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AMENDED AND RESTATED CONVERTIBLE PROMISSORY
NOTE
This Amended and Restated Convertible Promissory
Note is made as of April 11, 2005, and fully amends and restates
the Convertible Promissory Note executed by Crystalix Group
International, Inc., a Nevada corporation (“
Borrower ”) in
favor of CMKXTREME, Inc., a Nevada corporation (also known as
CMKXTREME.com) (“ Lender
”) dated September 23, 2004 (the
“ Original Note
”).
Factual Background
A. Borrower
executed and delivered the Original Note to Lender on or about
September 23, 2004.
B. Borrower
failed to make certain payments of principal and interest as
provided in the Original Note.
C. Lender and
Borrower have agreed to amend and restate the Original Note as set
forth below. Among other things, past due interest will be added to
principal as set forth below.
Amended and Restated Note
The Original Note is hereby amended and restated to
read in full as follows:
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$2,000,000
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Las Vegas, Nevada
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September 23, 2004
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Crystalix Group International, Inc., a Nevada
corporation (“ Borrower
”), promises to pay to the order of CMKXTREME,
Inc., a Nevada corporation (“ Lender ”), at 30 Princeville
Lane, Las Vegas, Nevada 89113, Two Million Dollars ($2,000,000),
with interest on the unpaid principal balance.
(a) Subject to
Section 2(a) and Section 6 below, interest on the unpaid principal
balance hereunder shall accrue at the rate of ten percent (10%) per
annum (the “ Interest
Rate ”) from the date
hereof.
(b) The
Interest Rate shall be calculated on the basis of the unpaid
principal balance hereunder and the actual number of days elapsed
over a 365-day year. Notwithstanding anything contained in this
Note to the contrary, if collection from Borrower of interest at
the Interest Rate would be contrary to applicable laws, then the
Interest Rate in effect on any day shall be the highest interest
rate which may be collected from Borrower under applicable laws on
such day.
(a) Interest
payable at the Interest Rate through October 31, 2004, and interest
at the Default Rate (as defined below) from November 1, 2004
through May 31, 2005 shall be due and payable on the Maturity
Date (as defined below).
(b)
Commencing on July 1, 2005, and continuing on the
first day of each month thereafter, Borrower shall make a principal
payment in the amount of $83,333, with all
45931.0004\YOKENS\LAS\82025.4
unpaid interest accruing from and after June 1, 2005
to June 30, 2005 at the Default Rate, and thereafter at the
Interest Rate (subject to Section 6 below) on the amounts
outstanding under this Note.
(c)
All outstanding principal and accrued unpaid
interest shall be due and payable on October 1, 2007 (the
“ Maturity Date
”), as such date may be accelerated pursuant
to Section 5.
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3.
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Amounts due hereunder shall be paid by Borrower to
Lender as follows:
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(a)
Except as provided below in Section 3(b), all
payments (including payment and prepayments of principal of or
other amounts in respect of the Advances or fees or other amounts)
required under this Note shall be made by the Borrower to the
Lender in lawful money of the United States of America and in
immediately available funds.
(b)
From time to time, Lender may require Borrower to
make any payment of the Convertible Portion (as defined below) of
Borrower’s obligations under this Note in shares of Common
Stock of Borrower (“Common Shares”) instead of lawful
money of the United States of America and thereby convert all or
any part of such Convertible Portion into that number of Common
Shares, as is obtained by dividing the dollar amount that Lender
elects to convert by the applicable Conversion Price (as defined
below).
(c)
Subject to adjustment as provided in this Section,
the “ Conversion Price
” shall be the lesser of (i) the average
closing price of the Common Shares for the five (5) business days
immediately prior to Lender’s delivery of notice of
conversion, or (ii) $0.08. The “ Convertible Portion ” means (w)
any payment of principal, interest, and any other amounts payable
to Lender hereunder when due, (x) any prepayment tendered by
Borrower under this Note, (y) all or any portion of the entire
amount of Borrower’s obligations under this Note, upon a sale
of fifty-one percent (51%) or more of the outstanding Common Stock
of Borrower or a sale of all or substantially all of
Borrower’s assets, or (z) if an Event of Default (as defined
below) occurs, a portion of Borrower’s obligations under this
Note not exceeding One Million Dollars ($1,000,000);
provided, however ,
that upon the occurrence of a second Event of Default while the
first Event of Default remains uncured, the entire amount of
principal, interest and any other amounts payable by Lender
hereunder shall be the Convertible Portion.
(d)
Within ten (10) days after delivery to Borrower of a
notice of conversion with respect to that portion of the
outstanding and unpaid principal or interest that Lender wishes to
convert, Borrower shall (i) denote in its corporate records the
ownership by Lender of the Common Shares so purchased, and (ii)
unless this Note has been fully repaid or converted in full, issue
to Lender a new Note, in identical form hereto and duly executed by
Borrower, representing the portion of the Debt that has not been
converted or repaid.
(e)
If Borrower shall (i) declare a dividend or make a
distribution payable in Common Shares, (ii) subdivide or reclassify
its outstanding Common Shares into a greater number of Common
Shares, or (iii) combine its outstanding Common Shares into a
smaller number of Common Shares, the Conversion Price in effect at
the time of the record date for such dividend or distribution or
the effective date of such subdivision, combination,
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