Exhibit 4.1
These securities have not been
registered with the United States Securities and Exchange
Commission under the Securities Act of 1933, as amended, and are
being offered in
reliance on exemptions from
registration provided in Section 4(2) of the
Securities
Act of 1933 and Rule 506 of
Regulation D promulgated thereunder and
preemption from
the registration or qualification requirements of
applicable state laws under the
National Securities Markets
Improvement Act of
1996 or applicable exemptions
from such registration
provisions.
2009 CONVERTIBLE PROMISSORY
NOTE
FOR VALUE
RECEIVED, the undersigned, ENABLE HOLDINGS, INC. (“
Maker ” or “Company”), a Delaware
corporation whose mailing address is 440 West Thorndale Avenue,
Itasca, IL 60143-1335, hereby promises to pay to
______________ (“ Payee ”), a Delaware limited
liability company whose mailing address is 667 Madison Avenue,
16 th
Floor, New York, New
York 10065, or order, the principal sum of the aggregate
amount of all Principal Advances (as defined in the Interim Loan
Agreement, such agreement being defined hereinbelow) made and
amounts borrowed under the Interim Loan Agreement dated as of the
date set forth above between Maker, certain other lenders named
therein and Payee and pursuant to which this promissory note
(“ Note ”) is executed (“ Interim Loan
Agreement ”) which in no event will exceed
_______________, in lawful money of the United States of America
for payment of private debts, together with interest (calculated on
the basis of the actual number of days elapsed but computed as if
each year consisted of 360 days) on the amounts owing on the
Interim Loan Agreement accruing monthly at an annual rate
equivalent to the U.S. Prime Rate, which is the base rate on
corporate loans posted by at least 70% of the 10 largest U.S.
banks, as quoted in the Wall Street Journal on the last day of each
month or the date of each payment, plus 500 basis
points. Capitalized terms used herein and not otherwise
defined shall have the meanings assigned to them in the Interim
Loan Agreement.
This Note is
subject to the following further terms and material
provisions.
1.
Series . This Note is one of a duly authorized
issue of notes of the Company designated as its “2009
Convertible Promissory Notes”, limited in aggregate principal
amount to ________ (The “Series”).
2.
Payment . The full amount of principal and
accrued but unpaid interest due under the Notes in this Series
shall be due and payable on the earlier
of: (a) within 60 days after demand by Payee, if
the purchase by the payees of this Series of $5,000,000 of newly
authorized preferred stock of Maker (“ Investment
”) is not completed by November 30, 2009 (the “
Investment Date ”); (b) if the Investment is
completed on or before the Investment Date, on the Investment Date
with proceeds from such Investment; or (c) at the election of
Payee, by conversion into Series A Preferred Stock if the
Investment is not completed by the Investment Date in accordance
with the terms hereof.
3.
Conversion . Subject to, and in compliance with,
the provisions contained herein, the holder of this Note is
entitled, at its option, at any time prior to maturity, or in the
event this Note or some portion hereof shall have been called for
prepayment prior to such date, then, in respect of this Note or
such portion hereof, until and including, but not after the close
of business within 30 days of the date of notice of prepayment, to
convert this Note (or any portion of the principal amount hereof)
into fully paid and nonassessable shares (calculated as to each
conversion to the nearest share) of Series A Preferred Stock, of
the Company (the “Shares”), at the rate of one share
for each $0.10 of principal amount of this Note, subject to such
adjustment in such conversion price, if any, as may be required by
the provisions of this Note, by surrender of this Note, duly
endorsed (if so required by the Company) or assigned to the Company
or in blank, to the Company at its offices, accompanied by written
notice to the Company in the form set forth below that the holder
hereof elects to convert this Note or if less than the entire
principal amount hereof is to be converted, the portion hereof to
be converted. On conversion, no adjustment for interest
is to be made, but if any holder surrenders this Note for
conversion between the record date for the payment of an
installment of interest and the next interest payment date, the
holder of such Note when surrendered for conversion shall be
entitled to payment of the interest thereon from the last preceding
record date for interest through the date of conversion that the
registered holder is entitled to receive on such conversion
date. No fractions of Shares will be issued on
conversion, but instead of any fractional interest, the Company
will pay cash adjustments as provided herein.
4.
Prepayment . This Note is subject to prepayment,
in whole or in part, at any time upon not less than 30 days’
notice by registered mail at the election of the Company, and shall
be prepaid out of the net proceeds of the
Investment Prepayment shall be effected by paying the
amount equal to the outstanding principal amount of the Note, plus
all interest accrued to the date of prepayment. During
the 30 days following the date of any notice of prepayment, the
holder will have the right to convert the outstanding principal
amount of the Note, or any portion thereof, to Shares of the
Company, on the terms and conditions provided for in paragraph 3
above. On the date fixed for prepayment, the Note shall
cease to bear interest with respect to the amount of principally
actually paid. Upon surrender of any Note for prepayment
in accordance with said notice of prepayment by the Company, the
amount of principal and interest due shall be paid in cash or
certified funds. Any Note that is prepaid only in part
shall be presented for notation thereon by the Company of such
partial prepayment. If less than all the Notes of this
Series are to be prepaid, notice of the proposed prepayment shall
be sent to the registered holders of all Notes issue in this
Series, and such prepayment shall be made pro rata.
5.
Limitations on Right of Conversion . Following
receipt of the written notice of intention to convert the Note, the
Company shall take such steps as it deems appropriate to permit
conversion of the Note as specified in the notice without
registration or qualification under applicable federal and state
securities laws; provided , that in no event shall the
Company be required to consent to the general service of process or
qualify as a foreign corporation in