EXHIBIT 10.7
AGREEMENT
IT IS AGREED this 28 day of August 2001, by and between Northrop Family Trust
("NFT") and Bion Environmental Technologies, Inc. ("BION") as follows:
WHEREAS BION is entering into agreements to simplify its capital structure:
AND WHEREAS NFT considers the simplification to be in the best interests of
BION and NFT;
NOW THEREFORE, IN CONSIDERATION of the mutual promises and covenants herein:
1) NFT agrees to and does hereby amend the promissory note attached hereto
as Exhibit A ("Note") to provide that:
a) The term of the Note shall be extended to April 30, 2002;
b) The Note (principal and interest) shall be completely converted to
shares of common stock of BION (with an effective registration
statement related to resale of such shares) upon the earlier of
April 29, 2002 or the conversion of BION's outstanding Convertible
Bridge Notes and 2001 Convertible Notes (collectively "CV Notes")
at the lower of: 1) $2.25 per share, or ii) the conversion price of
the CV Notes;
2) NFT and BION cancel 38,000 warrants exercisable at $2.25 per share
until 12/31/01;
3) NFT and BION agree to execute such other documents as may be necessary to
properly carry out the transactions set forth herein.
4) The Agreement is subject to ratification by BION's Board of Directors on
or before September 15, 2001.
BION Environmental Technologies, Inc. Northrop Family Trust
By: /s/ Xxxx X. Xxxxx, Chairman By: /s/ Xxx Xxxxxxxx, TTEE
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Authorized Officer Northrop Family Trust
EXHIBIT A
Initial Principal: $85,000
Date Due: December 31, 2001
PROMISSORY NOTE ("Note")
FOR VALUE RECEIVED, the undersigned, Bion Environmental Technologies,
Inc., a Colorado corporation ("MAKER"), hereby promises to pay to the order of
Family Trust U/A 3rd U/W Xxxxxxxxx Xxxxxxxx ("HOLDER"), and his successors and
assignees, all sums due under this Note (plus interest) in lawful and
immediately available money of the United States. The initial principal of
this loan is $85,000. Interest shall be accrued and added to principal at one
percent (1.0%) per month from date owed by MAKER. All outstanding principal
and interest shall be due and payable on or before December 31, 2001, if not
previously paid. If this Note or interest due hereunder is not paid when due
or declared due hereunder, the principal shall draw interest at the rate of
one and one half percent (1.5%) per month.
Upon default by the MAKER of the timely payment of principal or interest
due hereunder or upon any Event of Default as hereinafter defined, the HOLDER
may, in its sole discretion, withhold any payments due and payable to MAKER
and apply same to the MAKER's obligations hereunder. In addition, upon any
Event of Default, the HOLDER may declare the full amount of this Note due and
payable.
If any one or more of the following events ("Events of Default") shall
occur for any reason whatsoever (and whether such occurrence shall be
voluntary or involuntary or come about or be effected by operation of law,
pursuant to or in compliance with any judgment, decree of order of any court,
or any order, rule or regulation of any administrative or governmental body,
or otherwise) the HOLDER of this Note may, at its option, upon written notice
to MAKER, declare this Note and any other promissory note issued by MAKER to
HOLDER (whether or not then due in accordance with its terms) to be due and
payable, whereupon the entire balance of this Note shall forthwith become and
be due and payable:
(a) MAKER fails to make payment of principal or of interest on this
Note or any other obligation of MAKER when such shall become due and payable,
whether at the stated maturity thereof or by acceleration or otherwise;
(b) MAKER (1) admits its inability to pay its debts as they become
due; (2) files a petition in bankruptcy or makes a petition to take advantage
of an insolvency act; (3) makes an assignment for the benefit of creditors;
(4) commences a proceeding for the appointment of a receiver, trustee,
liquidator, or conservator of itself or of the whole or any substantial part
of its properties; (5) files a petition or answer seeking reorganization or
arrangement or similar relief under the federal bankruptcy laws or any other
applicable law or statute or the United States or any State;
(c) MAKER (1) is adjudged as bankrupt, (2) a court enters an order,
judgment or decree, appointing a receiver, trustee, liquidator or conservator
of MAKER or of the whole or any substantial part of its properties, or approve
a petition filed against MAKER seeking reorganization or similar relief under
the federal bankruptcy laws or any other applicable law or statute of the
United States or any state; (3) under the provisions of any other law for the
relief or aid of debtors, a court assumes custody or control of MAKER or the
whole or any substantial part of its properties; (4) there is commenced
against MAKER any proceeding for any of the foregoing relief; (5) a petition
in bankruptcy is filed against MAKER; or (6) MAKER by any act indicates its
consent to approval of or acquiescence in any such proceeding or petition.
Except as otherwise hereinabove expressly provided, MAKER hereby waives
diligence, demand, protest, presentment and all notices (whether of
nonpayment, dishonor, protest, acceleration or otherwise) and consents to
acceleration of the time of payment, surrender or substitution of security or
forbearance, or other indulgence, without notice.
Jurisdiction and venue shall be in a court of general jurisdiction
located in Denver, Colorado. In the event that litigation is necessary to
collect the principal (and interest) of the Note, HOLDER shall be entitled to
reasonable attorneys' fees and litigation costs associated therewith.
BION ENVIRONMENTAL TECHNOLOGIES, INC.
By: __________________________________
Authorized Officer
Date: May 21, 1999
