THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT") OR ANY STATE SECURITIES LAW, IN
RELIANCE UPON THE EXEMPTIONS FROM REGISTRATION PROVIDED IN THE
ACT. ANY SUBSEQUENT TRANSFER OF THIS SECURITY OR ANY
INTEREST THEREIN WILL BE UNLAWFUL UNLESS IT IS REGISTERED UNDER THE
ACT OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE.
FURTHERMORE, IT IS UNLAWFUL TO CONSUMMATE A SALE OR TRANSFER OF
THIS SECURITY OR ANY INTEREST THEREIN, WITHOUT THE OPINION OF
COUNSEL ACCEPTABLE TO THE COMPANY THAT THE PROPOSED TRANSFER OR
SALE DOES NOT AFFECT THE EXEMPTIONS RELIED UPON BY THE COMPANY IN
ORIGINALLY DISTRIBUTING THE SECURITY AND THAT REGISTRATION IS NOT
REQUIRED.
CLEARVIEW
ACQUISITIONS, INC.
a
Nevada Corporation
9%
CONVERTIBLE NOTE
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$______
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______
___, 2009
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Note
No.: ________
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Clearview
Acquisitions, Inc., a Nevada corporation (the
“Company”), for value received, hereby promises to pay
to ________ (the “Holder”), or registered assigns, the
principal sum of ______ ($______) plus all accrued but unpaid
interest on January _, 2012 (the “Maturity
Date”). Interest shall be computed on the basis of
a 365-day year from the date hereof on the unpaid balance of such
principal amount from time to time outstanding at the rate of nine
percent (9%) per annum, such interest to be due and payable in full
on the Maturity Date.
This
9% Convertible Note (this “Note”) is issued pursuant to
an offering by the Company of a series of 9% convertible notes
(collectively, the “Notes”) in an aggregate principal
amount not to exceed Three Million Five Hundred Thousand
($3,500,000) Dollars in a transaction (the “Financing”)
exempt from the registration requirements of the Securities Act of
1933, as amended (the “Act”). Said offering is pursuant
to the terms of a subscription agreement between the Company, the
Holder and certain other holders (the “Other Holders”)
of the Notes, dated of even date herewith (the “Subscription
Agreement”), and shall be governed by the terms of such
Subscription Agreement, except for 12% Holders (as defined below),
who are governed by their Note Exchange Letter of Transmittal with
the Company. Unless otherwise separately defined herein,
all capitalized terms used in this Note shall have the same meaning
as is set forth in the Subscription Agreement.
Prepayment
. This
Note may be prepaid in whole or in part at any time and from time
to time without prepayment charge or penalty upon a Forced
Conversion Event (as defined below), provided that the Company
first provides Holder with notice of such intent to prepay this
Note at least thirty (30) days prior to such prepayment so that
Holder has an opportunity to convert this Note into Common Stock,
as provided below. Simultaneously with any prepayment of principal,
there must also be paid all interest accrued on the amount of
principal so prepaid and all other sums then due hereunder or under
any instrument, document or other writing now or hereafter securing
or pertaining to this Note.
A
“Forced Conversion Event” shall mean (a) both (i) the
per share bid price of the common stock of the Company as quoted on
the OTC Bulletin Board is not less $1.50 (subject to adjustment for
reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock
that occur after the date of this Note) and (ii) no less than
200,000 shares of the common stock of the Company have traded on
each trading day for not less than three (3) consecutive trading
days or (b) a Change of Control (as defined below).
A
“Change of Control” shall
be deemed to have occurred upon the consummation of (i) an
acquisition of any voting securities of the Company by any person,
immediately after which such entity or person has beneficial
ownership of fifty-one percent (51%) or more of the then
outstanding shares or the combined voting power of the
Company’s then outstanding voting securities; (ii) a merger,
consolidation or other business combination with or into another
unrelated, non-affiliated company (other than Helix Wind, Inc.); or
(iii) the sale or other disposition of all or substantially all of
the assets of the Company.
Event
of Default . In
case one or more of the following events (each, an “Event of
Default”) (whatever the reason for such Event of Default and
whether it shall be voluntary or involuntary or be 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) shall have occurred and be
continuing:
(a) default
in the payment of all or any part of the principal or interest of
any of this Note as and when the same shall become due and payable
in accordance with the terms hereof or otherwise and such default
continues for 20 business days after written notice from the Holder
to the Company; or
(b) the
Company pursuant to or within the meaning of any bankruptcy law (i)
commences a voluntary case or proceeding, (ii) consents to the
entry of an order for relief against it in an involuntary case or
proceeding, (iii) consents to the appointment of a custodian,
receiver, trustee, assignee, liquidator or similar official of it
or for all or substantially all of its property, (iv) makes a
general assignment for the benefit of her creditors; or
(c) a
court of competent jurisdiction enters an order or decree under any
bankruptcy law that (i) is for relief against the Company in an
involuntary case, (ii) appoints a custodian, receiver, trustee,
assignee, liquidator or similar official of The Company or for all
or substantially all of the property of the Company, or (iii)
orders the liquidation of the Company and such order or decree
remains unstayed and in effect for 10 days;
then,
in each case where an Event of Default occurs, cumulative of and in
addition to all other rights and remedies available to the Holder,
the Holder, may, at its option, declare the outstanding principal
hereunder and all accrued and unpaid interest hereon to be due and
payable immediately, and upon any such declaration the same shall
become immediately due and payable (said amount hereinafter
referred to as the “Default Amount”).
No
right or remedy herein conferred upon or reserved to the Holder is
intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or
remedy.
No
delay or omission of the Holder to exercise any right or power
accruing upon any Default or Event of Default occurring and
continuing as aforesaid shall impair any such right or power or
shall be construed to be a waiver of any such Default or Event of
Default or an acquiescence therein; and every power and remedy
given by this Note or by law may be exercised from time to time,
and as often as shall be deemed expedient, by the
Holder.
The
Company waives presentment, demand, protest and notices of every
kind and assents to any extension or postponement of the time of
payment or any other indulgence, to any substitution, exchange or
release of collateral, and to the addition or release of any other
party or person primarily or secondarily liable.
Conversion
. The
Holder shall have the right, at his or her own option, at any time
and from time to time prior to the close of business on the
Maturity Date, and the Company, upon the conditions set forth in
the Section below entitled “Mandatory Conversion” shall
have the right, to convert the outstanding principal and accrued
interest of this Note into fully-paid and non-assessable shares of
Common Stock of the Company (“Common Stock”) at a
conversion price equal to (i) the outstanding principal and accrued
interest of this Note on the conversion date divided by (ii) fifty
cents ($0.50) (the “Conversion Price”, as adjusted in
accordance with the following anti-dilution provision). In order to
exercise this conversion privilege, the Holder shall surrender this
Note to the Company during usual business hours at the
Company’s principal executive office, accompanied by written
notice and representations in form satisfactory to the Company that
the Holder elects to convert this Note into Common Stock, including
without limitation, representations that the Common Stock is being
acquired for investment and not with a view to distribution within
the meaning of the Act.
If
after the date hereof the Company shall issue Additional Shares of
Common Stock (as defined below) for a consideration per share less
than the Conversion Price (as of the date hereof, fifty cents
($0.50) per share), then the Conversion Price in effect immediately
prior to such issuance shall be reduced, concurrently with such
issuance, to a price determined in accordance with the following
formula:
CP2 =
CP1 X (A+B) / (A+C)
For
purposes of the foregoing formula, the following definitions shall
apply:
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“CP2”
shall mean the Conversion Price in effect immediately after such
issue of Additional Shares of Common Stock;
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“CP1”
shall mean the Conversion Price in effect immediately prior to such
issue of Additional Shares of Common Stock;
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“A”
shall mean the number of shares of Common Stock ou
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