cash payment, and any such cash payment must be made by the third business day from the time of the Holder’s written notice to the Company.

 

9. In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.

 

10. Neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.

 

11. The Company represents that it is not a “shell” issuer and has never been a “shell” issuer or that if it previously has been a “shell” issuer that at least 12 months have passed since the Company has reported form 10 type information indicating it is no longer a “shell issuer. Further. The Company will instruct its counsel to either (i) write a 144 opinion to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s counsel.

 

12. The Company shall issue irrevocable transfer agent instructions reserving 3,374,000 shares of its Common Stock for conversions under this Note (the “Share Reserve”). The reserve shall be replenished as needed to allow for conversions of this Note. Upon full conversion of this Note, any shares remaining in the Share Reserve shall be cancelled. The Company shall pay all costs associated with issuing and delivering the shares. The company should at all times reserve a minimum of four times the amount of shares required if the note would be fully converted. The Holder may reasonably request increases from time to time to reserve such amounts.

 

13. The Company will give the Holder direct notice of any corporate actions, including but not limited to name changes, stock splits, recapitalizations etc. This notice shall be given to the Holder as soon as possible under law.

 

14. This Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be performed within the State of New York and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York. This Agreement may be executed in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original.

 

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

 

 

	 	
PREMIER BIOMEDICAL, INC

	 
	 	 	 	 
	
Dated: January 30, 2015

	By:	/s/ William Hartman	 
	 	Title:	President	 

 

	 
	
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EXHIBIT A

 

NOTICE OF CONVERSION

 

 (To be Executed by the Registered Holder in order to Convert the Note)

 

The undersigned hereby irrevocably elects to convert $___________ of the above Note into _________ Shares of Common Stock of Premier Biomedical, Inc. (“Shares”) according to the conditions set forth in such Note, as of the date written below.

 

If Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable with respect thereto.

 

Date of Conversion: ______________________________________________________________

Applicable Conversion Price: _______________________________________________________

Signature: ______________________________________________________________________

[Print Name of Holder and Title of Signer]

 

Address: ________________________________________________________________________

               ________________________________________________________________________

 

SSN or EIN: ___________________________________

Shares are to be registered in the following name: ________________________________________

 

Name: __________________________________________________________________________

Address: ________________________________________________________________________

Tel: __________________________________________

Fax: __________________________________________

SSN or EIN: ___________________________________

 

Shares are to be sent or delivered to the following account:

 

Account Name: ___________________________________________________________________

Address: _________________________________________________________________________

 

 

8Exhibit 10.9 - JMG Offer Letter Graham

Exhibit 10.9
Journal Media Group, Inc.

January 12, 2015
Mr. Jason R. Graham 
333 West State Street 
Milwaukee, WI 53203
Dear Jason:
As you know, The E. W. Scripps Company (“Scripps”) and Journal Communications, Inc. (“Journal”) have agreed to merge their newspaper businesses into Journal Media Group, Inc. (“Journal Media Group”) pursuant to the terms of the Master Transaction Agreement, dated as of July 30, 2014 (the “Master Transaction Agreement”), by and among Scripps, Journal, Journal Media Group and certain other parties thereto (the “Merger”).  In connection with the Merger, we wish to encourage you to join Journal Media Group, contingent upon the consummation of the Merger and subject to the terms and conditions of this letter agreement (this “Letter Agreement”). 
		
	1.
	Position and Duties.  You shall serve as Senior Vice President, Chief Financial Officer and Treasurer of Journal Media Group commencing on the Newspaper Merger Effective Time as defined in the Master Transaction Agreement (the “Effective Time”) and shall have such duties, responsibilities and authorities as are customarily associated with this position and such additional duties and responsibilities consistent with your position as may, from time to time, be properly and lawfully assigned to you.  You shall report to the Chief Executive Officer of Journal Media Group.  

		
	2.
	Location.  You shall perform your duties and responsibilities hereunder principally in the greater Milwaukee, Wisconsin metropolitan area; provided that you may be required under reasonable business circumstances to travel outside of this location in connection with the performance of your duties.

		
	3.
	Compensation and Benefits. 

		
	a.
	Base Salary.  Commencing on the Effective Time, and during your employment with Journal Media Group and its affiliates, you will be paid an annualized base salary (“Annual Base Salary”) at a rate of $375,000, payable in regular installments in accordance with Journal Media Group’s normal payroll practices.  

		
	b.
	Annual Incentive.  Commencing on the Effective Time, you shall participate in the Journal Media Group, Inc. Annual Incentive Plan, or any successor plan (the “AIP”), under terms and conditions that are no less favorable than similarly-situated employees of Journal Media Group; provided that your “target” annual incentive opportunity for the 2015 fiscal year shall not be less than 40% of your Annual Base 

Salary.  Your payment under the AIP shall be determined by the Compensation Committee in accordance with the terms, and subject to the conditions, of the AIP, under terms and conditions that are no less favorable than similarly-situated employees of Journal Media Group.  
		
	c. 
	Long-Term Incentive. Commencing on the Effective Time, you shall participate in the Journal Media Group, Inc. Long-Term Incentive Plan, or any successor plan (the “LTIP”), under terms and conditions that are no less favorable than similarly-situated employees of Journal Media Group; provided that your “target” long-term incentive opportunity for the 2015 fiscal year shall not be less than 50% of your Annual Base Salary.  Your payment under the LTIP shall be determined by the Compensation Committee in accordance with the terms, and subject to the conditions, of the LTIP, under terms and conditions that are no less favorable than similarly-situated employees of Journal Media Group.

		
	d.
	Other Benefits. Commencing on the Effective Time, and during your employment with Journal Media Group and its affiliates, you will be eligible to participate in all employee benefit plans and programs of Journal Media Group and its affiliates (including such plans and programs that provide welfare benefits, perquisite, vacation and other benefits) generally applicable to similarly-situated employees of Journal Media Group, as determined from time to time by Journal Media Group and as may be amended from time-to-time.  

		
	4.
	Severance.  At the Effective Time, Journal Media Group shall assume, and hereby agrees to pay, perform, fulfill and discharge all of Journal’s obligations under the Change in Control Agreement between you and Journal dated May 8, 2014 (the “CIC Agreement”) and neither Scripps, Journal nor their affiliates or successors shall have any obligation to you under the CIC Agreement at or after the Effective Time. The CIC Agreement, as assumed by Journal Media Group, shall remain in full force and effect until the first anniversary of the Effective Time, at which time it shall terminate without further action or notice.      

		
	5.
	Waiver of Good Reason Claims.  By signing this Letter Agreement, and in consideration of the compensation and benefits described in Section 3 hereof, effective as of the Effective Time, you hereby knowingly and voluntarily waive your right to terminate your employment with Journal Media Group and its affiliates for Good Reason under Section 5(c) of the CIC Agreement as a result of the changes to your employment contemplated by this Letter Agreement, including without limitation, the changes to your position, title, authority, duties or responsibilities, changes to your base salary and annual incentive opportunities, and changes to any other compensation or benefit levels.  This Letter Agreement does not affect any other terms, or in any way waive any other rights that you may have, under the CIC Agreement, including your right to terminate your employment for Good Reason under the CIC Agreement for reasons other than as a result of the changes to your employment contemplated by this Letter Agreement.

		
	6.
	Nature of Employment.  We are excited that you are joining Journal Media Group and look forward to a beneficial and productive relationship.  Nevertheless, please note that this Letter 

2

Agreement is not a contract of employment for any specific or minimum term and that the employment offered by Journal Media Group is terminable at will.  This means that our employment relationship is voluntary and based on mutual consent.  You may resign your employment and Journal Media Group may terminate your employment, at any time, for any reason, with or without cause, subject to the terms and conditions of the CIC Agreement and this Letter Agreement. 
		
	7.
	Termination of Letter Agreement.  In the event that the Master Transaction Agreement is terminated without the Merger being consummated, this Letter Agreement will be void ab initio and of no further force or effect, without further action or notice.  

		
	8.
	Miscellaneous.  This Letter Agreement may not be modified or terminated except in writing signed by the parties or as set forth in Section 7 above. This Letter Agreement and the CIC Agreement contain the entire agreement and understanding of the parties with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.  Journal Media Group and its affiliates shall have the right to deduct from all payments made under this Letter Agreement any federal, state, local, foreign or other taxes which are required to be withheld with respect to such payments.  This Letter Agreement shall be interpreted and enforced in accordance with the  laws of the State of Wisconsin, without regard to conflicts of law principles.

I am delighted to be able to extend this offer to you on behalf of Journal Media Group, and we look forward to working with you.  To indicate your acceptance, please sign and date one copy of this Letter Agreement and return it to me no later than January 26, 2015.  
JOURNAL MEDIA GROUP, INC.        
By:/s/ Timothy E. Stautberg                                               
Its: President                                           

Agreed to and accepted:

/s/ Jason R. Graham                                              1/19/15               
Jason R. Graham                    Date

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