Document:

Global Note

 EXHIBIT 4.7 
  

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. 
  
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS TO NOMINEES OF THE DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN
ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF. 
  
 THIS SECURITY
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF: (1)
REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)); (2) AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED
SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY OR ANY COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH SECURITY, PRIOR TO THE EXPIRATION OF THE HOLDING PERIOD APPLICABLE TO SALES OF THIS SECURITY UNDER RULE 144(k) UNDER THE SECURITIES
ACT (OR ANY SUCCESSOR PROVISION), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT (AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME OF SUCH TRANSFER), (C) FOR SO LONG AS THE
SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, IN COMPLIANCE WITH RULE 144A TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO
WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER’S AND THE TRUSTEE’S RIGHT PRIOR TO
ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM; AND (3) AGREES THAT 

  

 
IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE
EARLIER OF THE TRANSFER OF THIS SECURITY PURSUANT TO CLAUSE 2(B) ABOVE OR UPON ANY TRANSFER OF THIS SECURITY UNDER RULE 144 UNDER THE SECURITIES ACT (OR ANY SUCCESSOR PROVISION). 
  
 The foregoing legend may be removed from this Security on satisfaction of the conditions specified in the Indenture. 
  

  
 NABI
BIOPHARMACEUTICALS 
  
 2.875% Convertible
Senior Notes due 2025 
  

			
	No.: 1	 	CUSIP: 629519 AA 7
	Issue Date: April 19, 2005	 	Principal Amount: $100,000,000
	Issue Price: $1,000 (for each $1,000 Principal Amount)	 	 

  
 Nabi
Biopharmaceuticals, a Delaware corporation, promises to pay to Cede & Co. or registered assigns, the principal amount of ONE HUNDRED MILLION DOLLARS ($100,000,000) on April 15, 2025 or such greater or lesser amount as is indicated on the
Schedule of Increases and Decreases of Global Security attached to this Security. 
  
 Interest Payment Dates: April 15 and October 15, commencing October 15, 2005. 
  
 Record Dates: April 1 and October 1. 
  
 Reference is hereby made to the further provisions of this Security set forth on the reverse side of this Security, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
  

  
 IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed under its corporate seal. 
  
 Dated: 
  

			
	NABI BIOPHARMACEUTICALS
		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

			
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
	
	 U.S. BANK NATIONAL ASSOCIATION
 as Trustee,
certifies that this is one of the Securities referred to in the within mentioned Indenture.

		
	By:	 	 
	 	 	 Authorized Signatory

  
 Dated: 
  

  
 REVERSE OF NOTE

  
 2.875% Convertible Senior Notes due 2025 

 
 This Security is one of a duly authorized issue of the 2.875% Convertible
Senior Notes due 2025 (the “Securities”) of Nabi Biopharmaceuticals, a Delaware corporation (including any successor corporation under the Indenture hereinafter referred to, the “Company”), issued under an
Indenture, dated as of April 19, 2005 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”). The terms of the Security include those stated in the Indenture, those
made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (“TIA”), and those set forth in this Security. This Security is subject to all such terms, and Holders are referred to the Indenture and the TIA
for a statement of all such terms. To the extent permitted by applicable law, in the event of any inconsistency between the terms of this Security and the terms of the Indenture, the terms of the Indenture shall control. Capitalized terms used but
not defined herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
  

	1.	Interest. 

  
 The Company promises to pay interest on the principal amount of the Securities at the interest rate of 2.875% per annum (the “Interest
Rate”) from the date of issuance until repayment in full at April 15, 2025, or until an earlier conversion, redemption or repurchase. The Company will pay interest on this Security semi-annually in arrears on April 15 and October 15 of each
year (each, an “interest payment date”), commencing October 15, 2005. 
  
 The Securities shall bear interest from April 19, 2005 until the principal amount thereof is paid or made available for payment, or until such date on which the Securities are converted, redeemed or purchased as
provided herein at the Interest Rate. 
  
 Interest on the
Securities shall be computed (i) for any full semi-annual period for which the Interest Rate is applicable, on the basis of a 360-day year of twelve 30-day months and (ii) for any period for which the Interest Rate is applicable for less than a full
semi-annual period for which interest is calculated, on the basis of a 30-day month and, for such periods of less than a month, the actual number of days elapsed over a 30-day month. 
  
 If this Security is redeemed or repurchased by the Company on a date that is after the record date and on or prior to the
corresponding interest payment date, interest and Liquidated Damages, if any, accrued and unpaid hereon to but not including the applicable Redemption Date, Repurchase Date or Fundamental Change Purchase Date, as the case may be, will be paid to the
same Holder to whom the Company pays the principal of this Security. 
  
 Interest on Securities converted after a record date but prior to the corresponding interest payment date will be paid to the Holder of the Securities on the record date but, upon conversion, the Holder must pay the Company the interest and
Liquidated Damages, if any, which have accrued and will be paid on such interest payment date; provided, that no such payment need be made with respect to Securities which will be redeemed or repurchased by the Company after a record date and
on or prior to the third Business Day after the corresponding interest payment date. 
  

 If the principal amount hereof or any portion of such principal amount or any interest, including
Liquidated Damages, if any, on any Security is not paid when due (whether upon acceleration pursuant to Section 6.2 of the Indenture, upon the date set for payment of the Redemption Price pursuant to Section 3.1 of the Indenture or the Repurchase
Price or the Fundamental Change Purchase Price pursuant to Section 3.7 or Section 3.11 of the Indenture, as the case may be, or upon the Stated Maturity of this Security), then in each such case the overdue amount shall, to the extent permitted by
law, bear interest at the Interest Rate, compounded semi-annually, which interest shall accrue from the date on which such overdue amount was originally due until the date on which payment of such amount, including interest thereon, has been made or
duly provided for. All such interest shall be payable on demand. 
  

	2.	Method of Payment. 

  
 Except as provided below, interest will be paid (i) on the Global Securities to The Depository Trust Company (“DTC”) or its nominee in
immediately available funds, (ii) on any definitive Securities having an aggregate principal amount of $2,000,000 or less, by check mailed to the Holders of such Securities, and (iii) on any definitive Securities having an aggregate principal amount
of more than $2,000,000, by wire transfer in immediately available funds at the election of the Holders of such Securities. 
  
 At Stated Maturity, the Company will pay interest on definitive Securities at the Company’s office or agency in New York City, which initially will
be the corporate trust office of U.S. Bank National Association, in New York City. 
  
 Principal on Global Securities will be paid to DTC or its nominee in immediately available funds. Principal on definitive Securities will be payable, upon Stated Maturity or when due, at the office or agency of the
Company in New York City, maintained for such purpose, initially the corporate trust office of U.S. Bank National Association, in New York City. 
  
 Subject to the terms and conditions of the Indenture, the Company will make payments in cash in respect of Redemption Prices, Repurchase Prices,
Fundamental Change Purchase Prices and at Stated Maturity to Holders who surrender Securities to a Paying Agent to collect such payments in respect of the Securities. The Company will pay cash amounts in money of the United States that at the time
of payment is legal tender for payment of public and private debts. However, the Company may make such cash payments by check payable in such money, subject to the terms of the Indenture. 
  

	3.	Paying Agent, Conversion Agent and Registrar. 

  
 Initially, U.S. Bank National Association will act as Paying Agent, Conversion Agent and Registrar. The Company may appoint and change any Paying Agent,
Conversion Agent or Registrar without notice, other than notice to the Trustee; provided that the Company will maintain at least one Paying Agent in the State of New York, City of New York, Borough of Manhattan, which shall initially be an
office or agency of the Trustee. The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion Agent or Registrar. 
  

	4.	Indenture. 

  
 The Securities are senior unsecured obligations of the Company initially limited to $100,000,000 aggregate principal amount (or such greater amount
necessary to reflect the exercise by the Initial Purchasers of their option to purchase additional Securities in compliance with the Purchase Agreement, but not in excess of $120,000,000). 
  
 The Company may, without the consent of the Holders of the Securities,
increase the Principal Amount of the Securities by issuing additional securities in the future on the same terms and conditions, except for any differences in the issue price and interest accrued prior to the issue date of the additional securities,
provided, that such difference does not cause the additional securities to constitute a different class of securities than the Securities for U.S. federal income tax purposes, and provided further, that the additional securities have the same CUSIP
number as the Securities. The Securities and any additional securities would rank equally and ratably and would be treated as a single class for all purposes under the Indenture. No additional securities may be issued if any Event of Default has
occurred with respect to the Securities. The Indenture does not limit other indebtedness of the Company, secured or unsecured. 
  

	5.	Redemption at the Option of the Company. 

  
 No sinking fund is provided for the Securities. The Securities are not redeemable by the Company prior to April 18, 2010. On or after April 18, 2010, the
Securities will be redeemable for cash at the option of the Company, in whole or in part, at any time or from time to time, upon not less than 30 nor more than 60 days’ notice by mail for a redemption price equal to the principal amount of
those Securities plus accrued and unpaid interest, including Liquidated Damages, if any, on those Securities to, but not including, the Redemption Date (the “Redemption Price”) as set forth in the Indenture. 
  

	6.	Purchase By the Company at the Option of the Holder. 

  
 Subject to the terms and conditions of the Indenture, the Company shall become obligated to purchase, at the option of the Holder, the Securities held by
such Holder on April 15, 2010, April 15, 2012, April 15, 2015 and April 15, 2020 at a Repurchase Price equal to the principal amount of such Securities on the applicable Repurchase Date plus accrued and unpaid interest, including Liquidated Damages,
if any, to, but not including, the Repurchase Date, upon delivery of a Repurchase Notice containing the information set forth in the Indenture, at any time from the opening of business on the date that is 20 Business Days prior to such Repurchase
Date until the close of business on the Business Day preceding such Repurchase Date and upon delivery of the Securities or the required transfer to the Paying Agent by the Holder as set forth in the Indenture. 
  
 At the option of the Holder and subject to the terms and conditions of the
Indenture, the Company shall become obligated to offer to purchase the Securities held by such Holder for a Fundamental Change Purchase Price equal to the principal amount of such Securities plus accrued and unpaid interest, including Liquidated
Damages, if any, to, but not including, the Fundamental Change Purchase Date. The Fundamental Change Purchase Date, which shall be determined by the Company, shall be between 30 and 60 days of the Company’s delivery of the 

  

 
notice describing such Fundamental Change and the resulting repurchase right. The Fundamental Change Purchase Price shall be paid in accordance with the
Indenture. 
  
 Holders have the right to withdraw any Repurchase
Notice or Fundamental Change Purchase Notice, as the case may be, by delivering to the Paying Agent a written notice of withdrawal in accordance with the provisions of the Indenture. 
  
 If cash sufficient to pay the Repurchase Price or the Fundamental Change Purchase Price, as the case may be, of all
Securities, or portions thereof to be purchased as of the Repurchase Date or the Fundamental Change Purchase Date, as the case may be, is deposited with the Paying Agent on the Business Day following the Repurchase Date or the Fundamental Change
Purchase Date, as the case may be, interest will cease to accrue on such Securities (or portions thereof) immediately after such Repurchase Date or Fundamental Change Purchase Date, as the case may be, and the Holder thereof shall have no other
rights as such other than the right to receive the Repurchase Price or the Fundamental Change Purchase Price upon surrender of such Security. 
  

	7.	Notice of Redemption. 

  
 Notice of redemption pursuant to Section 3.1 of the Indenture of this Security will be mailed at least 30 days but not more than 60 days before the
Redemption Date to each Holder of Securities to be redeemed at the Holder’s registered address. If money sufficient to pay the Redemption Price of all Securities (or portions thereof) to be redeemed on the Redemption Date is deposited with the
Paying Agent prior to or on the Redemption Date, immediately after such Redemption Date interest ceases to accrue on such Securities or portions thereof. Securities in denominations larger than $1,000 of principal amount may be redeemed in part but
only in integral multiples of $1,000 of principal amount. 
  

	8.	Conversion. 

  
 Subject to and in compliance with the provisions of the Indenture, a Holder is entitled, at such Holder’s option, to convert the Holder’s
Security (or any portion of the principal amount thereof that is $1,000 or an integral multiple of $1,000), into fully paid and nonassessable shares of Common Stock at the Conversion Rate in effect at the time of conversion, subject to the
Company’s right to deliver cash in lieu of Common Stock. 
  
 A Security in respect of which a Holder has delivered a Fundamental Change Purchase Notice, exercising the option of such Holder to require the Company to purchase such Security, may be converted only if such Fundamental Change Purchase
Notice is withdrawn in accordance with the terms of the Indenture. 
  
 The initial Conversion Rate is 69.8348 shares per $1,000 principal amount of securities, subject to adjustment in certain events described in the Indenture. No fractional shares of Common Stock shall be issued upon conversion of any
Security. A Holder that surrenders Securities for conversion will receive cash in lieu of any fractional share of Common Stock. 
  
 To surrender a Security for conversion, a Holder must (i) complete and manually sign the conversion notice below (or complete and manually sign a
facsimile of such notice), (ii) deliver such completed notice and surrender the Security to the Conversion Agent and, (iii) pay all 

  

 
funds required and furnish appropriate endorsements and transfer documents and (iv) pay any transfer or similar tax, if required by the Indenture.

  
 If the Company (i) is a party to a consolidation, merger or
binding share exchange, (ii) reclassifies the Common Stock or (iii) conveys, transfers or leases its properties and assets substantially as an entirety to any Person, the right to convert a Security into shares of Common Stock shall be changed into
a right to convert it into securities, cash or other assets of the Company or such other Person, in each case in accordance with the Indenture. 
  
 The Company may elect to deliver either shares of its Common Stock, cash or a combination of cash and shares of Common Stock in satisfaction of the
Company’s Conversion Obligation. The Company shall notify the Holder or Holders, as the case may be, through the Trustee of the method the Company chooses to satisfy its Conversion Obligation, (i) in the Company’s Notice of Redemption, if
the Company has called the Securities for redemption, (ii) 26 Trading Days immediately preceding Stated Maturity in respect of Securities to be converted during the period beginning 25 Trading Days immediately preceding the Stated Maturity and
ending one Trading Day immediately preceding Stated Maturity, and (iii) no later than three Trading Days immediately following the date of conversion in all other cases. If the Company elects to satisfy any portion of its Conversion Obligation by
delivering cash, the Company shall specify in such notice the portion to be paid in cash either as a percentage of the Conversion Obligation or as the lesser of (a) a fixed dollar amount and (b) the Conversion Value. The Company shall treat all
Holders converting on the same Trading Day in the same manner. The Company shall not have any obligation to satisfy Conversion Obligations arising on different Trading Days in the same manner. 
  
 At any time prior to the 26th Trading Day preceding the Stated Maturity, the
Company may irrevocably elect, in its sole discretion without the consent of the Holders of the Notes, by written notice to the Trustee and the Holders of the Notes, to satisfy in cash the Conversion Obligation with respect to the principal amount
of Notes to be converted after the date of such election, with any remaining amount of the Conversion Obligation to be satisfied in shares of Common Stock. The settlement amount will be computed as described under Section 9.13(a)(iii) of the
Indenture, using the $1,000 as the fixed dollar amount per $1,000 principal amount of Notes of the Conversion Obligation to be satisfied in cash. 
  

	9.	Denominations; Transfer; Exchange. 

  
 The Securities are in fully registered form, without coupons, in denominations of $1,000 of principal amount and integral multiples of $1,000. A Holder
may transfer or exchange Securities in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Registrar need not transfer or exchange any Securities selected for redemption (except, in the case of a Security to be redeemed in part, the portion of the Security not to be redeemed) or any Securities in respect of which a
Fundamental Change Purchase Notice has been given and not withdrawn (except, in the case of a Security to be purchased in part, the portion of the Security not to be purchased) or to issue, register the transfer of, or exchange any Securities for a
period of 15 days before the redemption date. 
  

	10.	Persons Deemed Owners. 

  
 The registered Holder of this Security may be treated as the owner of this Security for all purposes. 
  

	11.	Unclaimed Money or Securities. 

  
 The Trustee and the Paying Agent shall return to the Company upon written request any money held by them for the payment of any amount with respect to the
Securities that remains unclaimed for two years, subject to applicable unclaimed property law. After return to the Company, Holders entitled to the money or securities must look to the Company for payment as general creditors unless an applicable
abandoned property law designates another Person. 
  

	12.	Amendment; Waiver. 

  
 Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities may be amended with the written consent of the Holders of at
least a majority in aggregate principal amount of the outstanding Securities and (ii) certain Defaults may be waived with the written consent of the Holders of a majority in aggregate principal amount of the outstanding Securities. The Indenture and
the Securities may also be amended by the Company and the Trustee, without the consent of any Holder, in certain circumstances set forth in the Indenture; provided, that certain provisions of the Indenture and the Securities may not be
amended without the consent of each affected Holder. 
  

	13.	Defaults and Remedies. 

  
 If any Event of Default with respect to Securities shall occur and be continuing, the principal of all the Securities may be declared due and payable in
the manner and with the effect provided in the Indenture. 
  

	14.	Trustee Dealings with the Company. 

  
 Subject to certain limitations imposed by the TIA, the Trustee under the Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed to it by the Company or its Affiliates and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. 
  

	15.	No Recourse Against Others. 

  
 A director, officer, employee or shareholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities
or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Security, each Securityholder waives and releases all such liability. The waiver and release are part of the consideration
for the issue of the Securities. 
  

	16.	Treatment of Securities. 

  
 Each holder, by acceptance of a Security, and beneficial owner, by acceptance of a beneficial ownership interest in a Security, agrees to treat the
Securities as indebtedness of the Company for U.S. federal income tax purposes and to not take any action inconsistent with such treatment. 
  

	17.	Authentication. 

  
 This Security shall not be valid until an authorized signatory of the Trustee manually signs the Trustee’s Certificate of Authentication on the other
side of this Security. 
  

	18.	Abbreviations. 

  
 Customary abbreviations may be used in the name of a Securityholder or an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with right of survivorship and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act). 
  

	19.	GOVERNING LAW. 

  
 THIS SECURITY AND THE INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. 
  
 The Company will furnish to any Securityholder upon written request and
without charge a copy of the Indenture which has in it the text of this Security. Requests may be made to: 
  
 Nabi Biopharmaceuticals 
 5800 Park of
Commerce Boulevard N.W. 
 Boca Raton, FL 33487 
 Attention: Chief Financial Officer 
 Facsimile No.: (561) 989-5801 
  

	20.	Registration Rights. 

  
 The Holders of any Restricted Security are entitled to the benefits of the Registration Rights Agreement, dated as of April 19, 2005, among the Company
and the Initial Purchasers, including the receipt of Liquidated Damages upon a registration default (as defined in such agreement). 
  

			
	 ASSIGNMENT FORM

	  	 CONVERSION NOTICE

	To assign this Security, fill in the form below:	  	To convert this Security into Common Stock of the Company, check the box  ̈
		
	I or we assign and transfer this Security to	  	To convert only part of this Security, state the principal amount to be converted (which must be $1,000 or an integral multiple of $1,000):
	(Insert assignee’s soc. sec. or tax ID no.)	  	 
	 	  	$
	(Print or type assignee’s name, address and zip code)	  	 
	 	  	If you want the stock certificate made out in another person’s name fill in the form below:
	and irrevocably appoint ________________________ agent to transfer this Security on the books of the Company. The agent may substitute another to act for him.	  
	  	 
	  	 
	 	  	(Insert the other person’s soc. sec. or tax ID no.)
	Date: ______________         Your Signature:	  	 
		
	________________________________________________	  	________________________________________________
		
	(Sign exactly as your name appears on the other side of this Security)	  	(Print or type other person’s name, address and zip code)
		
	Signature Guaranteed	  	 
		
	________________________________________________	  	________________________________________________

  

			
	Participant in a Recognized Signature Guarantee Medallion Program
		
	By:	 	 
	 	 	 Authorized Signatory

  

  
 SCHEDULE OF INCREASES AND
DECREASES OF GLOBAL SECURITY 
  
 Initial Principal Amount of
Global Security: ($100,000,000). 
  

									
	 Date

	 	 Amount of Increase in
Principal Amount of Global
Security

	 	 Amount of Decrease in
Principal Amount of Global
Security

	  	Principal Amount of
Global Security After
Increase or Decrease

	  	Notation by Registrar or
Security CustodianForm of Debenture of MD Technologies Inc.

 Exhibit 4.2 
  

MD TECHNOLOGIES INC. 
  
 $5,000,000.00 
  
 7.5% CONVERTIBLE DEBENTURE 
  
 THIS DEBENTURE is a duly authorized and issued debenture of MD TECHNOLOGIES INC., a Delaware corporation, having a principal place of business at 620 Florida Street, Suite 200, Baton Rouge, Louisiana 70801 (the “COMPANY”),
designated as its 7.5% Convertible Debentures, due June 30, 2015, in the aggregate principal amount of Five Million Dollars ($5,000,000) (the “DEBENTURES”). 
  
 FOR VALUE RECEIVED, the Company promises to pay
                                     or its registered assigns
(the “HOLDER”), the principal sum of Five Million Dollars ($5,000,000), on June 30, 2015 or such earlier date as the Debentures are required or permitted to be repaid as provided hereunder (the “MATURITY DATE”) and to pay
interest to the Holder on the aggregate unconverted and the outstanding principal amount of this Debenture at the rate of 7.5% per annum, accruing from the Original Issue Date (as defined in Section 5), payable on July 1 and January 1 of each year
(each an “INTEREST PAYMENT DATE”) in arrears commencing on July 1, 2006. Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months and shall accrue daily commencing on the Original Issue Date (as defined
in Section 5) until payment in full of the principal sum, together with all accrued and unpaid interest and other amounts which may become due hereunder, has been made. Interest hereunder will be paid to the Person (as defined in Section 5) in whose
name this Debenture is registered on the records of the Company regarding registration and transfers of Debentures (the “DEBENTURE REGISTER”) at the close of business on the regular record date for such interest installment, which shall be
at the close of business on the first day of the month immediately preceding the month in which the relevant Interest Payment Date falls (each a “RECORD DATE”). In the event that the principal amount of this Debenture is not paid in full
when such amount becomes due and payable, interest at the rate of 7.5% per annum shall continue to accrue on the balance of any unpaid principal until such balance is paid. 
  
 This Debenture is subject to the following additional provisions: 
  
 SECTION 1 
 EVENTS OF DEFAULT 
  
 (a) “EVENT OF DEFAULT,” wherever used herein, means any one of the following events (whatever the reason or whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any
judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body): 
  
 (i) any default in the payment of the principal of or interest on in respect of this Debenture as and when the same shall become due and
payable (whether on a Conversion Date or the Maturity Date or by acceleration or otherwise) provided such default is not cured by the Company within ten (10) days after the due date thereof; 
  

 (ii) the Company or any of its subsidiaries shall commence, or there shall be commenced
against the Company or any such subsidiary a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company commences any other proceeding under any reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Company or any subsidiary thereof or there is commenced against the Company or any
subsidiary thereof any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 90 days; or the Company or any subsidiary thereof is adjudicated insolvent or bankrupt; or any order of relief or other order approving
any such case or proceeding is entered; or the Company or any subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 90 days; or
the Company or any subsidiary thereof makes a general assignment for the benefit of creditors; or the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the
Company or any subsidiary thereof shall call a meeting of its creditors with a view to arranging an adjustment or restructuring of its debts; or the Company or any subsidiary thereof shall by any act or failure to act expressly indicate its consent
to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company or any subsidiary thereof for the purpose of effecting any of the foregoing; 
  
 (iii) the Company shall default in any of its obligations
under any other Debenture or any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced any indebtedness for borrowed
money or money due under any long term leasing or factoring arrangement of the Company in an amount exceeding $1,000,000, whether such indebtedness now exists or shall hereafter be created and such default shall result in such indebtedness becoming
or being declared due and payable prior to the date on which it would otherwise become due and payable; or 
  
 (iv) the Company shall fail for any reason to deliver certificates to a Holder prior to the fifth business Day (as defined in Section 5)
after a Conversion Date pursuant to and in accordance with Section 2(b) or the Company shall provide notice to the Holder, including by way of public announcement, at any time, of its intention not to comply with requests for conversions of any
Debentures in accordance with the terms hereof. 
  
 (b) If any
Event of Default occurs and is continuing, the full principal amount of this Debenture (and, at the Holder’s option, all other Debentures then held by such Holder), together with interest and other amounts owing in respect thereof, to the date
of acceleration shall become at the Holder’s election and by notice in writing to the Company, immediately due and payable in cash. 
  

 2 

 SECTION 2 
 CONVERSION 
  
 (a) (i)
CONVERSION GENERALLY. This Debenture shall be convertible into shares of Common Stock at the option of the Holder, in whole or in part at any time beginning one year after the Original Issue Date. The Holder shall effect conversions at its option by
delivering to the Company this Debenture and the form of conversion notice attached hereto as EXHIBIT A (a “HOLDER CONVERSION NOTICE”), specifying therein the principal amount of Debentures to be converted and containing a schedule in the
form of SCHEDULE 1 to the Holder Conversion Notice (as amended on each Conversion Date, as defined hereafter, the “CONVERSION SCHEDULE”) reflecting the remaining principal amount of this Debenture and all accrued and unpaid interest
thereof subsequent to the conversion at issue. The Conversion Date shall mean the date each conversion will be deemed to have been effected, which shall be as of the close of business on the day on which the related Holder Conversion Notice and
Debenture was received by the Company. Each Holder Conversion Notice, once given, shall be irrevocable. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Debenture plus all accrued and unpaid interest
thereon in an amount equal to the applicable conversion, which shall be evidenced by entries set forth in the Conversion Schedule. The Holder and the Company shall maintain records showing the principal amount converted and the date of such
conversions. The Holder and any assignee, by acceptance of this Debenture, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Debenture, the unpaid and unconverted principal amount of
this Debenture may be less than the amount stated on the face hereof. In case a Debenture or portion thereof is called for redemption, such conversion right in respect to the Debenture or portion so called shall expire at the close of business on
the Business Day immediately preceding the corresponding date of redemption, unless the Company defaults in making the payment due upon redemption. 
  
 (ii) NUMBER OF UNDERLYING SHARES ISSUABLE UPON CONVERSION. The Debentures are convertible into fully paid and nonassessable shares of
Common Stock at an initial conversion ratio of 4,444 shares of Common Stock for each $10,000 in aggregate principal amount of Debentures (equal to an initial conversion price of $2.25 per share of Common Stock (the “CONVERSION PRICE”)),
subject to adjustment as described in this Section 2 (the “CONVERSION RATIO”). A Holder may convert any portion of the principal amount of the Debentures into that number of fully paid and nonassessable shares of Common Stock obtained by
multiplying (x) the quotient obtained by dividing the principal amount of the Debentures to be converted by $10,000 by (y) the Conversion Ratio. 
  
 (b) (i) DELIVERY OF STOCK CERTIFICATES. Prior to the fifth Business Day after any Conversion Date, the Company will issue and deliver to the Holder a
certificate or certificates representing the number of shares of Common Stock being acquired upon the conversion of Debentures (together with the cash payment, if any, in lieu of fractional shares) and the Company will return to the Holder this
Debenture. 
  
 (ii) FRACTIONAL SHARES. No
fractional shares of Common Stock shall be issued as a result of conversion, but in lieu thereof, the Company shall pay to the Holder a 

  

 3 

 
cash adjustment in an amount equal to the same fraction of the Conversion Price on the date on which the Debentures were duly surrendered to the Company for
conversion. 
  
 (c) INSTANT PAYMENTS UPON CONVERSION. If any
Debentures are converted during the period after any Record Date but before the next Interest Payment Date, interest on such Debentures will be paid on the next Interest Payment Date, notwithstanding such conversion, to the Holder on the Record Date
of those Debentures. If any Debentures are converted after an Interest Payment Date but on or before the next Record Date, no interest will be paid on those Debentures. 
  
 (d) SATISFACTION OF OBLIGATION. The Company’s delivery upon conversion of the fixed number of shares of Common Stock
into which the Debentures are convertible (together with the cash payment, if any, in lieu of fractional shares) shall be deemed to satisfy the Company’s obligation to pay the principal amount at maturity of the portion of Debentures so
converted and, except as set forth in Section 2(c), any unpaid interest accrued on such Debentures at the time of such conversion. 
  
 (e) CONVERSION RATIO ADJUSTMENTS. The Conversion Ratio shall be subject to adjustment without duplication from time to time as follows: 
  
 (i) In case the Company shall, while any of the Debentures
are outstanding, (i) pay a dividend or make a distribution with respect to its Common Stock in shares of Common Stock, (ii) subdivide its outstanding shares of Common Stock, (iii) combine its outstanding shares of Common Stock into a smaller number
of shares, or (iv) issue by reclassification of its shares of Common Stock any shares of capital stock of the Company, then the Conversion Ratio in effect immediately prior to such action shall be adjusted so that the holders of any Debentures
thereafter surrendered for conversion shall be entitled to receive the number of shares of capital stock of the Company which he would have owned immediately following such action had such Debentures been converted immediately prior thereto. An
adjustment made pursuant to this Section 2(e)(i) shall become effective immediately after the record date in the case of a dividend or other distribution and shall become effective immediately after the effective date in case of a subdivision,
combination or reclassification (or immediately after the record date if a record date shall have been established for such event). If, as a result of an adjustment made pursuant to this Section 2(e)(i), the holder of any Debenture thereafter
surrendered for conversion shall become entitled to receive shares of two or more classes or series of capital stock of the Company, the Board of Directors (whose determination shall be conclusive) shall reasonably determine the allocation of the
adjusted Conversion Ratio between or among shares of such classes or series of capital stock. 
  
 (ii) In case the Company shall, while any of the Debentures are outstanding, issue rights or warrants to all holders of its Common Stock
entitling them (for a period expiring within 45 days after the record date mentioned in this Section 2(e)(ii)) to subscribe for or purchase shares of Common Stock at a price per share less than the Current Market Price (as defined in Section 5) per
share of Common Stock on such record date, then the Conversion Ratio for the Debentures shall be adjusted so that the same shall equal the ratio determined by multiplying the Conversion Ratio in effect immediately prior to the date of issuance of
such rights or warrants by 

  

 4 

 
a fraction of which the numerator shall be the number of shares of Common Stock outstanding on the date of issuance of such rights or warrants plus the
number of additional shares of Common Stock offered for subscription or purchase, and of which the denominator shall be the number of shares of Common Stock outstanding on the date of issuance of such rights or warrants plus the number of shares
which the aggregate offering price of the total number of shares so offered for subscription or purchase would purchase at such Current Market Price. Such adjustment shall become effective immediately after the record date for the determination of
shareholders entitled to receive such rights or warrants. For the purposes of this Section 2(e)(ii), the number of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company. The Company shall not
issue any rights or warrants in respect of the shares of Common Stock held in the treasury of the Company. In case any rights or warrants referred to in this Section 2(e)(ii) in respect of which an adjustment shall have been made shall expire
unexercised within 45 days after the same shall have been distributed or issued by the Company, the Conversion Ratio shall be readjusted at the time of such expiration to the Conversion Ratio that would have been in effect if no adjustment had been
made on account of the distribution or issuance of such expired rights or warrants. 
  
 (iii) Subject to the last sentence of this Section 2(e)(iii), in case the Company shall, by dividend or otherwise, distribute to all
holders of its Common Stock evidences of its indebtedness, shares of any class or series of capital stock, cash or assets (including securities, but excluding any rights or warrants referred to in Section 2(e)(ii), any divided or distribution paid
exclusively in cash and any divided or distribution referred to in Section 2(e)(i)), then the Conversion Ratio shall be increased so that the same shall equal the ratio determined by multiplying the Conversion Ratio in effect immediately prior to
the effectiveness of the Conversion Ratio increase contemplated by this Section 2(e)(iii) by a fraction of which the numerator shall be the Current Market Price per share of Common Stock on the date fixed for the payment of such distribution (the
“REFERENCE DATE”), and of which the denominator shall be, the Current Market Price per share of the Common Stock on the Reference Date less the fair market value (as determined in good faith by the Board of Directors), on the Reference
Date, of the portion of the evidences of indebtedness, shares of capital stock, cash and assets so distributed applicable to one share of Common Stock, such increase to become effective immediately prior to the opening of business on the day
following the Reference Date. In the event that such dividend or distribution is not so paid or made, the Conversion Ratio shall again be adjusted to be the Conversion Ratio which would then be in effect if such dividend or distribution had not
occurred. If the Board of Directors determines the fair market value of any distribution for purposes of this Section 2(e)(iii) by reference to the actual or when issued trading market for any securities comprising such distribution, it must in
doing so consider the prices in such market over the same period used in computing the Current Market Price per share of Common Stock. For purposes of this Section 2(e)(iii), any dividend or distribution that includes shares of Common Stock or
rights or warrants to subscribe for or purchase shares of Common Stock shall be deemed instead to be (1) a dividend or distribution of the evidences of indebtedness, shares of capital stock, cash or assets other than such shares of Common Stock or
such rights or warrants (making any Conversion Ratio increase required by this Section 2(e)(iii)) immediately followed by (2) a dividend or distribution of such shares of Common Stock or such rights or warrants (making any further Conversion Ratio
increase required by Section 2(e)(i) or 2(e)(ii)), except (A) the Reference Date of such dividend or distribution as defined in this Section 2(e)(iii) 

  

 5 

 
shall be substituted as (a) “the record date in the case of a dividend or other distribution,” and (b) “the record date for the determination
of shareholders entitled to receive such rights or warrants,” and (c) “the date fixed for such determination” within the meaning of Sections 2(e)(k) and 2(e)(ii), and (B) any shares of Common Stock included in such dividend or
distribution shall not be deemed outstanding for purposes of computing any adjustment of the Conversion Ratio in Section 2(e)(i). 
  
 (iv) In case the Company shall pay or make a dividend or other distribution on its Common Stock exclusively in cash (excluding all cash
dividends paid out of the retained earnings of the Company), then the Conversion Ratio shall be increased so that the same shall equal the ratio determined by multiplying the Conversion Ratio in effect immediately prior to the effectiveness of the
Conversion Ratio increase contemplated by this Section 2(e)(iv) by a fraction of which the numerator shall be the Current Market Price per share of the Common Stock, and of which the denominator shall be the Current Market Price per share of Common
Stock on the date fixed for the payment of such distribution less the amount of cash so distributed and not excluded as provided applicable to one share of Common Stock on the date fixed for the payment of such distribution, such increase to become
effective immediately prior to the opening of business on the day following the date fixed for the payment of such distribution; provided, however, that in the event the portion of the cash so distributed applicable to one share of Common Stock is
equal to or greater than the Current Market Price per share of the Common Stock on the record date mentioned above, in lieu of the foregoing adjustment, adequate provision shall be made so that each Holder shall have the right to receive upon
conversion the amount of cash such Holder would have received had such Holder converted each Debenture immediately prior to the record date for the distribution of the cash. In the event that each dividend or distribution is not paid or made, the
Conversion Ratio shall again be adjusted to be the Conversion Ratio which would then be in effect if such record date had not been fixed. 
  
 (v) In case a tender or exchange offer (other than an odd-lot offer) made by the Company or any subsidiary of the Company for all or any
portion of the Common Stock shall expire and such tender or exchange offer shall involve the payment by the Company or such subsidiary of consideration per share of Common Stock having a fair market value (as determined in good faith by the Board of
Directors, whose determination shall be conclusive and described in a Board Resolution) at the last time (the “EXPIRATION TIME”) tenders or exchanges may be made pursuant to such tender or exchange offer (as it shall have been amended)
that exceeds 110% of the Current Market Price per share of Common Stock on the Business Day next succeeding the Expiration Time, then the Conversion Ratio shall be increased so that the same shall equal the ratio determined by multiplying the
Conversion Ratio in effect immediately prior to the effectiveness of the Conversion Ration increase contemplated by this Section 2(e)(v) by a fraction of which the numerator shall be the sum of (x) the fair market value (determined as aforesaid) of
the aggregate consideration payable to shareholders based on the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of all shares validly tendered or exchanged and not withdrawn as of the Expiration Time (the
shares deemed so accepted, up to any such maximum, being referred to as the “Purchased Shares”), and (y) the product of the number of shares of Common Stock outstanding (less any Purchased Shares) at the Expiration Time and the Current
Market Price per share of Common Stock on the Business Day next succeeding the Expiration Time, and of which the denominator shall be the 

  

 6 

 
number of shares of Common Stock outstanding (including any Purchased Shares) at the Expiration Time multiplied by the Current Market Price per share of
Common Stock on the Business Day next succeeding the Expiration Time, such increase to become effective immediately prior to the opening of business on the day following the Expiration Time. 
  
 (vi) The Company may make such reasonable increases in the
Conversion Ratio, in addition to those required by Sections 2(e)(i) through (v), as it reasonably considers to be advisable to avoid or diminish any income tax to holders of Common Stock or rights to purchase Common Stock resulting from any dividend
or distribution of stock (or rights to acquire stock) or from any event treated as such for income tax purposes. 
  
 (vii) No adjustment in the Conversion Ratio shall be required unless such adjustment would require an increase or decrease of at least 1%
in the Conversion Ratio; provided, however, that any adjustments which by reason of this Section 2(e)(vii) are not required to be made shall be carried forward and taken into account in determining whether any subsequent adjustment shall be
required. The adjusted Conversion Ratio will be rounded to two decimal places. 
  
 (viii) If any action would require adjustment of the Conversion Ratio pursuant to more than one of the provisions described above, only
one adjustment shall be made and such adjustment shall be the amount of adjustment that has the highest absolute value to the Holders. 
  
 (f) RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE OF ASSETS. In the event that the Company shall be a party to any transaction, including without
limitation (a) any recapitalization or reclassification of the Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination of the Common Stock),
(b) any consolidation of the Company with, or merger of the Company into any other Person, any merger of another Person into the Company (other than a merger which does not result in a reclassification, conversion, exchange or cancellation of
outstanding shares of Common Stock of the Company), (c) any sale, transfer or lease of all or substantially all of the assets of the Company, or (d) any compulsory share exchange, in each case pursuant to which the Common Stock is converted into the
right to receive other securities, cash or other property, then lawful provision shall be made as part of the terms of such transaction whereby the holder of each Debenture then outstanding shall have the right thereafter to convert each Debenture
only into the kind and amount of securities, cash or other property receivable upon consummation of such transaction by a holder of the number of shares of Common Stock of the Company into which such Debenture could have been converted immediately
prior to such transaction. 
  
 The Company or the
Person formed by such consolidation or resulting from such merger or which acquired such assets or which acquires the shares of the Company, as the case may be, shall make provision in its certificate or articles of incorporation or other
constituent document to establish such right. Such certificate or articles of incorporation or other constituent document shall provide for adjustments which, for events subsequent to the effective date of such certificate or articles of
incorporation or other constitution document, shall be as nearly 

  

 7 

 
equivalent as may be practicable to the adjustments provided for in this Section 2(f). The above provisions shall similarly apply to successive transactions
of the foregoing types. 
  
 (g) NOTICE OF ADJUSTMENTS OF
CONVERSION RATIO. Whenever the Conversion Ratio is adjusted as herein provided, the Company shall compute the adjusted Conversion Ratio and shall prepare a notice signed by the Chairman of the Board, President or Executive or Senior Vice President
of the Company setting forth the adjusted Conversion Ratio and such notice shall as soon as practicable be mailed by the Company to all record holders of Debentures at their last addresses as they appear upon the Debenture register of the Company.

  
 (h) RESERVATION OF STOCK ISSUABLE UPON CONVERSION. The Company
shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the conversion of the Debentures, such number of its shares of Common Stock as shall from time to time be
sufficient to effect the conversion of the Debentures; and if at any time the number of authorized but unissued shares shall not be sufficient to effect the conversion of the entire outstanding principal amount of the Debentures, the Company will
use its best efforts to take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes. 
  
 SECTION 3 
 OPTIONAL REDEMPTION 
  
 (a) The Company may redeem the Debentures at any time, in whole or in part, on at least 30 days’ notice but no more than 60 days’ notice, together with any accrued and unpaid interest to, but excluding the
redemption date, at a redemption price equal to 100% of the principal amount of the Debentures to be redeemed under the following circumstances: (i) at any time after a date three years from the Original Issue Date; or (ii) at any time prior to the
date three years from the Original issue Date, if the average sales price of Common Stock, in arms-length trades, known to the Company’s management, equals or exceeds 140% of the then effective Conversion Price for at least 30 consecutive
Business Days, provided at least 10 bona fide trades have occurred in the 30 Business Day period. 
  
 (b) If the Company redeems less than all of the outstanding Debentures, the Company’s Board of Directors will select the Debentures to be redeemed in
multiples of $10,000 by lot, pro rata or any other method the Board of Directors considers fair and appropriate, in its sole discretion. If a portion of a Holder’s Debentures is selected for partial redemption and such Holder delivers to the
Company a Holder Conversion Notice regarding the intent to convert a portion of such Holder’s Debentures, the portion selected for redemption will be converted. 
  
 (c) The Company may not give notice of any redemption if it has defaulted in payment of interest and the default is
continuing or if any Event of Default has otherwise occurred. 
  
 (d) The Debentures are not entitled to any sinking fund. 
  

 8 

 SECTION 4 
 LIMITATION ON TRANSACTIONS 
  
 If there shall have occurred and be continuing any Event of Default, then (a) the Company shall not declare or pay any dividend on, make any distributions with respect to, or redeem, purchase, acquire or make a liquidation payment with
respect to, any of its capital stock (other than (A) dividends or distributions in Common Stock of the Company, or any declaration of a non-cash dividend in connection with the implementation of a shareholder rights plan, or the issuance of stock
under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto, (B) purchases of common stock of the Company related to the rights under any of the Company’s benefit plans for its directors, officers or
employees, or (C) as a result of a reclassification of its capital stock for another class of its capital stock); (b) the Company shall not make any payment of interest, principal or premium, if any, or repay, repurchase or redeem any debt
securities issued by the Company which rank pari passu with or junior to the Debentures or make any guarantee payment with respect to any guarantee by the Company of the debt securities of any subsidiary of the Company if such guarantee ranks pari
passu with or junior to the Debentures; and (c) the Company shall not redeem, purchase or acquire less than all of the outstanding Debentures. 
  
 SECTION 5 
 DEFINITIONS

  
 For the purposes hereof, the following terms shall have
the following meanings: 
  
 “BUSINESS DAY” means any day
except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which banking institutions in the State of Florida are authorized or required by law or other government action to close. 
  
 “COMMON STOCK” means the common stock, $2.25 par value per share,
of the Company and stock of any other class into which such shares may hereafter have been reclassified or changed. 
  
 “CURRENT MARKET PRICE” shall mean the last sales price of the Company’s Common Stock in an arms-length trade known to the Company’s
management. 
  
 “ORIGINAL ISSUE DATE” shall mean the
date of the first issuance of the Debentures regardless of the number of transfers of any Debenture and regardless of the number of instruments which may be issued to evidence such Debenture. 
  
 “PERSON” means a corporation, an association, a partnership,
organization, a business, an individual, a government or political subdivision thereof or a governmental agency. 
  
 “UNDERLYING SHARES” means the shares of Common Stock issuable upon conversion of Debentures or as payment of interest in accordance with the
terms hereof. 
  

 9 

 SECTION 6 
  

Any and all notices or other communications or deliveries to be provided by the Holders hereunder, including, without limitation, any Holder Conversion
Notice, shall be in writing and delivered personally, by facsimile, send by a nationally recognized overnight courier service or sent by certified or registered mail, postage prepaid, addressed to the Company, at 620 Florida Street, Suite 200, Baton
Rouge, Louisiana 70801, facsimile No.: (225) 408-1805, attention William D. Eglin, or such other address or facsimile number as the Company may specify for such purposes by notice to the Holders delivered in accordance with this Section 6. Any and
all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service or sent by certified or registered mail,
postage prepaid, addressed to each Holder at the facsimile telephone number or address of such Holder appearing on the books of the Company, or if no such facsimile telephone number or address appears, at the principal place of business of the
Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number
specified in this Section 6 prior to 5:00 p.m. (Central time), (b) the date after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section 6 later than 5:00 p.m.
(Central time) on any date and earlier than 11:59 p.m. (Central time) on such date, (c) four days after deposit in the United States mail, (d) the Business Day following the date of mailing, if sent by nationally recognized overnight courier
service, or (e) upon actual receipt by the party to whom such notice is required to be given. 
  
 SECTION 7 
  
 This
Debenture shall not entitle the Holder to any of the rights of a shareholder of the Company, including without limitation, the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of
shareholders or any other proceedings of the Company, unless and to the extent converted into shares of Common Stock in accordance with the terms hereof. 
  
 SECTION 8 
  
 If this Debenture shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon
cancellation of a mutilated Debenture, or in lieu of or in substitution for a lost, stolen or destroyed Debenture, a new Debenture for the principal amount of this Debenture so mutilated, lost, stolen or destroyed but only upon receipt of evidence
of such loss, theft or destruction of such Debenture, and of the ownership hereof, and indemnity, if requested, all reasonably satisfactory to the Company. 
  
 SECTION 9 
  
 This Debenture shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to conflicts of laws thereof.
The Company and the Holder hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts 

  

 10 

 
sitting in the State of Delaware, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or
discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, or that such suit, action or proceeding is improper. The
Company hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by receiving a copy thereof sent to the Company at the address in effect for notices to it under this
instrument and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. 

 
 SECTION 10 
  
 Any waiver by the Company or the Holder of a breach of any provision of this
Debenture shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Company or the Holder to insist upon strict adherence to any term of
this Debenture on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture. Any waiver must be in writing. 
  
 SECTION 11 
  
 Whenever any payment or other obligation hereunder shall be due on a day
other than a Business Day, such payment shall be made on the next succeeding Business Day. 
  
 SECTION 12 
  
 So long as
this Debenture remains outstanding, the Company will furnish to the Holder copies of the Company’s audited financial statements within 120 days of the end of each fiscal year. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 
 SIGNATURE PAGE FOLLOWS] 
  

 11 

 IN WITNESS WHEREOF, the Company has caused this Debenture to be duly executed by a duly authorized
officer as of the date first above indicated. 
  

			
	 MD TECHNOLOGIES INC.

		
	BY:	 	 
	 	 	William D. Eglin
	 	 	 President, Chief Executive Officer & Chief
 Financial Officer

  

					
	 Name of Holder:
	  	 	  	 
			
	 Address:
	  	 	  	 
			
	 	  	 	  	 
			
	 Telephone Number:
	  	 	  	 
			
	 Facsimile Number:
	  	 	  	 

  

 12 

 EXHIBIT A 
  

NOTICE OF HOLDER CONVERSION 
  
 The undersigned hereby elects to convert the principal amount of Debenture set forth below into shares of common stock, $2.25 par value per share (the “Common
Stock”), of MD Technologies Inc. (the “Company”) according to the conditions hereof, as of the date written below. If shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer
taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if
any. Conversion calculations: 
  

	
	
	 
	 Date to Effect Conversion

	
	 
	 Principal Amount of Debentures to be Converted

	
	 
	 Number of Shares of Common Stock to be Issued

	
	 
	 Applicable Conversion Price

	
	 
	 Signature

	
	 
	 Name

	
	 
	 Address

  

 13 

 SCHEDULE 1 
  

CONVERSION SCHEDULE 
  
 7.5% Convertible Debentures in the aggregate principal amount of $5,000,000 issued by MD TECHNOLOGIES INC. This Conversion schedule reflects conversions
made under Section 2(a)(i) of the above referenced Debentures. 
  
 Dated:                                     
                                
  

							
	 DATE OF
 CONVERSION

	  	 AMOUNT OF
 CONVERSION

	  	 AGGREGATE
 PRINCIPAL AMOUNT
REMAINING
 SUBSEQUENT TO
 CONVERSION

	  	 COMPANY
 ATTEST

	 	  	 	  	 	  	 
	 	  	 	  	 	  	 
	 	  	 	  	 	  	 

  

 14 

 EXHIBIT B 
  

AFFIDAVIT FOR EXECUTION OF DEBENTURE 
 OUTSIDE OF THE STATE OF DELAWARE 
  
 STATE OF
                            ) 
                                       
           ) ss: 
 COUNTY OF
                        ) 
  
 BEFORE ME, the undersigned Notary Public, duly authorized in the County and State aforesaid to administer oaths and take acknowledgments, personally
appeared the undersigned witnesses, to me known to be the persons described as witnesses to the foregoing Debenture(s), and who witnessed the execution of the foregoing Debenture(s), and who, first being duly sworn by me did each depose, say and
acknowledge before me that they were present at the time that the said Debenture(s) was (were) executed, that they saw the same executed by
                             of MD TECHNOLOGIES INC., and that they saw the delivery of the
Debenture(s) on this date to the Holder or to
                                     has been appointed to
serve as representative of the Holder, in state and country above-referenced. 
  

									
			
	  	 	 	 	  
	 Subscribing Witness
	 	 	 	 Subscribing Witness

					
	 Print Name:
	 	 	 	 	 	 Print Name:
	 	 

									
					
	 Address:
	 	 	 	 	 	 Address:
	 	 
	 	 	 	 	 

  
 SWORN TO AND
SUBSCRIBED before me and acknowledged to me this      day of                     ,
20    . 
  

	
	
	 
	 (Signature of Notary Public)

	
	 
	 (Typed, printed or stamped name of Notary Public)

	 Notary Public, State of
                                        
    .

  
 Commission No.: 
 My commission expires: 
  

 15

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