Max Sound Corp - FORM 10-Q - EX-1 - CONVERTABLE NOTE - November 13, 2015

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EX-1 - CONVERTABLE NOTE - Max Sound Corpgw8.htm
EX-1 - CONVERTABLE NOTE - Max Sound Corpfs7.htm
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EX-1 - CONVERTABLE NOTE - Max Sound Corpauctus6.htm
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EX-32 - CERTIFICATION - Max Sound Corpexhibit12.htm
EX-31 - CERTIFICATION - Max Sound Corpexhibit11.htm
EX-31 - CERTIFICATION - Max Sound Corpexhibit10.htm
EX-1 - CONVERTABLE NOTE - Max Sound Corphightree1.htm
10-Q - QTR 3 HTML - Max Sound Corpqrt3_2015.htm
EX-1 - CONVERTABLE NOTE - Max Sound Corpiliad5.htm

 

 

THISNOTEHASNOTBEENREGISTEREDUNDERTHESECURITIESACTOF1933,ASAMENDED(THE"ACT"),OR UNDERTHESECURITIESLAWSOFCERTAINSTATES.THESESECURITIESARESUBJECTTORESTRICTIONSONTRANSFERABILITYANDRESALEANDMAYNOTBETRANSFERREDORRESOLDEXCEPTASPERMITTEDUNDERTHEACTANDTHEAPPLICABLESTATESECURITIESLAWS,PURSUANTTOREGISTRATIONOREXEMPTIONTHEREFROM.LENDERSSHOULDBEAWARETHATTHEYMAYBEREQUIREDTOBEARTHEFINANCIAL RISKSOFTHISINVESTMENTFORANINDEFINITEPERIODOFTIME.THEISSUEROFTHESESECURITIESMAYREQUIREANOPINIONOFCOUNSELINFORMANDSUBSTANCESATISFACTORYTOTHEISSUERTOTHEEFFECTTHATANYPROPOSEDTRANSFERORRESALEISINCOMPLIANCEWITHTHEACT ANDANYAPPLICABLE STATE SECURITIESLAWS.

 

LG CAPITALFUNDING,LLCCOLLATERALIZED SECURED PROMISSORYNOTE

 

 

$57,500.00 Brooklyn, NY

August 4, 2015

1.PrincipalandInterest

 

FORVALUERECEIVED,LGCapitalFunding,LLC,aNewYorkLimitedLiabilityCompany(the"Company")herebyabsolutelyandunconditionallypromisestopaytoMaxSoundCorporation.(the“Lender"),ororder,theprincipalamountofFiftySevenThousandFiveHundredDollars($57,500.00)nolaterthanApril4,2016,unlesstheLenderdoesnotmeetthe“currentinformationrequirements”requiredunderRule144oftheSecuritiesActof1933,asamended,inwhichcasetheCompanymaydeclaretheoffsettingnoteissuedbytheLenderonthesamedateherewithtobeinDefault(asdefinedinthatnote)andcrosscancelitspaymentobligationsunderthisNoteaswellastheLenderspaymentobligationsundertheoffsettingnote.ThisFullRecourseNoteshall bear simple interestat the rate of8%.

 

2.Repayments andPrepayments;Security.

 

a.                   AllprincipalunderthisNoteshallbedueandpayablenolaterthanApril4,2016,unlesstheLenderdoesnotmeetthe“currentinformationrequirements”requiredunderRule144oftheSecuritiesActof1933,asamended,inwhichcasetheCompanymaydeclaretheoffsettingnoteissuedbytheLenderonthesamedateherewithtobeinDefault(asdefinedinthatnote)andcrosscancelitspaymentobligationsunderthisNoteaswellastheLenderspaymentobligationsunder theoffsettingnote.

 

b.                  TheCompanymaypaythisNoteatanytime.ThisnotemaynotbeassignedbytheLender,exceptbyoperation of law.

 

c.                   ThisNoteshallinitiallybesecuredbythepledgeofthe$57,500.008%convertiblepromissorynoteissuedtotheCompanybytheLenderonevendateherewith(the“LenderNote”).TheCompanymayexchangethiscollateralforothercollateralwithanappraisedvalueofat

 
 

 

 

least$57,500.00,byproviding3dayspriorwrittennoticetotheLender.IftheLenderdoesnotobjecttothesubstitutionofcollateralinthat3dayperiod,suchsubstitutionofcollateralshallbedeemedtohavebeenacceptedbytheLender.Notwithstandingtheforegoing,anexchangeofcollateralfor$57,500.00incashshallnotrequiretheapprovaloftheLender.AnycollateralexchangeshallnotconstituteawaiverofanydefaultsunderaLendernote.AllcollateralshallberetainedbyNewVentureAttorneys,P.C.,whichshallactastheescrowagentforthecollateralforthebenefitoftheLender.TheCompanymaynoteffectanyconversionsundertheLenderNoteuntil it has madefullcashpayment forthe portionof the LenderNote beingconverted

 

 

3.Events of Default;Acceleration.

 

a.                   TheprincipalamountofthisNoteissubjecttoprepaymentinwholeorinpartupontheoccurrenceandduringthecontinuanceofanyofthefollowingevents(each,an“EventofDefault”):theinitiationofanybankruptcy,insolvency,moratorium,receivershiporreorganizationbyoragainsttheCompany,orageneralassignmentofassetsbytheCompanyforthebenefitofcreditors.UpontheoccurrenceofanyEventofDefault,theentireunpaidprincipalbalanceofthisNoteandalloftheunpaidinterestaccruedthereonshallbeimmediatelydueandpayable.TheCompanymayoffsetamountsduetotheLenderunderthisNotebysimilaramountsthatmaybedueto theCompanybytheLenderresultingfrombreachesunder theLender Note.

 

b.                  NoremedyhereinconferredupontheLenderisintendedtobeexclusiveofanyotherremedyandeachandeveryremedyshallbecumulativeandinadditiontoeveryotherremedyhereunder,noworhereafterexistingatlaworinequityorotherwise.TheCompanyacceptsandagreesthatthisNoteisafullrecoursenoteandthattheHoldermayexerciseanyandallremediesavailable to it underlaw.

 

4.Notices.

 

a.                    Allnotices,reportsandothercommunicationsrequiredorpermittedhereundershallbeinwritingandmaybedeliveredinperson,bytelecopywithwrittenconfirmation,overnightdeliveryserviceorU.S.mail,inwhicheventitmaybemailedbyfirst-class,certifiedorregistered,postageprepaid,addressed(i)iftoaLender,atsuchLender’saddressastheLendershallhavefurnishedtheCompanyinwritingand(ii)iftotheCompanyatsuchaddressastheCompanyshallhave furnished theLender(s) in writing.

 

b.                  Eachsuchnotice,reportorothercommunicationshallforallpurposesunderthisNotebetreatedaseffectiveorhavingbeengivenwhendeliveredifdeliveredpersonallyor,ifsentbymail,attheearlierofitsreceiptor72hoursafterthesamehasbeendepositedinaregularlymaintainedreceptacleforthedepositoftheUnitedStatesmail,addressedandmailedasaforesaid,or,ifsentbyelectroniccommunicationwithconfirmation,uponthedeliveryofelectroniccommunication.

 

5.Miscellaneous.
 
 

 

 

a.                     NeitherthisNotenoranyprovisionshereofmaybechanged,waived,dischargedorterminatedorally, but onlybyasigned statementinwriting.

 

b.                  NofailureordelaybytheLendertoexerciseanyrighthereundershalloperateasawaiverthereof,norshallanysingleorpartialexerciseofanyright,powerorprivilegeprecludeanyotherright,powerorprivilege.TheprovisionsofthisNoteareseverableandifanyoneprovisionhereofshallbeheldinvalidorunenforceableinwholeorinpartinanyjurisdiction,suchinvalidityorunenforceabilityshallaffectonlysuchprovisioninsuchjurisdiction.ThisNoteexpressestheentireunderstandingofthepartieswith respect to thetransactions contemplatedhereby.TheCompanyandeveryendorserandguarantorofthisNoteregardlessofthetime,orderorplaceofsigningherebywaivespresentment,demand,protestandnoticeofeverykind,andassentstoanyextensionorpostponementofthetimeforpaymentoranyotherindulgence,toanysubstitution,exchangeorreleaseofcollateral,andtotheadditionorreleaseofanyotherpartyorpersonprimarilyorsecondarilyliable.

 

c.                   IfLenderretainsanattorneyforcollectionofthisNote,orifanysuitorproceedingisbroughtfortherecoveryofall,oranypartof,orforprotectionoftheindebtednessrespectedbythisNote,thentheCompanyagreestopayallcostsandexpensesofthesuitorproceeding,oranyappealthereof,incurredbytheLender, includingwithout limitation,reasonableattorneys' fees.

 

d.                  ThisNoteshallfor allpurposesbegovernedby,andconstruedinaccordancewiththelaws of theStateofNewYork(withoutreference toconflict of laws).

 

e.                   ThisNoteshallbebindingupontheCompany'ssuccessorsandassigns,andshallinureto the benefit of theLender'ssuccessorsandassigns.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INWITNESSWHEREOF,the Companyhas caused this Note to beexecuted byits dulyauthorizedofficer to takeeffect as ofthe date firsthereinabove written.

 
 

 

 

 

 

 

LG CAPITALFUNDING,LLC

 

 

By:

 

Title:

 

 

 

APPROVED:

 

MAX SOUND CORPORATION.

 

By:

 

Title:

CFO

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