Exhibit 10.2


 


NOTE
PURCHASE AGREEMENT


 


NOTE
PURCHASE AGREEMENT (the “Agreement”), dated as of January __, 2018, by and among Helios and Matheson Analytics
Inc., a Delaware corporation with offices located at Empire State Building, 350 5th Avenue, New York, New York 10118 (the “Company”)
and the investor signatory hereto (the “Investor”).


 


WHEREAS:


 


A.       Concurrently
herewith, the Company, the Investor and certain other investors (the “Other Investors”, and together with the
Investor, the “Investors”) have entered into that certain Securities Purchase Agreement, dated January __,
2018, pursuant to which, among other things, the Investors shall acquire certain senior secured convertible note (the “Series
B-1 Notes”) of the Company (the “Securities Purchase Agreement”).


 


B.       The
Company and the Investor is executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), as promulgated by the
United States Securities and Exchange Commission (the “SEC”) under the 1933 Act.


 


C.       The
Investor has authorized the issuance of a new secured promissory Investor Note in substantially the form attached hereto as Exhibit
A, pursuant to the terms set forth herein (collectively, the “Investor Note”).


 


D.       The
Investor wishes to purchase Series B-1 Notes from the Company pursuant to the Securities Purchase Agreement and to issue the Investor
Note in full satisfaction, of the purchase price of the Series B-1 Notes (the “Series B-1 Purchase Price”),
and the Company wishes to sell the Series B-1 Note to the Investor and wishes to acquire the Investor Note in full satisfaction
of the Series B-1 Purchase Price.


 


E.       The
Investor Note will be secured by a first priority security interest in certain Eligible Assets (as defined in the Investor Note)
(collectively, the “Collateral”) held in the collateral account of the Investor described in the Investor Note
(the “Collateral Account”).


 


F.       Concurrently
herewith, each of the Company and the Investor are entering into that certain Master Netting Agreement, in substantially the form
attached hereto as Exhibit B (the “Master Netting Agreement”), to provide further clarification
of its right (but not, in the case of Investor only, its obligation) to Net (as defined below) certain Obligations (as defined
in the Netting Agreement) arising under and across this Agreement, the Investor Note, the Series B-1 Notes and the Securities
Purchase Agreement (collectively, the “Underlying Agreements”) and to treat the Master Netting Agreement, this
Agreement and the other Underlying Agreements as a single agreement for the purposes set forth herein and this Agreement and the
Securities Purchase Agreement each as a “securities contract” (11 U.S.C. § 741), or other similar agreements.


 






     

     


    

 


NOW,
THEREFORE, the Company and the Investor hereby agree as follows:


 


1.       PURCHASE
AND SALE OF INVESTOR NOTE.


 


(a)       Investor
Note. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 5 and 6 below, the Investor agrees to
issue and sell to the Company, and the Company agrees to purchase from the Investor on the Closing Date (as defined below), such
aggregate principal amount of Investor Note as is set forth on the signature page of the Investor attached hereto in full satisfaction
of the Series B-1 Purchase Price under the Securities Purchase Agreement (the “Closing”).


 


(b)       Closing.
The Closing of the purchase of the Investor Note by the Company shall occur at the offices of Kelley Drye & Warren LLP, 101
Park Avenue, New York, NY 10178. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m.,
New York time, on the first (1st) Business Day on which the conditions to the Closing set forth in Sections 5 and 6 below are
satisfied or waived (or such other date or time as is mutually agreed to by the Company and the Investor). As used herein “Business
Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized
or required by law to remain closed.


 


(c)       Delivery
of Investor Note in Satisfaction of Series B-1 Purchase Price; Securities Contract; Netting Safe Harbor. On the Closing Date,
the Investor shall deliver to the Investor the Investor Note duly executed on behalf of the Investor and registered in the name
of the Company and delivered in full satisfaction of the Series B-1 Purchase Price pursuant to the Securities Purchase Agreement.
Other than the issuance of the Series B-1 Note to the Investor, the Company shall not be required to pay any additional consideration
for the issuance of the Investor Note hereunder. The Company hereby acknowledges and agrees that the rights and obligations of
the Investor under the Master Netting Agreement, hereunder and under the other Underlying Agreements and the rights and obligations
of the Company under the Master Netting Agreement, hereunder and under the other Underlying Agreements arise in a single integrated
transaction and constitute related and interdependent obligations within such transaction. The Company and the Investor hereby
acknowledge and agree that this Agreement and the Securities Purchase Agreement each is a “securities contract” as
defined in 11 U.S.C. § 741 and that Investor shall have all rights in respect of the Master Netting Agreement, this Agreement
and the other Underlying Agreements as are set forth in 11 U.S.C. § 555 and 11 U.S.C. § 362(b)(6), including, without
limitation, all rights of credit, deduction, setoff, offset, recoupment, and netting (collectively, “Netting”)
as are available under the Master Netting Agreement, this Agreement and the other Underlying Agreements, and all Netting provisions
of the Series B-1 Note, the Master Netting Agreement and the Investor Note, including without limitation the provisions set forth
in Section 7 of the Investor Note, are hereby incorporated in this Agreement and made a part hereof as if such provisions were
set forth herein.


 






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2.       COMPANY’S
REPRESENTATIONS AND WARRANTIES.


 


The
Company represents and warrants, as of the date hereof and as of the Closing Date in which the Company is purchasing the Investor
Note hereunder, that:


 


(a)       Securities
Purchase Agreement. The representations and warranties of the Company set forth in the Securities Purchase Agreement are hereby
incorporated by reference herein, mutatis mutandis.


 


(b)       No
Sale or Distribution. The Company is acquiring the Investor Note for its own account and not with a view towards, or for resale
in connection with, the public sale or distribution thereof. The Company does not presently have any agreement or understanding,
directly or indirectly, with any Person (as defined in the Securities Purchase Agreement) to distribute any of the Investor Note.


 


(c)       Sophisticated
Investor. The Company is a sophisticated investor (as described in Rule 506(b)(2)(ii) of Regulation D), and has such knowledge
and experience in business and financial matters that it is capable of evaluating the merits and risks of an investment in the
Investor Note.


 


(d)       Reliance
on Exemptions. The Company understands that the Investor Note is being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and state securities laws and that the Investor is relying in part
upon the truth and accuracy of, and the Company’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Company set forth herein in order to determine the availability of such exemptions and the eligibility
of the Company to acquire the Investor Note.


 


(e)       Information.
The Company and its advisors, if any, have been furnished with all materials relating to the business, finances and operations
of the Investor and materials relating to the offer and sale of the Investor Note that have been requested by the Company. The
Company and its advisors, if any, have been afforded the opportunity to ask questions of the Investor. Neither such inquiries
nor any other due diligence investigations conducted by the Company or its advisors, if any, or its representatives shall modify,
amend or affect the Company’s right to rely on the Investor’s representations and warranties contained herein. The
Company understands that its investment in the Investor Note involves a high degree of risk. The Company has sought such accounting,
legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of
the Investor Note.


 


(f)       No
Governmental Review. The Company understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Investor Note or the fairness or suitability of the investment
in the Investor Note nor have such authorities passed upon or endorsed the merits of the offering of the Investor Note.


 


(g)       Transfer
or Resale. The Company understands that: (i) the Investor Note has not been and is not being registered under the 1933 Act
or any state securities laws, and may not be offered for sale, sold, assigned or transferred without the consent of the Investor
(and any Prohibited Transfer (as defined in the Investor Note) shall be subject to certain recoupment rights and netting against
the Series B-1 Note to be issued to the Investor concurrently with the Closing hereunder) and (ii) neither the Investor nor any
other Person is under any obligation to register the Investor Note under the 1933 Act or any state securities laws or to comply
with the terms and conditions of any exemption thereunder.


 






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(h)       Legends.
The Company understands that the certificates or other instruments representing the Investor Note shall bear any legend as required
by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of such stock certificates):


 


THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE APPLICABLE STATE SECURITIES
LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT AND SUCH STATE SECURITIES
LAWS, OR AN EXEMPTION FROM REGISTRATION THEREUNDER, IN EACH CASE, TO THE EXTENT APPLICABLE HERETO.


 


3.       REPRESENTATIONS
AND WARRANTIES OF THE INVESTOR.


 


The
Investor represents and warrants to the Company as of the date hereof and as of the Closing Date as follows:


 


(a)       Securities
Purchase Agreement. The representations and warranties of the Investor set forth in the Securities Purchase Agreement are
hereby incorporated by reference herein, mutatis mutandis.


 


(b)       Authorization;
Enforcement; Validity. The Investor has the requisite corporate power and authority to enter into and perform its obligations
under this Agreement and the Investor Note and each of the other agreements entered into by the parties hereto in connection with
the transactions contemplated by this Agreement (collectively, the “Transaction Documents”) and to issue the
Investor Note in accordance with the terms hereof and thereof. The execution and delivery of the Transaction Documents by the
Investor and the consummation by the Investor of the transactions contemplated hereby and thereby, including, without limitation,
the issuance of the Investor Note has been duly authorized by the Investor’s board of directors, investment manager or other
governing body and no further filing, consent, or authorization is required by the Investor. This Agreement and the other Transaction
Documents have been duly executed and delivered by the Investor, and constitute the legal, valid and binding obligations of the
Investor, enforceable against the Investor in accordance with their respective terms, except as such enforceability may be limited
by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws
relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.


 


(c)       Issuance
of Investor Note. The issuance of the Investor Note is duly authorized and upon issuance in accordance with the terms of the
Transaction Documents shall be free from all taxes, liens and charges with respect to the issue thereof. Assuming the accuracy
of each of the representations and warranties set forth in Section 2 of this Agreement, the offer and issuance by the Investor
of the Investor Note is exempt from registration under the 1933 Act.


 






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(d)       No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Investor and the consummation by the
Investor of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Investor Note)
will not (i) result in a violation of the Investor’s organizational documents or (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights
of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Investor is a
party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and
state securities laws and regulations) applicable to the Investor or by which any property or asset of the Investor is bound or
affected, except, in the case of clause (ii) and (iii) above, for such violations, conflicts, breaches, defaults, losses, terminations
of rights thereof, or accelerations which, in the aggregate, would not reasonably be expected to have a Material Adverse Effect
(as defined below). “Material Adverse Effect” means any material adverse effect on (i) the business, properties,
assets, liabilities, operations (including results thereof) or condition (financial or otherwise) of the Investor, (ii) the transactions
contemplated hereby or in any of the other Transaction Documents or (iii) the authority or ability of the Company or any of its
Subsidiaries (as defined in the Securities Purchase Agreement) to perform any of their respective obligations under any of the
Transaction Documents.


 


(e)       Consents.
The Investor is not required to obtain any consent, authorization or order of, or make any filing or registration with, any government,
court, regulatory, self-regulatory, administrative agency or commission or other governmental agency, authority or instrumentality,
domestic or foreign, of competent jurisdiction (a “Governmental Authority”) or any other Person in order for
it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents, in each case in accordance
with the terms hereof or thereof. The Investor is unaware of any facts or circumstances that might prevent the Investor from obtaining
or effecting any of the registration, application or filings pursuant to the preceding sentence.


 


(f)       No
General Solicitation. The Investor has not engaged in any form of general solicitation or general advertising (within the
meaning of Regulation D) in connection with the offer or sale of the Investor Note.


 


(g)       No
Integrated Offering. Neither the Investor nor any Person acting on its behalf has, directly or indirectly, made any offers
or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the
issuance of the Investor Note under the 1933 Act, whether through integration with prior offerings or otherwise. Neither the Investor
nor any Person acting on their behalf will take any action or steps referred to in the preceding sentence that would require registration
of the issuance of any of the Investor Note under the 1933 Act.


 


(h)       Sufficient
Collateral. As of the Closing Date the bank account described on Schedule I to the Investor Note, which Collateral secures
the Investor Note in accordance therewith, contains at least the Series B-1 Purchase Price of Eligible Assets as of the Closing
Date.


 


(i)       Full
Recourse. The Investor Note is a full recourse obligation of the Investor.


 






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4.       COVENANTS.


 


(a)       Reasonable
Best Efforts. Each party shall use its reasonable best efforts timely to satisfy each of the conditions to be satisfied by
it as provided in Sections 5 and 6 of this Agreement.


 


(b)       Fees.
The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or broker’s
commissions relating to or arising out of the transactions contemplated hereby. The Company shall pay, and hold the Investor harmless
against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees and out-of-pocket expenses)
arising in connection with any claim relating to any such payment. Except as otherwise set forth in the Transaction Documents
or the Securities Purchase Agreement, each party to this Agreement shall bear its own expenses in connection with the sale of
the Investor Note to the Investors.


 


(c)       Taxes.
The Company will pay, and save and hold the Investor harmless from any and all liabilities (including interest and penalties)
with respect to, or resulting from any delay or failure in paying, stamp and other taxes (other than income taxes), if any, which
may be payable or determined to be payable on the execution and delivery or acquisition of the Investor Note.


 


5.       CONDITIONS
TO THE INVESTOR’S OBLIGATION TO SELL. 


 


The obligation of the Investor hereunder to issue and sell the Investor Note to
the Company at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions,
provided that these conditions are for the Investor’s sole benefit and may be waived by the Investor at any time in its
sole discretion by providing the Company with prior written notice thereof:


 


(a)       The
Company shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Investor.


 


(b)       All
conditions to the Investor’s closing of the transactions contemplated by the Securities Purchase Agreement shall have been
satisfied (except for such conditions waived by the Investor) and the Investor Note is being issued hereunder in full satisfaction
of the Series B-1 Purchase Price.


 


(c)       The
representations and warranties of the Company shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date,
which shall be true and correct as of such specified date), and the Company shall have performed, satisfied and complied in all
material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the Closing Date.


 






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6.       CONDITIONS
TO THE COMPANY’S OBLIGATION TO PURCHASE.


 


The obligation of the Company hereunder to purchase the Investor Note at the
Closing in satisfaction, in full, of the Series B-1 Purchase Price is subject to the satisfaction, at or before the Closing Date,
of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived
by the Company at any time in its sole discretion by providing the Investor with prior written notice thereof:


 


(a)       The
Investor shall have duly executed and delivered to the Company (A) each of the Transaction Documents and (B) the Investor
Note.


 


(b)       All
conditions to the Company’s closing of the transactions contemplated by the Securities Purchase Agreement shall have been
satisfied (except for such conditions waived by the Company) and the Investor Note is being issued hereunder in full satisfaction
of the Series B-1 Purchase Price.


 


(c)       The
representations and warranties of the Investor shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date,
which shall be true and correct as of such specified date), and the Investor shall have performed, satisfied and complied in all
material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied
with by the Investor at or prior to the Closing Date.


 


(d)       The
Investor shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Investor Note.


 


7.       TERMINATION.


 


In
the event that the Closing shall not have occurred on or prior to the termination of the Securities Purchase Agreement, this Agreement
shall automatically terminate.


  


8.       MISCELLANEOUS.


 


(a)     Governing
Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of
this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the
application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service
of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such
party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY.


 






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(b)    Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that
any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of
an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.


 


(c)     Headings;
Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation
of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine,
feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include”
and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,”
“hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision
in which they are found.


 


(d)    Severability.
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability
of any provision of this Agreement in any other jurisdiction.


 


(e)    Entire
Agreement; Amendments. This Agreement, the Securities Purchase Agreement, the other Transaction Documents (as defined herein)
and the Transaction Documents (as defined in the Securities Purchase Agreement) and the schedules and exhibits attached hereto
and thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the
Investors, the Company, its Subsidiaries, their affiliates and Persons acting on their behalf solely with respect to the matters
contained herein and therein, and this Agreement, the other Transaction Documents (as defined herein) and the Transaction Documents
(as defined in the Securities Purchase Agreement), the schedules and exhibits attached hereto and thereto and the instruments
referenced herein and therein contain the entire understanding of the parties solely with respect to the matters covered herein
and therein; provided, however, nothing contained in this Agreement or any other Transaction Document or the Transaction Documents
(as defined in the Securities Purchase Agreement) shall (or shall be deemed to) (i) have any effect on any agreements the Investor
has entered into with the Company or any of its Subsidiaries prior to the date hereof with respect to any prior investment made
by the Investor in the Company or (ii) waive, alter, modify or amend in any respect any obligations of the Company or any of its
Subsidiaries, or any rights of or benefits to the Investor or any other Person, in any agreement entered into prior to the date
hereof between or among the Company and/or any of its Subsidiaries and the Investor and all such agreements shall continue in
full force and effect. Except as specifically set forth herein or therein, neither the Company nor the Investor makes any representation,
warranty, covenant or undertaking with respect to such matters. For clarification purposes, the Recitals are part of this Agreement.
No provision of this Agreement may be amended or waived other than by an instrument in writing signed by the Company, the Investor
and the Required Holders.


 






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(f)     Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement shall
be governed by the provisions of Section 9(f) of the Securities Purchase Agreement.


 


(g)    Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns. No party may assign this Agreement or any rights or obligations hereunder without the prior written consent of the
other party.


 


(h)     No
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted
successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.


 


(i)      Survival.
The representations, warranties, agreements and covenants shall survive each Closing. The Investor shall be responsible only for
its own representations, warranties, agreements and covenants hereunder.


 


(j)      Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.


 


(k)     Construction.
The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and
no rules of strict construction will be applied against any party.


 


[Signature
Page Follows]


 




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IN
WITNESS WHEREOF, the Investor and the Company have caused their respective signature page to this Note Purchase Agreement
to be duly executed as of the date first written above.


 


	 	COMPANY:
	 	 
	 	HELIOS
    AND MATHESON ANALYTICS INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:


 




     

     


    

 


IN
WITNESS WHEREOF, the Investor and the Company have caused their respective signature page to this Note Purchase Agreement
to be duly executed as of the date first written above.


 


	 	INVESTORS:
	 	 
	 	HUDSON
    BAY MASTER FUND LTD
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:


 


	 	Aggregate
    Principal Amount of Investor Note:
	 	 
	 	$25,000,000