Exhibit 10.2


 





THIS NOTE (AS DEFINED BELOW) MAY NOT
BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE ALIENATED OR ENCUMBERED WITHOUT THE PRIOR WRITTEN CONSENT OF
INVESTOR (AS DEFINED BELOW). THIS NOTE IS SUBJECT TO A RIGHT OF OFFSET IN FAVOR OF INVESTOR UPON THE OCCURRENCE OF CERTAIN EVENTS
AS SET FORTH IN MORE DETAIL IN SECTION 6 BELOW.


 


	$500,000.00	
        State of Utah

        March 26, 2019



 


INVESTOR NOTE


 


FOR
VALUE RECEIVED, Iliad Research and Trading, L.P., a Utah limited partnership (“Investor”),
hereby promises to pay to Future FinTech Group Inc., a Delaware corporation (“Company”,
and together with Investor, the “Parties”), the principal sum of $500,000.00 together with all accrued and unpaid
interest thereon, fees incurred or other amounts owing hereunder, all as set forth below in this Investor Note (this “Note”).
This Note is issued pursuant to that certain Securities Purchase Agreement of even date herewith, entered into by and between Investor
and Company (as the same may be amended from time to time, the “Purchase Agreement”), pursuant to which Company
issued to Investor that certain Secured Convertible Promissory Note in the principal amount of $1,070,000.00 (as the same may be
amended from time to time, the “Company Note”) convertible into shares of Company’s Common Stock. All
capitalized terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Purchase Agreement.


 


1. Principal and
Interest. Interest shall accrue on the unpaid principal balance and any unpaid late fees or other fees under this Note at a
rate of eight percent (8%) per annum until the full amount of the principal and fees has been paid. Interest shall be computed
on the basis of a 365-day year for the actual number of days elapsed. Notwithstanding any provision to the contrary herein, in
no event shall the applicable interest rate at any time exceed the maximum interest rate allowed under applicable law, as provided
in Section 12 below. The entire unpaid principal balance and all accrued and unpaid interest, if any, under this Note, shall be
due and payable on the date that is twelve (12) months from the date hereof (the “Investor Note Maturity Date”);
provided, however, that Investor may elect, in its sole discretion, to extend the Investor Note Maturity Date for up to
thirty (30) days by delivering written notice of such election to Company at any time prior to the Investor Note Maturity Date.


 


2. Payment.
Unless prepaid, all principal and accrued interest under this Note is payable in one lump sum on the Investor Note Maturity Date.
All payments of interest and principal shall be (i) in lawful money of the United States of America, and (ii) in the form of immediately
available funds. All payments shall be applied first to costs of collection, if any, then to accrued and unpaid interest, and thereafter
to principal. Payment of principal and interest hereunder shall be delivered to Company at the address furnished to Investor for
that purpose.


 


3. Prepayment by
Investor. Investor may, with Company’s consent, pay, without penalty, all or any portion of the outstanding balance along
with any accrued but unpaid interest on this Note at any time prior to the Investor Note Maturity Date. Notwithstanding the foregoing,
Investor agrees to prepay this Note in full immediately upon the satisfaction of each of the following conditions: (a) Company
has delivered to Investor a fully executed transfer agent instruction letter in a form satisfactory to Investor with respect to
the Pledged Shares (as such term is defined in that certain Stock Pledge Agreement between Investor and Mengyao Chen of even date
herewith (the “Pledge Agreement”)); (b) the Pledgor (as defined in the Pledge Agreement) has delivered the Pledged
Shares to Investor pursuant to the Pledge Agreement; (c) the Pledgor has delivered to Investor a medallion signature guarantee
and executed stock power for the Pledged Shares; and (d) the Pledgor or Company shall have delivered all such other documents as
are required by Company’s transfer agent to reissue the Pledged Shares in Investor’s name following a default.


 






     


     


    

 


4. Security; Collateral.
Investor may, in its sole discretion, designate collateral (the “Collateral”) as it deems fit, as security for
Investor’s obligations hereunder, which Collateral may be, but is not required to be, real property, a letter of credit with
a financial institution determined by Investor in its sole discretion, or pledged membership interests. Upon Investor’s designation
of Collateral, each of Investor and Company shall timely execute any and all documents necessary or advisable in order to properly
grant a security interest upon the Collateral in favor of Company.


 


5. Release.
Company covenants and agrees that in the event that this Note is secured by Collateral, Company shall timely execute any and all
documents necessary or advisable in order to release such security interest and Collateral to Investor, or Investor’s designee
immediately following the date this Note is paid in full (the “Release Date”). For the avoidance of doubt, as
of the date hereof, there is no Collateral securing this Note, and after the Release Date, as applicable, there shall be no Collateral
securing this Note.


 


6. Right of Offset.
Notwithstanding anything to the contrary herein or in any of the other Transaction Documents, in the event (i) of the occurrence
of any Event of Default (as defined in the Company Note) under the Company Note or any other note issued by Company in connection
with the Purchase Agreement, (ii) of a breach of any material term, condition, representation, warranty, covenant or obligation
of Company under any Transaction Document, or (iii) Company sells, transfers, assigns, pledges or hypothecates this Note, or attempts
to do any of the foregoing, whether voluntarily or involuntarily, Investor shall be entitled to deduct and offset any amount owing
by Company under the Company Note from any amount owed by Investor under this Note (the “Investor Offset Right”),
provided that if any of the foregoing events occur and Investor has not yet exercised the Investor Offset Right, the Investor Offset
Right shall be automatically exercised on the date that is thirty (30) days prior to the Investor Note Maturity Date (an “Automatic
Offset”). Other than with respect to an Automatic Offset, Investor may only elect to exercise the Investor Offset Right
by delivering to Company an offset notice in a form substantially similar to Exhibit B to the Company Note or another form
of Investor’s choosing. In the event that Investor’s exercise of the Investor Offset Right under this Section 6 results
in the full satisfaction of Investor’s obligations under this Note, then Company shall return this Note to Investor for cancellation
or, in the event this Note has been lost, stolen or destroyed, Company shall provide Investor with a lost note affidavit in a form
reasonably acceptable to Investor.


 


7. Default.
If any of the events specified below shall occur (each, an “Investor Note Default”), Company may declare the
unpaid principal balance under this Note, together with all accrued and unpaid interest thereon, fees incurred or other amounts
owing hereunder immediately due and payable, by notice in writing to Investor. If any default, other than a Payment Default (as
defined below), is curable, then the default may be cured (and no Investor Note Default will have occurred) if Investor, after
receiving written notice from Company demanding cure of such default, either (i) cures the default within fifteen (15) days of
the receipt of such notice, or (ii) if the cure requires more than fifteen (15) days, immediately initiates steps that Company
deems in Company’s reasonable discretion to be sufficient to cure the default and thereafter diligently continues and completes
all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. Each of the following events
shall constitute an Investor Note Default:


 


7.1. Failure to Pay.
Investor’s failure to make any payment when due and payable under this Note (a “Payment Default”);


 






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7.2. Breaches of Covenants.
Investor’s failure to observe or perform any other covenant, obligation, condition or agreement contained in this Note;


 


7.3. Representations
and Warranties. If any representation, warranty, certificate, or other statement (financial or otherwise) made or furnished
by or on behalf of Investor to Company in writing in connection with this Note or any of the other Transaction Documents, or as
an inducement to Company to enter into the Purchase Agreement, shall be false or misleading in any material respect when made or
furnished; and


 


7.4. Involuntary Bankruptcy.
If any involuntary petition is filed under any bankruptcy or similar law or rule against Investor, and such petition is not dismissed
within sixty (60) days, or a receiver, trustee, liquidator, assignee, custodian, sequestrator or other similar official is appointed
to take possession of any of the assets or properties of Investor.


 


8. Binding Effect;
Assignment. This Note shall be binding on the Parties and their respective heirs, successors, and assigns; provided,
however, that neither Party shall assign any of its rights hereunder without the prior written consent of the other Party,
except that Investor may assign this Note to any of its Affiliates without the prior written consent of Company and, furthermore,
Company agrees that it shall not unreasonably withhold, condition or delay its consent to any other assignment of this Note by
Investor.


 


9. Governing Law;
Venue. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Note shall be governed by, the internal laws of the State of Utah, without giving effect
to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of Utah. The provisions set forth in the Purchase Agreement
to determine the proper venue for any disputes are incorporated herein by this reference.


 


10. Purchase Agreement;
Arbitration of Disputes. By acceptance of this Note, each Party agrees to be bound by the applicable terms, conditions and
general provisions of the Purchase Agreement and the other Transaction Documents, including without limitation the Arbitration
Provisions attached as an exhibit to the Purchase Agreement.


 


11. Customer Identification–USA
Patriot Act Notice. Company hereby notifies Investor that pursuant to the requirements of the USA Patriot Act (Title III of
Pub. L. 107-56, signed into law October 26, 2001) (the “Act”), and Company’s policies and practices, Company
is required to obtain, verify and record certain information and documentation that identifies Investor, which information includes
the name and address of Investor and such other information that will allow Company to identify Investor in accordance with the
Act.


 


12. Lawful Interest.
It being the intention of Company and Investor to comply with all applicable laws with regard to the interest charged hereunder,
it is agreed that, notwithstanding any provision to the contrary in this Note or any of the other Transaction Documents, no such
provision, including without limitation any provision of this Note providing for the payment of interest or other charges, shall
require the payment or permit the collection of any amount in excess of the maximum amount of interest permitted by law to be charged
for the use or detention, or the forbearance in the collection, of all or any portion of the indebtedness evidenced by this Note
or by any extension or renewal hereof (“Excess Interest”). If any Excess Interest is provided for, or is adjudicated
to be provided for, in this Note, then in such event:


 


12.1. the provisions
of this Section 12 shall govern and control;


 






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12.2. Investor shall
not be obligated to pay any Excess Interest;


 


12.3. any Excess Interest
that Company may have received hereunder shall, at the option of Company, be (i) applied as a credit against the principal balance
due under this Note or the accrued and unpaid interest thereon not to exceed the maximum amount permitted by law, or both, (ii)
refunded to Investor, or (iii) any combination of the foregoing;


 


12.4. the applicable
interest rate or rates shall be automatically subject to reduction to the maximum lawful rate allowed to be contracted for in writing
under the applicable governing usury laws, and this Note and the Transaction Documents shall be deemed to have been, and shall
be, reformed and modified to reflect such reduction in such interest rate or rates; and


 


12.5. Investor shall
not have any action or remedy against Company for any damages whatsoever or any defense to enforcement of this Note or arising
out of the payment or collection of any Excess Interest.


 


13. Pronouns.
Regardless of their form, all words used in this Note shall be deemed singular or plural and shall have the gender as required
by the text.


 


14. Headings.
The various headings used in this Note as headings for sections or otherwise are for convenience and reference only and shall not
be used in interpreting the text of the section in which they appear and shall not limit or otherwise affect the meanings thereof.


 


15. Time is of the
Essence. Time is of the essence with this Note.


 


16. Severability.
If any part of this Note is construed to be in violation of any law, such part shall be modified to achieve the objective of the
Parties to the fullest extent permitted by law and the balance of this Note shall remain in full force and effect.


 


17. Attorneys’
Fees. If any arbitration or action at law or in equity is necessary to enforce this Note or to collect payment under this Note,
Company shall be entitled to recover reasonable attorneys’ fees directly related to such enforcement or collection actions.


 


18. Amendments and
Waivers; Remedies. No failure or delay on the part of either Party hereto in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other
or further exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative
and are not exclusive of any remedies that may be available to either Party hereto at law, in equity or otherwise. Any amendment,
supplement or modification of or to any provision of this Note, any waiver of any provision of this Note, and any consent to any
departure by either Party from the terms of any provision of this Note, shall be effective (i) only if it is made or given in writing
and signed by Investor and Company and (ii) only in the specific instance and for the specific purpose for which made or given.


 


19. Notices.
Unless otherwise provided for herein, all notices, requests, demands, claims and other communications hereunder shall be given
in accordance with the subsection of the Purchase Agreement titled “Notices.” Either Party may change the address to
which notices, requests, demands, claims and other communications hereunder are to be delivered by providing notice thereof in
the manner set forth in the Purchase Agreement.


 






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20. Final Note.
This Note, together with the other Transaction Documents, contains the complete understanding and agreement of Investor and Company
and supersedes all prior representations, warranties, agreements, arrangements, understandings, and negotiations of Investor and
Company with respect to the subject matter of the Transaction Documents. THIS NOTE, TOGETHER WITH THE OTHER TRANSACTION DOCUMENTS,
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY ALLEGED PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.


 


21. Waiver of Jury
Trial. EACH OF INVESTOR AND COMPANY IRREVOCABLY WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS NOTE OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY.
THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE
OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING SUCH PARTY’S
RIGHT TO DEMAND TRIAL BY JURY.


 


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IN WITNESS WHEREOF,
the Parties have executed this Note as of the date set forth above.


 


	 	INVESTOR:
	 	 
	 	Iliad Research and Trading, L.P.
	 	 
	 	By:	Iliad Management, LLC, its General Partner
	 	 	 	 	 
	 	 	By:	Fife Trading, Inc., its Manager
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	John M. Fife, President


 


ACKNOWLEDGED, ACCEPTED AND AGREED:


 


COMPANY:


 


	Future FinTech Group Inc.	 
	 	 	 
	By:	 	 
	Name: 	 	 
	Title: 	 	 


 


[Signature Page to Investor Note]