EXHIBIT B
EXHIBIT
B
THIS
CONVERTIBLE SUBORDINATED NOTE AND THE SHARES OF COMMON STOCK ISSU-ABLE UPON
CONVERSION HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND ARE NOT TRANSFERABLE EXCEPT UPON THE CONDITIONS SPE-CIFIED IN
THE
PURCHASE AGREEMENT REFERRED TO HEREIN.
XXXXXX,
INC.
5%
Convertible Subordinated Note Due December 7, 2011
Dated:
December 7,
0000
Xxxx
Xxxx, Xxx
Xxxx
Principal
Sum:
$_________________________________
Name
of Holder (the
"Holder:): ______________________
Address
of Holder:
_______________________________
______________________________________________
Holder's
Facsimile:
_______________________________
Holder's
E-mail
Address:___________________________
Maturity
Date:
December 7, 2011
For
Value
Received,
the undersigned,
Xxxxxx,
Inc.
(the "Company"), a
Delaware corporation, hereby promises to pay to the above named Holder, or
registered assigns, the Principal Sum set forth above, on the Maturity Date
set
forth above, with interest (computed on the basis of a 360-day year of twelve
30-day months) on the unpaid balance of such principal sum from the date
hereof
at the interest rate of 5% per annum, payable semi-annually on the last day
of
June and December in each year, commencing on June 30, 2007 (which first
interest payment shall be for the period from the date hereof through June
30,
2007, until the principal hereof shall have become due and payable, whether
at
maturity or by acceleration or otherwise.
Payments
of
principal and interest shall be made in lawful money of the United States
of
America at the principal office of the Company in Deer Park, New York, or
at
such other place as the Company shall have designated for such purpose to
the
Holder in writing and may be paid by check mailed, or wire transfer as provided
in the Purchase Agreement referred to below, to the registered address
designated by the Holder for such purpose.
This
Note is one of
a duly authorized issue of Notes, aggregating $________ in principal amount
issued pursuant to a certain Convertible Subordinated Note Purchase Agreement
(hereinafter called the "Purchase Agreement") dated as of December 7, 2006,
between the Company and the Purchasers named in the Purchase Agreement.
Capitalized terms not otherwise defined herein shall have their respective
meanings as set forth in the Purchase Agreement.
This
Note is
subject to the provisions of and is entitled to the benefits of the Purchase
Agreement. In addition, the payment of the principal and interest on this
Note
is subordinated in right of payment to the prior payment in full of certain
other obligations of the Company to the extent and in the manner set forth
in
the Purchase Agreement. Each Holder of this Note, by accepting the same,
agrees
to and shall be bound by the provisions of the Purchase Agreement.
This
Note is
transferable only upon the conditions specified in the Purchase Agreement.
Notwithstanding the foregoing, however, this Note is registered with the
Company
as to both principal and interest, and transfer of this Note can be effected
only by surrender of this Note and
either
reissuance
by the Company of this Note or by issuance by the Company of a new Note.
The
Company shall maintain a register for the registration and transfer of this
Note
(the "Schedule"), containing the name and address of any holder(s) of this
Note.
All transfers of this Note and/or transferees of this Note shall be registered
in the Schedule. This Note may be assigned only upon the surrender thereof
at
the address of the Company set forth in the Purchase Agreement. Thereupon,
the
Company shall execute in the name of the assignee either a reissued Note
or a
new Note, shall register such transfer in the Schedule and shall deliver
either
a reissued Note or a new Note to the holder. Upon surrender or presentation
of
this Note to the Company for transfer, this Note shall be duly endorsed and
shall specify the name and address of the transferee.
This
Note is
convertible into Common Stock of the Company (as set forth in Articles XII
and
XIII of the Purchase Agreement) in the manner, and upon the terms and
conditions, including without limitation, the anti-dilution provisions, provided
in the Purchase Agreement.
In
case an Event of
Default shall occur and be continuing, the principal of this Note may be
declared due and payable in the manner and with the effect provided in the
Purchase Agreement.
No
reference herein
to the Purchase Agreement, and no provision hereof or thereof, shall alter
or
impair the obligation of the Company, which is absolute and unconditional,
to
pay the principal hereof and interest hereon at the respective times and
places
set forth herein and in the Purchase Agreement.
This
Note is
delivered in and shall be construed and enforced in accordance with and governed
by the laws of the State of New York, without giving effect to its conflict
of
laws rules.
Subject
to the
provisions of Article XX the Purchase Agreement, the Company may treat the
person in whose name this Note is registered as the owner and holder of this
Note for the purpose of receiving payment of principal and interest on this
Note
and for all other purposes whatsoever, and the Company shall not be affected
by
any notice to the contrary.
[Signature
Page Follows:]
In
Witness
Whereof,
Xxxxxx, Inc. has
caused this Note to be dated, and to be executed on its behalf by its officer
thereunto duly authorized.
Xxxxxx,
Inc.
By:__________________________________
W.
Xxxx
Xxxxxxx
President
and Chief
Executive Officer
REGISTER
FOR TRANSFERS
Holder Name
and
Address