There was no "note:" Aitan charged the company $10,000 for services and decided to take that money in the form of shares. Those shares were $.001 at the time. But, as you note, he lied and they were actually converted at $.0001, or only 10% of their value and which was below the Par Value. Technically selling below par value is not allowed. However the theft comes into play with the conversion regardless of par value.
This is not toxic lending. There is no NOTE. It is a conversion of equity. And just theft.
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