XECHEM INTERNATIONAL, INC. TERM SHEET FOR $1,000,000 BRIDGE LOAN AND DEBT RESTRUCTURINGBridge Loan Agreement |
|
|
You are currently viewing: This Bridge Loan Agreement involves
XECHEM INTERNATIONAL INC. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
|
|
|
Search Bridge Loan Agreement by:
XECHEM INTERNATIONAL, INC.
TERM SHEET FOR $1,000,000 BRIDGE LOAN AND DEBT RESTRUCTURING
AUGUST 25, 2005
<TABLE>
<S> <C>
New Debt The Company will issue convertible notes for $1,000,000 (the "Investment") to Ms. Chassman and
investors introduced to the Company by Ms. Chassman (collectively, the "Investors") The Investors
will fund $100,000 within 24 hours of execution of this Term Sheet, $400,000 on or before
September 6, 2005 and $500,000 on or before October 6, 2005, provided however, that the Investors
shall have the right to extend the date for full funding of the September and October
installments by up to 7 days each. The monies shall be evidenced by convertible notes due April
6, 2007 (the "Notes"). The Notes will bear simple interest at 8% per annum , which shall accrue
and be due on maturity. The Notes may be prepaid in whole or part without penalty at any time
through January 31, 2006 and thereafter on 5 business days' advance notice, subject to the
Investors' right to convert the Notes from debt to equity at any time prior to the effective date
of the prepayment. The principal plus accrued unpaid interest of the Notes will be convertible
into the Company's $0.00001 par value common stock prior to February 1, 2006 based upon a
conversion factor of 5 cents per share, and thereafter at a conversion factor of one cent per
share. The Notes will be secured by a collateral pledge of the Company's allocation of tax
credits for fiscal 2004 from the State of New Jersey; the Company will be permitted to sell those
