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,