VERIDIUM
Xx. Xxxx Xxxxx
Xxxxxxx Capital Partners, LP
000 Xxxxxx Xxxxxx, Xxxxx 0000
Xxxxxx Xxxx, XX 00000
RE: CONFIRMATION OF CONVERSION TERMS
Dear Xxxx:
Reference is made to your Debt Purchase Agreement of April 21, 2006 with Laurus
Master Fund, Ltd., relative to your purchase of $2,190,146.68 of the debt
originally issued by Veridium Corporation ("Veridium") to Laurus pursuant to
that certain Secured Minimum Borrowing Note dated March 31, 2004 in the original
principal amount of $1,000,000, and that certain Revolving Note dated March 31,
2004 in the original principal amount of $750,000 and such additional principal
as may be relevant, taking Veridium's accounts receivable into account, up to
an amount not to exceed an additional $1,500,000.
This letter shall confirm (a) that the Revolving Note shall be amended to
provide for all of the same terms and conditions of the Minimum Borrowing Note
and (b) that the conversion feature of both the Minimum Borrowing Note and the
Revolving Note, as amended, shall be amended as follows:
"2.2 Fixed Conversion Price. For purposes hereof, the "Fixed Conversion
Price" means the lesser of (a) $0.10 per share or (b) ninety percent (90%)
of the lowest Volume Weighted Average Price of the Common Stock during the
thirty (30) trading days immediately preceding the Conversion Date as
quoted by Bloomberg, LP. "
A form of conversion notice is attached hereto. Please direct all conversion
notices to my attention via email and fax to 000-000-0000.
Thank you and please do not hesitate to call me if you have any questions or
comments with the above.
Best Regards,
VERIDIUM CORPORATION
/s/ Xxxxx Xxxxxxxx
-------------------------------------
Xxxxx Xxxxxxxx
Chairman and Chief Executive Officer
000 Xxxx 00xx Xxxxxx, Xxxxx 000 - Xxx Xxxx, Xxx Xxxx 00000
888.895.3585 p - 646.792.2636 f - xxx.xxxxxxxx.xxx
EXHIBIT "A"
NOTICE OF CONVERSION
(To be executed by the Holder in order to Convert the Debenture)
TO:
The undersigned hereby irrevocably elects to convert $
of the principal amount of the above Debenture into Shares of Common
Stock of Veridium Corporation, according to the conditions stated therein, as
of the Conversion Date written below.
Conversion Date: ________________________________________________________
Applicable Conversion Price: ____________________________________________
Signature: ______________________________________________________________
Name: ___________________________________________________________________
Address: ________________________________________________________________
Amount to be converted: $ _______________________________________________
Amount of Debenture unconverted: $ ______________________________________
Conversion Price per share: $ __________________________________________
Number of shares of Common Stock to be issued: __________________________
Please issue the shares
of Common Stock in the
following name and to the
following address:
_________________________________________________________________________
Issue to: _______________________________________________________________
Authorized Signature: ___________________________________________________
Name: ___________________________________________________________________
Title: __________________________________________________________________
Phone Number: ___________________________________________________________
Broker DTC Participant Code: ____________________________________________
Account Number: _________________________________________________________