Document:

Exhibit 10.2

Exhibit 10.2

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE, IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933 OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF SUCH ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS, ALL AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

UNSECURED TERM PROMISSORY NOTE

			
	$                    
	 	Dated:                     , 2009

For Value Received, Veritec, Inc., a Nevada corporation (the “Maker” or “Company”), with
its primary offices located at 2445 Winnetka Ave. N., Golden Valley, MN 55427 U.S.A., promises to
pay to the order of                                                              or its registered assigns (the “Payee”), upon the terms set forth below, the
principal sum of                                                              AND NO/100 DOLLARS ($             
                                                ), with interest on the principal sum at the rate of eight
percent (8%) per annum. THIS UNSECURED TERM PROMISSORY NOTE (this “Note”) is not secured by any
security interest in any of the Company’s assets and the Company shall have no obligation to
provide Payee with any collateral to secure repayment of the loan evidenced by this Note. This
Note is the Note referred to the Subscription Agreement and Letter of Investment Intent by and
between the Company and Payee, dated as of the date hereof.

	1.	 	Payments.

	(a)	 	The full amount of principal and accrued interest under this Note shall be due on the
eighteen-month anniversary of the date of this Note, as first set forth above (the “Maturity
Date”), unless converted earlier in accordance with the express terms of this Note.

	(b)	 	Maker may prepay the principal sum and interest under this Note in whole or in part until
the Maturity Date or such earlier time as the principal sum and interest become due in
accordance with the terms of this Note.

	(c)	 	Any payments of principal under and pursuant to this Note shall be made in cash, by either
check or wire transfer of immediately available funds to the Payee pursuant to written
instructions from the Payee.

	2.	 	Events of Default.

	(a)	 	An “Event of Default,” wherever used herein, means any one of the following events (whatever
the reason and whether it shall be voluntary or involuntary or effected by operation of law or
pursuant to any judgment, decree or order of any court, or any order, rule or regulation of
any administrative or governmental body):

	 	(i)	 	any default in the Maker’s obligation to make payment of the principal or interest under
this Note, as and when the same shall become due and payable;

	 	(ii)	where Maker fails to observe or perform any material obligation or breaches any
material term or provision of this Note and such failure or breach shall not have been
remedied within ten (10) days after the date on which notice of such failure or breach
shall have been delivered by Payee to Maker;

 

 

 

	 	(iii)	 	a Change in Control (defined herein) of the Company; or

	 	(iv)	 	where Maker commences, or there shall be commenced against Maker, a case under
any applicable bankruptcy or insolvency laws as now or hereafter in effect or any
successor thereto, or Maker commences any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or
liquidation or similar law of any jurisdiction whether now or hereafter in effect
relating to Maker, or there is commenced against Maker any such bankruptcy, insolvency
or other proceeding which remains un-dismissed for a period of sixty (60) days from the
date of commencement of such proceeding; or Maker is adjudicated insolvent or bankrupt;
or any order of relief or other order approving any such case or proceeding is entered;
or Maker suffers any appointment of any custodian or the like for it or any substantial
part of its property which continues un-discharged or un-stayed for a period of sixty
(60) days; or Maker makes a general assignment for the benefit of creditors; or Maker
shall fail to pay, or shall state in writing that it is unable to pay its debts
generally as they become due.

	(b)	 	For purposes of the foregoing, a “Change in Control” shall mean the occurrence after the
date hereof of any of (i) an acquisition by one or more investors of effective control (whether
through legal or beneficial ownership of capital stock of the Company, by contract or otherwise)
of more than 33% of the voting securities of the Company, or (ii) the Company’s merger into or
consolidation with any other firm or entity or association, or the merger or consolidation of
any other firm, entity or association into or with the Company and, after giving effect to such
transaction, the shareholders of the Company immediately prior to such transaction own less than
66% of the aggregate voting power of the Company or the successor entity of such transaction, or
(iii) the Company sells or transfers all or substantially all of its assets to another firm,
entity or association and the shareholders of the Company immediately prior to such transaction
own less than 66% of the aggregate voting power of the acquiring entity immediately after the
transaction, or (iv) a replacement at one time or within a three-year period of more than
one-half of the members of the Company’s board of directors which is not approved by a majority
of those individuals who are members of the board of directors on the date hereof (or by those
individuals who are serving as members of the board of directors on any date whose nomination to
the board of directors was approved by a majority of the members of the board of directors who
are members on the date hereof), or (v) the execution by the Company of an agreement to which
the Company is a party or by which it is bound, providing for any of the events set forth in
clauses (i) through (iv) above. Notwithstanding anything to the contrary contained herein, the
acquisition by Van Thuy Tran, Larry Johanns, The Matthews Group, or any of their respective
successors in interest, nominees, trustees, executors, other person or entity in a
representative capacity, of any additional equity securities of the Company, shall not be
considered a Change in Control.

	(c)	 	If any Event of Default occurs, then the full principal amount of this Note, together with
all accrued interest thereon, shall at the Payee’s election become immediately due and payable
in the manner described in Section 1 of this Note, above. The Payee need not provide and Maker
hereby waives any presentment, demand, protest or other notice of any kind, and the Payee may
immediately and without expiration of any grace period enforce any and all of its rights and
remedies hereunder and all other remedies available to it under applicable law. Such
declaration may be rescinded and annulled by Payee at any time prior to payment hereunder. No
such rescission or annulment shall affect any subsequent Event of Default or impair any right
consequent thereon.

 

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	3.	 	Conversion.

	(a)	 	At the election of the Payee on or before the Maturity Date, the entire principal and accrued
but unpaid interest under this Note (the “Note Amount”) shall be converted and be applied as
provided in this Section 3.

	(b)	 	Any conversion of the Note Amount shall convert into purchase price payable for the
convertible promissory notes, warrants or other securities of the Company (the “Securities”),
contemplated to be sold in connection with an anticipated financing transaction (the “Proposed
Transaction”). As soon as is
practicable prior to the closing of a Proposed Transaction, the Company will notify Payee of
such Proposed Transaction (the “Conversion Notice”). Payee will have five (5) days after
receipt of the Conversion Notice to notify the Company in writing that it intends to convert
this Note into Securities as part of the Proposed Transaction. Upon any conversion pursuant
to this Section 3, the Payee will promptly upon the Company’s request (and in any event
within ten (10) business days) surrender this Note for cancellation on the Company’s books
and records or, in cases where the Note has been lost or misplaced, a duly executed
affidavit of loss with respect to the Note, in form and substance reasonably satisfactory to
the Company. Upon conversion, and regardless of whether this Note has at that time been
surrendered, the Company shall be entitled to cancel this Note on its books and records.
Payee will promptly execute such agreements and other documents as the other investors in
the Proposed Offering under which the Note will be converted are required to execute in form
and substance reasonably satisfactory to the Company.

	4.	 	No Waiver of Payee’s Rights. All payments of principal and interest shall be made
without setoff, deduction or counterclaim. No delay or failure on the part of the Payee in
exercising any of its options, powers or rights, nor any partial or single exercise of its
options, powers or rights shall constitute a waiver thereof or of any other option, power or
right, and no waiver on the part of the Payee of any of its options, powers or rights shall
constitute a waiver of any other option, power or right. Maker hereby waives presentment of
payment, protest, and all notices or demands in connection with the delivery, acceptance,
performance, default or endorsement of this Note. Acceptance by the Payee of less than the
full amount due and payable hereunder shall in no way limit the right of the Payee to require
full payment of all sums due and payable hereunder in accordance with the terms hereof.

	5.	 	Modifications. No term or provision contained herein may be modified, amended or
waived except by written agreement or consent signed by the party to be bound thereby.

	6.	 	Cumulative Rights and Remedies. The rights and remedies of Payee expressed herein
are cumulative and not exclusive of any rights and remedies otherwise available under this
Note, or applicable law (including at equity). The election of Payee to avail itself of any
one or more remedies shall not be a bar to any other available remedies, which Maker agrees
Payee may take from time to time.

	7.	 	Collection Expenses. If Payee shall commence an action or proceeding to enforce this
Note, then Maker shall reimburse Payee for its costs of collection and reasonable attorneys’
fees incurred with the investigation, preparation and prosecution of such action or
proceeding.

	8.	 	Severability. If any provision of this Note is declared by a court of competent
jurisdiction to be in any way invalid, illegal or unenforceable, the balance of this Note
shall remain in effect, and if any provision is inapplicable to any person or circumstance, it
shall nevertheless remain applicable to all other persons and circumstances.

	9.	 	Successors and Assigns. This Note shall be binding upon Maker and its successors and
shall inure to the benefit of the Payee and its successors and assigns. The term “Payee” as
used herein, shall also include any endorsee, assignee or other holder of this Note.

	10.	 	Lost or Stolen Note. If this Note is lost, stolen, mutilated or otherwise destroyed,
Maker shall execute and deliver to the Payee a new promissory note containing the same terms,
and in the same form, as this Note. In such event, Maker may require the Payee to deliver to
Maker an affidavit of lost instrument and customary indemnity in respect thereof as a
condition to the delivery of any such new promissory note.

	11.	 	Governing Law; Dispute Resolution. This Note shall be governed by the laws of the
State of Minnesota without regard to its conflicts-of-law principles. Any judicial action to
enforce any right of any party under this Note may be brought and maintained in Minnesota
state or federal courts located in Hennepin County. Accordingly, the parties hereby submit to
the process, jurisdiction and venue of any such court. Each party hereby waives, and agrees
not to assert, any claim that it is not personally subject to the jurisdiction of the
foregoing courts in the State of Minnesota or that any action or other proceeding brought in
compliance with this Section is brought in an inconvenient forum.

 

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	13.	 	Notice. Any and all notices or other communications or deliveries to be provided by
the Payee hereunder shall be in writing and delivered to the Company at the address of its
principal place or business, or to the Payee at the following address:                                                             .

In Witness Whereof, the undersigned signs this Note as and on behalf of the “Maker”
and not as a surety or guarantor or in any other capacity.

	 	 	 	 	 
	 	VERITEC, INC., a Nevada corporation

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

Page 4 of 4Exhibit 10.3

Exhibit 10.3

NEITHER THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”) AND APPLICABLE STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR (II) AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.

VERITEC, INC.

WARRANT TO PURCHASE COMMON STOCK

	 	 	 
	Warrant No.           
	 	Original Issue Date:                     , 2009

Veritec, Inc., a Nevada corporation (the “Company”), hereby certifies that, for value received,
                     or its permitted registered assigns (the “Holder”), is entitled to purchase from
the Company up to a total of            shares of common stock (the “Common Stock”), of the Company
(each such share, a “Warrant Share” and all such shares, the “Warrant Shares”) at an exercise price
per share equal to $2.00 (as adjusted from time to time as provided in Section 7 herein, the
“Exercise Price”), at any time and from time to time from on or after the date hereof (the “Trigger
Date”) and through and including 5:30 P.M., Minneapolis time, on           , 2014 (the “Expiration
Date”), and subject to the following terms and conditions:

This Warrant (this “Warrant”) is being issued in connection with a private placement of
convertible promissory notes and warrants to purchase common stock pursuant to a Subscription
Agreement and Letter of Investment Intent dated           , 2009, by and among the Company and the
Holder (the “Subscription Agreement”). This Warrant (this “Warrant”) is one of the Warrants issued
pursuant to Section 2 of the Subscription Agreement.

1. Definitions. In addition to the terms defined elsewhere in this Warrant,
capitalized terms that are not otherwise defined herein have the meanings given to such terms in
the Subscription Agreement.

2. Exercise and Duration of Warrants.

	 	(a)	 	All or any part of this Warrant shall be exercisable by the registered Holder at any time
and from time to time on or after the Trigger Date and through and including 5:30 P.M. Central time
on the Expiration Date. At 5:30 P.M., Central time, on the Expiration Date, the portion of this
Warrant not exercised prior thereto shall be and become void and of no value and this Warrant shall
be terminated and no longer outstanding;

	 	(b)	 	The Holder may exercise this Warrant by delivering to the Company (i) an exercise notice,
in the form attached as Schedule 1 hereto (the “Exercise Notice”), appropriately completed and duly
signed, (ii) payment of the Exercise Price for the number of Warrant Shares as to which this
Warrant is being exercised, and the date such items are delivered to the Company (as determined in
accordance with the notice provisions hereof) is an “Exercise Date.” The delivery by (or on behalf
of) the Holder of the Exercise Notice and the applicable Exercise Price as provided above shall
constitute the Holder’s certification to the Company that its representations contained in Section
4 of the Subscription Agreement are true and correct as of the Exercise Date as if remade in their
entirety. Execution and delivery of the Exercise Notice shall have the same effect as cancellation
of the original Warrant and issuance of a New Warrant evidencing the right to purchase the
remaining number of Warrant Shares.

 

 

 

3. Delivery of Warrant Shares. Upon exercise of this Warrant, the Company shall promptly
issue or cause to be issued and cause to be delivered to or upon the written order of the Holder
and in such name or names as the Holder may designate, a certificate for the Warrant Shares
issuable upon such exercise, free of restrictive legends, unless a registration statement covering
the resale of the Warrant Shares and naming the Holder as a selling stockholder thereunder is not
then effective or the Warrant Shares are not freely transferable without volume restrictions
pursuant to Rule 144 under the Act. The Holder shall be deemed to have become the holder of record
of such Warrant Shares as of the Exercise Date.

4. Charges, Taxes and Expenses. The Holder shall be responsible for all charges, taxes and
expenses that may arise as a result of holding or transferring this Warrant or receiving Warrant
Shares upon exercise hereof.

5. Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the
Company shall issue or cause to be issued in exchange and substitution for and upon cancellation
hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or destruction (in such case)
and, in each case, a customary and reasonable indemnity (which shall not include a surety bond), if
requested. Applicants for a New Warrant under such circumstances shall also comply with such other
reasonable regulations and procedures and pay such other reasonable third-party costs as the
Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant,
then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the
Company’s obligation to issue the New Warrant.

6. Reservation of Warrant Shares. As of the date hereof, the Company does not have a
sufficient number of authorized but unissued shares of Common Stock to enable it to issue Warrant
Shares upon the exercise of this Warrant as herein provided. The Company covenants that it will,
as soon as is practicable, increase the number of its authorized but unissued shares of Common
Stock so that it can at all times have reserved and available unissued and otherwise unreserved
Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this
Warrant as herein provided. The Company covenants that all Warrant Shares so issuable and
deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance
with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable.

7. Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon
exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 7.

	 	(a)	 	Stock Dividends and Splits. If the Company, at any time while this Warrant is
outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any
class of capital stock that is payable in shares of Common Stock, (ii) subdivides its outstanding
shares of Common Stock into a larger number of shares, or (iii) combines its outstanding shares of
Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be
multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately before such event and the denominator of which shall be the number of
shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to
clause (i) of this paragraph shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution, and any adjustment
pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the
effective date of such subdivision or combination.

	 	(b)	 	Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price
pursuant to paragraph (a) of this Section, the number of Warrant Shares that may be purchased upon
exercise of this Warrant shall be increased or decreased proportionately, so that after such
adjustment the aggregate Exercise Price payable hereunder for the increased or decreased number of
Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to
such adjustment.

	 	(c)	 	Calculations. All calculations under this Section 7 shall be made to the nearest
cent or the nearest 1/100th of a share, as applicable. The number of shares of Common
Stock outstanding at any given time shall not include shares owned or held by or for the account of
the Company, and the sale or issuance of any such shares shall be considered an issue or sale of
Common Stock.

8. Payment of Exercise Price. The Holder shall pay the Exercise Price in immediately
available funds

9. No Fractional Shares. No fractional Warrant Shares will be issued in connection with any
exercise of this Warrant. In lieu of any fractional shares which would otherwise be issuable, the
number of Warrant Shares to be issued shall be rounded down to the next whole number.

10. Notices. Any and all notices or other communications or deliveries hereunder
(including, without limitation, any Exercise Notice) shall be in writing and shall be deemed given
and effective on the earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile prior to 5:30 p.m. (Central time) on a business day, (ii) the next business
day after the date of transmission, if such notice or communication is delivered via facsimile on a
day that is not a business day or later than 5:30 p.m. (Central time) on any business day, (iii)
the business day following the date of mailing, if sent by nationally recognized overnight courier
service specifying next business day delivery, or (iv) upon actual receipt by the party to whom
such notice is required to be given, if by hand delivery. The address and facsimile number of a
party for such notices or communications shall be as set forth in the Subscription Agreement unless
changed by such party by two business days’ prior notice to the other party in accordance with this
Section 10.

 

Page 2 of 4

 

11. Miscellaneous.

	 	(a)	 	The Holder, solely in such Person’s capacity as a holder of this Warrant, shall
not be entitled to vote or receive dividends or be deemed the holder of share capital of
the Company for any purpose, nor shall anything contained in this Warrant be construed
to confer upon the Holder, solely in such Person’s capacity as the Holder of this
Warrant, any of the rights of a stockholder of the Company or any right to vote, give or
withhold consent to any corporate action (whether any reorganization, issue of stock,
reclassification of stock, consolidation, merger, amalgamation, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription rights, or
otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person
is then entitled to receive upon the due exercise of this Warrant.

	 	(b)	 	This Warrant may be only be assigned by the Holder upon receipt of the Company’s
prior written consent to such assignment. This Warrant shall be binding on and inure to
the benefit of the parties hereto and their respective successors and assigns. Subject
to the preceding sentence, nothing in this Warrant shall be construed to give to any
person other than the Company and the Holder any legal or equitable right, remedy or
cause of action under this Warrant. This Warrant may be amended only in writing signed
by the Company and the Holder, or their successors and assigns.

	 	(c)	 	This Warrant shall be governed by the laws of the State of Minnesota without
regard to its conflicts-of-law principles. Any judicial action to enforce any right of
any party under this Warrant may be brought and maintained in Minnesota state or federal
courts located in Hennepin County. Accordingly, the parties hereby submit to the
process, jurisdiction and venue of any such court. Each party hereby waives, and agrees
not to assert, any claim that it is not personally subject to the jurisdiction of the
foregoing courts in the State of Minnesota or that any action or other proceeding
brought in compliance with this Section is brought in an inconvenient forum.

	 	(d)	 	The headings herein are for convenience only, do not constitute a part of this
Warrant and shall not be deemed to limit or affect any of the provisions hereof.

	 	(e)	 	In case any one or more of the provisions of this Warrant shall be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and
provisions of this Warrant shall not in any way be affected or impaired thereby, and the
parties will attempt in good faith to agree upon a valid and enforceable provision which
shall be a commercially reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Warrant.

	 	(f)	 	Except as otherwise set forth herein, prior to exercise of this Warrant, the
Holder hereof shall not, by reason of by being a Holder, be entitled to any rights of a
stockholder with respect to the Warrant Shares.

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized
officer as of the date first indicated above.

	 	 	 	 	 
	 	VERITEC, INC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

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SCHEDULE 1

FORM OF EXERCISE NOTICE

(To be
executed by the Holder to exercise the right to purchase shares of Common Stock under the foregoing Warrant)

Ladies and Gentlemen:

(1) The undersigned is the Holder of Warrant No.                      (the “Warrant”) issued by Veritec, Inc.
a Nevada corporation (the “Company”). Capitalized terms used herein and not otherwise defined
herein have the respective meanings set forth in the Warrant.

(2) The
undersigned hereby exercises its right to purchase                      Warrant Shares pursuant to the Warrant.

(3) The Holder shall pay the sum of $                     in immediately available funds to the Company in
accordance with the terms of the Warrant.

(4) Pursuant to this Exercise Notice, the Company shall deliver to the Holder                      Warrant
Shares in accordance with the terms of the Warrant.

Dated:                                         ,                     

Name of Holder:                                                             

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	(Signature must conform in all respects to name of Holder as specified on the face of the Warrant)

 

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