FIRST AMENDMENT TO THE 11% SENIOR SECURED PROMISSORY NOTES
Exhibit
10.31
FIRST
AMENDMENT TO THE
This
First Amendment to The 11% Senior Secured Promissory Notes (this “Agreement”)
is
made and entered into as of June ___, 2007 (the “Effective
Date”),
by
and between XA,
Inc.,
a
Nevada corporation (“XA”)
and
Sands
Brothers Venture Capital LLC,
Sands
Brothers Venture Capital II LLC,
Sands
Brothers Venture Capital III LLC,
Sands
Brothers Venture Capital IV LLC,
and
Katie
& Xxxx Bridge Partners, L.P. (each
a
“Purchaser”
and
collectively the “Purchasers”),
each
individually a “Party”
and
collectively the “Parties.”
W I T N E S S E T H:
WHEREAS,
pursuant to Securities Purchase Agreements entered into with the Purchasers
on
August 8, 2006 (the “Prior
Purchase Agreements”),
XA
sold each of the Purchasers a fifteen month 11% Senior Secured Convertible
Promissory Note (the “Prior Notes”),
which
in aggregate totaled $1,250,000 in Prior Notes;
WHEREAS,
XA
recently sold an additional $200,000 in twelve month 11% Senior Secured
Convertible Promissory Notes on substantially similar terms as the Prior Notes
to the Purchasers (other than the maturity date thereof and other revisions
which were agreed by the Parties)(the “Follow
On Notes”),
in
connection with the sale of an aggregate of $450,000 in additional notes (the
“Follow
On Funding”);
and
WHEREAS,
a
negotiated term and provision of the Follow On Funding was the amendment of
the
maturity date of the Prior Notes to be equal to the maturity date of the Follow
On Notes.
NOW,
THEREFORE,
in
consideration for the promises and pledges contained below and other good and
valuable consideration, which consideration the Parties acknowledge receipt
of,
and the premises and the mutual covenants, agreements, and considerations herein
contained, the Parties hereto agree as follows:
1. Amendment
To Maturity Date of The Prior Notes.
XA
and
the Purchasers each individually agree to amend and replace the definition
of
“Maturity Date” as defined in the introductory paragraph of the Prior Notes to
which they are a party, to June 22, 2008 (the “Amendment”).
The
Parties further agree that any mention to the term Maturity Date in the Prior
Notes shall hereafter refer to June 22, 2008.
The
Purchasers confirm that they received valid consideration from the sale of
the
Follow On Notes and that the Amendment was a required term of such Follow On
Funding.
XA
confirms that it will receive valid consideration from the
Amendment.
First
Amendment to the
11%
Senior Secured Convertible Promissory Notes
Page
1
of
3
2.
Miscellaneous.
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(a)
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Assignment.
All of the terms, provisions and conditions of this Agreement shall
be
binding upon and shall inure to the benefit of and be enforceable
by the
Parties hereto and their respective successors and permitted assigns.
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(b)
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Applicable
Law.
This Agreement shall be construed in accordance with and governed
by the
laws of the State of New York, excluding any provision of this Agreement
which would require the use of the laws of any other
jurisdiction.
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(c)
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Entire
Agreement, Amendments and Waivers.
This Agreement constitutes the entire agreement of the Parties hereto
and
expressly supersedes all prior and contemporaneous understandings
and
commitments, whether written or oral, with respect to the subject
matter
hereof. No variations, modifications, changes or extensions of this
Agreement or any other terms hereof shall be binding upon any Party
hereto
unless set forth in a document duly executed by such Party or an
authorized agent or such Party.
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(d)
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Waiver.
No
failure on the part of any Party to enforce any provisions of this
Agreement will act as a waiver of the right to enforce that
provision.
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(e)
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Section
Headings.
Section headings are for convenience only and shall not define or
limit
the provisions of this Agreement.
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(f)
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Effect
of Facsimile and Photocopied Signatures.
This Agreement may be executed in several counterparts, each of which
is
an original. It shall not be necessary in making proof of this Agreement
or any counterpart hereof to produce or account for any of the other
counterparts. A copy of this Agreement signed by one Party and faxed
to
another Party shall be deemed to have been executed and delivered
by the
signing Party as though an original. A photocopy of this Agreement
shall
be effective as an original for all
purposes.
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[Remainder
of page left intentionally blank. Signature page follows.]
First
Amendment to the
11%
Senior Secured Convertible Promissory Notes
Page
2 of
3
This
Agreement has been executed by the Parties on the date first written above,
with
an Effective Date as provided above.
/s/
Xxxxxx Xxxxxx
Xxxxxx
Xxxxxx
Chief
Executive Officer
Purchasers:
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Sands
Brothers Venture Capital LLC
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Sands
Brothers Venture Capital II LLC
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By:Xxxxx
Xxxxx
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By:Xxxxx
Xxxxx
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Its:COO
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Its:COO
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Printed
Name: Xxxxx
Xxxxx
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Printed
Name:Xxxxx
Xxxxx
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Sands
Brothers Venture Capital III LLC
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Sands
Brothers Venture Capital II LLC
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By:Xxxxx
Xxxxx
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By:Xxxxx
Xxxxx
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Its:COO
Printed
Name:Xxxxx
Xxxxx
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Its:COO
Printed
Name:Xxxxx
Xxxxx
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Katie
& Xxxx Bridge Partners, L.P.
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By:Xxxxx
Xxxxx
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Its:COO
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Printed
Name:Xxxxx
Xxxxx
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First
Amendment to the
11%
Senior Secured Convertible Promissory Notes
Page 3 of
3
