SEC Contract Filing

Filing Date: 2015-10-27

Document Content:
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<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>f8k102615_ex10z2.htm
<DESCRIPTION>EXHIBIT 10.2 FORM OF NOTE
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<TITLE>Exhibit 10.2 Form of Note</TITLE>
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<P style="margin:0px" align=justify><B>THIS CONVERTIBLE PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. &nbsp;NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR THE HOLDER SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.</B></P>
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<P style="margin:0px" align=center><B>CONVERTIBLE PROMISSORY NOTE</B></P>
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<P style="margin-top:0px; margin-bottom:-2px; width:624px; float:left"><B>$450,000.00</B></P>
<P style="margin:0px; text-indent:-2px">October __, 2015</P>
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<P style="margin:0px; padding-left:48px" align=right>Odessa, Florida</P>
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<P style="margin:0px; text-indent:48px">For value received Westminster Pharmaceutical, LLC., a Delaware limited liability company (the &#147;<B><I>Company</I></B>&#148;), promises to pay to Gajan A. Mahendiran and Amudha Mahendiran or its assigns (collectively, the &#147;<B><I>Holder</I></B>&#148;) the principal sum of Fifty Thousand Dollars <B>($450,000.00)</B> together with accrued and unpaid Royalty Payments (defined below) thereon, each due and payable on the date and in the manner set forth below, and Trxade Group, Inc., a Delaware corporation and parent of the Company (&#147;<B><I>Parent</I></B>&#148;), promises to issue its Common Stock in connection with a conversion of this Note.</P>
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<P style="margin:0px; text-indent:48px">This convertible promissory note (the &#147;<B><I>Note</I></B>&#148;) is issued as part of a series of similar convertible promissory notes (collectively, the &#147;<B><I>Notes</I></B>&#148;) pursuant to the terms of that certain Convertible Promissory Note Purchase Agreement (as amended, the &#147;<B><I>Agreement</I></B>&#148;) dated as of October __, 2015 with the Holder. Capitalized terms used herein without definition shall have the meanings given to such terms in the Agreement.<B> </B></P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left"><B>1.</B></P>
<P style="margin:0px; text-indent:-2px"><B>Repayment. &nbsp;</B>All payments hereunder shall be in lawful money of the United States of America. &nbsp;All payments shall be applied first to accrued but unpaid Royalty Payments (defined on <B><U>Exhibit A</U></B>), and thereafter to principal. &nbsp;The outstanding principal amount of the Loan shall be due and payable <B><U>three years</U></B> from the date of issuance and receipt of funds by the Company (the &#147;<B><I>Maturity Date</I></B>&#148;).</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left"><B>2.</B></P>
<P style="margin:0px; text-indent:-2px"><B>Interest Rate.</B> &nbsp;The interest rate of this Note shall be paid in the form of a profit sharing arrangement defined as a &#147;<B><I>Royalty Payment</I></B>,&#148; as described on the Royalty Payment Schedule attached hereto on <B><U>Exhibit A</U></B>. &nbsp;</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left"><B>3.</B></P>
<P style="margin:0px; text-indent:-2px"><B>Conversion.</B></P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left"><B>(a)</B></P>
<P style="margin:0px; text-indent:-2px">Prior to the Maturity Date, at the option and election of the Holder made at least five days prior to the Maturity Date, the outstanding principal balance and any accrued but unpaid Royalty Payments under this Note shall be converted into shares of Common Stock of the Parent at a conversion price equal to <B>Two Dollars and Fifty Cents ($2.50) per share</B> (adjusting for any stock splits, recapitalizations and the like). &nbsp;&nbsp;&nbsp;</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; float:left"><B>(b)</B></P>
<P style="margin:0px; text-indent:-2px">If the conversion of this Note would result in the issuance of a fractional share, Parent shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from multiplying the then current fair market value of one share of the class and series of capital stock into which this Note has converted by such fraction, or round to the nearest whole share.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left"><B>4.</B></P>
<P style="margin:0px; text-indent:-2px"><B>Maturity.</B> &nbsp;Unless this Note has been previously converted in accordance with the terms of Sections&nbsp;3(a) above or satisfied in accordance with the terms of Section 6 below, the entire outstanding principal balance shall become fully due and payable on the Maturity Date, and any Royalty Payments shall be due in payable as described on the Royalty Payment Schedule attached hereto as <B><U>Exhibit A</U></B>.</P>
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<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; float:left"><B>5.</B></P>
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