Document:

EX-4.2

 

Exhibit 4.2

[FORM OF FACE OF SECURITY]

[GLOBAL SECURITIES LEGEND

          THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE
TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR
ALL PURPOSES.

          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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

          TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF THE DEPOSITORY TRUST COMPANY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE.]

 

 

	 	 	 
	No.

	 	$ 
	

	 	 
	[CUSIP]
	 	 
	[ISIN]
	 	 

The Home Depot, Inc.

________% Note Due ____________

          The Home Depot, Inc., a Delaware corporation (the “Company”), for value received hereby
promises to pay to                      or registered assigns the principal sum of                      Dollars ($
                     ) at the Company’s office or agency for said purpose in the City of New York, on
                     , in such coin or currency of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts, and to pay interest,
semi-annually on                      and                      (each an “Interest Payment Date”) of each year, commencing
on                      , on said principal sum in like coin or currency at the rate per annum set forth
above at said office or agency from the most recent Interest Payment Date to which interest on the
Securities of this series has been paid or duly provided for or, if no interest on the Securities
of this series has been paid or duly provided for, from                      . The interest so payable on
any Interest Payment Date will, except as otherwise provided in the Indenture referred to on the
reverse hereof, be paid to the person in whose name this Security is registered at the close of
business on the                      or                      , as the case may be, preceding the relevant Interest
Payment Date (the “Regular Record Date”) whether or not such day is a business day; provided that
interest may be paid, at the option of the Company, by mailing a check therefor payable to the
registered holder entitled thereto at such holder’s last address as it appears on the Security
Register or by wire transfer, in immediately available funds, to such bank or other entity in the
continental United States as shall be designated in writing by such holder prior to the relevant
Regular Record Date and shall have appropriate facilities for such purpose. If and for so long as
all of the Securities of this series are represented by Securities in global form, the principal
of, premium, if any, and interest on this global Security shall be paid in same day funds to the
Depositary, or to such name or entity as is requested by an authorized representative of the
Depositary.

          Reference is made to the further provisions set forth on the reverse hereof. Such further
provisions shall for all purposes have the same effect as though fully set forth at this place.

          This Security shall not be valid or obligatory until the certificate of authentication hereon
shall have been duly signed by the Trustee acting under the Indenture.

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

	 	 	 	 	 
	 	 	THE HOME DEPOT, INC.
	 
	 	 	 	 
	

	 	By:
	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:

3

 

[FORM OF REVERSE OF SECURITY]

The Home Depot, Inc.

___________% Note Due __________

          This Security is one of a duly authorized issue of debt securities of the Company, issued or
to be issued in one or more series pursuant to an indenture dated as of May 4, 2005 (the
“Indenture”), duly executed and delivered by the Company to The Bank of New York Trust Company,
N.A., as Trustee (herein called the “Trustee,” which term includes any successor trustee under the
Indenture). Reference is hereby made to the Indenture and all indentures supplemental thereto for
a description of the rights, limitations of rights, obligations, duties and immunities thereunder
of the Trustee, the Company and the holders (the words “holders” or “holder” meaning the registered
holders or registered holder) of the Securities of this series.

          This Security will bear interest until final Maturity at the rate per annum shown above.
Interest will be computed on the basis of a 360-day year consisting of twelve months of 30 days
each. The Company will pay interest on overdue principal, premium, if any, and to the extent
lawful, interest on overdue installments of interest, at the same rate.

          In case an Event of Default, as defined in the Indenture, shall have occurred and be
continuing with respect to this series of Securities, the principal of all the outstanding
Securities of this series may be declared due and payable, in the manner and with the effect, and
subject to the conditions, provided in the Indenture. The Indenture provides that in certain
events such declaration and its consequences may be waived by the holders of a majority in
aggregate Principal Amount of the Securities of this series then outstanding and that, prior to any
such declaration, such holders may waive any past default under the Indenture and its consequences
except a default in the payment of principal of, premium, if any, or interest on any of the
Securities of this series. Any such consent or waiver by the holder of this Security (unless
revoked as provided in the Indenture) shall be conclusive and binding upon such holder and upon all
future holders and owners of this Security and any Security of this series which may be issued in
exchange or substitution herefor, whether or not any notation thereof is made upon this Security or
such other Securities of this series.

          The Indenture permits, with certain exceptions as therein provided, the Company and the
Trustee, with the consent of the holders of at least a majority in aggregate Principal Amount of
the Securities at the time outstanding, evidenced as provided in the Indenture, to execute
supplemental indentures adding any provisions to or changing in any manner or eliminating any of
the provisions of the Indenture or of any supplemental indenture or modifying in any manner the
rights of the holders of the Securities.

          Notwithstanding the foregoing, without the consent of any holder of Securities of this series,
the Company and the Trustee may amend or supplement the Indenture or the Securities of this series
to cure any ambiguity, defect or inconsistency, to provide for uncertificated Securities of this
series in addition to or in place of certificated Securities of this series, to provide for the
assumption of the Company’s obligations to holders of Securities of this series in the case of a
transaction described in Section 10.01, to make any change that would

4

 

provide any additional rights or benefits to the holders of Securities of this series or that
does not adversely affect the legal rights under the Indenture of any such holder, or to comply
with requirements of the Commission in order maintain the qualification of the Indenture under the
Trust Indenture Act.

          No reference herein to the Indenture and no provision of this Security shall alter or impair
the obligation of the Company, which is absolute and unconditional, to pay the principal of,
premium, if any, and interest on this Security at the place, times, and rate, and in the currency,
herein prescribed.

          The Securities of this series are issuable only as registered Securities without coupons in
denominations of $1,000 and any multiple of $1,000.

          At the office or agency of the Company referred to on the face hereof and in the manner and
subject to the limitations provided in the Indenture and this Security, Securities of this series
may be exchanged for a like aggregate Principal Amount of Securities of this series of other
authorized denominations.

          Upon due presentment for registration of transfer of this Security at the above-mentioned
office or agency of the Company, a new Security or Securities of this series of authorized
denominations, for a like aggregate Principal Amount, will be issued to the transferee as provided
in the Indenture. No service charge shall be made for any such transfer, but the Company may
require payment of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto.

          [If applicable, insert: The Securities of this series are redeemable in whole or in part, at
the option of the Company, at any time and from time to time, on not less than 30 or more than 60
days’ prior notice mailed to the holders of the Securities of this series, at a redemption price
equal to ___.

          Subject to payment by the Company of a sum sufficient to pay the amount due on redemption,
interest on this Security (or portion hereof if this Security is redeemed in part) shall cease to
accrue upon the date duly fixed for redemption of this Security (or portion hereof if this Security
is redeemed in part). In the event of redemption of this Security in part only, a new Security or
Securities of this series for the unredeemed portion hereof will be issued in the name of the
holder hereof upon the cancellation hereof.]

          [If applicable, insert: The Securities of this series are not redeemable prior to Maturity.]

          The Company, the Trustee, and any authorized agent of the Company or the Trustee, may deem and
treat the registered holder hereof as the absolute owner of this Security (whether or not this
Security shall be overdue and notwithstanding any notation of ownership or other writing hereon
made by anyone other than the Company, the Trustee or any authorized agent of the Company or the
Trustee), for the purpose of receiving payment of, or on account of, the principal hereof and
premium, if any, and interest hereon and for all other purposes, and none of the Company, the
Trustee nor any authorized agent of the Company or the Trustee shall be affected by any notice to
the contrary.

5

 

          [If applicable, insert: The Securities of this series are subject to defeasance as described
in the Indenture.]

          No recourse shall be had for the payment of the principal of, premium, if any, or the interest
on this Security, for any claim based hereon, or otherwise in respect hereof, or based on or in
respect of the Indenture or any indenture supplemental thereto, against any incorporator,
shareholder, officer or director, as such, past, present or future, of the Company or of any
successor corporation, either directly or through the Company or any successor corporation, whether
by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as part of the
consideration for the issue hereof, expressly waived and released.

          The Indenture is hereby incorporated by the reference and, to the extent of any variance
between the provisions hereof and the Indenture, the Indenture shall control. Terms used but not
defined herein have the meanings assigned to such terms in the Indenture.

          This Security shall be deemed to be a contract under the laws of the State of New York, and
for all purposes shall be construed in accordance with the laws of said State, except as may
otherwise be required by mandatory provisions of law.

6

 

[FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION]

Dated:

          This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK TRUST
	

	 	 	 	COMPANY, N.A.,
	

	 	 	 	as Trustee
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 
	

	 	 	 	Authorized Signatory

7

 

[FORM OF TRANSFER NOTICE]

          FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s)
unto

          Insert Taxpayer Identification No.

          Please print or typewrite name and address including zip code of assignee of the within
Security and all rights thereunder, hereby irrevocably constituting and appointing ___to
transfer said Security on the books of the Company with full power of substitution in the premises.

	 	 	 
	

	 	 
	By:
	 	 
	Date:
	 	 

8

 

[TO BE ATTACHED TO GLOBAL SECURITIES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 
	

	 	 	 	 	 	Principal Amount of this
	

	 	 	 	 	 	Signature of authorized Global
	

	 	Amount of
	 	Amount of increase in
	 	Security following officer of
	

	 	decrease in Amount of this
	 	Amount of this Global
	 	Trustee or such decrease or
	Date of Principal Exchange

	 	Global Principal Security
	 	Security
	 	increase Securities Custodian

9<PAGE>

                                                                    EXHIBIT 10.1

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), AND MAY NOT BE OFFERED, TRANSFERRED, SOLD, PLEDGED,
HYPOTHECATED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT (i) PURSUANT TO A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS WHICH HAS BECOME EFFECTIVE AND IS CURRENT WITH RESPECT TO THIS NOTE, OR
(ii) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT BUT
ONLY IF (A) THE HOLDER HEREOF HAS FIRST OBTAINED THE WRITTEN OPINION OF COUNSEL
TO ADVANCED PHOTONIX, INC. (THE "COMPANY"), OR OTHER COUNSEL REASONABLY
ACCEPTABLE TO THE COMPANY, TO THE EFFECT THAT THE PROPOSED DISPOSITION IS
CONSISTENT WITH ALL APPLICABLE PROVISIONS OF THE SECURITIES ACT AS WELL AS ANY
APPLICABLE STATE SECURITIES LAWS.

                            ADVANCED PHOTONIX, INC.

                            SECURED PROMISSORY NOTE

                       The Transferability of this Note is
                       Restricted as Provided in Section 7

Issuance Date: May 2, 2005              Original Principal Amount: U.S. $966,833

     FOR VALUE RECEIVED, Advanced Photonix, Inc., a Delaware corporation (the
"Company"), hereby promises to pay to Robin F. Risser ("HOLDER") the amount set
out above as the Original Principal Amount (the "PRINCIPAL") when due as set
forth in Section 1 below, and to pay interest ("INTEREST") on any outstanding
Principal at a rate per annum equal to the Interest Rate (as defined below),
from the date set out above as the Issuance Date (the "ISSUANCE DATE") until the
same becomes due and payable, whether upon an Interest Date (as defined below),
acceleration or otherwise (in each case in accordance with the terms hereof).

          (1) PAYMENT OF PRINCIPAL. The Principal shall be payable in annual
     installments of ONE HUNDRED SIXTY SIX THOUSAND SIX HUNDRED SIXTY SEVEN
     DOLLARS ($166,667) on the first anniversary of the Issuance Date, ONE
     HUNDRED EIGHTY THREE THOUSAND THREE HUNDRED THIRTY THREE DOLLARS ($183,333)
     on the second anniversary of the Issuance Date, THREE HUNDRED THOUSAND
     DOLLARS

<PAGE>

($300,000) on the third anniversary of the Issuance Date, and a final
installment of THREE HUNDRED SIXTEEN THOUSAND EIGHT HUNDRED THIRTY THREE DOLLARS
($316,833) on the fourth anniversary of the Issuance Date (the "MATURITY DATE").

          (2) INTEREST; INTEREST RATE: LATE CHARGE. Interest shall accrue on
this Note at a per annum rate equal to the Prime Rate plus one percent (1%) per
annum (the "INTEREST RATE"); provided, however, that upon the occurrence of an
Event of Default hereunder, the Interest Rate shall increase by four percent
(4%) until cure of such Event of Default or payment of the outstanding principal
balance of, and accrued interest on, this Note upon acceleration thereof as
hereinafter provided. Interest shall accrue from the Issuance Date and shall be
computed on the basis of a 365-day year and actual days elapsed. The Company
shall pay the Holder interest accrued, in arrears, on the last day of each
Calendar Quarter during the period beginning on the Issuance Date and ending on,
and including, the Maturity Date (each, an "INTEREST DATE") with the first
Interest Date being June 30, 2005.

          (3) RIGHTS UPON EVENT OF DEFAULT.

               (a) Event of Default. Each of the following events shall
constitute an "EVENT OF DEFAULT":

                    (i) the Company's failure to pay to Holder any amount of
Principal, Interest or other amounts when and as due under any of the Related
Notes, except, in the case of a failure to pay Interest under any of the Related
Notes when and as due, in which case only if such failure continues for a period
of at least five (5) Business Days;

                    (ii) the Company, pursuant to or within the meaning of Title
11, U.S. Code, or any similar Federal, foreign or state law for the relief of
debtors (collectively, "BANKRUPTCY LAW"), (A) commences a voluntary case, (B)
has an involuntary case filed against it that is not dismissed within sixty (60)
days after such filing, (C) consents to the appointment of a receiver, trustee,
assignee, liquidator or similar official (a "CUSTODIAN"), (D) makes a general
assignment for the benefit of its creditors, or (E) admits in writing that it is
generally unable to pay its debts as they become due; or

                    (iii) a court of competent jurisdiction enters an order or
decree under any Bankruptcy Law that (A) is for relief against the Company in an
involuntary case, (B) appoints a Custodian of the Company or (C) orders the
liquidation of the Company.

               (b) Acceleration. If an Event of Default shall occur and be
continuing, the Holder by written notice to the Company may declare the
Principal outstanding, together with accrued and unpaid Interest, if any, on
this Note to be due and payable immediately, which notice shall specify the
respective Events of Default and that it is a "notice of acceleration." Upon any
such declaration, the Principal outstanding, together with accrued and unpaid
Interest, if any, on this Note shall become immediately due and payable.

          (4) SECURITY: RIGHTS OF OFFSET. This Note is secured to the extent and
in the manner set forth in that certain Security Agreement of even date herewith
between the Company and the Holder. Payment of this Note is subject to certain
rights of offset under the terms of that certain Agreement and Plan of Merger,
dated March 8, 2005 by and among the

<PAGE>

Company, Picotronix, Inc., Michigan Acquisition Sub, LLC and the other parties
identified therein (the "MERGER AGREEMENT").

          (5) PREPAYMENT RESTRICTIONS. The Principal of this Note may be
prepaid, in whole or in part, at any time prior to the Maturity Date without
penalty or premium.

          (6) WAIVER AND AMENDMENT. This Note may be amended, modified,
superseded, canceled renewed or extended, and the terms hereof may be waived
only by a written instrument signed by the Holder and the Company.

          (7) TRANSFER. This Note has not been registered under the Securities
Act of 1933, as amended (the "SECURITIES ACT"), or applicable state securities
laws, and may not be offered, sold, transferred, pledged, hypothecated, assigned
or otherwise disposed of except (a) pursuant to an effective registration
statement under the Securities Act and such State law which is current with
respect to this Note, or (b) pursuant to an exemption from registration under
the Securities Act and such State law if the Holder hereof shall have first
obtained the written opinion of counsel to the Company, or other counsel
reasonably acceptable to the Company, to the effect that the proposed
disposition is consistent with all applicable provisions of the Securities Act
and applicable State securities laws.

          (8) REISSUANCE OF THIS NOTE.

               (a) Transfer. If this Note is to be transferred, the Holder shall
surrender this Note to the Company, whereupon the Company will forthwith issue
and deliver upon the order of the Holder a new Note (in accordance with Section
8(c) hereof), registered as the Holder may request, representing the outstanding
Principal being transferred by the Holder and, if less then the entire
outstanding Principal is being transferred, a new Note (in accordance with
Section 8(c) hereof) to the Holder representing the outstanding Principal not
being transferred.

               (b) Lost Stolen or Mutilated Note. Upon receipt by the Company of
evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Note, and, in the case of loss, theft or destruction, of
any indemnification undertaking by the Holder to the Company in customary form
and, in the case of mutilation, upon surrender and cancellation of this Note,
the Company shall execute and deliver to the Holder a new Note (in accordance
with Section 8(c) hereof) representing the outstanding Principal.

               (c) Issuance of New Notes. Whenever the Company is required to
issue a new Note pursuant to the terms of this Note, such new Note (i) shall be
of like tenor with this Note, (ii) shall represent, as indicated on the face of
such new Note, the Principal remaining outstanding (or in the case of a new Note
being issued pursuant to Section 8(a) hereof, the Principal designated by the
Holder which, when added to the Principal represented by the other new Notes
issued in connection with such issuance, does not exceed the Principal remaining
outstanding under this Note immediately prior to such issuance of new Notes),
(iii) shall have an issuance date, as indicated on the face of such new Note,
which is the same as the Issuance Date of this Note, (iv) shall have the same
rights and conditions as this Note, and (v) shall represent accrued Interest on
the Principal and Interest of this Note, from the Issuance Date.

          (9) CONSTRUCTION: HEADINGS. This Note shall be deemed to be jointly

<PAGE>

drafted by the Company and the Holder and shall not be construed against any
person as the drafter hereof. The headings of this Note are for convenience of
reference and shall not form part of, or affect the interpretation of, this
Note.

          (10) NOTICES. Whenever notice is required to be given under this Note,
unless otherwise provided for herein, such notice shall be given in accordance
with Section 11.1 of the Merger Agreement. The Company and the Holder shall
provide written notice of all actions taken pursuant to this Note, including in
reasonable detail a description of such action and the reason therefor.

          (11) CANCELLATION. After all Principal, accrued Interest and other
amounts at any time owed on this Note has been paid in full, this Note shall
automatically be deemed canceled, shall be surrendered to the Company for
cancellation and shall not be reissued.

          (12) GOVERNING LAW. This Note shall be construed and enforced in
accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Note shall be governed by, the internal
laws of the State of Michigan, without giving effect to any choice of law or
conflict of law provision or rule (whether of the State of Michigan or any other
jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of Michigan.

          (13) SUCCESSORS AND ASSIGNS. All the covenants, stipulations, promises
and agreements by or on behalf of the Company contained in this Note shall be
binding upon the Company's successors and assigns, whether or not so expressed.

          (14) SEVERABILITY. If any provision of this Note is found by a court
of competent jurisdiction to be invalid, illegal or unenforceable, all other
provisions of this Note shall remain in effect, and if any provision is
inapplicable to any person or circumstances, such provision shall nevertheless
remain applicable to all other persons and circumstances.

          (15) CERTAIN DEFINITIONS. For purposes of this Note, the following
terms shall have the following meanings:

               (a) "BUSINESS DAY" means any day other than Saturday, Sunday or
other day on which commercial banks in The City of Michigan are authorized or
required by law to remain closed.

               (b) "CALENDAR QUARTER" means each of: the period beginning on and
including January 1 and ending on and including March 31; the period beginning
on and including April 1 and ending on and including June 30; the period
beginning on and including July 1 and ending on and including September 30; and
the period beginning on and including October 1 and ending on and including
December 31.

               (c) "PRIME RATE" shall mean as of a particular date, the prime
rate of interest as published on that date in The Wall Street Journal (Eastern
Edition), and generally defined therein as "the base rate on corporate loans
posted by at least 75% of the nation's 30 largest banks." If The Wall Street
Journal is not published on a date for which the Prime Rate

<PAGE>

must be determined, the Prime Rate shall be the prime rate published in The Wall
Street Journal on the nearest-preceding date on which The Wall Street Journal
was published.

               (d) "RELATED NOTES" means this Note, together with the Promissory
Note, dated the date hereof, payable to Steven Williamson in the initial
aggregate principal amount of $1,933,667, issued pursuant to the Merger
Agreement.

          IN WITNESS WHEREOF, the Company has caused this Note to be duly
executed as of the Issuance Date set out above.

                                           ADVANCED PHOTONIX, INC.

                                           By:      /s/ Richard D. Kurtz
                                                --------------------------------
                                                Name: Richard D. Kurtz
                                                Title: Chief Executive Officer

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