AMENDMENT NO. 1 TO AMENDED AND RESTATED SECURED CONVERTIBLE DEBENTURE NO. MEP-2
AMENDMENT
NO. 1 TO
AMENDED
AND RESTATED SECURED CONVERTIBLE DEBENTURE NO. MEP-2
THIS
AMENDMENT NO. 1 TO AMENDED AND RESTATED SECURED CONVERTIBLE DEBENTURE NO.
MEP-2
(this
“Amendment”),
is
entered into by and between TECH
LABORATORIES, INC. a
New
Jersey corporation (the “Company”),
and
the undersigned Buyer (the “Buyer”).
WHEREAS:
A. The
Company hereto previously issued to the Buyer that certain Amended and Restated
Secured Convertible Debenture No. MEP-2 dated December 28, 2005 (the
"Debenture").
B. The
parties to the Debenture now desire to amend certain provisions set forth in
the
Agreement as more fully described herein.
NOW,
THEREFORE,
in
consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which
are
hereby acknowledged, the Company and the Buyer hereby agree as
follows:
1. AMENDMENT
OF SECTION 3(c)(i) “Conversion
Price”.
Section 3 (c)(i) of the Debenture is hereby amended and replaced in its entirety
with the following:
“(i)
The
Holder shall be entitled to convert, at its sole option, at any time a portion
or all amounts of principal and interest due and outstanding under this
Debenture into shares of the Obligor’s Common Stock at the lesser of (i) $0.04
(the “Fixed
Conversion Price”)
or
(ii) eighty percent (80%) of the lowest Closing Bid Price of the Common Stock
during the ten (10) Trading Days immediately preceding the Conversion Date
as
quoted by Bloomberg, LP (the “Market
Conversion Price”).
The
Fixed Conversion Price and the Market Conversion Price are collectively referred
to as the “Conversion
Price”.
The
Conversion Price may be adjusted pursuant to the other terms of this
Debenture.”
2. EFFECT
ON OTHER TERMS.
This
Amendment shall be deemed effective as of May 31, 2007. All other terms set
forth in the Debenture shall remain unchanged and this Amendment, and the
Debenture shall be deemed a single integrated agreement for all
purposes.
[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]
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IN
WITNESS WHEREOF,
the
parties have caused this Amendment to the Debenture to be duly executed as
of
day and year first above written.
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COMPANY:
TECH
LABORATORIES, INC.
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| By: | /s/ Xxxx Xxxx | |
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Name:
Xxxx Xxxx
Title:
Chief Executive Officer and
Chief
Financial Officer
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BUYER:
XXXXXXXXXX
EQUITY PARTNERS, LTD.
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| By: | Yorkville Advisors, LLC | |
| Its: | General Partner | |
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| By: | /s/ Xxxx Xxxxxx | |
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Name:
Xxxx Xxxxxx
Title:
President and Portfolio
Manager
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