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Exhibit 10.2
 
Neither this Convertible Debenture nor the securities issuable upon conversion
hereof have been registered under the Securities Act of 1933 (the “Securities
Act”) or the securities laws of any applicable state or other
jurisdiction.  Neither this Convertible Debenture nor any interest therein may
be offered, sold, assigned, transferred, pledged, encumbered or otherwise
disposed of in the absence of such registration or an exemption from
registration.  If relying upon such an exemption, the Payee may be required to
submit to the Company a favorable opinion of counsel satisfactory to the
Company, or any such other evidence as may be satisfactory to the Company, to
the effect that the transaction is exempt from, or not subject to, the
registration requirements of the Securities Act of 1933 or of any other
applicable jurisdiction.

This Convertible Debenture was issued in exchange for a convertible debenture of
like tenure originally issued by Night Culture, Inc., a Texas corporation (the
“Subsidiary”), and assumed by the Company pursuant that certain Assignment and
Assumption Agreement executed as of February 27, 2012 by the Company and the
Subsidiary.  The issuance of this Convertible Debenture was exempt from
registration pursuant Section 3(a)(9) of the Securities Act.

2011 5% CONVERTIBLE DEBENTURE

NUMBER NC 2011- __________
 $10,000.00

UNITED STATES OF AMERICA
STATE OF NEVADA

NIGHTCULTURE, INC., a Nevada corporation, (hereinafter called the "Company"),
for value received, hereby promises to pay to
 
NAME: ______________________________________________
 
Street Address: _______________________________________
____________________________________________________
 
City:____________________     State: ____________________
 
Zip/Postal Code:__________     Country:__________

(hereinafter referred to as the "Payee" or the “holder”)
or registered assigns, in legal tender of the United States of America, the
principal sum of Ten Thousand Dollars ($10,000.00), together with interest
thereon accrued at the rate of five per cent (5%) per annum, on _________ ___,
20___ (the “Maturity Date”).  Interest shall accrue only on the outstanding
principal hereof.

 
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The principal sum, and all accrued but unpaid interest thereon, shall be due and
payable in full on and as of the Maturity Date.  Such payment shall be paid to
the registered owner of this 2011 5% Convertible Debenture (hereinafter referred
to as this "Convertible Debenture") as of the close of business on the Maturity
Date.
This Convertible Debenture is one of a series of duly authorized issue of 2011
5% Convertible Debentures of the Company for a minimum aggregate principal
amount (except as provided with respect to mutilated, destroyed, lost or stolen
Convertible Debentures) of at least $250,000, all of like tenor except as to
issuance date and maturity date, and each such Convertible Debenture that has
been issued or will be issued as a Unit with a warrant excercisable to purchase
500,000 shares of the Company’s common stock, $0.001 par value (the “Common
Stock”), at an exercise price equal to seventy percent (70%) of the average
closing price of the Company’s Common Stock for the twenty (20) trading days up
to and including the date of exercise (the “Warrant”).  This Convertible
Debenture and the rights of the Company and any holder shall be governed by the
law of Nevada.
If an Event of Default (as defined below) occurs and is continuing, the holder
of this Convertible Debenture may make all sums of principal, interest and other
fees then remaining unpaid under this Convertible Debenture and all other
amounts payable hereunder immediately due and payable, all without demand,
presentment or notice, or grace period, all of which hereby are expressly
waived.  So long as an Event of Default occurs and is continuing, this
Convertible Debenture shall bear interest at the rate equal to the lesser of (i)
18% per annum and (ii) the maximum lawful non-usurious contract rate of interest
allowed by applicable law, until such time as the Event of Default is cured or
outstanding principal and all accrued but unpaid interest on this Convertible
Debenture and any other amounts due there under are paid in full.
The occurrence of any of the following events is an Event of Default ("Event of
Default"):
A.           Failure to Pay Principal, Interest or other Fees.  The Company
fails to pay when due the principal, interest or other fees on this Convertible
Debenture and such failure continues for a period of ten (10) days after the due
date.
B.           Breach of Covenant.  The Company breaches any material covenant or
other term or condition of this Convertible Debenture or the Warrant in any
material respect and such breach, if subject to cure, continues for a period of
ten (10) days after written notice to the Company from the holder of this
Convertible Debenture.
C.           Receiver or Trustee.  The Company shall make an assignment for the
benefit of creditors, or apply for or consent to the appointment of a receiver
or trustee for it or for a substantial part of its property or business; or such
a receiver or trustee shall otherwise be appointed.

 
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D.           Judgments.  Any money judgment, writ or similar final process shall
be entered or filed against the Company or any of its property or other assets
for more than $50,000, and shall remain unvacated, unbonded or unstayed for a
period of ninety (90) days.
E.           Bankruptcy.  Bankruptcy, insolvency, reorganization or liquidation
proceedings or other proceedings or relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against the Company.
This Convertible Debenture is not subject to any call and redemption by the
Company.
All or any portion of the unpaid principal of this Convertible Debenture and/or
any accrued but unpaid interest thereon may be prepaid by the Company prior to
the Maturity Date, at any time, and from time to time, in whole or in
part.  Notwithstanding the foregoing, the Company shall not be permitted to use
the proceeds from any debt financing, including, but not limited to, any equity
line of credit provided by Calm Seas Capital, LLC, to repay the principal of
this Convertible Debenture and/or any accrued but unpaid interest thereon.
Subject to the provisions of this Convertible Debenture, at any time prior to
the date on which the principal of this Convertible Debenture and any accrued
but unpaid interest thereon has been paid in full (the “Conversion Period”), the
principal of this Convertible Debenture and all accrued but unpaid interest
thereon may be converted, at the option of the holder, into shares of Common
Stock at a conversion price equal to seventy percent (70%) of the Market Price
(as defined below) (the “Conversion Price”) by and upon submitting a notice of
conversion in the form annexed to this Convertible Debenture as Exhibit A
(“Notice of Conversion”); provided, however, that in no event shall the holder
be entitled to convert any portion of this Convertible Debenture in excess of
that portion of this Convertible Debenture upon conversion of which the sum of
(1) the number of shares of Common Stock beneficially owned by the holder and
its affiliates (other than shares of Common Stock which may be deemed
beneficially owned through the ownership of the unconverted portion of the
Convertible Debentures, the Warrants or the unexercised or unconverted portion
of any other security of the Company subject to a limitation on conversion or
exercise analogous to the limitations contained herein) and (2) the number of
shares of Common Stock issuable upon the exercise of this Convertible Debenture
with respect to which the determination of this proviso is being made, would
result in beneficial ownership by the holder and its affiliates of more than
4.99% of the outstanding shares of Common Stock.  For purposes of the proviso to
the immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, and Regulations 13D-G thereunder, except as otherwise provided in
clause (1) of such proviso.  Upon delivery to the Company of a Notice of
Conversion (the date of giving such Notice of Conversion being a “Conversion
Date”), the Company shall issue and deliver to the holder of this Convertible
Debenture within three business days from the Conversion Date that number of
shares of Common Stock for the portion of this Convertible Debenture converted
as set forth in the Notice of Conversion.  The number of shares of Common Stock
to be issued upon each conversion of this Convertible Debenture shall be
determined by dividing (i) that portion of the principal of this Convertible
Debenture(s) to be converted together with the accrued but unpaid interest
thereon, by (ii) the Conversion Price as of the Conversion Date.   For the
purpose of this Convertible Debenture, “Market Price” shall mean for the Common
Stock (or its successor security) (i) if the Common Stock is traded on a
securities exchange or through the Nasdaq Markets (such as Global or Global
Select or Capital Market) (“Nasdaq Market”), the average closing sales price of
the Common Stock on the Nasdaq Market on which the Common Stock is then listed
or quoted for trading as reported by Bloomberg L.P. over the twenty (20)
consecutive trading day period ending on the Conversion Date; (ii) if the Common
Stock is quoted for trading on the OTC Bulletin Board, the average closing sale
price of the Common Stock as so reported by the OTC Bulletin Board over the
twenty (20) consecutive trading day period ending on the Conversion Date; and
(iii) if prices for the Common Stock are then reported in any of the OTC Markets
(such as the OTCQX, OTCQB and OTC Pink but excluding the Grey Market) published
by OTC Markets Group Inc. (or a similar organization or agency succeeding to its
functions of reporting prices), the average of the last accepted bid price per
share of Common Stock as so reported over the twenty (20) consecutive trading
day period ending on the Conversion Date.  If the Common Stock is not listed for
trading eligible for quotation on any of the foregoing exchanges or public
markets, then this Convertible Debenture shall not be convertible unless and
until the Common Stock is so listed or eligible for quotation.

 
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The Conversion Price and number and kind of Common Stock or other securities to
be issued upon conversion of this Convertible Debenture shall be subject to
adjustment from time to time upon the happening of certain events during the
Conversion Period, as follows:

(i)           Merger, Sale of Assets, etc.  If the Company at any time shall
consolidate with or merge into or sell or convey all or substantially all its
assets to any other corporation, this Convertible Debenture, as to the unpaid
principal portion thereof and accrued but unpaid interest thereon, shall
thereafter be deemed to evidence the right to purchase such number and kind of
shares or other securities and property as would have been issuable or
distributable on account of such consolidation, merger, sale or conveyance, upon
or with respect to the number of shares of Common Stock the holder of this
Convertible Debenture could have acquired immediately prior to such
consolidation, merger, sale or conveyance based on the Conversion Price as of
the closing date thereof.  The foregoing provision shall similarly apply to
successive transactions of a similar nature by any such successor or purchaser.

 
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(ii)           Reclassification, etc.  If the Company at any time shall, by
reclassification or otherwise, change the Common Stock into the same or a
different number of securities of any class or classes, this Convertible
Debenture, as to the unpaid principal portion thereof together with the accrued
but unpaid interest thereon, shall thereafter be deemed to evidence the right to
purchase an adjusted number of such securities and kind of securities as would
have been issuable as the result of such change with respect to the number of
shares of Common Stock into which this Convertible Debenture would have been
convertible immediately prior to such reclassification or other change at the
Conversion Price as of the effective date for such reclassification or change.
(iii)           Stock Splits, Combinations and Dividends.  If the outstanding
shares of Common Stock are subdivided or combined into a greater or smaller
number of shares of Common Stock, or if a dividend is paid on the shares of
Common Stock in shares of Common Stock, the Conversion Price shall be
proportionately reduced in case of subdivision of shares or stock dividend or
proportionately increased in the case of combination of shares, in each such
case by the ratio which the total number of shares of Common Stock outstanding
immediately after such event bears to the total number of shares of Common Stock
outstanding immediately prior to such event.

 
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(iv)           Share Issuance.  If the Company at any time shall issue any
shares of Common Stock prior to the conversion of the entire principal amount of
this Convertible Debenture for a consideration less than the Conversion Price
that is in effect at the time of such issue (other than pursuant to any of the
Exiting Stock Obligations (as defined below)), then, and thereafter successively
upon each such issue, the Conversion Price shall be reduced to a quotient
determined as follows:  (1) the sum of (X) number of shares of Common Stock
outstanding immediately prior to such issuance shall be multiplied by the
Conversion Price in effect at the time of such issuance plus (Y) the aggregate
consideration, if any, received by the Company upon such issuance of additional
shares of Common Stock, divided by (2) the number of shares of Common Stock
outstanding immediately after such issue.  Except for the Existing Option
Obligations (as defined below), for purposes of this adjustment, the issuance of
any security of the Company carrying the right to convert such security into
shares of Common Stock or of any warrant, right or option to purchase shares of
Common Stock shall result in an adjustment to the Conversion Price upon the
issuance of the shares of Common Stock upon exercise of such conversion or
purchase rights.  “Existing Stock Obligations” shall mean shares of Common Stock
issued pursuant to (i) the conversion of other 2011 5% Convertible Debentures
issued with the Units; (ii) the exercise of the Warrants issued with the Units;
(iii) warrants or options that may be granted in the future under any option
plan of the Company, or any employment agreement, joint venture, credit, leasing
or other financing agreement or any joint venture or other strategic
arrangement, in each case  now or hereinafter entered into by the Company; (iv)
any agreement entered into by the Company or any of its subsidiaries for the
acquisition of another business (whether by stock purchase or asset purchase,
merger or otherwise); or (v) other obligations to issue securities of the
Company outstanding on the date hereof.
During the period the conversion right exists under this Convertible Debenture,
the Company will reserve from its authorized and unissued Common Stock a
sufficient number of shares to provide for the issuance of shares of Common
Stock upon the full conversion of the principal of this Convertible Debenture
and all accrued but unpaid interest thereon based on the then applicable
Conversion Price as of any specific date.  The Company represents that upon
issuance, such shares will be duly and validly issued, fully paid and
non-assessable.  The Company agrees that its issuance of this Convertible
Debenture shall constitute full authority to its officers, agents, and transfer
agents who are charged with the duty of executing and issuing stock certificates
to execute and issue the necessary certificates for Common Stock upon the
conversion of this Convertible Debenture.

 
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This Convertible Debenture may be converted by the holder in whole or in part as
described herein.  Upon partial conversion of this Convertible Debenture, a new
Convertible Debenture containing the same date and provisions of such
Convertible Debenture shall, at the request of the holder, be issued by the
Company to holder for the principal balance of this Convertible Debenture and
accrued but unpaid interest (provided, however, such unpaid interest shall not
bear interest) which shall not have been converted.
The holder of this Convertible Debenture acknowledges and understands that the
shares of Common Stock issued upon the conversion of this Convertible Debenture
will be restricted securities under the Securities Act of 1933 (the “Securities
Act”), and the certificate(s) representing such Common Stock shall bear the
following legend:

"THE SECURITIES REPRESENTED HEREBY MAY NOT BE TRANSFERRED UNLESS (I) SUCH
SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933,
AS AMENDED, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144, OR (III) THE
COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT
SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS”

Prior to the conversion of this Convertible Debenture, the Payee shall not have
or exercise any rights as a shareholder of the Company by virtue of its
ownership of this Convertible Debenture.
This Convertible Debenture has not been registered under the Securities Act and
may not be sold, transferred, pledged, hypothecated or otherwise disposed of
unless there is an effective registration statement with respect to it or there
is an exemption from such registration available under the circumstances.
Subject to the foregoing restriction on transfer, this Debenture is transferable
on the books of the Company, to be kept at the office of the Company in Houston,
Texas, by the registered owner hereof in person, or by an attorney duly
authorized in writing, upon surrender and cancellation of this Convertible
Debenture.  Upon any such transfer, a new Convertible Debenture or Debentures of
the same issue and for the same aggregate original face amount shall be issued
to the transferee in exchange therefor; provided, nevertheless, that the actual
liability of the Company shall be limited to the actual unpaid principal amount
outstanding as of the date of transfer, together with any accrued but unpaid
interest thereon.  The Company may deem or treat the person in whose name this
Convertible Debenture shall at the time be registered as the absolute owner
hereof for the purposes of transfer and receiving payment of principal and/or
interest as well as for all other purposes whatsoever and the Company shall not
be affected by any notice to the contrary.

 
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IN WITNESS WHEREOF, NightCulture, Inc. has caused this Convertible Debenture to
be signed by its Chief Executive Officer and attested by its Secretary, or an
Assistant Secretary, and this Debenture to be dated as of February    , 20__.

 
NIGHTCULTURE, INC.
       
ATTEST:
       
By:_________________________________
 
      Chief Executive Officer
   
______________________________
 

Secretary

 
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ASSIGNMENT
 
 
For value received, the undersigned hereby sells, assigns and transfers to:

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all his/hers/their interest represented by the within Convertible Debenture and
does hereby authorize, empower, and
appoint                                                        , attorney to
make the necessary transfer on the books of the Company, with full power of
substitution in the premises.
 
DATED:                            , 20____

WITNESS:

____________________
_____________________________(L.S.)
 
                               (Registered Owner)
   
____________________
_____________________________(L.S.)
 
                              (Registered Co-Owner)

 
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EXHIBIT A

NOTICE OF CONVERSION
(To be Executed by the Registered Holder
in order to Convert the Convertible Debentures)

The undersigned hereby irrevocably elects to convert ______________principal
amount of the Convertible Debenture (defined below) into shares of Common Stock,
par value $0.001 ("Common Stock"), of NightCulture, Inc., a Nevada corporation
(the "Company"), according to the conditions of the 2011 5% convertible
debentures of the Company (the "Convertible Debentures"), as of the date written
below.  If securities are to be issued in the name of a person other than the
undersigned, the undersigned will pay all transfer taxes payable with respect
thereto and is delivering herewith such certificates.  No fee will be charged to
the Holder for any conversion, except for transfer taxes, if any.  A copy of
each Convertible Debenture is attached hereto (or evidence of loss, theft or
destruction thereof).

The undersigned represents and warrants that all offers and sales by the
undersigned of the securities issuable to the undersigned upon conversion of the
Convertible Debentures shall be made pursuant to registration of the securities
under the Securities Act of 1933, as amended (the "Act"), or pursuant to an
exemption from registration under the Act.

Date of Conversion: __________________________________________
 
Applicable Conversion Price: ___________________________________
 
Number of Shares of Common Stock to be Issued Pursuant to
Conversion of the Convertible Debentures: __________________
 
Signature: _________________________________________________
 
Name: _____________________________________________
 
Address: ____________________________________________
 

MAIL THE STOCK CERTIFICATE TO THE ADDRESS BELOW:

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