Document:

Exhibit
10.1

 

THIS NOTE HAS NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR
SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

 

	
  No. A1

  	
   

  	
  U.S.
  $446,500.00

  	
   

  	
   

  	
  Date:

  	
   

  	
  , 2005

  
	
  Holder:

  	
   

  	
  John Fife

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Date of Original Issue:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  June 13,
  2005

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  303 Wacker Drive

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Suite 301

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Chicago, IL 60601

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AMENDED
  AND RESTATED  SERIES 2005 SECURED NOTE 

  DUEOCTOBER 31, 2005

  
									

 

THIS Amended and Restated Note is one of a
duly authorized issue of Notes of POWER 3 MEDICAL PRODUCTS, INC., a New York
corporation, having a principal place of business at 3400 Research Forest
Drive, The Woodlands, Texas 77381  (the “Company”),
designated  as  its   
Note  (the “Note”),  due upon the earlier of (i)October 31,
2005; or (ii) on the fifth day following the effective date of the Company’s
registration statement on Form SB-2 (File no. 333-121845)  (“Maturity Date”), in an aggregate face
amount of up Four Hundred and Forty Six Thousand Five Hundred and 00/100
Dollars ($446,500.00).

 

FOR VALUE RECEIVED, the Company promises to
pay to the Holder or registered assigns, the principal sum of Four Hundred and
Forty Six Thousand Five Hundred and 00/100 Dollars ($446,500.00) on the
Maturity Date.  Upon default, all  amounts due hereunder shall bear interest at
the rate of 18% per annum from the day such interest is due hereunder through
and including the date of payment.  The
principal of, and interest on, this Note are payable in such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public and private debts, at the address of the Holder last
appearing on the Note Register.

 

This Note is subject to the following
additional provisions:

 

Section 1.      The Notes are exchangeable for an equal
aggregate principal amount of Notes of

 

 

different authorized
denominations, as requested by the Holder surrendering the same but shall not
be issuable in denominations of less than integral multiples of Twenty Thousand
Dollars ($20,000) unless such amount represents the full principal balance of
Notes outstanding to such Holder.  No
service charge will be made for such registration of transfer or exchange.

 

Section 2.

 

(a)           The Holder, by acceptance hereof,
agrees to give written notice to the Company before transferring this Note;
such notice will describe briefly the proposed transfer and will give the
Company the name, address, and tax identification number of the proposed
transferee, and will further provide the Company with an opinion of the Holder’s
counsel that such transfer can be accomplished in accordance with federal and
applicable state securities laws (unless such transaction is permitted by the
plan of distribution in an effective Registration Statement).  Promptly upon receiving such written notice,
the Company shall present copies thereof to the Company’s counsel.

 

(i)            If
in the opinion of such counsel the proposed transfer may be effected without
registration or qualification (under any federal or state securities laws), the
Company, as promptly as practicable, shall notify the Holder of such opinion,
whereupon the Holder shall be entitled to transfer this Note or to dispose of
Underlying Shares received upon the previous conversion of this Note, all in
accordance with the terms of the notice delivered by the Holder to the Company;
provided that an appropriate legend may be endorsed on this Note respecting
restrictions upon transfer thereof necessary or advisable in the opinion of
counsel and satisfactory to the Company to prevent further transfers which
would be in violation of Section 5 of the Securities Act and applicable
state securities laws; and provided further that the prospective transferee or
purchaser shall execute such documents and make such representations,
warranties, and agreements as may be required solely to comply with the
exemptions relied upon by the Company for the transfer or disposition of the
Note.

 

(ii)           If
in the opinion of the counsel referred to in this Section 2, the proposed
transfer or disposition of this Note described in the written notice given
pursuant to this Section 2 may not be effected without registration or
qualification of this Note, the Company shall promptly give written notice
thereof to the Holder, and the Holder will limit its activities in respect to
such as, in the opinion of such counsel, are permitted by law.

 

(b)           Prior
to transfer of this Note in compliance with this Section 2, the Company
and any agent of the Company may treat the person in whose name this Note is
duly registered on the Note Register as the owner hereof for the purpose of
receiving payment as herein provided and for all other purposes, whether or not
this Note is overdue, and neither the

 

 

Company nor any such agent
shall be affected by notice to the contrary.

 

Section 3.               Events of Default.

 

“Event of Default” wherever used
herein, means any one of the following events (whatever the reason and 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, interest on, or other obligations in respect of, this Note, free
of any claim of subordination, as and when the same shall become due and
payable, (whether on the Maturity Date or by acceleration or otherwise);

 

(ii)           the Company or any Pledgor  shall fail to observe or perform any other
covenant, agreement or warranty contained in, or otherwise commit any breach
of, this Note or the Stock Pledge Agreement, including but not limited to the
obligation of the Pledgor to issue additional Collateral , and such failure or
breach shall not have been remedied within 10 days after the date on which
notice of such failure or breach shall have been given;

 

(iii)          the Company shall commence a voluntary
case under the United States Bankruptcy Code or insolvency laws as now or
hereafter in effect or any successor thereto (the “Bankruptcy Code”); or
an involuntary case is commenced against the Company under the Bankruptcy Code
and the petition is not controverted within 30 days, or is not dismissed within
60 days, after commencement of such involuntary case; or a “custodian” (as
defined in the Bankruptcy Code) is appointed for, or takes charge of, all or
any substantial part of the property of the Company 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
there is commenced against the Company any such proceeding which remains
undismissed for a period of 60 days; or the Company is adjudicated insolvent or
bankrupt; or any order of relief or other order approving any such case or
proceeding is entered; or the Company 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 60 days; or the Company 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 its debts generally as they become
due;r the Company shall call a meeting of all of its creditors with a view to
arranging a composition or adjustment of its debts; or the Company shall by any
act or failure to act indicate its consent to, approval of or acquiescence in
any of the foregoing; or any corporate or other action is taken by the Company
for the purpose of effecting any of the

 

 

foregoing;

 

(iv)          the Company shall default in any of
its obligations under any mortgage, credit agreement or other facility,
indenture, agreement or other instrument under which there may be issued, or by
which there may be secured or evidenced any indebtedness of the Company in an
amount exceeding twenty thousand dollars ($20,000), 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;

 

(v)           the Company shall be a party to any
Change of Control Transaction (as defined in Section 6), shall agree to
sell or dispose of all or in excess of 49% of its assets (based on book value
calculation as reflected in the Company’s most recent financial statements) in
one or more transactions (whether or not such sale would constitute a Change of
Control Transaction).

 

Section 4.               Interest Rate Limitation. The parties intend to
conform strictly to the applicable usury laws in effect from time to time
during the term of the Loan. Accordingly, if any transaction contemplated
hereby would be usurious under such laws, then notwithstanding any other
provision hereof: (i) the aggregate of all interest that is contracted
for, charged, or received under this Agreement or under any other Loan Document
shall not exceed the maximum amount of interest allowed by applicable law (the “Highest
Lawful Rate”), and any excess shall be promptly credited to Borrower by Lender
(or, to the extent that such consideration shall have been paid, such excess
shall be promptly refunded to Borrower by Lender); (ii) neither Borrower
nor any other Person now or hereafter liable hereunder shall be obligated to
pay the amount of such interest to the extent that it is in excess of the
Highest Lawful Rate; and (iii) the effective rate of interest shall be
reduced to the Highest Lawful Rate. All sums paid, or agreed to be paid, to
Lender for the use, forbearance, and detention of the debt of Borrower to
Lender shall, to the extent permitted by applicable law, be allocated throughout
the full term of the Note until payment is made in full so that the actual rate
of interest does not exceed the Highest Lawful Rate in effect at any particular
time during the full term thereof. If at any time the rate of interest under
the Note exceeds the Highest Lawful Rate, the rate of interest to accrue
pursuant to this Agreement shall be limited, notwithstanding anything to the
contrary in this Agreement, to the Highest Lawful Rate, but any subsequent
reductions in the Base Rate shall not reduce the interest to accrue pursuant to
this Agreement below the Highest Lawful Rate until the total amount of interest
accrued equals the amount of interest that would have accrued if a varying rate
per annum equal to the interest rate under the Note had at all times been in
effect. If the total amount of interest paid or accrued pursuant to this
Agreement under the foregoing provisions is less than the total amount of
interest that would have accrued if a varying rate per annum equal to the
interest rate under the Note had been in effect, then Borrower agrees to pay

 

 

to Lender an amount equal to the difference
between (x) the lesser of (A) the amount of interest that would have
accrued if the Highest Lawful Rate had at all times been in effect, or (B) the
amount of interest that would have accrued if a varying rate per annum equal to
the interest rate under the Note had at all times been in effect, and (y) the
amount of interest accrued in accordance with the other provisions of this
Agreement.

 

Section 5.               Prepayment.

 

(a)           The Company shall have the right to
prepay this Note in whole or in part thereon prior to the Maturity Date.

 

(b)           (i)            The Company shall give at least five
(5)  business days, but not more than ten (10) business days, written
notice of any intention to prepay this Note prior to the Maturity Date to the
Holder which notice shall specify the “Prepayment Date”.

 

Section 6.               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 legal holiday or a day on which
banking institutions in the State of New York are authorized or required by law
or other government action to close.

 

“Change of Control Transaction” means
the occurrence of any of (i) an acquisition after the date hereof by an
individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated
under the Exchange Act) of in excess of 49% of the voting securities of the
Company coupled with a replacement of more than one-half of the members of the
Company’s board of directors which is not approved by those individuals who are
members of the board of directors on the date hereof in one or a series of
related transactions, or (ii) the merger of the Company with or into
another entity, consolidation or sale of all or substantially all of the assets
of the Company in one or a series of related transactions, unless following
such transaction, the holders of the Company’s securities continue to hold at
least 40% of such securities following such transaction.  The execution by the Company of an agreement
to which the Company is a party or by which it is bound providing for any of
the events set forth above in (i) or (ii) does not constitute the
occurrence of the event until after the event in fact occurs.

 

Section 7.               Except as expressly provided
herein, no provision of this Note shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of, interest
and liquidated damages (if any) on, this Note at the time, place, and rate, and
in the coin or currency, herein prescribed. 
This Note is a direct obligation of the Company.

 

 

Section 8.               If this Note shall be mutilated,
lost, stolen or destroyed, the Company shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of
or in substitution for a lost, stolen or destroyed Note, a new Note for the
principal amount of this Note so mutilated, lost, stolen or destroyed but only
upon receipt of evidence of such loss, theft or destruction of such Note, and
of the ownership hereof, and indemnity, if requested, all reasonably
satisfactory to the Company.

 

Section 9.                               Choice of Law
and Venue; Submission to Jurisdiction; Service of Process.

 

(a)           THE
VALIDITY OF THIS NOTE , ITS CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT, AND
THE RIGHTS OF THE PARTIES HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE
TO THE CHOICE OF LAW PRINCIPLES THEREOF). THE PARTIES AGREE THAT ALL ACTIONS OR
PROCEEDINGS ARISING IN CONNECTION WITH THIS NOTE  SHALL BE TRIED AND LITIGATED ONLY IN THE
STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK
OR, AT THE SOLE OPTION OF HOLDER, IN ANY OTHER COURT IN WHICH HOLDER SHALL
INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER
JURISDICTION OVER THE MATTER IN CONTROVERSY.

 

(b)           COMPANY
HEREBY SUBMITS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES, TO THE
EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO ASSERT THE
DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY
PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION.

 

(c)           COMPANY
HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT, OR OTHER PROCESS
ISSUED IN ANY ACTION OR PROCEEDING AND AGREES THAT SERVICE OF SUCH SUMMONS,
COMPLAINT, OR OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
ADDRESSED TO COMPANY.

 

(d)           NOTHING
IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT OF  HOLDER  
TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, OR TO
PRECLUDE THE ENFORCEMENT BY HOLDER OF ANY JUDGMENT OR ORDER OBTAINED IN SUCH
FORUM OR THE TAKING OF ANY ACTION UNDER THIS AGREEMENT

 

 

TO ENFORCE SAME IN ANY OTHER APPROPRIATE
FORUM OR JURISDICTION.

 

(e)           To
the extent determined by such court, the Company shall reimburse the Holder for
any reasonable legal fees and disbursements incurred by the Holder in
enforcement of or protection of any of its rights under any of this Note.

 

Section 10.             Any waiver by the Company or the
Holder of a breach of any provision of this Note 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 Note.  The
failure of the Company or the Holder to insist upon strict adherence to any
term of this Note 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 Note. 
Any waiver must be in writing.

 

Section 11.             If any provision of this Note is
invalid, illegal or unenforceable, the balance of this Note shall remain in
effect, and if any provision is inapplicable to any person or circumstance, it
shall nevertheless remain applicable to all other persons and circumstances.

 

Section 12.             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 (or, if such next
succeeding Business Day falls in the next calendar month, the preceding
Business Day in the appropriate calendar month).

 

Section 13.             Security.  The obligation of the Company for payment of
principal, interest and all other sums hereunder, in the event of a default and
failure of the Company to perform hereunder, is secured by  the pledge of certain securities (the “Pledged
Shares”) by Steven B. Rash and              
as Pledgors under the terms and conditions of 
Stock Pledge Agreements, and 
Guarantys executed and delivered by Steven B. Rash and                     as
Guarantor.

 

Section 14.
Registration Rights . If, at any time prior to payment in full of this Note,
the Company participates (whether voluntarily or by reason of an obligation to
a third party) in the registration of any shares of the Company’s stock (other
than a registration on Form S-4, S-8 or successor form), the Company shall
give written notice thereof to the Holder and the Holder shall have the right,
exercisable within ten (10) business days after receipt of such notice, to
demand inclusion of all or a portion of the 
Pledged Shares in such registration statement.  If the Holder exercises such election, the
Pledged Shares so designated shall be included in the registration statement at
no cost or expense to the Holder (other than any costs or commissions which
would be borne by the Holder ).  The
Holder’s rights under this Section 14 shall expire at such time as the

 

 

Holder can sell all of the Pledged
Shares  under Rule 144(k) without
volume or other restrictions or limit.

 

Section 15 . Waiver of Jury Trial

 

THE COMPANY 
HEREBY WAIVE ITS  RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF THIS NOTE . COMPANY REPRESENTS THAT EACH HAS REVIEWED THIS WAIVER AND
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

Section 16. Effect

 

This Note , as amended and restated herein in
supplementation of , and not in substitution of a Note in the principal amount
of $396,500 executed by the Company on the Original Issue Date and shall for
all purposes be deemed  the Note referred
to the Stock Pledge Agreements and Guarantys set forth in Section13 hereof.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS WHEREOF,
the Company has caused this instrument to be duly executed by an officer duly
authorized for such purpose, as of the date first above indicated.

 

	
   

  	
  POWER 3
  MEDICAL PRODUCTS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/: Steven
  B. Rash

  	
   

  
	
   

  	
  Steven B. Rash, Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  John P.
  BurtonExhibit
10.2

 

 

NOTE (“the
Note”)

 

Power3 Medical Products, Inc., a New York corporation (the “Company”)
for value received hereby promises to pay Ira L. Goldknopf
(“Payee”) on or before March 5, 2006, (“Maturity Date”); the principal
amount of eighty thousand dollars ($80,000.00) (“Principal”).

 

Should the Principal not be repaid as of March 5, 2006 interest of
6 % per year on any unpaid Principal amount will be earned by the Payee until
such time as all of the Principal amount is repaid.  This Note may be repaid at any time prior to March 5,
2006 without interest or penalty.

 

In no event shall interest contracted for, charged or received
hereunder, plus any other charges in connection herewith which constitute
interest, exceed the maximum interest permitted by applicable law. The amounts
of such interest or other charges previously paid to the holder of the Note, if
any, in excess of the amounts permitted by applicable law shall be applied by
the holder of the Note to reduce the principal of the indebtedness evidenced by
the Note, or, at the option of the holder of the Note, be refunded. To the
extent permitted by applicable law, determination of the legal maximum amount
of interest shall at all times be made by amortizing, prorating, allocating and
spreading in equal parts during the period of the full stated term of the loan
and indebtedness, all interest at any time contracted for, charged or received
from the Maker hereof in connection with the loan and indebtedness evidenced
hereby, so that the actual rate of interest on account of such indebtedness is
uniform throughout the term hereof.

 

Notices, payments, requests, and other communications to the respective
parties hereunder shall be in writing, and shall be deemed received when
delivered personally, by facsimile, or first class certified mail, return
receipt requested and postage prepaid, as follows:

 

If to the lender:

 

Ira L. Goldknopf

3400 Research Forest Parkway

Woodlands, Texas 77381

 

If to the Company:

 

Power3 Medical Products, Inc.

3400 Research Forest Parkway

Woodlands, Texas 77381

 

This Note is governed by and is to be construed in accordance with the
law of the State of Texas.

 

	
  Payee

  	
   

  	
  Power3 Medical Products, Inc.

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/: Ira L. Golknopf

  	
   

  	
  /s/: Steven B. Rash

  	
   

  	
  September 6, 2005

  
	
  Ira L. Goldknopf

  	
   

  	
  By: Steven B. Rash

  	
   

  	
   

  
	
   

  	
   

  	
  Its: Chairman and CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]