Document:

Exhibit 4.1

 

NOTE PURCHASE AND SECURITY AGREEMENT

 

THIS NOTE PURCHASE
AND SECURITY AGREEMENT is entered as of June xx, 2013, by and among LENCO MOBILE INC., a Delaware corporation (the "Company"),
and the individuals listed on the Schedule of Lenders attached hereto (each a "Lender," and collectively
the "Lenders").

 

RECITALS

 

A.The Company desires
to borrow up to an aggregate of $2,000,000 (the “Maximum Funding Amount”) from the Lenders and each Lender
is willing to lend the Company the amount set forth opposite such Lender's name on the Schedule of Lenders attached hereto. Each
such advance will be evidenced by a promissory note substantially in the form of Exhibit A attached hereto (each a
"Note" and all the "Notes").

 

B.The Company's
obligations to the Lenders under this Agreement and the Notes will be secured by a first priority security interest in substantially
all of the Company's assets.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                 
Amount and Terms of the Notes.

 

1.1             
Note Purchase. Subject to the terms and conditions of this Agreement, at the Initial Closing (as defined below) or
any Additional Closing(s) (as defined below), as applicable, the Company agrees to sell to each Lender, and each Lender severally
agrees to purchase from the Company, a Note in the "Principal Amount" set forth opposite such Lender's name on the Schedule
of Lenders (each, the “Principal Amount”).

 

1.2             
Pari Passu Obligations. Each Note shall be a pari passu obligation with each other Note and with the 12% Senior Secured
Notes initially issued on July 30, 2012 (the “12% Senior Notes”). Accordingly, each payment of principal, interest
or fees made with respect to any Note shall be made by or shared by each Lender in accordance with the percentage that the original
principal amount of such Lender's Note is of the total principal amount of all Lenders set forth on the Schedule of Lenders (the
"Applicable Percentage"). If by exercising any right of setoff, or counterclaim or otherwise any Lender
shall obtain payment in respect of any principal of or interest on its Note resulting in such Lender receiving payment of a proportion
of the aggregate amount of its Note greater than its pro rata share thereof as provided herein, then the Lender receiving such
greater proportion shall purchase (for cash at face value) participations in the Notes of the other Lenders, or make such other
adjustments as shall be equitable, so that the benefit of all such payments shall be shared by Lenders ratably in accordance with
the Applicable Percentages, provided that if any such participations are purchased and all or any portion of the payment giving
rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery,
without interest. The Company consents to the foregoing and agrees that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against Company rights of setoff and counterclaim with respect to such participation as fully as if such
Lender were a direct creditor of the Company in the amount of such participation.

 

    	1

    	 

    

  

2.                 
Closings. 

 

2.1             
The Initial Closing. Subject to the satisfaction or waiver of the conditions set forth in Section 5 of this Agreement,
the purchase and sale of the Notes will take place at the offices of the Company on June xx, 2013, or at such other time and place
as the Company and the Lender who have agreed to purchase a majority of the aggregate Principal Amount mutually agree upon (which
time and place are referred to as the “Initial Closing”). At the Initial Closing, each Lender will deliver
to the Company, as payment in full for the Note to be purchased by such Lender at the Initial Closing, the amount set forth opposite
such Lender’s name on the Schedule of Lenders by (a) a check payable to the Company’s order, (b) wire transfer of funds
to the Company, or (c) any combination of the foregoing. At the Initial Closing, the Company will deliver to each Lender a duly
executed Note in the Principal Amount set forth opposite such Lender’s name on the Schedule of Lenders.

 

2.2             
Additional Closing(s).

 

(a)               
Subject to the terms and conditions of this Agreement, at any time and from time to time from the date of the Initial Closing
and ending on June yy, 2013, the Company may, at one or more additional closings (each an “Additional Closing”
and collectively with the Initial Closing, a “Closing”), without obtaining the signature, consent or
permission of any of the Lender, offer and sell to other investors, which may include one or more of the Lenders (the “New
Lenders”) Notes pursuant to this Agreement under the same terms and conditions as set forth in this Agreement, with
such Notes having an aggregate Principal Amount of no more than the difference of (i) the Maximum Funding Amount minus (ii) the
aggregate Principal Amount of all Notes previously sold hereunder. As set forth above, New Lenders may include persons or entities
who are already Lenders under this Agreement.

 

(b)              
The Company and each New Lender purchasing one or more Notes at an Additional Closing will execute counterpart signature
pages to this Agreement, and each New Lender will, upon delivery by such New Lender to the Company of such signature pages, and
the payment by such New Lender to the Company of the principal amount of the Note(s) to be purchased by such New Lender at such
Additional Closing, become a party to, and bound by, this Agreement to the same extent as if such New Lender had been a Lender
at the Initial Closing. The obligation of the Company to sell and issue Notes to New Lenders at each Additional Closing, and the
obligation of each New Lender at each Additional Closing to purchase a Note, shall each be subject to satisfaction of the applicable
conditions set forth in Sections 2.3 and 2.4 of this Agreement, except that unless otherwise set forth therein, each reference
in Section 2.3 and 2.4 to the “Closing” shall instead refer to the applicable Additional Closing. Immediately after
each Additional Closing, the Schedule of Lenders attached to this Agreement will be amended, without the consent of any other Lender,
to add to the names of the New Lenders purchasing Notes at such Additional Closing as “Lenders” hereunder and to set
forth the principal amount of each Note purchase price for each New Lender under this Agreement. The Company will promptly furnish
to each Lender upon request, a copy of the Schedule of Lenders as amended to the date of such request.

 

    	2

    	 

    

  

2.3             
Conditions to Lenders’ Obligations. The obligations of each Lender under this Section 2 are subject to the
fulfillment or waiver, on or before each Closing, as applicable, of each of the following conditions, the waiver of which shall
not be effective against any Lender who does not consent to such waiver, which consent may be given by written, oral or telephone
communication to the Company, its counsel or to special counsel to the Lenders:

 

(a)               
each of the representations and warranties of the Company contained in Section 4 shall be true and complete in all material
respects on and as of such Closing with the same effect as though such representations and warranties had been made on and as of
the date of such Closing;

 

(b)              
the Company shall have performed and complied with all agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it on or before such Closing and shall have obtained all approvals, consents
and qualifications necessary to complete the purchase and sale described herein; and

 

(c)               
the Company shall have executed and delivered to each Lender purchasing a Note at such Closing a Note in the amounts set
forth opposite such Lender’s name on the Schedule of Lenders.

 

2.4             
Condition to Company’s Obligations. The obligations of the Company to each Lender under this Agreement are
subject to the fulfillment or waiver on or before each Closing of the following conditions by such Lender:

 

(a)               
Each of the representations and warranties of such Lender contained in Section 5 shall be true and complete on the date
of such Closing with the same effect as though such representations and warranties had been made on and as of such Closing; and

 

(b)              
such Lender shall have performed and complied with all agreements, obligations and conditions contained in this Agreement
that are required to be performed or complied with by it on or before such Closing and shall have obtained all approvals, consents
and qualifications necessary to complete the purchase and sale described herein.

 

3.                 
Security; Covenants. 

 

3.1             
Security Interest. As security for the full and prompt payment, in cash, and performance of the Company's obligations
under this Agreement and the Notes, the Company hereby grants to the Collateral Agent (as defined below) a security interest in
all of the Collateral. As used herein, "Collateral" means (a) all of the Company's and its wholly
owned subsidiaries’ (including without limitation, Capital Supreme (Pty) Ltd., dba Multimedia Solutions, Lenco Technology
Group Ltd., and Lenco International Ltd., collectively, the “Subsidiaries”) property and rights in and
to property, including all accounts, instruments, chattel paper, deposit accounts, documents, general intangibles, goods (including
inventory, equipment and fixtures), money, letter of credit rights, supporting obligations, intellectual property, investment property
and commercial tort claims, except Excluded Assets; (b) all products, proceeds, rents and profits of the foregoing; (c) all
of the Company's and the Subsidiaries’ books and records related to any of the foregoing; and (d) all of the foregoing,
whether now owned or existing or hereafter acquired or arising or in which the Company now has or hereafter acquires any rights.
"Excluded Assets" means, with respect to each subsidiary of the Company that is not organized under the
laws of the United States, more than 65% of the issued and outstanding equity interests of such subsidiary entitled to vote (within
the meaning of Treas. Reg. Section 1.956-2(c)(2)) or such greater percentage as (A) could not reasonably be expected
to cause the undistributed earnings of such subsidiary as determined for United States federal income tax purposes to be treated
as a deemed dividend to the Company and (B) could not reasonably be expected to cause any material adverse tax consequences.

 

    	3

    	 

    

  

3.2             
Collateral Agent/Required Lenders. The Lenders agree that the Required Lenders (as defined below) shall either (a)
act together as the collateral agent hereunder or (b) appoint a third party as collateral agent hereunder (in each case, the “Collateral
Agent”). Each of the Lenders hereby irrevocably appoints the Collateral Agent, and any officer, member, partner,
employee or agent of such Collateral Agent, with full power of substitution, to act on such Lender's behalf as the collateral agent
hereunder and as the Company’s true and lawful attorney-in-fact with respect to such matters, effective as of the date hereof,
with power, upon the Required Lenders’ election. The Collateral Agent shall have all the rights and powers of a secured party
under the Uniform Commercial Code, but shall not exercise any of its rights and powers without first obtaining the written consent
of the Required Lenders. "Required Lenders" means Lenders holding Notes representing a majority of the
Applicable Percentages.

 

3.3             
Permitted Liens. The Company shall keep the Collateral free and clear of all liens, except Permitted Liens. "Permitted
Liens" means (a) liens arising by operation of law for taxes, assessments or governmental charges not yet due;
(b) statutory liens of mechanics, materialmen, shippers, warehousemen, carriers, and other similar persons for services or
materials arising in the ordinary course of business for which payment is not past due; (c) nonconsensual liens incurred or
deposits made in the ordinary course of business in connection with workers' compensation, unemployment insurance and other types
of social security; (d) liens for taxes or statutory liens of mechanics, materialmen, shippers, warehousemen, carriers and
other similar persons for services or materials that are due but are being contested in good faith; (e) liens granted with
the consent of the Required Lenders; (f) liens of a depository institution arising solely by virtue of any statutory or common
law provision relating to banker's liens, rights of setoff, or similar rights and remedies as to deposit accounts or other funds
maintained with such institution; and (g) liens already existing on the Collateral as of the date hereof.

 

3.4             
Dispositions of Collateral. Except for (i) the disposition in the ordinary course of business of equipment no
longer useful in the Company's or its Subsidiaries’ business, (ii) the sale, license or other disposition of Signaling Gateway,
(iii) the sale, license or other disposition of U.S. Patent Number 8,175,990 and U.S. Patent application 11/969,864, (iv) the
sale or consumption of Collateral in the ordinary course of business, (v) the licensing of intellectual property of the Company
or its Subsidiaries in the ordinary course of the Company’s or Subsidiaries’, as the case may be, business as conducted
from time to time and (vi) Permitted Liens, the Company will not permit any lien to exist on any of its assets, nor sell,
lease, or otherwise dispose of or transfer, whether by sale, merger, consolidation, liquidation, dissolution, or otherwise, any
of the Collateral.

 

    	4

    	 

    

 

 

3.5             
Distributions. Unless otherwise agreed to by the Required Lenders, the Company shall not declare or make any dividend
payment or other distribution of assets, properties, cash, rights, obligations or securities on account or in respect of any of
its equity interests, except (i) to the extent that it is obligated to do so under obligations in effect as of the date of this
Agreement and (ii) for the repurchase of shares of Common Stock from employees, officers, directors, consultants or other persons
performing services for the Company or any Subsidiary pursuant to agreements under which the Company has the option to repurchase
such shares (x) at the lower of the original purchase price or the then-current fair market value thereof upon the occurrence of
certain events, such as the termination of employment or service, or (b) pursuant to a right of first refusal that is approved
by the Board of Directors of the Company.

 

3.6             
Termination. The term of the security interest set forth in Section 3.1 above and the other obligations and restrictions
set forth in this Agreement, including under this Section 3, will extend until the aggregate obligations to the Lenders under all
Notes have been paid in full, at which time the Company and any of its duly appointed officers are hereby authorized to file any
termination statement under the Uniform Commercial Code in effect in any jurisdiction to terminate the financing statements that
evidence the security interest in the Collateral created by this Agreement and the Notes. Upon payment in full of such obligations,
each Lender will execute and deliver to the Company all deeds, assignments and other instruments, and will take such other actions,
as may be necessary or proper to re-vest in the Company full title to the Collateral, subject to any disposition which may have
been made by the Lenders pursuant to this Agreement.

 

4.                 
Representations and Warranties of the Company. The Company hereby
represents and warrants to the Lenders and Collateral Agent that the statements in the following paragraphs of this Section 4 are
all true and complete as of immediately prior to the Initial Closing, except as otherwise indicated:

 

4.1             
Organization. The Company is a corporation duly organized, validly existing and in good standing under the laws of
the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted and as proposed
to be conducted.

 

4.2             
Authorization. All corporate action on the part of the Company necessary for the authorization, execution and delivery
of this Agreement, the performance of the Company's obligations hereunder, and the authorization, issuance and delivery of each
Note has been taken. This Agreement and each Note, when executed and delivered by the Company, shall constitute valid and legally
binding obligations of the Company enforceable in accordance with their terms.

 

4.3             
Valid Issuance. Each Note, when issued, sold, and delivered in accordance with this Agreement, will be duly and validly
issued, fully paid and non-assessable and, based in part upon the representations of the Lenders in this Agreement, will be issued
in compliance with all applicable federal and state securities laws.

 

    	5

    	 

    

  

 

4.4             
Noncontravention. The execution, delivery and performance of the Agreement, the consummation of the transactions
contemplated hereby and the authorization, issuance and delivery of the Notes will not result in any violation of or be in conflict
with or constitute, with or without the passage of time and giving of notice, a default under any judgment, order, writ, decree
or agreement to which the Company is bound.

 

5.                 
Representations and Warranties of Each Lender. Each Lender hereby
represents and warrants to the Company that:

 

5.1             
Authorization. This Agreement constitutes such Lender's valid and legally binding obligation enforceable in accordance
with its terms.

 

5.2             
Noncontravention. The execution, delivery and performance of the Agreement, the consummation of the transactions
contemplated hereby and the authorization, issuance and delivery of the Securities will not result in any violation or be in conflict
with or constitute, with or without the passage of time and giving of notice, a default under any judgment, order, writ, decree
or agreement to which such Lender is bound.

 

5.3             
Purchase Entirely for Own Account. Such Lender acknowledges that this Agreement is made with such Lender in reliance
upon such Lender's representation to the Company that the Securities will be acquired for investment for such Lender's own account,
not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that such Lender has no present
intention of selling, granting any participation in, or otherwise distributing any Securities. By executing this Agreement, Lender
further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer
or grant participation to such person or to any third person with respect to any Securities.

 

5.4             
Disclosure of Information. Such Lender acknowledges that it has received all the information it considers necessary
or appropriate for deciding whether to acquire any Securities. Such Lender further represents that it has had an opportunity to
ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Securities.

 

5.5             
Investment Experience. Such Lender is an investor in securities of companies in the development stage and acknowledges
that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial
or business matters that it is capable of evaluating the merits and risks of the investment in the Securities. If other than an
individual, such Lender also represents it has not been organized solely for the purpose of acquiring any Securities.

 

5.6             
Accredited Investor. Such Lender is an "accredited investor" within the meaning of Rule 501 of Regulation
D of the Securities and Exchange Commission ("SEC"), as presently in effect.

 

5.7             
Restricted Securities. Such Lender understands that the Securities are characterized as "restricted securities"
under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public
offering and that under such laws and applicable regulations such a Securities may be resold without registration under the Securities
Act of 1933, as amended (the "Act"), only in certain limited circumstances. Such Lender represents that
it is familiar with SEC Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Act.

 

    	6

    	 

    

  

 

5.8             
Further Limitations on Disposition. Without in any way limiting the representations set forth above and any other
limitations set forth in the Note, such Lender further agrees not to make any disposition of all or any portion of the Securities
unless and until the transferee has agreed in writing for the benefit of the Company to make with respect to itself the representations
and warranties in and be bound by the covenants of this Section 5 and (a) there is then in effect a registration statement
under the Act covering such proposed disposition and such disposition is made in accordance with such registration statement; or
(b) Lender shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and if requested by the Company, Lender shall have furnished
the Company with an opinion of counsel, satisfactory to the Company, that such disposition will not require registration of any
Securities under the Act.

 

6.                 
Event of Default; Remedies.

 

6.1             
Event of Default. The occurrence of any of the following shall constitute an "Event of Default"
under this Agreement:

 

(a)the Company fails
to pay when due any amount payable under any of the Notes;

 

(b)any representation
or warranty made by the Company in this Agreement is false or misleading in any material respect when furnished or made;

 

(c)any default by
the Company in the performance of any its obligations under this Agreement or any Note (other than the obligation referred to in
subsections (a) and (b)), which default is not cured within 30 days after notice thereof has been given to the Company by Required
Lenders; or

 

(d)the Company suffers
or consents to or applies for the appointment of a receiver, trustee, custodian or liquidator of itself or any of its property,
or makes a general assignment for the benefit of creditors; the Company files a voluntary petition in bankruptcy, or seeks to effect
a plan or other arrangement with creditors or any other relief under the Bankruptcy Code, or under any state or other Federal law
granting relief to debtors, whether now or hereafter in effect; or any involuntary petition or proceeding pursuant to the Bankruptcy
Code or any other applicable state or other Federal law relating to bankruptcy, reorganization or other relief for debtors is filed
or commenced against the Company and is not dismissed, stayed or vacated within sixty days thereafter; the Company files an answer
admitting the jurisdiction of the court and the material allegations of any involuntary petition; or the Company or any Subsidiary
is adjudicated a bankrupt, or an order for relief is entered by any court of competent jurisdiction under the Bankruptcy Code or
any other applicable state or Federal law relating to bankruptcy, reorganization or other relief for debtors.

 

    	7

    	 

    

  

 

6.2             
Remedies. During the continuance of any Event of Default (other than an Event of Default referred to in Section 6.1(d)),
Required Lenders may, by notice to the Company, declare all or any part of the Company's obligations under the Notes to be immediately
due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived
by the Company, and/or take such enforcement action as is permitted under applicable law. Upon the occurrence or existence of any
Event of Default described in Section 6.1(d), immediately and without notice, (A) any obligation of Lenders to extend
any credit under this Agreement shall automatically cease and terminate, and (B) all Indebtedness of the Company evidenced by the
Notes shall automatically become immediately due and payable, without presentment, demand, protest or any other notice of any kind,
all of which are hereby expressly waived by the Company. During the continuance of an Event of Default, Collateral Agent shall,
at the direction of the Required Lenders, have all of the rights and remedies of a secured party under the Uniform Commercial Code
and all other applicable law, all of which rights and remedies shall be cumulative and nonexclusive to the extent permitted by
law.

 

7.                 
Miscellaneous.

 

7.1             
No Transfers of Notes; Successors and Assigns. Except as otherwise set forth in the Notes, no Lender may transfer,
assign, pledge, encumber or otherwise convey an interest to part or all of such Lender's Note without the Company's consent, which
consent will not be unreasonably withheld. Except as otherwise provided herein, the terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express
or implied, is intended to confer upon any party other than the parties hereto (or their respective successors and assigns) any
rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

7.2             
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington,
without regard to the conflict of laws provisions thereof.

 

7.3             
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Delivery of an executed counterpart of this Agreement by
fax or other electronic imagining means shall be effective as delivery of a manually executed counterpart of this Agreement.

 

7.4             
Notices. Any notice required or permitted under this Agreement or any Note shall be given in writing and shall be
deemed effectively given upon personal delivery to the party to be notified or three days after deposit with the United States
Post Office, by registered or certified mail, postage prepaid and addressed to such party at the address set forth below, or at
such other address as such party may designate by written notice to the other parties.

 

    	8

    	 

    

  

 

If to the Company:

 

Lenco Mobile Inc.

2025 First Avenue, Suite
320

Seattle, WA 98121

Attn: Chief Executive
Officer

 

 

If to Lenders:

 

At the addresses shown
on the Schedule of Lenders.

 

7.5             
Expenses. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement or any
Note, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any
other relief to which such party may be entitled.

 

7.6             
Entire Agreement. This Agreement and the Notes constitute the entire understanding and agreement among the parties
with regard to the subject hereof and thereof.

 

7.7             
Amendments and Waivers. Any term of this Agreement or the Notes may be amended or waived (either generally or in
a particular instance and either retroactively or prospectively), with the written consent of the Company and Required Lenders;
provided, however, that no such amendment or waiver shall: (a) extend or increase the commitment of any Lender
without the written consent of such Lender; (b) postpone any date fixed for payment of principal, interest or fees due to
the Lenders (or any of them) without the written consent of each Lender directly affected thereby; (c) reduce the principal
of or the rate of interest specified in any Note without the written consent of each Lender directly affected thereby; or (d) change
any provision of this Section 7.7 without the written consent of each Lender.

 

7.8             
Waiver of Jury Trial. EACH OF THE COMPANY AND EACH LENDER, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING, COUNTERCLAIM OR OTHER LITIGATION IN ANY WAY ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE NOTES. A COPY OF THIS SECTION MAY BE FILED WITH ANY COURT AS WRITTEN EVIDENCE OF THE
WAIVER OF THE RIGHT TO TRIAL BY JURY AND THE CONSENT TO TRIAL BY COURT.

 

[Remainder of Page
Intentionally Left Blank]

 

 

    	9

    	 

    

 

 

IN WITNESS WHEREOF, the parties
have executed this Note Purchase and Security Agreement as of the date first above written.

 

	 	LENCO MOBILE INC.
	 	 
	 	 
	 	By:                                                                       
	 	        Matthew R. Harris, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	10

    	 

    

 

 

IN WITNESS WHEREOF, the parties
have executed this Note Purchase and Security Agreement as of the date first above written.

 

	 	LENDER:
	 	(use if individual)
	 	 
	 	 
	 	
	 	(signature)
	 	
	 	 
	 	(printed name)
	 	 
	 	Address:  ____________________________
	 	                  ____________________________
	 	 
	 	 
	 	LENDER:
	 	(use if entity)
	 	 
	 	 
	 	
	 	(printed name of entity)
	 	 
	 	By:  _____________________________
	 	Name:  ___________________________
	 	Title  ____________________________
	 	 
	 	 
	 	Address:____________________________
	 	                ____________________________

 

 

 

    	11Exhibit 4.2

 

ThIS
NOTE haS not been registered under the Securities Act of 1933. IT may not be sold, offered for sale, pledged, hypothecated, or
otherwise transferred except pursuant to an effective registration statement under the Securities Act of 1933 or an opinion of
counsel satisfactory to the Company that registration is not required under such Act.

 

LENCO MOBILE, INC.

 

SENIOR SECURED PROMISSORY NOTE

 

	$[______________]	June __, 2013
	 	Seattle, Washington

 

FOR VALUE RECEIVED,
Lenco Mobile Inc., a Delaware corporation (the "Company"), hereby promises to pay to the order of
_________________ (the "Lender"), the principal sum of [_____________________] Dollars ($______) (the
“Original Principal Amount”), or such lesser amount as shall then equal the outstanding principal amount hereunder,
together with interest accrued as set forth in Section 2 below. This Note is issued pursuant to the terms of that certain Note
Purchase and Security Agreement dated as of June __, 2013 among the Company and each of the other parties thereto as Lenders
(as amended from time to time, the "Purchase Agreement"), and is one of the "Notes" (as defined
in the Purchase Agreement). Capitalized terms not elsewhere defined herein shall have the meanings set forth in the Purchase Agreement.

 

1.Payments.

 

1.1All Notes outstanding
under the Purchase Agreement shall rank equally without preference or priority of any kind with respect to one another, and all
payments and recoveries under the Purchase Agreement payable on account of principal and interest with respect to any of the Notes
shall be applied ratably in proportion to the Applicable Percentages. Subject to Section 1.3 of the Purchase Agreement, all payments
will be applied first to the repayment of accrued fees and expenses under this Note, if any, then to interest, and
then to the repayment of principal until all principal has been paid in full.

 

1.2The Balance shall
be due and payable on January 15, 2015. “Balance” means, at the applicable time, the sum of all then
outstanding principal of this Note, and all other amounts then accrued but unpaid under this Note.

 

1.3Subject to Section
1.1 above and Section 1.3 of the Purchase Agreement, the Company may prepay this Note in whole or in part from time to time without
premium or penalty. Any payment made by the Company to Lender shall hereinafter be defined as “Repayment Amount”. Each
partial prepayment shall be applied first to interest, second to payment of all, if any, other amounts except principal
due under or in respect of this Note, and third to repayment of the unpaid principal amount of this Note.

 

2.Interest.
The amount of interest shall be calculated as set forth below:

    	1

    	 

    

 

2.1On
any Repayment Amounts paid by the Company to Lender on or before October 15, 2013, the Company will pay to the Lender two and one
half percent (2.5%) interest. As an example, if the Balance was $200,000 and the Company wished to repay the Note in full during
this period, it would owe Lender $205,000 ($200,000 multiplied by 1.025). As another example, if the Company makes a partial prepayment
during this period of $100,000, then the Company will be deemed to have paid $2,439.02 in interest and $97,560.98 ($100,000 divided
by 1.025) in principal.

 

2.2On
any Repayment Amounts paid by the Company to Lender after October 15, 2013 but on or before January 15, 2014, then
the Company will pay to the Lender ten percent (10%) interest. As an example, if the Balance was $200,000 and the Company wished
to repay the Note in full during this period, it would owe Lender $220,000 ($200,000 multiplied by 1.1). As another example, if
the Company makes a partial prepayment during this period of $100,000, then the Company will be deemed to have paid $9,090.91 in
interest and $90,909.09 ($100,000 divided by 1.1) in principal.

 

2.3On
any Repayment Amounts paid by the Company to Lender after January 15, 2014 but on or before April 15, 2014, then
the Company will pay to the Lender thirty percent (30%) interest. As an example, if the Balance was $200,000 and the Company wished
to repay the Note in full during this period, it would owe Lender $260,000 ($200,000 multiplied by 1.3). As another example, if
the Company makes a partial prepayment during this period of $100,000, then the Company will be deemed to have paid $23,076.92
in interest and $76,923.08 ($100,000 divided by 1.3) in principal.

 

2.4On
any Repayment Amounts paid by the Company to Lender after April 15, 2014 but on or before July 15, 2014, then
the Company will pay to the Lender sixty percent (60%) interest. As an example, if the Balance was $200,000 and the Company wished
to repay the Note in full during this period, it would owe Lender $320,000 ($200,000 multiplied by 1.6). As another example, if
the Company makes a partial prepayment during this period of $100,000, then the Company will be deemed to have paid $37,500.00
in interest and $62,500.00 ($100,000 divided by 1.6) in principal.

 

2.5On
any Repayment Amounts paid by the Company to Lender after July 15, 2014 but on or before October 15, 2014, then
the Company will pay to the Lender one hundred percent (100%) interest. As an example, if the Balance was $200,000 and the Company
wished to repay the Note in full during this period, it would owe Lender $400,000 ($200,000 multiplied by 2.0). As another example,
if the Company makes a partial prepayment during this period of $100,000, then the Company will be deemed to have paid $50,000.00
in interest and $50,000.00 ($100,000 divided by 2.0) in principal.

 

2.6On
any Repayment Amounts paid by the Company to Lender after October 15, 2014 but on or before January 15, 2015, then
the Company will pay to the Lender one hundred and fifty percent (150%) interest. As an example, if the Balance was $200,000 and
the Company wished to repay the Note in full during this period, it would owe Lender $500,000 ($200,000 multiplied by 2.5). As
another example, if the Company makes a partial prepayment during this period of $100,000, then the Company will be deemed to have
paid $60,000.00 in interest and $40,000.00 ($100,000 divided by 2.5) in principal.

 

    	2

    	 

    

 

3.Security/Seniority.
The collateral described in, and pursuant to, the Purchase Agreement secures this Note. Subject to Section 1.1 above and any limitation
set forth in the Purchase Agreement, all payments and amounts recovered in connection with any sale, lease or other dispositions
of Collateral under the Purchase Agreement, net of any enforcement costs, will be applied first to the repayment of accrued
fees and expenses under this Note, then to accrued interest until all then outstanding accrued interest has been paid in
full, and then to the repayment of principal until all principal has been paid in full. If after all applications of such
payments or amounts recovered have been made as provided in this paragraph, then the remaining amount of such payment or amounts
recovered in connection with sale, lease or other disposition of Collateral under the Purchase Agreement that are in either case
in excess of the aggregate balance of all outstanding Notes, shall be returned to the Company in accordance with the provisions
of the Uniform Commercial Code.

 

4.Event of Default.
In case of an Event of Default, Lender shall have the rights set forth in the Purchase Agreement.

 

5. Representations
and Warranties of Holder. In order to induce the Company to enter into the Purchase Agreement and issue this Note and the Warrant
to the original Holder, the original Holder has made representations and warranties to the Company as set forth in the Purchase
Agreement.

 

6.General.

 

6.1The Company shall
pay all costs of collection, including reasonable attorneys' fees. No delay or failure on the part of Lender in exercising any
of its rights hereunder shall be deemed a waiver of such rights or any other right of Lender, nor shall any delay, omission or
waiver on any one occasion be deemed a bar to or waiver of such rights or any other right on any future occasion.

 

6.2The Company waives
presentment, demand, protest, notice of intention to accelerate, notice of acceleration, notice of nonpayment and all other notices
of every kind, and agrees that its liability under this Note shall not be affected by any renewal, postponement or extension in
the time of payment hereof or by any indulgence granted by any holder hereof with respect hereto, and the Company hereby consents
to any and all renewals, extensions, indulgences or changes, regardless of the number of such renewals, extensions, indulgences
or changes.

 

6.3Lender may not
transfer, assign, pledge, encumber or otherwise convey an interest to part or all of this Note without the Company's consent, which
consent will not be unreasonably withheld; provided, however, that this Note may be assigned, conveyed or transferred without the
prior written consent of the Company if such assignment, conveyance or transfer is made (i) to an affiliate of Lender, (ii) for
no consideration by Lender (if Lender is a partnership or a corporation) to (A) a partner of such partnership or stockholder of
such corporation, (B) an affiliate of such partnership or corporation, (C) a retired partner of such partnership who retires after
the date hereof, (D) the estate of any deceased partner of such partnership or deceased stockholder of such corporation; or (iii)
by gift, will or intestate succession by Lender to his or her spouse or lineal descendants or ancestors or any trust for any of
the foregoing; provided, further, that in each of the foregoing cases the transferee (x) executes and delivers an acknowledgement
that such transferee agrees to be subject to, and bound by, all the terms and conditions of this Note and (y) makes the representations
and warranties to the Company that are set forth in the Purchase Agreement. Subject to the foregoing, the rights and obligations
of the Company and the Lender under this Note shall be binding upon and benefit their respective permitted successors, assigns,
heirs, administrators and transferees.

 

    	3

    	 

    

 

6.4This Note and
all other Notes issued under the Purchase Agreement may be amended, and any provisions under this Note and all other Notes issued
under the Purchase Agreement, may be waived by the holders of Notes and the Company as provided in Section 7.7 of the Purchase
Agreement.

 

6.5.This Note shall
be governed by and construed in accordance with the laws of the State of Washington, without regard to the conflict of laws provisions
thereof.

 

ORAL AGREEMENTS
OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON
LAW.

 

	 	LENCO MOBILE INC.
	 	 
	 	 
	 	 
	 	By: ______________________________
	 	         Matthew R. Harris, Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

 

    	4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}]]