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US
$100,000.00
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October 31, 2007
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BRIDGE LOAN
PROMISSORY NOTE
(Non-Negotiable)
FOR VALUE RECEIVED, the undersigned, Remote
Knowledge, Inc., a Delaware corporation (“ Maker
”), promises to pay to the order of Steve Phelps, or any
successor holder of this Note (“ Holder ”), at
Holders office, or such other place as Holder may designate, the
principal amount of One Hundred Thousand Dollars
($100,000).
1. Interest . As soon as practical after
delivery of this Note to Holder and transfer of funds to Maker,
Maker shall deliver to Holder Thirty-three Thousand Three Hundred
Thirty-three shares (33,333) of common stock of Maker issued in the
name of Holder as interest. Holder shall be entitled to retain all
such shares regardless whether the Note may be prepaid. At the end
of each month following default in payment of principal and
continuing until principal is paid in full, Eleven Thousand One
Hundred Eleven shares (11,111) of Makers common stock shall be
delivered to Holder.
2. Payments . All outstanding principal
shall be payable on October 31, 2007 (the “ Maturity
Date ”).
3. Guaranty. Payment of this Note
is and shall be guaranteed by this performance pledge (the “
Guaranty ”) by Alan Granader, Dan Granader, and Randy
S. Bayne (the “ Guarantors ”). This Guaranteed
Promissory Note is an absolute, continuing, irrevocable, and
unconditional guaranty of payment and performance, and not a
guaranty of collection, and Maker shall remain liable on its
obligations hereunder until the payment in full of the principal
and interest (the “ Guaranteed Obligations
”).
(a) In the event of default by Maker in
payment of the Guaranteed Obligations, or any part thereof, when
such Guaranteed Obligations are due to be paid or performed by
Maker, the Guarantors shall promptly pay the Guaranteed Obligations
then due in full without notice or demand, and it shall not be
necessary for Holder, in order to enforce such payment by the
Guarantors, to institute suit or exhaust its remedies against Maker
or others. THE GUARANTORS HEREBY IRREVOCABLY AGREE THAT, UNTIL
PAYMENT IN FULL TO HOLDER OF THE GUARANTEED OBLIGATIONS, THE
GUARANTORS SHALL HAVE NO RIGHT TO RECOVER FROM MAKER ANY CLAIMS THE
GUARANTORS HAVE OR MIGHT HAVE AGAINST MAKER (AS SUCH TERM
“CLAIM” IS DEFINED IN THE UNITED STATES BANKRUPTCY CODE
11 U.S.C. § 101[5] AS AMENDED FROM TIME TO TIME) IN CONNECTION
WITH PAYMENTS MADE BY OR ON BEHALF OF THE GUARANTORS TO HOLDER
UNDER THIS GUARANTY INCLUDING, WITHOUT IMPLIED LIMITATION, ALL
RIGHTS THE GUARANTORS MAY NOW OR HEREAFTER HAVE UNDER ANY AGREEMENT
OR AT LAW OR IN EQUITY (INCLUDING, WITHOUT LIMITATION, ANY LAW
SUBROGATING THE GUARANTOR TO THE RIGHTS OF HOLDER) TO ASSERT ANY
CLAIM AGAINST OR SEEK CONTRIBUTION, INDEMNIFICATION OR ANY OTHER
FORM OF REIMBURSEMENT FROM MAKER OR ANY OTHER PARTY LIABLE FOR
PAYMENT OF ANY OR ALL OF THE INDEBTEDNESS.
(b) If acceleration of the time for payment
by Maker of all or any portion of the indebtedness is stayed upon
the insolvency, bankruptcy, or reorganization of Maker, the
Guaranteed Obligations shall nonetheless be payable by the
Guarantors hereunder forthwith on demand by Holder.
4. Prepayment . Maker may pay all or any
part of the principal owing on this Note at any time or times
prior
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