Exhibit 10.2
NEITHER THIS SECURITY NOR THE SECURITIES INTO
WHICH THIS SECURITY IS CONVERTIBLE HAS BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF
ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY
A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.
BONDS.COM GROUP, INC.
SECURED CONVERTIBLE PROMISSORY
NOTE
|
U.S.
$[ ]
|
APRIL [ ],
2009
|
THIS SECURED CONVERTIBLE
PROMISSORY NOTE (this
“ Note ”) is made as of the __ day of April
2009, by Bonds.com Group, Inc., a Delaware corporation (the “
Maker ”) , in favor of
[_____________] or its assigns (“ Payee
”).
RECITALS
WHEREAS,
this Note is being
issued pursuant to and in connection with a Secured Convertible
Note and Warrant Purchase Agreement dated April __, 2009 (the
“ Purchase Agreement ”) among the Maker, the
Payee and certain other Purchasers set forth therein.
NOW,
THEREFORE ,
for and in consideration of the mutual agreements herein contained,
and for and in consideration of other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, Maker and Payee hereby covenant and agree as set
forth below.
FOR VALUE RECEIVED
, Maker hereby promises to pay to
the order of Payee, the principal sum of [_______________ DOLLARS
($________)], or such lesser amount as may from time
to time be otherwise owing from Maker to Payee under this Note,
together with interest on the principal amount from time to time
outstanding hereunder accrued from the date hereof at the rate and
in the manner set forth below. All payments of principal
or interest or both shall be paid as set forth below, and each such
payment shall be made in lawful money of the United States of
America.
This Note is subject to
the following terms and conditions:
1.
Payments of Principal and
Interest .
(a)
Repayment . Unless otherwise repaid, exchanged or
converted as provided herein, the entire unpaid principal balance
of this Note, together with all accrued but unpaid interest
thereon, shall be due and payable in full on April __, 2011 (the
“ Maturity Date ”). Payee’s
conversion rights shall be extinguished upon payment in full of all
principal and accrued interest and all other amounts due hereunder
on or after the Maturity Date. Interest shall accrue and
be payable in arrears on the Maturity Date.
(b)
Prepayment . The Maker shall not have the right to
repay this Note or any Notes unless consented to in writing by the
Payee.
(c)
Manner of Payment
. Maker shall send a written
notice to the Holder not less then 15 days prior to the Maturity
Date requesting that the Holder inform the Maker as to whether the
Holder wishes to have the outstanding principal and interest due
under this Note repaid on the Maturity Date in either: (i)
immediately available funds, or (ii) shares of Common Stock at a
price per share equal to the then existing Conversion Price (as
defined below) (the “ Form of Payment Instruction
”). The Holder shall provide the Form of Payment
Instruction to the Maker in writing no later then three days prior
to the Maturity Date. Maker shall make payment in accordance with
the Form of Payment Instruction and the terms of this Note no later
than 5:30 p.m. E.S.T. on the date when
due. Each payment of principal and of
interest shall be paid by Maker without setoff or counterclaim to
Payee at Payee’s address set forth below, or to such other
location or accounts within the United States as Payee may specify
in writing to Maker from time to time. Notwithstanding
the foregoing, in the event that the Maker does not receive the
Form of Payment Instruction within the time frame set forth above,
the Maker shall be entitled to choose whether to repay the Note in
immediately available funds or shares of Common
Stock.
(d)
Cancellation; Surrender . After all amounts owed
on this Note have been satisfied in full and/or all amounts due
under this Note have been converted into Common Stock, this Note
will be surrendered to Maker, duly endorsed, at the principal
offices of Maker or any transfer agent for Maker. Payee
shall also execute and deliver any ancillary agreements as may be
reasonably requested to effect the exchange of this
Note. Maker shall pay any and all issue and other taxes,
if any, that may be payable in respect of any issue or delivery of
the securities hereunder.
(a) This
Note will bear interest at the rate of ten percent (10%) per year,
from the date hereof to and including the date of payment, exchange
or conversion of this Note. Interest on this Note shall
be calculated on the basis of actual days elapsed and a 360-day
year of twelve 30-day months, compounded annually.
(b) Interest
on this Note shall be due and payable on the earlier of (i)
conversion of the Notes by the Payee or (iii) the Maturity Date
(each such date, an “ Interest Payment
Date ”), except that if such date is not a business day
then the Interest Payment Date shall be the next day that is a
business day. Any accrued interest that is not otherwise paid in
cash or in shares of Common Stock on the applicable Interest
Payment Date (whether due to Maker’s inability to pay such
interest in cash or in shares of Common Stock) shall automatically,
and without any action on the part of Maker, accrue and be added to
the outstanding principal and interest due under the Note on such
Interest Payment Date.
(c) Interest
shall be paid in the same form (i.e. cash or share of Common Stock)
as the form in which the associated principal amount is
paid.
3.
Voluntary Conversion .
(a)
Generally . At any time at which there is principle or
interest outstanding under this Note, the Payee shall be entitled
upon written notice to the Maker to convert all of the principal
and interest due hereunder into shares of Common Stock of the
Maker. Such Conversion shall occur upon the date of the provision
of such written notice and shall be effectuated at a price (the
“ Conversion Price ”) per share equal to the
lower of: (i) $0.375 per share (as adjusted for stock splits,
combinations and the like) and (ii) the price per share (as
adjusted for stock splits, combinations and the like) of any shares
of Common Stock sold by the Company to any person or entity other
then pursuant to an Excluded Transaction (as defined below) while
this Note is outstanding. For the purposes hereof, the
term Exempted Tran