Exhibit 4.1


 


	
        REVOLVING CREDIT FACILITY

        INITIAL FACILITY FUNDING $200,000

        (SUBJECT TO INCREASE UP TO $400,000)
	
        November 14, 2018

        Fort Collins, Colorado



 


SECURED PROMISSORY NOTE


 


FOR VALUE RECEIVED,
the undersigned, C-Bond Systems, Inc. (fka WestMountain Alternative Energy, Inc.), a
Colorado corporation (“Borrower), promises to pay to the order of BOCO Investments, LLC, a Colorado
limited liability company (the “Lender,” which term will include any transferee of this Note), the outstanding
principal balance as set forth in the last entry on the Schedule (as defined in Section 1 below), together with interest (as provided
in Section 2 below) and such other amounts as are due and payable by Borrower to Lender pursuant to that REVOLVING
CREDIT FACILITY LOAN And SECURITY
AGREEMENT by and between the Borrower and the Lender of even date herewith (as such may be amended, modified, supplemented
or restated hereafter, the “Loan Agreement”). This Secured Promissory Note (“Note”)
is issued pursuant to the terms of the Loan Agreement and additional rights and obligations of the Lender and the Borrower are
set forth therein. Terms used but not defined herein shall have the meanings ascribed to such terms in the Loan Agreement. All
outstanding principal and accrued interest under this Note shall be due and payable on November 14, 2020 (the “Maturity
Date”) if not sooner pre-paid by Borrower.


 


1. 
Lender has advanced to Borrower the initial loan sum of Two Hundred Thousand Dollars ($200,000.00) at Closing. Lender may
advance additional loans to Borrower as set forth in the Loan Agreement up to a Maximum Loan Amount of Four Hundred Thousand Dollars
($400,000.00). Lender shall keep a spreadsheet (the “Schedule”) in which Lender shall enter: (a) the
principal amount of each loan it makes to the Borrower pursuant to this Note and the accompanying Loan Agreement (collectively,
the “Transaction Agreements”); (b) interest, fees or other charges payable by Borrower under the Transaction
Agreements; (c) the amount of any payment made by the Borrower in satisfaction of any amount due under the Transaction Agreements;
(d) the manner in which any payment by the Borrower is applied; and, (e) the outstanding principal and interest balance under this
Note as of the date of each payment or Loan Date. Lender need not calculate accrued interest, penalties or other amounts except
on payment dates (to include the Maturity Date) or Loan Dates (such that the Schedule may accurately reflect amounts due and owing
on such dates). The Borrower hereby authorizes Lender to keep the Schedule as described in Section 1.2 of the Loan Agreement.Borrower
may request a copy of the Schedule from Lender at any time upon ten (10) Business Days’ notice. A copy of the Schedule, signed
and dated by Lender, must be attached as Exhibit A hereto in the event of any transfer or assignment of this Note or in
the event Lender commences legal action to enforce the same.


 


2. The
Borrower will pay interest as follows:


 


		a.	On the outstanding principal balance advanced to Borrower under the Transaction Agreements accrued
at the rate of twelve percent (12%) per annum, compounded annually.



 


		b.	Upon the occurrence of an Event of Default under the Transaction Agreements, all amounts then outstanding
under this Note (including principal and interest) shall bear interest at the rate of eighteen percent (18%) per annum, compounded
annually, until the Event of Default is cured.



 



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		c.	Interest will accrue from day to day and will be calculated on the basis of a year of three hundred
and sixty five (365) days and on the basis of the actual number of days elapsed.



 


		d.	Notwithstanding any other provision of the Transaction Agreements, interest under the Transaction
Agreements shall not exceed the maximum rate permitted by law. If any amount is paid under the Transaction Agreements as interest
in excess of such maximum rate, then the amount so paid will not constitute interest but will constitute a payment on account of
the principal amount advanced to the Borrower pursuant to the Transaction Agreements. If such excessive interest exceeds the unpaid
principal balance of this Note, such excess shall be refunded to Borrower.



 


3. 
The Borrower shall make such mandatory pre-payments to Lender as required in the Loan Agreement and shall pay to Lender
all principal and accrued interest on or before the Maturity Date. All payments received from Borrower for application to amounts
due under this Note shall first be applied to interest, then to any costs, fees or other amounts chargeable by Lender under the
Transaction Agreements, then to outstanding principal. All payments shall be in lawful money of the United States of America in
immediately available funds and made to the Lender at 262 E. Mountain Avenue, Fort Collins, CO 80524 or at such other place as
Lender may designate in writing.


 


4. The Borrower
may, at any time and from time to time, make prepayments on account of the interest on and principal of this Note without
prepayment penalty.


 


5. The Lender may
effect payment of any amount owing under this Note by setting off against that amount any amount which the Lender owes to the
Borrower.


 


6. Borrower shall
make all payments under this Note without defense, set-off or counterclaim on its part.


 


7.
Borrower’s obligations under this Note are secured by the Loan Agreement.


 


8. The Borrower
agrees to pay on demand (i) all expenses (including, without limitation, legal fees and disbursements) incurred in connection
with the negotiation and preparation of this Note and any documents in connection with this Note, and (ii) all expenses of
collecting and enforcing this Note and any guarantee or collateral securing this Note, including, without limitation,
expenses and fees of legal counsel, court costs and the cost of appellate proceedings, all as set forth in further detail in
the Loan Agreement.


 


9. The occurrence
of any Event of Default (as that term is defined in the Loan Agreement) shall also constitute an Event of Default under this
Note.


 


10. Upon
the occurrence or existence of any Event of Default, immediately and without notice, all outstanding obligations payable
by Borrower hereunder shall automatically become immediately due and payable. In addition to and not in lieu of the
foregoing remedies, upon the occurrence or existence of any Event of Default, Lender may exercise all other rights, powers or
remedies granted to it under this Note, the Loan Agreement or otherwise permitted to it by law (including but not limited
to foreclosure of the security interest granted in the Loan Agreement), either by suit in equity or by action at law, or
both, all such remedies being cumulative.


 



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11. So
long as Borrower shall have any obligation under this Note, Borrower shall not, without Lender’s written consent, lend
money, give credit or make advances to any person, firm, joint venture or corporation or other entity, including,
without limitation, officers, directors, employees, subsidiaries and affiliates of Borrower, except loans, credits or
advances made in the ordinary course of business in connection with Borrower’s sales to third party customers.


 


12. So long as
Borrower shall have any obligation under this Note, Borrower shall not, without the Lender’s prior written consent,
assume, guarantee, endorse, contingently agree to purchase or otherwise become liable upon the obligation of any person,
firm, partnership, joint venture or corporation, except by the endorsement of negotiable instruments for deposit or
collection.


 


13. Borrower
unconditionally waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and
all other notices or demands relative to this Note.


 


14. No failure by
Lender to exercise, or delay by Lender in exercising, any right or remedy hereunder shall operate as a waiver thereof or of
any other right or remedy and no single or partial exercise of any right or remedy shall preclude any other or further
exercise thereof or of any other right or remedy. Lender may not waive any of its rights under this Note except by an
instrument in writing signed by it.


 


15. If any
provision of this Note shall be judicially determined to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.


 


16. This Note
shall be governed by and construed under the laws of the State of Colorado, as applied to agreements among Colorado residents
made and to be performed entirely within the State of Colorado, without giving effect to conflicts of laws principles that
would result in the application of any law other than Colorado law. Exclusive venue for all actions arising out of this Note
shall be in the District Court in and for Larimer County, Colorado.


 


17. In
addition to the obligations recited herein and contemplated to be performed, executed, and/or delivered by Borrower, Borrower
agrees to perform, execute, and/or deliver or cause to be performed, executed, and/or delivered any and all such
further acts, instruments, deeds, and assurances, at Borrower’s sole cost and expense, as may be reasonably required by
Lender to consummate all transactions contemplated by the Transaction Agreements.


 


18. This
Note may not be amended without the written approval of the Lender and Borrower.


 




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Dated on the date first set forth above.


 


	 	Borrower:
	 	 
	 	C-BOND SYSTEMS, INC., a Colorado corporation
	 	 
	 	By:	/s/ Scott R. Silverman
	 	Print Name: Scott R. Silverman
	 	Its: Chief Executive Officer



 




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EXHIBIT A


 


SCHEDULE 


 


(To be attached in the event of assignment,
transfer, or commencement of legal action to enforce Transaction Agreements)


 



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