Document:

Ryder EX 10.14(a) Ryder_AmendmentNo1

Exhibit 10.14(a)

AMENDMENT NO. 1

to that certain

AMENDED AND RESTATED GLOBAL REVOLVING CREDIT AGREEMENT

This AMENDMENT NO. 1 (this “Amendment”), dated as of April 20, 2012, relates to that certain AMENDED AND RESTATED GLOBAL REVOLVING CREDIT AGREEMENT, dated as of June 8, 2011 (the “Credit Agreement”), by and among (i) RYDER SYSTEM, INC., a corporation organized under the laws of Florida (“Ryder”), RYDER TRUCK RENTAL HOLDINGS CANADA LTD. (“Ryder Holdings Canada”), RYDER TRUCK RENTAL CANADA LTD. (“Ryder Canada Limited” and together with Ryder Holdings Canada, the “Canadian Borrowers”), RYDER LIMITED, a corporation organized under the laws of England and Wales (“Ryder Limited”), RYDER SYSTEM HOLDINGS (UK) LIMITED (“RSH” and together with Ryder Limited, the “U.K. Borrowers”) and RYDER PUERTO RICO, INC. (“Ryder PR”), a corporation organized under the laws of Delaware, (ii)  the lending institutions identified as Banks therein, (iii)  BANK OF AMERICA, N.A. (“Bank of America”), as administrative agent for the Banks (the “Administrative Agent”), (iv)  ROYAL BANK OF CANADA, as Canadian agent for the Banks (the “Canadian Agent”) and (v) THE ROYAL BANK OF SCOTLAND PLC, as United Kingdom agent for the Banks (the “U.K. Agent” and, together with the Administrative Agent and the Canadian Agent, the “Agents”), with MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED acting as lead arranger and book manager thereunder.  Capitalized terms used herein without definition shall have the respective meanings provided therefor in the Credit Agreement.

WHEREAS, each of Ryder, the Canadian Borrowers, the U.K. Borrowers and Ryder PR (collectively, the “Borrowers”) has requested that the Majority Banks agree, and the Banks party hereto have agreed, on the terms and subject to the conditions set forth herein, to amend certain of the terms and provisions of the Credit Agreement;
    
NOW THEREFORE, in consideration of the mutual agreements contained in the Credit Agreement and herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

§1.Amendments to Credit Agreement.  Subject to the satisfaction of the conditions precedent set forth in §4 below:  
(a)    Definition of Consolidated Adjusted Tangible Net Worth.  The Credit Agreement is hereby amended by deleting in its entirety the definition of “Consolidated Adjusted Tangible Net Worth” in §1.1 of the Credit Agreement and substituting the following new definition in lieu thereof:
Consolidated Adjusted Net Worth.  At any date, the aggregate of (i) consolidated shareholders’ equity, less (ii) investments in Subsidiaries other than Consolidated Subsidiaries; provided, however, that any accumulated other comprehensive income or loss associated with Ryder and its Consolidated Subsidiaries’ pension and other post-retirement plans which is recorded on the consolidated financial statements of Ryder and its Consolidated Subsidiaries in accordance with GAAP will be excluded.

(b)    Amendments to §9.5 of the Credit Agreement.  The Credit Agreement is hereby amended by deleting the reference to “Consolidated Adjusted Tangible Net Worth” in §9.5 of the Credit Agreement and substituting a reference to “Consolidated Adjusted Net Worth” in lieu thereof.
(c)    Amendments to §10.1 of the Credit Agreement.  The Credit Agreement is hereby amended by deleting in its entirety §10.1 of the Credit Agreement and substituting the following new §10.1 in lieu thereof:
§10.1.    Debt to Consolidated Adjusted Net Worth.  Ryder will not, at any time, permit the ratio of (a) the aggregate amount of Indebtedness of Ryder and its Consolidated Subsidiaries to (b) Consolidated Adjusted Net Worth of Ryder and its Consolidated Subsidiaries to exceed 3.00:1.00.

(d)    Amendments to Exhibit C: Compliance Certificate. The Credit Agreement is hereby amended by deleting in its entirety Exhibit C of the Credit Agreement and substituting in lieu thereof the new Exhibit C to the Credit Agreement that is attached hereto as Annex A.
§2.    Representations and Warranties.  As of the Amendment Effective Date (as defined below), each of the Borrowers represents and warrants to the Banks and the Agents as follows:
(a)    Representations and Warranties in Credit Agreement.  The representations and warranties of the Borrowers contained in the Credit Agreement were true and correct in all material respects when made, and continue to be true and correct on the Amendment Effective Date (as defined below).
(b)    Authority, Etc.  The execution and delivery by each of the Borrowers of this Amendment and the performance by each of the Borrowers of all of its respective agreements and obligations of this Amendment and the other documents delivered in connection therewith (collectively, the “Amendment Documents”), the Credit Agreement as amended hereby and the other Loan Documents (i) are within the corporate or company authority of such Borrower, (ii) have been duly authorized by all necessary corporate or company proceedings by such Borrower, (iii) do not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which such Borrower is subject or any judgment, order, writ, injunction, license or permit applicable to such Borrower, (iv) do not conflict with any provision of the formation or governing documents of, or any agreement or other instrument binding upon, such Borrower, and (v) do not require the approval or consent of, or filing with, any Person other than those already obtained. 
(c)    Enforceability of Obligations. The Amendment Documents, the Credit Agreement as amended hereby, and the other Loan Documents constitute the legal, valid and binding obligations of such Borrower, enforceable against such Borrower in accordance with their respective terms.  
(d)    No Default.  Immediately after giving effect to this Amendment, no Default or Event of Default exists under the Credit Agreement or any other Loan Document.
§3.    References.  Each Borrower confirms and agrees that all references to the term “Credit Agreement” in the other Loan Documents shall hereafter refer to the Credit Agreement as amended hereby.
§4.    Conditions to Effectiveness.  The amendments provided for in this Amendment shall take effect upon the satisfaction of the following conditions precedent (such date, the “Amendment Effective Date”):

(a)    the Administrative Agent shall have received a counterpart signature page to this Amendment, duly executed and delivered by each of the Borrowers, the Administrative Agent and the Majority Banks, and this Amendment shall be in full force and effect;
(b)    the receipt by the Administrative Agent of all reasonable out-of-pocket costs and expenses (including, without limitation, reasonable legal fees and expenses) for which invoices have been presented which have been incurred or sustained by the Administrative Agent in connection with this Amendment and the Credit Agreement; and
(c)    all proceedings in connection with the transactions contemplated by this Amendment and all documents incident thereto shall be reasonably satisfactory in substance and form to the Administrative Agent, and the Administrative Agent shall have received all information and such counterpart originals or certified or other copies of such documents as the Administrative Agent may reasonably request.
§5.    Satisfaction of Conditions.  Without limiting the generality of the foregoing §4, for purposes of determining compliance with the conditions specified in §4, each Bank that has signed this Amendment shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Bank unless the Administrative Agent shall have received notice from such Bank prior to the date hereof specifying its objection thereto.
§6.    Miscellaneous Provisions.  This Amendment shall constitute one of the Loan Documents referred to in the Credit Agreement.  Except as otherwise expressly provided by this Amendment, all of the terms, conditions and provisions of the Credit Agreement shall remain the same.  It is declared and agreed by each of the parties hereto that the Credit Agreement, as amended hereby, shall continue in full force and effect, and that this Amendment and the Credit Agreement shall be read and construed as one instrument.  Nothing contained in this Amendment shall be construed to imply a willingness on the part of the Banks or the Administrative Agent to grant any similar or other future amendment of any of the terms and conditions of the Credit Agreement or the other Loan Documents or shall in any way prejudice, impair or effect any rights or remedies of the Banks and the Administrative Agent under the Credit Agreement or the other Loan Documents.  THIS AMENDMENT SHALL BE CONSTRUED ACCORDING TO AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID STATE (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW (OTHER THAN THE NEW YORK GENERAL OBLIGATIONS LAW §5-1401)).  This Amendment may be executed in any number of counterparts, but all such counterparts shall together constitute but one instrument.  Delivery of an executed signature page of this Amendment by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart thereof.  In making proof of this Amendment it shall not be necessary to produce or account for more than one counterpart signed by each party hereto by and against which enforcement hereof is sought.  Headings or captions used in this Amendment are for convenience of reference only and shall not define or limit the provisions hereof.  The Borrowers hereby agree to pay to the Administrative Agent on demand all reasonable costs and expenses incurred or sustained by the Administrative Agent in connection with the preparation of this Amendment (including reasonable legal fees and disbursements of counsel for the Administrative Agent).  

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as an agreement as of the date first written above.

RYDER SYSTEM, INC.
By:/s/ Braden K. Moll    
Name:    Braden K. Moll
Title:    Sr. Assistant Treasurer
RYDER TRUCK RENTAL CANADA LTD.
By:/s/ Braden K. Moll    
Name:    Braden K. Moll
Title:    Sr. Assistant Treasurer
RYDER TRUCK RENTAL HOLDINGS CANADA LTD.
By:/s/ Braden K. Moll    
Name:    Braden K. Moll
Title:    Sr. Assistant Treasurer
RYDER LIMITED

By:/s/ Braden K. Moll    
Name:    Braden K. Moll
Title:    Director

RYDER SYSTEM HOLDINGS (UK) LIMITED
By:/s/ Calene F. Candela    
Name:    Calene F. Candela
Title:    Director
RYDER PUERTO RICO, INC.
By:/s/ Braden K. Moll    
Name:    Braden K. Moll
Title:    Sr. Assistant Treasurer

BANK OF AMERICA, N.A., as Administrative Agent
By:  /s/ Judith A. Huckins    
Name: Judith A. Huckins
Title:   Vice President

BANK OF AMERICA, N.A., as Domestic Bank
By:  /s/ Judith A. Huckins    
Name:  Judith A. Huckins
Title:  Vice President

BANK OF AMERICA, N.A., as U.K. Bank
By:  /s/ Judith A. Huckins    
Name:  Judith A. Huckins
Title:  Vice President

BANK OF AMERICA, N.A., as PR Bank
By:  /s/ Judith A. Huckins    
Name:  Judith A. Huckins
Title:  Vice President

BANK OF TOKYO-MITSUBISHI UFJ, LTD., as Domestic Bank
By:  /s/ M. Antioco    
Name:  M. Antioco
Title:    Associate

MIZUHO CORPORATE BANK, LTD., as Domestic Bank
By:  /s/ Noel Purcell    
Name:  Noel Purcell
Title:    Authorized Signatory

MIZUHO CORPORATE BANK, LTD., as Canadian Bank
By:  /s/ Noel Purcell    
Name:  Noel Purcell
Title:    Authorized Signatory

MIZUHO CORPORATE BANK, LTD., as U.K. Bank
By:  /s/ Noel Purcell    
Name:  Noel Purcell
Title:    Authorized Signatory
WELLS FARGO BANK, N.A., as Domestic Bank
By:  /s/ Kay Reedy    
Name:  Kay Reedy
Title:    Managing Director

U.S. BANK NATIONAL ASSOCIATION, as Domestic Bank
By:  /s/ Edward B. Hanson    
Name:  Edward B. Hanson
Title:    Vice President

BNP PARIBAS, as Domestic Bank
By: /s/ Andy Strait    
Name:  Andy Strait
Title:    Managing Director

By:  /s/ Michael Pearce                
Name: Michael Pearce
Title:   Managing Director

THE BANK OF NEW YORK MELLON, as Domestic Bank
By:  /s/ Robert Besser    
Name:  Robert Besser
Title:    Managing Director

REGIONS BANK, as Domestic Bank
By:  /s/ Stephen Hanas    
Name:  Stephen Hanas
Title:    Senior Vice President

PNC BANK, NATIONAL ASSOCIATION, for itself and as successor to RBC Bank (USA), as Domestic Bank 
By:  /s/ Jose Mazariegos    
Name:  Jose Mazariegos
Title:    Senior Vice President

BRANCH BANKING AND TRUST COMPANY, as Domestic Bank
By:  /s/ Anthony D. Nigro    
Name:  Anthony D. Nigro
Title:    Senior Vice President

THE ROYAL BANK OF SCOTLAND PLC, as Domestic Bank
By:  /s/ Jonathan Lasner    
Name:  Jonathan Lasner
Title:    Director

THE ROYAL BANK OF SCOTLAND PLC, as U.K. Bank
By:  /s/ Neil Foulkes    
Name:  Neil Foulkes
Title:    Head of Large Corp
      Thames Valley

ROYAL BANK OF CANADA, as Domestic Bank
By:  /s/ Scott Umbs    
Name:  Scott Umbs
Title:    Authorized Signatory

    

Annex A

EXHIBIT C

[FORM OF]
COMPLIANCE CERTIFICATE

RYDER SYSTEM, INC.
Compliance Certificate dated ___________

Reference is hereby made to the Amended and Restated Global Revolving Credit Agreement, dated as of June 8, 2011 (as amended, restated, amended and restated, modified or supplemented and in effect from time to time, the “Credit Agreement”), by and among (i) Ryder System, Inc. (“Ryder”), Ryder Truck Rental Holdings Canada Ltd., Ryder Truck Rental Canada Ltd., Ryder Limited, Ryder System Holdings (UK) Limited, and Ryder Puerto Rico, Inc., (ii) the lending institutions identified as Banks therein, (iii) Bank of America, N.A., as Administrative Agent for the Banks, (iv) Royal Bank of Canada, as Canadian Agent for the Banks and (v) The Royal Bank of Scotland plc, as U.K. Agent for the Banks, with Merrill Lynch, Pierce, Fenner & Smith Incorporated, acting as lead arranger and book manager.  Capitalized terms used and not defined herein shall have the meanings ascribed thereto in the Credit Agreement.

The undersigned                     , the [chief financial officer/treasurer/assistant treasurer] of Ryder hereby certifies that no Default or Event of Default exists.  Computations to evidence compliance with §9.1(b) and §10.1 of the Credit Agreement are detailed on Annex A attached hereto.

[The undersigned hereby further certifies that:

(i) the representations and warranties contained in §§7.1, 7.2, 7.3, 7.6, 7.8, 7.9, 7.10, 7.11 (other than clause (iii) of subsection (c) of such Section 7.11), 7.13, 7.14, 7.17, 7.18 and §7A of the Credit Agreement are true and correct in all material respects as of the date hereof;

(ii) the representations and warranties contained in §7.4 of the Credit Agreement are true and correct in all material respects as of the date hereof; provided that each reference to “Balance Sheet Date” in such §7.4 shall be deemed a reference to the most recent fiscal year end of Ryder; and

(iii) the representations and warranties contained in §§7.5, 7.7, 7.12, 7.15 and 7.16 of the Credit Agreement are true and correct in all material respects as of the date hereof after taking into consideration any updated information provided to the Schedule corresponding to any such Section (all such updated Schedules are attached hereto as Annex B), if applicable.]

RYDER SYSTEM, INC.

By:                    
Name:
Title:

Annex A

Secured Indebtedness  -  §9.1(b)

1.    Adjusted Consolidated Tangible Assets
(Item 8 of Appendix)                            $        

2.    Secured Indebtedness                            $        
(Item 24 of Appendix)

3.    Maximum Permitted Secured Indebtedness                $        
(Item 1 x .30)

Debt to Consolidated Adjusted Net Worth  -  §10.1

4.    Total Indebtedness of Ryder and its Consolidated 
Subsidiaries                                $        
(Item 19 of Appendix)

5.    Consolidated Adjusted Net Worth
(Item 13 of Appendix)                            $        

6.    Actual Ratio
(Item 4 divided by Item 5)                            :1.00

7.    Maximum permitted ratio                              3.00:1.00    

Appendix

A.    Adjusted Consolidated Tangible Assets

1.    Consolidated assets                            $        

2.    All intercompany items                            $        

3.    All Intangible Assets                            $        

4.    Investments in Subsidiaries other than Consolidated 
Subsidiaries                                $        

5.    Consolidated Tangible Assets
[(Item 1) - (Items 2 + 3 + 4)]                        $        

6.    Consolidated book value of all assets of Ryder and 
its Consolidated Subsidiaries which are subject to
any synthetic lease                            $        

7.    Consolidated book value of all assets of Ryder and 
its Consolidated Subsidiaries that are reflected on 
the consolidated balance sheet of Ryder and its
Consolidated Subsidiaries and secure or are the
subject of any Limited Recourse Facility                    $        

8.    Adjusted Consolidated Tangible Assets
[Item 5 + Item 6 - Item 7]                        $        

B.    Consolidated Adjusted Net Worth

9.    Consolidated shareholders’ equity                    $        

10.    Investments in Subsidiaries other than Consolidated
Subsidiaries                                $        

		
	11.
	Accumulated other comprehensive income or loss associated     $        

with Ryder and its Consolidated Subsidiaries’ pension and 
other post-retirement plans which is recorded on the consolidated 
financial statements of Ryder and its Consolidated Subsidiaries
in accordance with GAAP

12.    Consolidated Adjusted Net Worth
[(Items 9 - 10 - 11)]                            $        

C.    Indebtedness

13.    (a) All obligations for borrowed money, (b) All 
obligations evidenced by bonds, debentures, notes
or other similar instruments, (c) All obligations to 
pay the deferred purchase price of property or 
services, except trade accounts payable arising in the 
ordinary course of business, (d) All obligations as 
lessee under Capitalized Leases                        $        
                        
14.    All obligations under Limited Recourse Facilities            $        
(to the extent included in Item 13)  

15.    All Deemed Indebtedness Under Limited Recourse 
Facilities (Item 27 below)                        $        
    
16.    All obligations as lessee in respect of synthetic leases            $        

17.    All Indebtedness of others guaranteed by such Person            $        

18.    Indebtedness
[(Items 13 - 14) + (Items 15 + 16 + 17)]                    $        

D.    Secured Indebtedness

19.    Indebtedness and all Derivative Obligations of any 
      Borrower or any of Ryder’s Consolidated Subsidiaries
and all reimbursement obligations with respect to 
letters of credit, bankers’ acceptances or similar 
facilities issued for the account of such Person, in 
each case, secured by a lien or other encumbrance     
on, or title to, any real or personal property                $        
                        
20.    Unsecured Indebtedness and Derivatives Obligations 
of any of Ryder’s Consolidated Subsidiaries (other 
than the Canadian Borrowers or the U.K. Borrowers) 
and unsecured reimbursement obligations with 
respect to letters of credit, bankers’ acceptances or 
similar facilities issued for the account of such Person 
(other than the Canadian Borrowers or the U.K. 
Borrowers)                                $        

21.    Aggregate liquidation preference of all Preferred
Stock issued by Ryder’s Consolidated Subsidiaries 
not owned by Ryder and its Consolidated Subsidiaries        $        
    
22.    Any Deemed Indebtedness Under Limited Recourse
Facilities (Item 27 below) and all obligations as lessee 
in respect of synthetic leases, in each case to the 
extent not otherwise included as Secured Indebtedness        $        

23.    Secured Indebtedness
(Items 19 + 20 + 21 + 22)                    $        

E.    Deemed Indebtedness Under Limited Recourse Facilities

24.    Deemed Receivables Indebtedness                $        

25.    Deemed Securitization Indebtedness                $        

26.    In respect of any other Limited Recourse Facility, an 
amount equal to the greater of (a) 10% of the principal 
amount or aggregate payment obligations, as applicable, 
of such Limited Recourse Facility or (b) two times the 
percentage recourse under such Limited Recourse 
Facility of the principal amount or aggregate payment 
obligations, as applicable, of such Limited Recourse 
Facility (as determined in accordance with the definition 
of Limited Recourse Facilities)                    $        

27.    Total Deemed Indebtedness Under Limited Recourse
Facilities (Items 24 + 25 + 26)                    $        

Annex B

[See attached updated schedule(s)]Unassociated Document

 

EXHIBIT 10.1                                FORM OF NOTE

 

THIS NOTE AND THE SHARES OF CAPITAL STOCK ISSUABLE UPON ANY CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED TO ANY PERSON, INCLUDING A PLEDGEE, UNLESS (1) EITHER (A) A REGISTRATION STATEMENT WITH RESPECT THERETO SHALL BE EFFECTIVE UNDER THE SECURITIES ACT, OR (B) THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT IS AVAILABLE, AND (2) THERE SHALL HAVE BEEN COMPLIANCE WITH ALL APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS.

 

BIOZONE PHARMACEUTICALS, INC.

 

10% SENIOR SECURED CONVERTIBLE PROMISSORY NOTE

 

	
Principal Amount: $250,000

Purchase Price:     $250,000

	  
	  	
Issue Date: April 18, 2012

 

BIOZONE PHARMACEUTICALS, INC., a Nevada corporation (the “Company”), for value received, hereby promises to pay to ________________ with an office at _______________ or his assigns (the “Holder”), two hundred fifty thousand dollars ($250,000) (the “Principal Amount”) in accordance with the amounts and payment schedule set forth on Schedule A attached hereto, together with interest (computed on the basis of a 365-day year for the actual number of days elapsed) from the date hereof on the unpaid balance of such Principal Amount from time to time outstanding at the rate of ten percent (10%) per annum (“Interest”) until paid in full or converted as provided herein.

 

1.           Repayment of the Note. The Principal Amount outstanding hereunder shall be payable in cash in installments in such amounts and on or before such dates specified on Schedule A (the latest such date is referred to as the “Final Maturity Date”).  The entire remaining Principal Amount and all accrued but unpaid or unconverted Interest thereof, shall be due and payable on the earliest of (1) the Final Maturity Date, (2) the consummation of a financing by the Company resulting in net proceeds equal to or greater than 1.5 times the remaining outstanding unconverted Principal Amount hereunder and (3) the occurrence of an Event of Default (as defined below).

 

2.           Payment Grace Period.  The Borrower shall not have any grace period to pay any monetary amounts due under this Note.  After the Final Maturity Date and during the pendency of an Event of Default (as defined below), a default interest rate of fifteen percent (15%) per annum shall be in effect.

 

3.           Proceeds for Repayment. Schedule B lists certain purchase orders received by the Company from Matrixx Initiatives, Inc. (“Matrixx”) for products to be sold by the Company’s wholly owned subsidiary, BioZone Laboratories Inc. (“BZL”) to Matrixx.  The Company agrees to repay the Principal Amount hereunder based on the Company’s receipt of proceeds from sales to Matrixx (the “Matrixx Proceeds”) as and when received in cash, until the unconverted Principal Amount is paid in full, in accordance with the payment schedule set forth on Schedule A. The Company represents and warrants that Schedule B reflects a true list of Purchase Orders received by the Company from Matrixx.

 

4.           Prepayment of the Note.  The Company may prepay any outstanding amounts owing under this Note, in whole or in part, at any time prior to the Final Maturity Date.

 

5.           Termination of Rights Under this Note.  This Note shall no longer be deemed to be outstanding, and all rights with respect to this Note shall immediately cease and terminate, upon receipt by the Holder of the  Principal Amount outstanding and all accrued and unpaid Interest thereon or upon conversion in full of the Principal Amount or Interest then due hereunder pursuant to Section 5 herein or any combination of the foregoing.

 

  

1

  

 

6.          Optional Conversion of this Note by the Holder.

 

(a)           Optional Conversion.  At any time or from time to time and prior to payment in full of the entire Principal Amount, the Holder shall have the right, at the Holder’s option, to convert the Principal Amount and/or accrued but unpaid Interest, in whole or in part (the “Conversion Amount”), into shares of common stock, par value $0.001 per share (the “Common Stock”) of the Company.  The number of shares of Common Stock to be issued upon a conversion hereunder shall be determined by dividing the Conversion Amount by $1.50.

 

(b)           Conversion Mechanics.  In order to convert this Note into Common Stock, the Holder shall give written notice to the Company at its principal corporate office or the notice address provided in this Note (which notice, notwithstanding anything herein to the contrary, may be given via facsimile, email, or other means in the discretion of the Holder) pursuant to the forms attached hereto as Exhibit C (the “Conversion Notice”) of the election to convert the same pursuant to this section (the date on which a Conversion Notice is given, a “Conversion Date”).  Such Conversion Notice shall state the Conversion Amount and the number of shares of Common Stock to which the Holder is entitled pursuant to the Conversion Notice (the “Conversion Shares”).  The Company shall immediately, but in no event later than five (5) trading days after receipt of a Conversion Notice (the “Required Delivery Date”), deliver the Conversion Shares to the Holder.

 

(c)           No Fractional Shares.  No fractional Conversion Shares shall be issued by the Company.  In lieu thereof, the shares of Common Stock otherwise issuable shall be rounded up to the nearest whole Conversion Share.

 

(d)           Holder’s Conversion Limitations.  The Company shall not effect any conversion of this Note, and a Holder shall not have the right to convert any portion of this Note, pursuant to Section 5 or otherwise, to the extent that after giving effect to such issuance after conversion as set forth on the applicable Conversion Notice, the Holder (together with the Holder’s affiliates, and any other persons acting as a group together with the Holder or any of the Holder’s affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) conversion of the remaining, nonconverted portion of this Note beneficially owned by the Holder or any of its affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other  common stock equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 5(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.   To the extent that the limitation contained in this Section 5(d) applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any affiliates) and of which portion of this Note is convertible shall be in the sole discretion of the Holder, and the submission of an Conversion Notice shall be deemed to be the Holder’s determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any affiliates) and of which portion of this Note is convertible, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.   In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 5(d), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within two trading days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note.  The Holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 5(d).   Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 5(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Note.

 

  

2

  

 

7.           Event of Default. The occurrence of any of the following events of default (“Event of Default”) shall, at the option of the Holder hereof, make the remaining unpaid Principal Amount and all accrued but unpaid Interest immediately due and payable, upon demand, without presentment or grace period, all of which hereby are expressly waived, except as set forth below:

 

(a)           Failure to Pay Principal.  The Company fails to pay any installment of principal under this Note when due pursuant to the dates set out on Schedule A.

 

(b)           Breach of Representation and Warranty. Any material representation or warranty of the Company made herein, or in any agreement, statement or certificate given in writing pursuant hereto or in connection therewith shall be false or misleading in any material respect as of the date made and the date of this Note.

 

(c)           Liquidation.  Any dissolution, liquidation or winding up of the Company or any Material Subsidiary or any substantial portion of their business taken as a whole. “Material Subsidiary” means, with respect to any entity, which, at any time after the Issue Date and until such time that this Note is fully paid, is a corporation, limited or general partnership, limited liability company, trust, estate, association, joint venture or other business entity  of which (A) more than 30% of (i) the outstanding capital stock having ordinary voting power to elect a majority of the board of directors or other managing body of such entity, (ii) in the case of a partnership or limited liability company, the interest in the capital or profits of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture or other entity, the beneficial interest in such trust, estate, association or other entity business is, at the time of determination, owned or controlled directly or indirectly through one or more intermediaries, by the Company, or (B) is under the actual control of the Company.)

 

(d)           Cessation of Operations.  Any cessation of operations by the Company.

 

(e)           Maintenance of Assets.  The failure by the Company or any Material Subsidiary to maintain any material intellectual property rights, personal, real property or other assets, which are necessary to conduct its business (whether now or in the future).

 

(f)           Receiver or Trustee.  The Company or any Material Subsidiary shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business; or such a receiver or trustee shall otherwise be appointed.

 

(g)           Judgments.  Any money judgment, writ or similar final process shall be entered or filed against the Company or any Material Subsidiary or any of its property or other assets for more than $250,000, unless stayed vacated or satisfied within thirty (30) days.

 

(h)           Bankruptcy.  Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under any bankruptcy law or any law, or the issuance of any notice in relation to such event, for the relief of debtors shall be instituted by or against the Company or any Material Subsidiary.

 

8.           Security Interest.  As an inducement for the Holder to extend the loan as evidenced by this Note and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of the Company to the Holder, the Company hereby unconditionally and irrevocably pledges, grants and hypothecates to the Holder a security interest in and to, a lien upon and a right of set-off against all of their respective right, title and interest of whatsoever kind and nature in and to, the Matrixx Proceeds.  The security interest granted herein will terminate upon the payment and performance in full of all such obligations.

 

  

3

  

 

9           Non-Waiver.  The failure of the Holder to enforce or exercise any right or remedy provided in this Note or at law or in equity upon any default or breach shall not be construed as waiving the rights to enforce or exercise such or any other right or remedy at any later date.  No exercise of the rights and powers granted in or held pursuant to this Note by the Holder, and no delays or omission in the exercise of such rights and powers shall be held to exhaust the same or be construed as a waiver thereof, and every such right and power may be exercised at any time and from time to time.

 

10.           Waiver by the Company.  The Company hereby waives presentment, protest, notice of protest, notice of nonpayment, notice of dishonor and any and all other notices or demands relative to this Note, except as specifically provided herein.

 

11.           Usury Savings Clause.  The Company and the Holder intend to comply at all times with applicable usury laws.  If at any time such laws would render usurious any amounts due under this Note under applicable law, then it is the Company’s and Holder’s express intention that the Company not be required to pay Interest on this Note at a rate in excess of the maximum lawful rate, that the provisions of this Section 10 shall control over all other provisions of this Note which may be in apparent conflict hereunder, that such excess amount shall be immediately credited to the balance of the Principal Amount of this Note, and the provisions hereof shall immediately be reformed and the amounts thereafter decreased, so as to comply with the then applicable usury law, but so as to permit the recovery of the fullest amount otherwise due under this Note.

 

12.           Holder Not a Stockholder.  The Holder shall not have, solely on account of such status as a holder of this Note, any rights of a stockholder of the Company, either at law or in equity, or any right to any notice of meetings of stockholders or of any other proceedings of the Company until such time as this Note has been converted, at which time the Holder shall be deemed to be the holder of record of the Conversion Shares, as applicable, notwithstanding that the transfer books of the Company shall then be closed or certificates representing such Conversion Shares shall not then have been actually delivered to the Holder

 

13.           Miscellaneous.

 

(a)           Governing Law; Venue.  This Note shall be governed by and interpreted in accordance with the Uniform Commercial Code as from time to time in effect in the State of Nevada as to matters within the scope thereof, and, with respect to all other matters, shall be governed by and interpreted in accordance with the laws of the State of Florida, without regard for any conflict of laws. The Company irrevocably consents to the exclusive jurisdiction of any Federal or State court of Florida sitting in Miami-Dade County, Florida in connection with any action or proceeding arising out of or relating to this Note, any document or instrument delivered pursuant to, in connection with or simultaneously with this Note, or a breach of this Note or any such document or instrument.

 

(b)           Successors and Assigns.  This Note and the obligations hereunder shall inure to the benefit of and be binding upon the respective successors and assigns of the parties; provided, however, that neither party may assign any of its rights or obligations hereunder without the prior written consent of the other, except that the Holder may assign all or any portion of its rights hereunder to its Affiliate (as such term is defined in Rule 405 of the Securities Act) without such consent by giving written notice of such assignment to the Company.  Assignment of all or any portion of this Note in violation of this Section shall be null and void.

 

(c)           Notices.  Any notice or other communication required or permitted to be given hereunder shall be in writing. The addresses for such communications shall be: (i) if to the Company to: BioZone Pharmaceuticals, Inc., Attn: Elliot Maza, CEO, facsimile: (201) 608-5103, with a copy to: Sichenzia Ross Friedman Ference LLP, 61 Broadway, New York, NY 10006, Attn: Harvey Kesner, Esq., facsimile: (212) 930-9725; and (ii) if to the Holder, to the name, address and facsimile number set forth on the front page of this Note.

 

(d)           Amendment; Waiver.  No modification, amendment or waiver of any provision of this Note shall be effective unless in writing and approved by the Company and the Holder.

 

(e)           Invalidity.  Any provision of this Note which may be determined by a court of competent authority to be prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invaliding the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

(f)           Section and Paragraph Headings.  The section and paragraph headings contained herein are for convenience only and shall not be construed as part of this Note.

 

  

4

  

 

IN WITNESS WHEREOF, this Note has been executed and delivered on the date first above written by the duly authorized representative of the Company.

 

 

 BIOZONE PHARMACEUTICALS, INC.

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 

 

  

  

  

 

EXHIBIT A

 

	
Payment #

	
Payment Date

	
Amount

	
1

	
August 7, 2012

	
$ 166,100

	
2

	
August 7, 2012

	
$  83,900

	
Total

	  	
$ 250,000

 

  

  

  

 

 

 

  

  

  

 

EXHIBIT C

 

 

Date:__________________________________

 

 

BIOZONE PHARMACEUTICALS, INC.                                                                                                                                

_______________________

_______________________

 

Attn:

 

CONVERSION NOTICE

 

           The above-captioned Holder hereby gives notice to Biozone Pharmaceuticals, Inc., a Nevada corporation (the “Company”), pursuant to that certain Promissory Note made by the Company in favor of the Holder dated March __, 2012 in the principal amount of $_______ by the Company (the “Note”); that the Holder elects to convert the portion of the Note balance set forth below into fully paid and non-assessable shares of Common Stock of the Company as of the date of conversion specified below.

 

	A. Date of conversion:	 	 
	 	 	 
	B. Conversion #:	 	 
	 	 	 
	C. Conversion Amount:	 	 
	 	 	 
	D. Conversion Price:	 	 
	 	 	 
	E. Conversion Shares:	 	 
	 	 	 
	F. Remaining Note Balance:  	 	 
	 	 	 

 

Please transfer the Conversion Shares to the undersigned at:

 

Address:

 

_________________________________

 

_________________________________

 

_________________________________

 

Sincerely,

 

By:          ___________________________

Name:     ___________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00203-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00203-of-00352.parquet"}]]