EXHIBIT 10.10
THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT
AND HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR THE SECURITIES
LAWS OF ANY STATE. THIS NOTE MAY NOT BE
SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN OPINION OF COUNSEL
SATISFACTORY TO THE ISSUER THAT SUCH
REGISTRATION IS NOT REQUIRED BY SAID ACT
OR STATE LAWS,
ORTHOMETRIX, INC.
$100,000.00 White Plains, New York
June 3, 2003
ORTHOMETRIX, INC., a Delaware corporation (the "Company"), for
value received, promises to pay to XXXXXXX X. XXXXX (the "Payee"), the principal
sum of One Hundred Thousand U.S. Dollars ($100,000) on June 3, 2004 (the
"Maturity Date"), except as otherwise provided herein, together with interest on
the outstanding principal amount of this Note at the rate of prime (as published
from time to time by XX Xxxxxx Xxxxx) plus one per annum, except as otherwise
provided herein. Interest shall be payable quarterly on the last business day of
each March, June, September and December, commencing June 30, 2003.
1. Payments and Prepayments.
1.1 Payments and prepayments of principal and interest on
this Note shall be made to Payee at 000 Xxxxxx xx xxx Xxxxxx, Xxxxx 0,
Xxxxxxxxxx, XX 00000, or by wire to Payee's account at the First Union National
Bank, 000 Xxxxx Xxxxxx, Xxx Xxxx, XX 00000, ABA # 000000000, Acct. # 8881807686.
Notice of a wire transfer shall be given by the Company to the Payee at the
Shrewsbury address.
1.2 Payments and prepayments of principal and interest on
this Note shall be made in lawful money of the United States of America.
1.3 If any payment on this Note becomes due and payable on a
Saturday, Sunday or other day an which commercial banks in New York City are
authorized or required by law to close, the maturity thereof shall be extended
to the next succeeding business day, and, with respect to payments of principal,
interest thereon shall be payable during such extension at the then applicable
rate.
1.4 The Company shall be obligated to prepay the outstanding
principal amount of this Note within ten (10) days after such time as (i) the
Company receives net proceeds of at least $1,000,000 from an equity financing,
or (ii) the Company sells substantially all its assets. The Company shall have
the right at any time and from time to time to prepay this Note in whole or in
part, together with interest on the amount prepaid to the date of prepayment,
without penalty or premium. Upon payment of part of the principal amount of this
Note, the Company may require the holder to present this Note for notation of
such payment and, if this Note is paid in full, require the holder to surrender
this Note.
1.5 Upon payrnent in full of all outstanding principal and
interest due under this Note, the Company's obligations in respect of payment of
this Note shall terminate and the holder shall return it to the Company.
2. Events of Default. In the event that:
(a) the Company defaults for more than five business
days in making any payment required to be made on
this Note; or
(b) the Company hereafter makes an assignment for the
benefit of creditors, or files a petition in
bankruptcy as to itself, is adjudicated insolvent
or bankrupt, petitions or applies to any tribunal
for the appointment of any receiver of or any
trustee for the Company or any substantial part of
its property under any bankruptcy, reorganization,
arrangement, readjustment of debt, dissolution or
liquidation law or statute of any jurisdiction,
whether now or hereafter in effect; or if there is
hereafter commenced against the Company any such
proceeding and an order approving the petition is
entered or such proceeding remains undismissed for
a period of 60 day, or the Company or its general
partner by any act or omission to act indicates
its consent to or approval of or acquiescence in
any such proceeding or the appointment of any
receiver of, or trustee for, the Company or any
substantial part of its property, or suffers any
such receivership or trusteeship to continue
undischarged for a period of 60 days;
then, and in any such event, and at any time thereafter, if such event shall
then be continuing, the holder of this Note may, by written notice to the
Company, declare the Note due and payable, whereupon the same shall be due and
payable without presentment, demand, protest or other notice of any kind, all of
which are hereby expressly waived.
3. Investment Representation.
3.1 The Payee hereby acknowledges that the Note is not being
registered (i) under the Securities Act of 1933, as amended (the "Act"), on the
ground that the issuance of the Note is exempt from registration under Section
4(2) of the Act as not involving any public offering or (ii) under any
applicable state securities law because the issuance of the Note does not
involve any public offering; and that the Company's reliance on the Section 4(2)
exemption of the Act and
under applicable state securities laws is predicated in part on the
representations hereby made to the Company by the Payee that it is acquiring the
Note for investment for its own account, with no present intention of dividing
its participation with others or reselling or otherwise distributing the same,
subject, nevertheless, to any requirement of law that the disposition of its
property shall at all times be within its control.
3.2 The Payee hereby agrees that it will not sell or
transfer all or any part of this Note unless and until it shall first have given
notice to the Company describing such sale or transfer and furnished to the
Company an opinion, reasonably satisfactory to counsel for the Company, of
counsel skilled in securities matters (selected by the holder and reasonably
satisfactory to the Company) to the effect that the proposed sale or transfer
may be made without registration under the Act and without registration or
qualification under any state.
3.3 The Company may refuse to recognize a transfer of this
Note on its books should a holder attempt to transfer this Note otherwise than
in compliance with this Section 3.
4. Miscellaneous.
4.1 Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Note and of a
letter of indemnity reasonably satisfactory to the Company, and upon
reimbursement to the Company of all reasonable expenses incident thereto, and
upon surrender or cancellation of the Note, if mutilated, the Company will make
and deliver a new Note of like tenor in lieu of such lost, stolen, destroyed or
mutilated Note.
4.2 This Note and the rights and obligations of the Company
and each holder hereunder shall be construed in accordance with and be governed
by the laws of the State of New York.
IN WITNESS WHEREOF, the Company has executed this Note as of
the day and year first above written.
ORTHOMETRIX, INC,
By: /s/ Xxxxxxx Xxxxxxx
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Name: Xxxxxxx Xxxxxxx
Title: President