EXHIBIT 10.2

 

CARDIOGENICS HOLDINGS INC.

6295 Northam Drive, Unit 8

Mississauga, Ontario L4V 1W8 Canada

Tel: 905.673.8501   Ÿ   Fax: 905.673.9865

 

 

 

___________________, 2013

 

___________________________

___________________________

___________________________

 

Re:Interest Escrow Account / Series B Convertible Debenture No. SBCD-__ dated
____________, 2013 in the Original Principal Amount of $________________ (the
“Debenture”)

 

Dear _________________:

 

This will confirm, as required by § 1 (b) of the Debenture, that CardioGenics
Holdings Inc. (“CardioGenics”) will establish an escrow account with TD Bank
Canada (or such other comparable bank as CardioGenics may determine) through
which CardioGenics shall make the required monthly interest payments to you
pursuant to the terms of the Debenture (the “Interest Escrow Account”).

 

The Interest Escrow Account shall be established prior to the date the first
interest payment under the Debenture is due and payable. Further, at the time
the Interest Escrow Account is established, CardioGenics will deposit into the
Interest Escrow Account an amount equal to 12 months’ interest under the
Debenture. Based on the 10% interest rate under the Debenture, the amount of
that deposit will be $_______________. The Interest Escrow Account will not be
segregated and, therefore, will also contain funds that will be used by
CardioGenics to make interest payments under other debentures. Notwithstanding
this, the Interest Escrow Account will maintain an amount sufficient to pay the
unpaid interest accrued under the Debenture during the first 12 months of the
term of the Debenture.

 

After the first 12 interest payments are made to you from the Interest Escrow
Account, all ensuing interest payments under the Debenture will no longer be
made out of the Interest Escrow Account and will instead be made to you out of
CardioGenics’ general corporate accounts.

 

 

 

 

____________________________

Interest Escrow Account

_____________________, 2013

Page -2-

 

 

All interest payments shall be made to you, via wire transfer, in accordance
with written wire instructions to be provided by you to CardioGenics.

 

If the foregoing accurately reflects your understanding of the terms regarding
the Interest Escrow Account related to the Debenture, please indicated your
agreement and acceptance by signing in the space provided below and returning to
us a signed copy of this agreement.

 

Sincerely yours,   CARDIOGENICS HOLDINGS INC.         By:       Yahia Gawad, CEO
        AGREED AND ACCEPTED: