ALLONGE (Firmly affix to original Note)
10(d)
(Firmly
affix to original Note)
THIS
ALLONGE (“Agreement@) is made as of February 23, 2007, by and between DURAVEST,
INC., a Illinois corporation (“Borrower”) and ABSOLUTE RETURN EUROPE FUND
LIMITED (“Holder”).
RECITALS
The
Borrower executed and delivered to the order of the Holder its Amended and
Restated Convertible Promissory Note, dated as of November, 28, 2005 (ANote@),
in the original principal amount of $1,000,000.00 to evidence certain
indebtedness extended by the Holder to the Borrow (ALoan@)
The
Borrower has requested that the Holder modify the terms of the Note in certain
respects. The Holder has agreed to the Borrower=s request, but only upon the
terms and conditions provided in this Agreement.
NOW
THEREFORE, in consideration of these premises, and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto agree as follows:
1. Amendments
to Note.
The
provisions of the Note are hereby amended and modified as follows:
a.
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The
definition of "Maturity Date" is amended and Modified by striking
the
following sentence from page 1 of the Note:
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The
Principal of the Note shall be due and payable, together with any then unpaid
interest on November 28, 2006 (the "Maturity Date").
b.
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The
following sentence shall be inserted in its
place:
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The
Principal of the Note shall be due and payable, together with any then unpaid
interest on the 31st day of January 2008 (the "Maturity
Date").
c.
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The
following sentences shall be inserted at the end of the last sentence
in
subparagraph (a) of the Note:
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To
the
extent the Company's Amended and Restated Articles of Incorporation ("Charter")
do not have a sufficient number of shares of Common Stock authorized to satisfy
a conversion notice, the Company will issue and deliver to Holder the maximum
number of shares of Common Stock that it is authorized to deliver under its
Charter. The Company will use its best efforts to amend the Charter to authorize
a sufficient number of shares of Common Stock to satisfy the full conversion
and
shall promptly issue and deliver such shares to Holder upon the effective date
of such amendment
2. Warranties
and Representations.
As an
inducement to the Holder to enter into this Agreement, the Borrower makes the
following representations and warranties to the Holder and acknowledges the
Holder=s justifiable reliance thereon:
a. All
warranties and representations previously made to the Holder by the Borrower
remain true, accurate and complete.
b. This
Agreement and the Note, as modified and amended in accordance herewith, are
the
valid and binding obligations of the Borrower and are fully enforceable in
accordance with their terms.
3. No
Novation; No Refinance; No Adverse Affect On Liens.
The
parties hereto do not intend that a novation of the Loan or the Note shall
be
created or effected by or as a result of the amending of the Note as described
herein. The parties hereto do not intend that the execution of this Agreement
or
the amendments to the Note as described herein shall: (a) constitute a refinance
of the Loan; or (b) affect the validity or priority of any of the liens or
security interests imposed by or granted in the Note.
4. Incorporation.
The
terms and conditions of the Note are incorporated by reference herein and made
a
part hereof, as if fully set forth herein. In the event of any inconsistency
between this Agreement and the Note, such inconsistency shall be construed,
interpreted and resolved so as to benefit the Holder, independent of whether
this Agreement or the Note controls, and the Holder=s election of which
interpretation or construction is for the Holder=s benefit shall absolutely
govern.
5. No
Other Modification: Final Agreement.
Except
as set forth in this Agreement, the Note remains unmodified and in full force
and effect Nothing contained herein shall be deemed to affect the priority
or
enforceability of the Note
6. Fees
And Expenses.
The
Borrower shall pay on the date of this Agreement reasonable costs in connection
with this Agreement, including but not limited to reasonable attorneys=
fees.
7. Binding
Effect.
This
Agreement shall inure to the benefit of the parties hereto, and shall be binding
upon their successors, personal representatives and assigns.
8. Choice
of Law.
The
laws of the State of Illinois (excluding, however, conflict of law principles)
shall govern and be applied to determine all issues relating to this Agreement
and the rights and obligations of the parties hereto, including the validity,
construction, interpretation, and enforceability of this Agreement and its
various provisions and the consequences and legal effect of all transactions
and
events which resulted in the execution of this Agreement or which occurred
or
were to occur as a direct or indirect result of this Agreement having been
executed.
9. Consent
To Jurisdiction: Agreement As To Venue. The Borrower irrevocably consents to
the non-exclusive jurisdiction of the state or federal courts of the State
of
Illinois or the State of New York.
10.
Tense,
Gender, Defined Terms, Captions. As used herein, the plural shall refer to
and include the singular, and the singular, the plural and the use of any gender
shall include and refer to any other gender. All defined terms are completely
capitalized throughout this Agreement. All captions are for the purpose of
convenience only.
11.
Time.
Time is of the essence with respect to this Agreement and all terms and
conditions described herein.
12.
No
Defenses Or Offsets: Release Of Any Claims. In consideration for the
agreement of the Holder to extend the maturity of the Loan as provided for
herein, the Borrower hereby acknowledges and agrees that it hereby forever
waives and releases any and all defenses or offsets, known or unknown to the
Borrower, which might restrict the immediate right of the Holder, upon the
occurrence of an event of default under the Note, to do the following: (a)
require the payment in full of the Loan; and (b) initiate enforcement and
collection proceedings against the Borrower or against any collateral securing
the obligations of the Borrower to the Holder. The Borrower hereby releases,
waives, discharges and agrees to hold the Holder and its officers, directors,
agents and employees harmless from any and all claims, known or unknown, which
the Borrower might have against the Holder or its officers, directors, agents
or
employees which in any way relate, pertain, or arise, directly or indirectly,
from the Loan, the Note, this Agreement, or which otherwise relate or pertain
to
the collateral securing the obligations of the Borrower due to the Holder or
the
transactions described in this Agreement or the conduct of the parties with
respect thereto.
IN
WITNESS WHEREOF, the parties hereto have executed this Agreement under seal
as
of the date first above written. This Agreement may be executed in
counterparts.
WITNESS/ATTEST:
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BORROWER:
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/s/ Xxxxxxx Xxxxxx |
(SEAL)
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Name:
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Xxxxxxx Xxxxxx | |||
Title:
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CEO |
HOLDER:
/s/
Xxxxxxx Xxxx
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(SEAL)
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Name:
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Xxxxxxx Xxxx | ||
Title:
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Principal |