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EDGARONLINESUNWORKS,INC.(SUNW)8K/A3/3/2015

Exhibit10.2
CONVERTIBLEPROMISSORYNOTE

$2,650,000

FORVALUERECEIVED,Solar3D,Inc.,aDelawarecorporation(theBorrower)

February28,2015
SantaBarbara,California

herebypromisestopaytotheorderofMDEnergy,LLC,aNevadalimitedliabilitycompanyoritsassigns(theLender),at9291
9thStreet,RanchoCucamonga,California,theprincipalsumofTwoMillionSixHundredFiftyThousandDollarsU.S.
($2,650,000)plussimpleinterestattherateof4%perannumcommencingtoaccrueonthedatefirstabovewritten,payable
principalandallaccruedinterestinaccordancewiththetermsandconditionsofthisNote.ThisNoterepresentsaportionofthe
PurchasePricepaidbyMDEnergy,Inc.,aCaliforniacorporation(Buyer),andBorrowertoLenderpursuanttothatcertain
AmendedandRestatedAssetPurchaseAgreementbyandbetweenLender,asSeller,BorrowerandBuyer,ofevendateherewith
(theAssetPurchaseAgreement),assuchcapitalizedtermsaredefinedinsuchAgreement.

1.PaymentonNote.CommencingonMarch31,2015,andonthelastdayofeachquarterthereafterduringthe
firsttwoyearsofthisNote,BorrowerwillmakequarterlyinterestonlypaymentstoLenderforinterestaccruedontheNoteduring
thepriorquarter.CommencingwiththequarterendingonJune30,2017,Borrowerwillmakequarterlypaymentsofinterest
accruedontheNoteduringthepriorquarterplus$220,833.33,withthefinalpaymentofalloutstandingprincipalandaccruedbut
unpaidinterestonthisNotedueandpayableonFebruary28,2020(theMaturityDate).Nolaterthanfifteen(15)daysafter
eachpaymentduedate,BorrowerwillpayeachpaymenttotheLenderbydepositingtheappropriatepaymentamountintoan
accountdesignatedbytheLenderinwritingdeliveredtotheBorrowerpriortotheexecutionofthisNote.
2.RightofPrepayment.BorrowerhastherighttoprepayalloranyportionofthisNoteatanytimewithout
penaltyuponatleasttendayspriorwrittennoticetoLender.Suchprepaymentsshallbeappliedfirsttointerestandthento
principal.

3.Conversion.LenderhastherighttoconvertuptoonethirdoftheoutstandingbalanceoftheNoteintosharesof
fullypaidandnonassessablecommonstockoftheBorrower(theCommonStock)onoraftereachofthefollowing
dates:November30,2015,November30,2016andNovember30,2017.Theconversionpriceshallbe$2.60pershare(the
InitialConversionPrice).TheInitialConversionPriceshallbesubjecttoequitableadjustmentsforstocksplits,combinations,
recapitalizations,reclassifications,andsimilareventsoftheBorrower.WithrespecttothepublicresaleoftheCommonStock,the
Lendershallatalltimesbesubjecttotherestrictions,conditionsandrequirementsapplicabletoanaffiliateoftheBorrower,as
describedinRule144oftheSecuritiesActof1933,asamended,eveniftheLenderisnolongeratechnicalaffiliateofthe
Borrower.

4.BorrowerRighttoForceConversionandRightofOffset.Intheeventofanymaterialbreachbythe
LenderoftheAssetPurchaseAgreement,BorrowerwillhavetherighttooffsettheamountofdamagesincurredbytheBorrower
asaresultofsuchbreachagainsttheamountsowedbyitonthisNote,subjecttocustomarydisputeresolutionavailableatlawor
inequity.IntheeventthattheLender(a)voluntarilyresignsasanemployeeoftheBorrower,unlesstheLendersemployment
withMDEisterminatedbyLenderduetodeath,disabilityrenderingtheLenderunabletowork,oraconstructiveterminationof
theLendersemploymentbytheBorrower,or(b)isinvoluntarilyterminatedasanemployeeoftheBorrowerforcause
(TerminatingLender),ineithercasepriortotheEndofTermasdefinedinSection2oftheAssetPurchaseAgreement,then
theBorrowerwillhavetheright,exercisableatanytimeforaperiodofoneyearaftersuchtermination,toeither(i)causean
immediateconversionofalloranyportionoftheentireoutstandingbalanceoftheTerminatingLendersNoteintosharesofthe
BorrowerscommonstockinaccordancewiththetermsandconditionsofthisNote,or(ii)prepayalloranyportionofthe
outstandingbalanceoftheNoteincashprovided,thatallcommonstockissuedtotheTerminatingLenderpursuanttosucha
conversionwillbesubjecttoatwoyearlockupwherebytheTerminatingLenderwillnotbeabletotransfer,hypothecate,assign
orsellanyofthosesharesfortwoyearsafterreceiptofthem.ForthepurposeofthisNote,causehasthemeaningascribedtoit
inSection3.1oftheAssetPurchaseAgreement.ThisNoteisnotsecured.

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5.Default.Anyofthefollowingshallconstituteadefault(EventofDefault)byBorrowerhereunder:

(a)ThefailureofBorrowertomakeanypaymentofprincipalorinterestrequiredhereunderwithinfifteen
(15)daysoftheduedateforsuchpaymentor

(b)ThefailureofBorrowertofullyperformanyothermaterialcovenantsandagreementsunderthisNoteand
continuanceofsuchfailureforaperiodoffortyfive(45)daysafterwrittennoticeofthedefaultbyLendertothe
Borrower.

Upontheoccurrenceof(a)anEventofDefaultunderSection5(a)ofthisNotethatisnotcuredwithinfortyfive(45)days
oftheduedateforthedefaultedpayment,(b)anEventofDefaultunderSection5(b)ofthisNote,(c)asaleforcashornotesand
noothersecuritiesofallorsubstantiallyalloftheassetsoftheBorrower,or(d)asaleforcashornotesandnoothersecuritiesofall
orsubstantiallyalloftheissuedandoutstandingvotingcapitalstockoftheBorrowerresultinginachangeofcontrolofthe
Borrower,or(e)thefilingofbankruptcyproceedingsfortheBorrowerthatisnotdismissedwithinsixty(60)daysofthe
filing,Lendermay,athisoption,declareimmediatelydueandpayabletheentireunpaidprincipalsumofthisNotetogether
withallaccruedandunpaidinterestowingatthetimeofsuchdeclarationpursuanttothisNote.Furthermore,intheEventof
DefaultunderSection5(a)ofthisNote,Lenderwillhavetherightatanytimetoconverttheentireamountofthedefaulted
paymentintoBorrowersCommonStockattheInitialConversionPrice,iftheconversionisvoluntarybutnotifitisforcedunder
Section4ofthisNote.

6.CostsofCollections.LendershallbeentitledtocollectreasonableattorneysfeesandcostsfromBorrower,as
wellasothercostsandexpensesreasonablyincurred,incuringanydefaultorattemptingcollectionofanypaymentdueonthis
Note.

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7.PaymentandPlaceofPayment.ThisNoteshallbepayableinlawfulmoneyoftheUnitedStates.All
paymentsonthisNotearetobemadeorgiventoLenderattheaddressprovidedtoBorrowerortosuchotherplaceasLendermay
fromtimetotimedirectbywrittennoticetoBorrower.

8.Waiver.Borrower,foritselfanditssuccessors,transferorsandassigns,waivespresentment,dishonor,protest,
noticeofprotest,demandforpaymentanddishonorinnonpaymentofthisNote,bringingofsuitordiligenceoftakinganyaction
tocollectanysumsowinghereunderorinproceedingagainstanyoftherightsandpropertiessecuringpaymenthereunder.

9.Severability.IfanyprovisionofthisNoteortheapplicationthereoftoanypersonsorentitiesorcircumstances
shall,toanyextent,beinvalidorunenforceable,theremainderofthisNoteshallnotbedeemedaffectedtherebyandevery
provisionofthisNoteshallbevalidandenforceabletothefullestextentpermittedbylaw.

10.NoPartner.LendershallnotbecomeorbedeemedtobeapartnerorjointventurerwithBorrowerbyreasonof
anyprovisionofthisNote.NothinghereinshallconstituteBorrowerandLenderaspartnersorjointventurersorrequireLenderto
participateinorberesponsibleorliableforanycosts,liabilities,expensesorlossesofBorrower.

11.NoWaiver.Thefailuretoexerciseanyrightshereinshallnotconstituteawaiveroftherighttoexercisethe
sameoranyotherrightatanysubsequenttimeinrespectofthesameeventoranyotherevent.

12.Nonrecourse.IntheeventthattheBorrowerdefaultsonthisNote,LendershalllooksolelytotheBorrowerfor
repaymentandnoneoftheshareholders,officers,directorsoraffiliatesoftheBorrowershallhaveanypersonalliabilityfor
paymenthereunder.

13.Assignability.TheLendermaynotassignthisNotewithouttheexpresspriorwrittenapprovaloftheBorrower,
whichitmaygrantorwithholdinitssoleandabsolutediscretion.ThisNoteshallbebindingupontheBorrowerandits
successorsandshallinuretothebenefitoftheLenderanditssuccessorsandassigns,ifany.

14.GoverningLawandVenue.ThisNoteshallbegovernedbyandconstruedsolelyinaccordancewiththe
lawsoftheStateofCaliforniawithoutgivingeffecttoapplicableconflictoflawsprovisions.BorrowerandLenderagreethatthe
solejurisdictionandvenueforanylitigationarisingoutoftheNoteinvolvingBorrowerorLendershallbeintheappropriate
federalorstatecourtlocatedinSantaBarbaraCounty,California.

15.EntireAgreement.ThisNoteandtheAssetPurchaseAgreementcontaintheentireunderstandingand
agreementbetweenthepartieswithrespecttothesubjectmatterhereinandmaynotbealteredoramendedexceptbythewritten
agreementoftheparties.

16.Counterparts.ThisNotemaybeexecutedintwoormorecounterparts,eachofwhichshallbedeemedan
original,butallofwhichtogethershallconstituteoneandthesameinstrument.FacsimileexecutionsofthisNoteshallbedeemed
original.

[Signaturesonfollowingpage]

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INWITNESSWHEREOF,BorrowerandLenderhaveexecutedthisNoteonFebruary28,2015,tobeeffectiveasof
thedatefirsthereinabovewritten.

BORROWER:SOLAR3D,INC.,aDelawarecorporation

By:/s/JamesB.Nelson
JamesB.Nelson,ChiefExecutiveOfficer

LENDER:

/s/DanielJ.Mitchell
DanielJ.Mitchell

/s/AndreaC.Mitchell
AndreaC.Mitchell

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