SEC Contract Filing

Filing Date: 2016-12-27

Document Content:
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>f8k102816ex10ii_vapehold.htm
<DESCRIPTION>CONVERTIBLE PROMISSORY NOTE DATED NOVEMBER 1, 2016, ENTERED INTO BY AND BETWEEN VAPE HOLDINGS, INC. AND TYPENEX CO- INVESTMENT, LLC
<TEXT>
<HTML>
<HEAD>
 <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: right"><B>Exhibit 10.2</B></P>

<P STYLE="margin: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CONVERTIBLE
PROMISSORY NOTE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" STYLE="width: 100%; margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top; font: 10pt Times New Roman, Times, Serif">
 <TD STYLE="padding-left: 0pt; text-indent: 0pt; width: 15pc; padding-right: 0pt; text-align: left; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Effective
 Date: November 1, 2016</FONT></TD>
 <TD STYLE="padding-left: 0pt; text-indent: 0pt; padding-right: 0pt; text-align: right; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">U.S.
 $1,413,000.00</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FOR
VALUE RECEIVED, <FONT STYLE="font-variant: small-caps">Vape Holdings, Inc.</FONT>, a Delaware corporation (<B>&quot;Borrower&quot;</B>),
promises to pay to <FONT STYLE="font-variant: small-caps">Typenex Co-Investment, LLC,</FONT> a Utah limited liability company,
or its successors or assigns (<B>&quot;Lender&quot;</B>), $1,413,000.00 and any interest, fees, charges, and late fees on the
date that is nine (9) months after the Purchase Price Date (the <B>&quot;Maturity Date&quot;</B>) in accordance with the terms
set forth herein and to pay interest on the Outstanding Balance (including all Tranches (as defined below), both Conversion Eligible
Tranches (as defined below) and Subsequent Tranches (as defined below) that have not yet become Conversion Eligible Tranches)
at the rate of ten percent (10%) per annum from the Purchase Price Date until the same is paid in full. This Convertible Promissory
Note (this <B>&quot;Note&quot;</B>) is issued and made effective as of November 1, 2016 (the <B>&quot;Effective Date&quot;</B>).
This Note is issued pursuant to that certain Securities Purchase Agreement dated November 1, 2016, as the same may be amended
from time to time, by and between Borrower and Lender (the <B>&quot;Purchase Agreement&quot;</B>). All interest calculations hereunder
shall be computed on the basis of a 360-day year comprised of twelve (12) thirty (30) day months, shall compound daily and shall
be payable in accordance with the terms of this Note. 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; margin: 0pt; text-align: justify; text-indent: 39.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Note carries an OID of $128,000.00. In addition, Borrower agrees to pay $5,000.00 to Lender to cover Lender's legal fees, accounting
costs, due diligence, monitoring and other transaction costs incurred in connection with the purchase and sale of this Note (the
<B>&quot;Transaction Expense Amount&quot;</B>), all of which amount is included in the initial principal balance of this Note.
The purchase price for this Note shall be $1,280,000.00 (the <B>&quot;Purchase Price&quot;</B>), computed as follows: $1,413,000.00
original principal balance, less the OID, less the Transaction Expense Amount. The Purchase Price shall be payable by delivery
to Borrower at Closing of the Secured Investor Notes (as defined in the Purchase Agreement) and a wire transfer of immediately
available funds in the amount of the Initial Cash Purchase Price (as defined in the Purchase Agreement). This Note shall be comprised
of sixteen (16) tranches (each, a <B>&quot;Tranche&quot;</B>), consisting of (i) an initial Tranche in an amount equal to $49,000.00
and any interest, costs, fees or charges accrued thereon or added thereto under the terms of this Note and the other Transaction
Documents (as defined in the Purchase Agreement) (the <B>&quot;Initial Tranche&quot;</B>), and (ii) fifteen (15) additional Tranches,
the first of which will be in the amount of $44,000.00, the next four (4) of which will be in the amount of $55,000.00, and the
next ten (10) of which will be in the amount of $110,000.00, plus any interest, costs, fees or charges accrued thereon or added
thereto under the terms of this Note and the other Transaction Documents (each, a <B>&quot;Subsequent Tranche&quot;</B>). The
Initial Tranche shall correspond to the Initial Cash Purchase Price, $4,000.00 of the OID and the Transaction Expense Amount,
and may be converted into shares of Common Stock (as defined below) any time subsequent to the Purchase Price Date. The first
Subsequent Tranche shall correspond to Secured Investor Note #1