Exhibit
10.81
Form of Secured Convertible
Bridge Note
THIS
NOTE AND THE SECURITIES ISSUABLE ON THE CONVERSION HEREOF HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
ANY STATE SECURITIES LAWS (COLLECTIVELY, THE “ACTS”),
AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED OR
DISPOSED OF EXCEPT IN COMPLIANCE WITH SUCH ACTS OR UNLESS SUCH
REGISTRATION IS NOT REQUIRED.
TASKER PRODUCTS
CORP.
SECURED CONVERTIBLE
PROMISSORY NOTE
December __, 2006
(the “ Issuance Date
”)
FOR VALUE RECEIVED, Tasker Products Corp., a
Nevada corporation (the “ Company ”), hereby
promises to pay to ____________________ or its registered assign
(the “ Holder ”) upon the earlier of (i) June
__, 2007, and (ii) an Event of Default (as defined below), the
principal sum of _______________________________ Dollars and No
Cents ($__________) together with interest thereon calculated from
the Issuance Date (“ Interest Commencement Date
”) in lawful money of the United States on presentation and
surrender of this Note to the Company, plus interest as set forth
in Section 1 below accrued on such unpaid principal amount from
time to time outstanding until paid. This Secured Convertible
Promissory Note (this “ Note ”) is one of a
series of Secured Convertible Promissory Notes containing
substantially identical terms and conditions issued by the Company
pursuant to certain Subscription Agreements (the “
Subscription Agreements ”; and such offering, the
“ Offering ”) on the date hereof and as may be
hereinafter issued in the aggregate amount of up to $4,400,000 in
connection with the Offering. Such notes are referred to herein,
collectively, as the “ Series Notes ,” the
holders thereof are referred to herein as the “
Holders ” and the Holders of a majority in principal
amount of then outstanding Series Notes are referred to herein as
the “ Required Holders .” This Note is subject
to the following terms and conditions.
1. Interest; Payments. (a) Interest
shall accrue at a rate equal to ten percent (10%) per annum (the
“Interest Rate”) beginning on the Interest Commencement
Date on the unpaid principal amount of this Note and shall be
payable quarterly in cash thereafter; provided, that so long as any
Event of Default has occurred and is continuing, interest shall be
deemed to accrue, to the extent permitted by law, at the lesser of
18% per annum or the maximum amount permitted by applicable law,
retroactive to the Interest Commencement Date on the unpaid
principal amount of this Note outstanding from time to time through
the date on which such Event of Default ceases to exist. Interest
shall be computed on the basis of the actual number of days elapsed
and a 360-day year.
(b) Highest Lawful Rate. Anything
herein to the contrary notwithstanding, if during any period for
which interest is computed hereunder, the amount of interest
computed on the basis provided for in this Note, together with all
fees, charges and other payments which are treated as interest
under applicable law, as provided for herein or in any other
document executed in connection herewith, would exceed the amount
of such interest computed on the basis of the Highest Lawful Rate
(as defined herein), the Company shall not be obligated to pay, and
the Holder shall not be entitled to charge, collect, receive,
reserve or take, interest in excess of the Highest Lawful Rate, and
during any such period the interest payable hereunder shall be
computed on the basis of the Highest Lawful Rate. As used herein,
“Highest Lawful Rate” means the maximum non-usurious
rate of interest, as in effect from time to time, which may be
charged, contracted for, reserved, received or collected by the
Holder in connection with this Note under applicable
law.
(c) Payment. All payments
shall be made in lawful money of the United States of America at
such place as the Holder hereof may from time to time designate in
writing to the Company. Payment shall be credited first to the
accrued and unpaid interest then due and payable and the remainder
applied to the principal. The Company may not prepay the
outstanding principal amount of this Note, or any accrued interest
thereon, in whole or in part, without the consent of the Required
Holders; provided, however, that any prepayment may only be made if
a simultaneous prepayment on the same pro rata basis
(based on the outstanding principal balances of all outstanding
Series Notes) is made on all other Series Notes.
2.
Conversion; No Fractional
Shares .
(a) Conversion Upon Financing Event . If
all or any of the principal and accrued but unpaid interest
underlying this Note remains outstanding prior to the next sale by
the Company of its debt or equity securities (the “
Financing Securities ”) which yields gross proceeds to
the Company of at least $10,000,000 (including new money received
by the Company in connection with such financing and the principal
amount of all converted Notes) (a “ Financing Event
”), the Holder shall have the right, at its option, at any
time prior to the close of the Financing Event, to convert the
outstanding principal balance and accrued and unpaid interest on
this Note, or any portion thereof, into the number of fully paid
and non-assessable shares of Financing Securities issued by the
Company as a result of the Financing Event, at a conversion price
per share (the “ Financing Price ”) equal to
eighty percent (80%) of the price paid by the investors in the
Financing Event. Notwithstanding the foregoing or anything else to
the contrary contained herein, upon the written consent of the
Required Holders, all outstanding principal and accrued but unpaid
interest under this Note and the other Series Notes shall be
converted into Financing Securities at the Financing
Price.
(b) Optional Conversion . The Holder
shall have the right at its option to convert the outstanding
principal and accrued but unpaid interest underlying this Note, or
any portion thereof, into the number of fully paid and
non-assessable shares of the Company’s common stock (“
Common Stock ”) at a conversion price of $0.0725 per
share (the “ Conversion Price ”).
(c) No Requirement to Issue Fractional
Shares . The Company
shall not be required to issue fractional shares of the Financing
Securities upon the conversion of this Note. If any fractional
interest in shares of the Company would, except for the provisions
of this Section 2, be deliverable upon the conversion of any part
of this Note, the Company shall pay the cash value of that
fractional share, calculated on the basis of the then-effective
Financing Price or Conversion Price, as the case may be.
(a) Each of the following
events is hereinafter sometimes referred to as an “Event of
Default”:
(i) the Company makes default in
payment of the outstanding principal or accrued but unpaid interest
hereunder when the same becomes due under any provision hereof;
or
(ii) if the Company makes default in any material
respect in observing or performing any other covenant or condition
of this Note or the Subscription Agreement to which Holder is a
party and if such default continues for a period of ten (10) days
after notice in writing has been given to the Company by the Holder
specifying such default and requiring the Company to rectify the
same, unless the Holder (having regard to the subject matter of the
default) shall have agreed to a longer period and, in such event,
for the period agreed to by the Holder; or
(iii) any representation or warranty of the Company
contained in this Note or in the Subscription Agreement to which
Holder is a party proves to be untrue; or
(iv) if the Company shall (i) apply for or consent
to the appointment of a receiver, trustee or custodian of itself or
of all or a substantial part of its assets or property, (ii) make a
general assignment for the benefit of its creditors, (iii) become
insolvent (as such term may be defined or interpreted under any
applicable statute), (iv) commence a voluntary case or other
proceeding seeking reorganization or other relief with respect to
itself or its debts under any bankruptcy, insolvency or other
similar law now or hereafter in effect or consent to any such
relief or to the appointment of or taking possession of its assets
or property by any official in an involuntary case or other
proceeding commenced against it, or (v) take any action for the
purpose of effecting any of the foregoing; or
(v) if proceedings for the appointment of a
receiver, trustee or custodian of the Company or of all or a
substantial part of the assets or property thereof, or an
involuntary case or other proceedings seeking liquidation,
reorganization or other relief with respect to the Company or the
debts thereof under any bankruptcy, insolvency or other similar law
now or hereafter in effect shall be commenced and an order for
relief entered or such proceeding shall not be dismissed or
discharged within sixty (60) days of commencement.
(b) Acceleration on Default . If any Event of Default has occurred, the
Holder may, by written notice to the Company, declare the principal
amount of this Note then outstanding plus all accrued and unpaid
interest hereunder and any other monies payable hereunder
immediately due and payable to the Holder without presentment,
demand, protest or other notice of any kind (provided that in the
case of any of the Events of Default specified in clause (d)
or (e) in Section 3 above, without any notice to the Company),
notwithstanding anything contained herein to the contrary, and the
Company shall pay forthwith to the Holder the principal amount of
this Note then outstanding plus all accrued and unpaid interest to
the date of payment and all other moneys payable hereunder. Nothing
contained in this Section 3(b) shall impair the obligation of the
Company, which is absolute and unconditional, to pay to the Holder
hereof the principal hereof and interest thereon as and when the
same becomes due and payable, or shall prevent Holder upon default,
from exercising all rights, powers and remedies otherwise provided
herein or by law.
(c) Other Holders . If the Holder shall make a demand for payment
pursuant to the terms hereof, the Company shall immediately notify
the other Holders and such Holders shall have the option at such
time to demand payment from the Company (pursuant to the terms of
such Holders’ Series Note) which demand shall relate back to
the time of the demand made by the Holder of this Note, if
applicable. It is intended that all Holders receive payments or
distributions on account of indebtedness due under the Series Notes
simultaneously, pari passu, and pro rata based on
the outstanding principal amount of the Series Note held by each
such Holder. In the event that any payment or distribution of
assets of any kind or character, whether in cash, property or
securities (excluding any capital stock of the Company into which
all or any portion of the indebtedness due under this Note may be
converted pursuant to the terms of this Note) shall be received by
any Holder of a Series Note and the other Holders shall have made a
demand for payment under the terms of such Series Note and such
Holder shall not (i) have already been paid in full (or
converted to equity securities of the Company in accordance with
its terms) or (ii) have simultaneously received payment or
distribution of a like amount (which is pro rata based on
the outstanding principal balances of all outstanding Series Notes
for which a demand has been made), such payment or distribution
shall be held by such distributee and shall be paid over to all
such Holders to give effect to the second sentence of this
Section 3(c).
4. Adjustments of Conversion Price and Number of
Conversion Shares .
(a) The number and kind of securities purchasable
upon the conversion of this Note and the Conversion Price shall be
subject to adjustment from time to time upon the happening of any
of the following: in case the Company shall (i) pay a dividend in
shares of Common Stock or make a distribution in shares of Common
Stock to holders of its outstanding Common Stock; (ii) subdivide
its outstanding shares of Common Stock into a greater number of
shares; (iii) combine its outstanding shares of Common Stock into a
smaller number of shares of Common Stock; or (iv) issue any shares
of its capital stock in a reclassification of the Common Stock,
then the number of shares of Common Stock issuable upon conversion
of this Note immediately prior thereto (the “ Conversion
Shares ”) shall be adjusted so that the Holder shall be
entitled to receive the kind and number of Conversion Shares or
other securities of the Company which it would have owned or have
been entitled to receive had such Note been converted in advance
thereof. Upon each such adjustment of the kind and number of
Conversion Shares or other securities of the Company which are
issuable hereunder, the Holder shall thereafter be entitled to
receive the number of Conversion Shares or other securities
resulting from such adjustment at a Conversion Price per Conversion
Share or other security obtained by multiplying the Conversion
Price in effect immediately prior to such adjustment by the number
of Conversion Shares issuable pursuant hereto immediately prior to
such adjustment and dividing by the number of Conversion Shares or
other securities of the Company that are issuable pursuant hereto
immediately after such adjustment. An adjustment made pursuant to
this paragraph shall become effective immediately after the
effective date of such event retroactive to the record date, if
any, for such event.
(b) In the event that on or subsequent to the
Closing Date, the Company issues or sells any Common Stock, any
convertible securities, or any warrants or other rights to
subscribe for or to purchase or any options for the purchase of its
Common Stock or any such convertible securities (other than (i)
shares which are issued pursuant to the Securities, (ii) shares of
Common Stock or options to purchase such shares issued to
employees, consultants, officers or directors in accordance with
stock plans approved by the Company’s Board of Directors, and
shares of Common Stock issuable under options or warrants that are
outstanding as of the date hereof, or (iii) shares of Common Stock
issued pursuant to a stock dividend, split or other similar
transaction) at an effective price per share which is less than the
then applicable Conversion Price (such conversion price per share,
the “ Adjusted Conversion Price ”), then the
Conversion Price in effect immediately prior to such issue or sale
shall be reduced effective concurrently with such issue or sale to
an amount equal to the Adjusted Conversion Price.
(a) Notice . Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be
delivered as set forth in the Subscription Agreement.
(b) Costs and Expenses . The Company shall pay to the Holder upon
demand all costs, charges and expenses (including legal fees) of or
reasonably incurred by the Holder in connection with the recovery
or enforcement of payment of any of the monies owing
hereunder.
(c) Waiver and Amendment . Any provision of this Note may be amended,
waived or modified upon the written consent of the Company and the
Required Holders. Any such waiver shall be effective only in the
specific instance.
(d) Compliance with Securities Laws;
Transfer . By acceptance
of this Note, the Holder acknowledges, represents and warrants to
the Company that (a) it is acquiring this Note (and the shares of
the Financing Securities or the Common Stock issuable upon
conversion of this Note, and the securities issuable, directly or
indirectly, upon conversion of the Financing Securities, if any;
collectively referred to as the “ Securities ”)
for investment for such Holder’s own account, and not as a
nominee or agent, and not with a view to the resale or distribution
of any part hereof; and Holder has not been organized for the
purpose of acquiring this Note or any of the other Securities (or
if Holder was organized for the purpose of acquiring this Note or
any of the other Securities, all of its equity owners are
accredited investors within the meaning of Rule 501(a) of
Regulation D of the Securities Act of 1933, as amended); (b) Holder
is an “accredited investor” within the meaning of
Rule 501(a) of Regulation D of the Securities Act of
1933, as amended (the “ Securities Act ”), as
presently in effect; and (c) Holder is a resident of, or has a
principal place of business in, the State indicated in the address
for the Holder set forth in the Subscription Agreement to which
Holder is a party. Subject to compliance with the provisions of the
Securities Act, and of all applicable state securities laws and
regulations, this Note may be transferred only upon surrender of
the original Note for registration of transfer, duly endorsed, or
accompanied by a duly executed written instrument of transfer.
Thereupon, a new Note for like principal amount and interest will
be issued to, and registered in the name of, the
transferee.
(e) Lost, Stolen, Damaged and Destroyed
Notes . At the request of
the Holder, the Company will issue, at the Company’s expense,
in replacement of this Note if lost, stolen, damaged or destroyed,
upon surrender of the mutilated portions hereof, if any, a new Note
of the same denomination, of the same unpaid principal amount and
otherwise of the same tenor as, the Note so lost, stolen, damaged
or destroyed. The Company may condition the replacement of this
Note reported by the Holder as lost, stolen, damaged or destroyed,
upon the receipt from such Holder of an affidavit of lost security
and indemnification reasonably acceptable to the
Company.
(f) Business Day . Whenever any payment hereunder shall be stated
to be due, or whenever any other date specified hereunder would
otherwise occur, on a day other than a Business Day (as defined
below), then such payment shall be made or such other date shall
occur, on the next succeeding Business Day, and such extension of
time shall in such case be included in the computation of payment
of interest hereunder. As used herein, “ Business Day
” means a day (i) other than Saturday or Sunday, and
(ii) on which commercial banks are otherwise open for business
in New York, New York.
(g) Governing Law . This Note shall be governed by and construed
in accordance with the laws of the State of New York without regard
to the principles of conflict of laws.
(i) Creation of Security Interest
. In order to secure the payment of
the principal and interest and all other obligations of the Company
hereunder now or hereafter owed by the Company to Holder (the
“ Secured Obligations ”), the Company hereby
grants to Holder (or its designee) (the “ Secured
Party ”) a first priority security interest in all of the
Company’s assets (including after-acquired assets, all
receivables, intellectual property and the stock in its
subsidiaries (collectively, the “ Collateral ”)
on the terms and conditions set forth in this Note and the other
transaction documents.
(ii) Uniform Commercial Code Security
Agreement . This Section
is intended to be a security agreement pursuant to the Uniform
Commercial Code for any of the items specified above as part of the
Collateral which, under applicable law, may be subject to a
security interest pursuant to the Uniform Commercial Code, and the
Company hereby grants Holder a security interest in said items. The
Company agrees that Holder may file any appropriate document in the
appropriate index or filing office as a financing statement for any
of the it
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