SEC Contract Filing

Filing Date: 2022-10-14

Document Content:
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<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>ex10_2.htm
<DESCRIPTION>EXHIBIT 10.2
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<P STYLE="font: small-caps 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>REDEEMABLE
PROMISSORY NOTE </B></FONT></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
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 <TD STYLE="vertical-align: top; width: 45%; text-align: left">October 7, 2022</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 10%">&nbsp;</TD>
 <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 43%; text-align: right">U.S. $2,807,500.00</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FOR
VALUE RECEIVED, <FONT STYLE="font-variant: small-caps">Applied UV, Inc.</FONT>, a Delaware corporation (&ldquo;<B>Borrower</B>&rdquo;),
promises to pay to <FONT STYLE="font-variant: small-caps">Streeterville Capital, LLC</FONT>, a Utah limited liability company, or its
successors or assigns (&ldquo;<B>Lender</B>&rdquo;), $2,807,500.00 and any interest, fees, charges, and late fees accrued hereunder on
the date that is eighteen (18) months after the Purchase Price Date (the &ldquo;<B>Maturity Date</B>&rdquo;) in accordance with the terms
set forth herein and to pay interest on the Outstanding Balance at the rate of eight percent (8%) per annum from the Purchase Price Date
until the same is paid in full. All interest calculations hereunder shall be computed on the basis of a 360-day year comprised of twelve
(12)&nbsp;thirty (30)&nbsp;day months, shall compound daily and shall be payable in accordance with the terms of this Note. This Redeemable
Promissory Note (this &ldquo;<B>Note</B>&rdquo;) is issued and made effective as of the date set forth above (the &ldquo;<B>Effective
Date</B>&rdquo;). This Note is issued pursuant to that certain Securities Purchase Agreement dated October 7, 2022, as the same may be
amended from time to time, by and between Borrower and Lender (the &ldquo;<B>Purchase Agreement</B>&rdquo;). Certain capitalized terms
used herein are defined in <U>Attachment 1</U> attached hereto and incorporated herein by this reference.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Note carries an original issue discount of $237,500.00 (&ldquo;<B>OID</B>&rdquo;) and a monitoring fee of $50,000.00 (the &ldquo;<B>Monitoring
Fee</B>&rdquo;). In addition, Borrower agrees to pay $20,000.00 to Lender to cover Lender&rsquo;s legal fees, accounting costs, due diligence,
monitoring and other transaction costs incurred in connection with the purchase and sale of this Note (the &ldquo;<B>Transaction Expense
Amount</B>&rdquo;). The OID and the Transaction Expense Amount are included in the initial principal balance of this Note and are deemed
to be fully earned and non-refundable as of the Purchase Price Date. The Monitoring Fee is included in the initial principal balance
of this Note but may be forgiven as set forth in Section 1.3 below. The purchase price for this Note shall be $2,500,000.00 (the &ldquo;<B>Purchase
Price</B>&rdquo;), computed as follows: $2,807,500.00 original principal balance, less the OID, less the Transaction Expense Amount.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.&nbsp;
<U>Payment; Prepayment; Monitoring Fee</U>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.1.&nbsp;
<U>Payment</U>. All payments owing hereunder shall be in lawful money of the United States of America or Redemption Shares (as defined
below), as provided for herein, and delivered to Lender at the address or bank account furnished to Borrower for that purpose. All payments
shall be applied first to (a) costs of collection, if any, then to (b) fees and charges, if any, then to (c) accrued and unpaid interest,
and thereafter, to (d) principal.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.2.&nbsp;
<U>Prepayment</U>. Borrower may pay all or any portion of the Outstanding Balance earlier than it is due; <I>provided that </I>in the
event Borrower elects to prepay all or any portion of the Outstanding Balance it shall pay to Lender 120% of the portion of the Outstanding
Balance Borrower elects to prepay (the &ldquo;<B>Prepayment Premium</B>&rdquo;). Early payments of less than all principal, fees and
interest outstanding will not, unless agreed to by Lender in writing, relieve Borrower of Borrower&rsquo;s remaining obligations hereunder.
Notwithstanding the foregoing, the Prepayment Premium will not apply if Borrower repays the Note in full on the Anniversary Date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.3.&nbsp;
<U>Monitoring Fee</U>. If prior to the Anniversary Date all Redemption Amounts (as defined below) are paid as Common Stock Redemptions
(as defined below), then each time after the Anniversary Date that Borrower makes a Common Stock Redemption, $8,333.33 of the Monitoring
Fee will be deducted from the Outstanding Balance (not to exceed $50,000.00). No interest will accrue on the