Document:

10% Promissory Note

    Exhibit
      10.1

     

    10%
      PROMISSORY NOTE

     

    
      
        	
                $100,000

              	
                 January
                  30,
                  2007

              

      

     

    FOR
      VALUE
      RECEIVED, Caprius, Inc., a Delaware corporation (the “Company”),
      unconditionally promises to pay to the order of Special Situations Private
      Equity Fund, L.P. (the “Holder”),
      having an address at 527 Madison Avenue, 26th
      Floor,
      New York, NY 10022, at such address or at such other place as may be designated
      in writing by the Holder, or its assigns, the
      aggregate principal sum of One Hundred Thousand United States Dollars
      ($100,000), together with interest from the date set forth above on the unpaid
      principal balance of this Note outstanding at a rate equal to ten percent
      (10.0%) (computed on the basis of the actual number of days elapsed in a 360-day
      year) per annum and continuing on the outstanding principal until this 10%
      Promissory Note (the “Note”)
      is
      indefeasibly and irrevocably paid in full by the Company. Subject
      to the other provisions of this Note, the principal of this Note and all accrued
      and unpaid interest hereon shall mature and become due and payable on April
      30,
      2007 (the “Stated Maturity Date”). All
      payments
      of principal and interest by the Company under this Note shall be made in United
      States dollars in immediately available funds to an account specified by the
      Holder.

     

    In
      the
      event that any amount due hereunder is not paid when due, such overdue amount
      shall bear interest at an annual rate of fifteen percent (15%) until paid in
      full. In no event shall any interest charged, collected or reserved under this
      Note exceed the maximum rate then permitted by applicable law and if any such
      payment is paid by the Company, then such excess sum shall be credited by the
      Holder as a payment of principal.

     

    1.         Transfer.
      This
      Note is transferable and assignable to any person or entity to whom such
      transfer is permissible under applicable law. The Company agrees to issue from
      time to time a replacement Note in the form hereof to facilitate such transfers
      and assignments. In addition, after delivery of an indemnity in form and
      substance reasonably satisfactory to the Company, the Company also agrees to
      promptly issue a replacement Note if this Note is lost, stolen, mutilated or
      destroyed.

     

    2.       Prepayment.
      This
      Note and all accrued interest hereon may, at the option of the Company, be
      prepaid in whole, but not in part, at any time prior
      to
      the Stated Maturity Date,
      without
      penalty.

     

    3.       Event
      of
      Default. The
      occurrence of any of following events shall constitute an “Event of
      Default”
      hereunder:

     

    (a)     the
      failure of the Company to make any payment of principal or interest on this
      Note
      when due, whether at maturity, upon acceleration or otherwise;

     

    (b)     the
      Company and/or its subsidiaries fail to make a required payment or payments
      on
      indebtedness for borrowed money of One Hundred Thousand United States
      Dollars

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ($100,000)
      or more in aggregate principal amount and such failure continues for more than
      ten (10) days;

     

    (c)     there
      shall have occurred an acceleration of the stated maturity of any indebtedness
      for borrowed money of the Company or its subsidiaries of One Hundred Thousand
      United States Dollars ($100,000) or more in aggregate principal amount (which
      acceleration is not rescinded, annulled or otherwise cured within ten (10)
      days
      of receipt by the Company or a subsidiary of notice of such
      acceleration);

     

    (d)     a
      final,
      non-appealable judgment which, in the aggregate with other outstanding final
      judgments against the Company and its subsidiaries, exceeds One Hundred Thousand
      United States Dollars ($100,000) shall be rendered against the Company or a
      subsidiary and within sixty (60) days after entry thereof, such judgment is
      not
      discharged or execution thereof stayed pending appeal, or within sixty (60)
      days
      after the expiration of such stay, such judgment is not discharged;

     

    (e)     the
      Company makes an assignment for the benefit of creditors or admits in writing
      its inability to pay its debts generally as they become due; or an order,
      judgment or decree is entered adjudicating the Company as bankrupt or insolvent;
      or any order for relief with respect to the Company is entered under the Federal
      Bankruptcy Code or any other bankruptcy or insolvency law; or the Company
      petitions or applies to any tribunal for the appointment of a custodian,
      trustee, receiver or liquidator of the Company or of any substantial part of
      the
      assets of the Company, or commences any proceeding relating to it under any
      bankruptcy, reorganization, arrangement, insolvency, readjustment of debt,
      dissolution or liquidation law of any jurisdiction; or any such petition or
      application is filed, or any such proceeding is commenced, against the Company
      and either (i) the Company by any act indicates its approval thereof, consents
      thereto or acquiescence therein or (ii) such petition application or proceeding
      is not dismissed within sixty (60) days;

     

    Upon
      the
      occurrence of any such Event of Default all unpaid principal and accrued
      interest under this Note shall become immediately due and payable (A) upon
      election of the Holder with respect to clauses
      (a)
      through
      (d),
      and (B)
      automatically, with respect to clause (e).
      Upon
      the occurrence of any Event of Default, the Holder may, in addition to declaring
      all amounts due hereunder to be immediately due and payable, pursue any
      available remedy, whether at law or in equity. If an Event of Default occurs,
      the Company shall pay to the Holder the reasonable attorneys' fees and
      disbursements and all other reasonable out-of-pocket costs incurred by the
      Holder in order to collect amounts due and owing under this Note or otherwise
      to
      enforce the Holder's rights and remedies hereunder.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    4.       Delay
      Not Waiver.
      No
      delay or omission on the part of the Holder in exercising any right under this
      Note shall operate as a waiver of such right or of any other right of the
      Holder, nor shall any delay, omission or waiver on any one occasion be deemed
      a
      bar to or waiver of the same or any other right on any future
      occasion.

     

    5.         Waivers.
      The
      Company hereby forever waives presentment, demand, presentment for payment,
      protest, notice of protest, notice of dishonor of this Note and all other
      demands and notices in connection with the delivery, acceptance, performance
      and
      enforcement of this Note.

     

    6.        
Waiver
      of Jury Trial.
      THE
      COMPANY HEREBY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
      ARISING OUT OF OR BASED UPON THIS NOTE OR ANY CONTEMPLATED TRANSACTION,
      INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THE COMPANY
      HAS
      REVIEWED THIS WAIVER WITH ITS COUNSEL.

     

    7.        
Governing
      Law; Consent to Jurisdiction.
      This
      Note shall be governed by and construed under the law of the State of New York,
      without giving effect to the conflicts of law principles thereof. The Company
      and, by accepting this Note, the Holder, each irrevocably submits to the
      exclusive jurisdiction of the courts of the State of New York located in New
      York County and the United States District Court for the Southern District
      of
      New York for the purpose of any suit, action, proceeding or judgment relating
      to
      or arising out of this Note and the transactions contemplated hereby. Service
      of
      process in any such suit, action or proceeding may be given anywhere in the
      world by the same method as for the giving notices hereunder. The Company and,
      by accepting this Note, the Holder, each irrevocably consents to the
      jurisdiction of any such court in any such suit, action or proceeding and to
      the
      laying of venue in such court. The Company and, by accepting this Note, the
      Holder, each irrevocably waives any objection to the laying of venue of any
      such
      suit, action or proceeding brought in such courts and irrevocably waives any
      claim that any such suit, action or proceeding brought in any such court has
      been brought in an inconvenient forum.

     

    8.        
Notices.
      Any
      notice required or permitted under this Note shall be given in writing and
      shall
      be deemed effectively given as hereinafter described (i) if given by personal
      delivery, then such notice shall be deemed given upon such delivery, (ii) if
      given by telex or telecopier, then such notice shall be deemed given upon
      receipt of confirmation of complete transmittal, (iii) if given by mail, then
      such notice shall be deemed given upon the earlier of (A) receipt of such notice
      by the recipient or (B) three days after such notice is deposited in first
      class
      mail, postage prepaid, and (iv) if given by an internationally recognized
      overnight air courier, then such notice shall be deemed given one business
      day
      after delivery to such carrier. All notices shall be addressed to the party
      to
      be notified at the address as follows, or at such other address as such party
      may designate by ten days’ advance written notice to the other
      party:

     

    If
      to the
      Company:

    

    Caprius,
      Inc.

    One
      University Plaza

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    Hackensack,
      NJ 07601

    Attention:
      Dwight Morgan, President

    Fax:
      (201) 342-0991

    

    If
      to the
      Holder:

    

    Special
      Situations Private Equity Fund, L.P.

    527
      Madison Avenue, Suite 2600

    New
      York,
      New York 10022

    Attention:
      Austin W. Marxe

    Fax:
      (212) 319-6595

    

    9.       Costs.
      If
      action is instituted to collect on this Note, the Company promises to pay all
      reasonable costs and expenses, including reasonable attorney’s fees, incurred in
      connection with such action.

     

    10.       Successors
      and Assigns.
      This
      Note shall be binding upon the successors or assigns of the Company and shall
      inure to the benefit of the successors and assigns of the Holder.

     

    [Remainder
      of Page Intentionally Left Blank]

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Company has caused this 10% Promissory Note to be signed
      in
      its name effective as of the date first above written.

     

    
      	 	
              CAPRIUS,
                INC.

            
	 	
              By:

            	/s/
              Dwight Morgan
	 	 	
              Name:
                Dwight Morgan

            
	 	 	
              Title:  
                President and CEO

            

    

     

    
      
        
        

      

      
        -5-EX-4.1

 

Exhibit 4.1

SPECIMEN UNIT CERTIFICATE

	 	 	 	 	 	 	 	 	 
	NUMBER

	 	 
	 	 
	 	 
	 	UNITS
	 
	 	 	 	 	 	 	 	 
	U -                                     
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SEE REVERSE FOR
CERTAIN DEFINITIONS

	 	 	 	INTER-ATLANTIC FINANCIAL, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	CUSIP                     

UNITS CONSISTING OF ONE SHARE AND ONE WARRANT EACH TO PURCHASE ONE SHARE

	 	 	 	 	 
	THIS CERTIFIES THAT

	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 
	is the owner of

	 	 	 	Units.
	 	 
	 

	 	 	 	 	 	 

     Each Unit (“Unit”) consists of one (1) share of common stock, par value US$.0001
per share (“Share”), of Inter-Atlantic Financial, Inc., a
corporation incorporated
under the laws of Delaware (the “Corporation”), and one warrant ( “Warrant”). Each
Warrant entitles the holder to purchase one (1) Share for US$6.00 per share
(subject to adjustment). The Shares and Warrants
comprising the Units represented by this certificate are not transferable
separately prior to                     , 2007 [90 days from date of prospectus], subject
to earlier separation in the discretion of Morgan Joseph & Co. Inc. The terms
of the Warrants are governed by a Warrant Agreement, dated as of                     , 2007,
between the Company and American Stock Transfer & Trust Company, as Warrant
Agent, and are subject to the terms and provisions contained therein, all of
which terms and provisions the holder of this certificate consents to by
acceptance hereof. Copies of the Warrant Agreement are on file at the office of
the Warrant Agent at 59 Maiden Lane, Plaza Level, New York, New York 10038, and
are available to any Warrant holder on written request and without cost.

This certificate is not valid unless countersigned by the Transfer Agent
and registered by the Registrar of the Corporation.

Neither this certificate nor any of the Unit(s) evidenced hereby itself
entitles the registered holder to any of the rights of a shareholder of the
Corporation.

Witness the facsimile seal of the Corporation and the facsimile signatures of
its duly authorized officers.

Dated: [                    ]

By

	 	 	 	 	 
	 	 

	 	 	 
	 	Chief
Executive Officer

	 
	 	 Secretary
	 	 

	 	 	 
	 	 

	  
	 	Transfer Agent

 

 

Inter-Atlantic Financial, Inc.

     The Corporation will furnish without charge to each shareholder who so requests, a statement
of the powers, designations, preferences and relative, participating, optional or other special
rights of each class of shares or series thereof of the Corporation and the qualifications,
limitations, or restrictions of such preferences and/or rights.

     The following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full according to applicable
laws or regulations:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	  TEN COM —

	 	as tenants in common
	 	
	 	UNIF GIFT MIN ACT —
	 	 	 	Custodian	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	 	 
	  TEN ENT —

	 	as tenants by the entireties
	 	 	 	 	 	(Cust)
	 	 	 	(Minor)
	  JT TEN —

	 	as joint tenants with right of survivorship
	 	 	 	
	under Uniform Gifts to Minors
	 		 	 
	 

	 	and not as tenants in common
	 	 	 		Act 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 	(State)	 	 

Additional Abbreviations may also be used though not in the above list.

     For value received,                                          hereby sells, assigns and transfers unto

	 	 	 
	PLEASE INSERT SOCIAL SECURITY OR OTHER

	 	 
	 IDENTIFYING NUMBER OF ASSIGNEE
	 	 

	 	 	 
	 

	 	 

 

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

 

 

	 	 	 
	 	 	Units

represented by the within Certificate, and do hereby irrevocably constitute and appoint

	 	 	 
	 	 	Attorney

to transfer the said Units on the books of the within named Corporation will full power of substitution

in the premises.

Dated                     

	 	 	 	 	 
	 	 	 
	 

	 	Notice:
	 	The signature to this assignment must correspond
with the name as written upon the face of the certificate in
every particular, without alteration or enlargement or any
change whatever.

	 	 	 
	Signature(s) Guaranteed:

	 	 

	 
	 
	 	 
	 	 
	 
	THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
(BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH
MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM,
PURSUANT TO S.E.C. RULE 17Ad-15).
	 	 

KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR DESTROYED, THE
CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT
CERTIFICATE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]