SEC Contract Filing

Filing Date: 2018-04-11

Document Content:
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Exhibit
10.2</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SECURED
PROMISSORY NOTE</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Principal Amount:
$18,480,619.50</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">FOR
VALUE RECEIVED, TRUE DRINKS, INC. (&#x201C;TRUE DRINKS&#x201D;) and
TRUE DRINKS HOLDINGS, INC. (&#x201C;TRUE DRINKS HOLDINGS&#x201D;)
(collectively, the &#x201C;MAKERS&#x201D;),</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">acting
jointly and severally, hereby promise to pay to the order of
NIAGARA BOTTLING, LLC, (&#x201C;PAYEE&#x201D;), pursuant to this
Secured Promissory Note (&#x201C;NOTE&#x201D;), the sum of Eighteen
Million Four Hundred Eighty Thousand Six Hundred Nineteen Dollars
and Fifty Cents ($18,480,619.50) (the &#x201C;PRINCIPAL
AMOUNT&#x201D;), together with interest from the Effective Date at
the rate of eight percent (8%) per year, compounded monthly on the
unpaid Principal Amount. Payment of the Principal Amount and all
accrued interest shall be due no later than December 31, 2019
(&#x201C;DUE DATE&#x201D;).</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Confidential Repayment Agreement/Relationship
of the Parties</font>. True Drinks, Vincent C. Smith, and Payee
(collectively, the &#x201C;Settling Parties&#x201D;) entered into a
Confidential Repayment Agreement dated April 5, 2018 wherein the
Settling Parties agreed to terminate that certain Bottling
Agreement, dated October 9, 2015, by and between True Drinks, Inc.,
a wholly- owned subsidiary of True Drinks Holdings, and Payee (the
&#x201C;Bottling Agreement&#x201D;), and the Personal Guaranty, dated
October 9, 2015, by and between Smith and Payee (the
&#x201C;Personal Guaranty&#x201D;) (the &#x201C;Confidential Repayment
Agreement&#x201D;). The Confidential Repayment Agreement also sets
forth payment obligations regarding the balance due under the
Bottling Agreement and Personal Guaranty. For the sake of
clarification, the obligations herein are in addition to those
identified in the Confidential Repayment Agreement, however, in the
event of a conflict between the terms of the Confidential Repayment
Agreement and this Note, this Note controls.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Effective Date.</font> This Note shall be of no
force or effect unless and until either or both of the Makers files
for bankruptcy protection under any Chapter of the U.S. Bankruptcy
Code (a &#x201C;Bankruptcy Filing&#x201D;). In the event of a
Bankruptcy Filing, the Note shall immediately come into full force
and effect. In the event that this Note is effectuated, the amount
due hereunder shall be reduced by all amounts previously paid to
Niagara pursuant to the Confidential Repayment Agreement. This Note
shall be voided if there is a Change of Control Transaction and
either of the Makers or the surviving entity is thereafter deemed
solvent. The Note shall, in all instances, expire on December 31,
2019.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">For
purposes of this Note, a &#x201C;Change of Control
Transaction&#x201D; means (i) any merger, consolidation, statutory
share exchange or acquisition transaction involving True Drinks
Holdings or any material subsidiary of True Drinks Holdings,
including True Drinks; (ii) any sale of substantially all of the
assets of True Drinks Holdings, or any material subsidiary of True
Drinks Holdings, including True Drinks; or (ii