Exhibit
10.2
AMENDED AND RESTATED
PROMISSORY NOTE
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$5,000,000.00
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December 10, 2008
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FOR VALUE RECEIVED,
COSTAR VIDEO SYSTEMS, LLC, a Delaware limited liability company
(“ Costar ”), SIELOX, INC., a Delaware
corporation (“ Parent ”), and SIELOX, LLC, a
Delaware limited liability company (“ Sielox,”
LLC ” and, together with Costar and Parent, jointly and
severally, the “ Borrower ”), having the address
set forth for notice in the Loan Agreement, hereby promises to pay
to the order of BANK OF TEXAS, N.A., a national banking association
(together with its successors and assigns and any subsequent
holders of this Promissory Note, the “ Lender
”), as hereinafter provided, the principal sum of FIVE
MILLION AND NO/100 DOLLARS ($5,000,000.00) or so much thereof as
may be advanced by Lender from time to time hereunder to or for the
benefit or account of Borrower, together with interest thereon at
the Note Rate (as hereinafter defined), and otherwise in strict
accordance with the terms and provisions hereof.
ARTICLE
I
DEFINITIONS
Section 1.1.
Definitions . As used in this Promissory
Note, the following terms shall have the following
meanings:
Borrower
:
As identified in the introductory paragraph
of this Note.
Business
Day :
A weekday, Monday through Friday, except a legal
holiday or a day on which banking institutions in Dallas, Texas are
authorized or required by law to be closed. Unless otherwise
provided, the term “days” when used herein shall mean
calendar days.
Change
: (i)
any change after the date of this Note in the risk-based capital
guidelines applicable to Lender or (ii) any adoption of or change
in any other law, governmental or quasi-governmental rule,
regulation, policy, guideline, interpretation, or directive
(whether or not having the force of law) after the date of this
Note that affects capital adequacy or the amount of capital
required or expected to be maintained by Lender or any entity
controlling Lender.
Charges
: All fees,
charges and/or any other things of value, if any, contracted for,
charged, taken, received or reserved by Lender in connection with
the transactions relating to this Note and the other Loan
Documents, which are treated as interest under applicable
law.
Debtor Relief
Laws :
Title 11 of the United Stales Code, as now or hereafter in
effect, or any other applicable law, domestic or foreign, as now or
hereafter in effect, relating to bankruptcy, insolvency,
liquidation, receivership, reorganization, arrangement or
composition, extension or adjustment of debts, or similar laws
affecting the rights of Creditors.
Default
Rate :
A rate per annum equal to the Note Rate plus five
percent (5%), but in no event in excess of the Maximum Lawful
Rate.
Event of
Default :
Any event or occurrence described under
Section 3.1 hereof.
Lender
: As
identified in the introductory paragraph of this Note.
Loan
Agreement :
The Amended and Restated Loan Agreement of even
date herewith executed by Lender and Borrower, as the same may be
amended, restated, modified and/or otherwise changed from time to
time.
Loan
Documents :
As defined in the Loan Agreement.
Maturity
Date :
December 9, 2009.
Amended and Restated
Promissory Note – Page 1
Maximum Lawful
Rate :
The maximum lawful rate of interest which may be
contracted for, charged, taken, received or reserved by Lender in
accordance with the applicable laws of the State of Texas (or
applicable United States federal law to the extent that such law
permits Lender to contract for, charge, take, receive or reserve a
greater amount of interest than under Texas law), taking into
account all Charges made in connection with the transaction
evidenced by this Note and the other Loan Documents.
Note
: This
Amended and Restated Promissory Note, as the same may be amended,
renewed, replaced, extended, supplemented, consolidated, restated,
modified, otherwise changed and/or increased from time to
time.
Note Rate
: The rate
equal to the lesser of(a) the Maximum Lawful Rate or (b) the Prime
Rate.
Payment
Date : The
first day of each and every calendar month during the term of this
Note.
Prime Rate
: The rate
of interest set by BOK Financial Corporation, in its sole
discretion, on a daily basis as published by BOK Financial
Corporation from time to time, which Borrower hereby acknowledges
and agrees may not be the lowest interest rate charged by Lender,
and which rate shall change as said prime rate changes.
Related
Indebtedness : Any and all
indebtedness paid or payable by Borrower to Lender pursuant to the
Loan Documents or any other communication or writing by or between
Borrower and Lender related to the transaction or transactions that
are the subject matter of the Loan Documents, except such
indebtedness which has been paid or is payable by Borrower to
Lender under this Note.
Any capitalized term
used in this Note and not otherwise defined herein shall have the
meaning ascribed to each such term in the Loan Agreement. All terms
used herein, whether or not defined in Section 1.1 hereof,
and whether used in singular or plural form, shall be deemed to
refer to the object of such term whether such is singular or plural
in nature, as the context may suggest or require. Definitions
contained in this Note and each of the other Loan Documents which
identify documents, agreements or instruments shall be deemed to
include all amendments and supplements to such documents from the
date of this Note and all prior and future amendments,
modifications, and supplements thereto entered into from time to
time. Each reference in the Loan Documents to Borrower shall mean
Borrower and its successors and assigns.
ARTICLE
II
PAYMENT
TERMS
Section 2.1.
Payment of Principal
and I nterest. All
accrued but unpaid interest on the principal balance of this Note
outstanding from time to time shall be payable due and payable each
Payment Date beginning on January 1,2009. The then-outstanding
principal balance of this Note and all accrued but unpaid interest
thereon shall be due and payable on the Maturity Date or upon the
earlier maturity hereof, whether by acceleration or otherwise.
Borrower may from time to time during the terms of this Note
borrow, partially or wholly repay its outstanding borrowings, and
reborrow, subject to all of the limitations, terms and conditions
of this Note and of the Loan Documents; provided however, that the
total outstanding borrowings under this Note shall not at any time
exceed the lesser of(a) the principal amount stated above or (b)
the Borrowing Base minus all outstanding Letter of Credit
Liabilities. The unpaid principal balance of this Note at any time
shall be the total amount advanced hereunder by Lender less the
amount of principal payments made hereon by or for Borrower, which
balance may be endorsed hereon from time to time by Lender or
otherwise noted in Lender’s records, which notations shall
be, absent manifest error, conclusive evidence of the amounts owing
hereunder from time to time.
Section 2.2.
Application . Except as
expressly provided herein to the contrary, all payments on this
Note shall be applied in the following order of priority: (i) the
payment or reimbursement of any expenses, costs or obligations
(other than the outstanding principal balance hereof and interest
hereon) for which either Borrower shall be obligated or Lender
shall be entitled pursuant to the provisions of this Note or the
other Loan Documents, (ii) the payment of accrued but unpaid
interest hereon, and (iii) the payment of all or any portion of the
principal balance hereof then outstanding hereunder, in the direct
order of maturity. If an Event of Default exists under this Note or
under any of the other Loan Documents, then Lender may, at the sole
option of Lender, apply any such payments, at any time and from
time to time, to any of the items specified in clauses (i), (it) or
(iii) above without regard to the
Amended and Restated
Promissory Note – Page 2
order of priority
otherwise specified in this Section 2.2 and any application
to the outstanding principal balance hereof may be made in either
direct or inverse order of maturity.
Section 2.3.
Payments
.
All payments under this Note made to Lender
shall be made in immediately available funds at 333 W. Campbell
Road, Richardson, Texas 75080 (or such other place as Lender, in
Lender’s sole discretion, may have established by delivery of
written notice thereof to Borrower from time to time), without
offset, in lawful money of the United States of America, which
shall at the time of payment be legal tender in payment of all
debts and dues, public and private. Payments by check: or draft
shall not constitute payment in immediately available funds until
the required amount is actually received by Lender in full.
Payments in immediately available funds received by Lender in the
place designated for payment on a Business Day prior to 11:00 a.m.
Dallas, Texas time at said place of payment shall be credited prior
to the close of business on the Business Day received, while
payments received by Lender on a day other than a Business Day or
after 11:00 a.m. Dallas, Texas time on a Business Day shall not be
credited until the next succeeding Business Day. If any payment of
principal or interest on this Note shall become due and payable on
a day other than a Business Day, such payment shall be made on the
next succeeding Business Day. Any such extension of time for
payment shall be included in computing interest which bas accrued
and shall be payable in connection with such payment
Section 2.4.
Computation
Period .
Interest on the indebtedness evidenced by
this Note shall be computed on the basis of a three hundred sixty
(360) day year and shall accrue 00 the actual number of days
elapsed for any whole or partial month in which interest is being
calculated. In computing the number of days during which interest
accrues, the day on which funds are initially advanced shall be
included regardless of the time of day such advance is made, and
the day on which funds are repaid shall be included unless
repayment is credited prior to the close of business on the
Business Day received as provided in Section 2.3
hereof.
Section 2.5.
Prepayment
.
Borrower shall have the right to prepay, at
any time and from time to time upon five (5) days prior written
notice to Lender, without fee, premium or penalty (except as Doted
below), all or any portion of the outstanding principal balance
hereof: provided, however, that such prepayment shall also include
any and all accrued but unpaid interest on the amount of principal
being so prepaid through and including the date of prepayment, plus
any other sums which have become due to Lender under the other Loan
Documents on or before the date of prepayment, but which have not
been fully paid. Prepayments of principal will be applied in
inverse order of maturity. If this Note is prepaid in full, at the
option of Lender any commitment of Lender to make further advances
shall automatically terminate and shall be of no further force or
effect Borrower must pay on DEMAND the amount by which at any time
the unpaid principal balance of this Note, plus the aggregate
Letter of Credit Liabilities, exceeds the lesser of the Borrowing
Base or the Maximum Revolver Amount
Section 2.6.
Unconditional
Payment .
Borrower is and shall be obligated to pay
all principal, interest and any and all other amounts which become
payable under this Note or under any of the other Loan Documents
absolutely and unconditionally and without any abatement,
postponement, diminution or deduction whatsoever and without any
reduction for counterclaim or setoff whatsoever. If at any time any
payment received by Lender hereunder shall be deemed by a court of
competent jurisdiction to have been a voidable preference or
fraudulent conveyance under any Debtor Relief Law, then the
obligation to make such payment shall survive any cancellation or
satisfaction of this Note or return thereof to Borrower and shall
not be discharged or satisfied with any prior payment thereof or
cancellation of this Note, but shall remain a valid and binding
obligation enforceable in accordance with the terms and provisions
hereof and such payment shall be immediately due and payable upon
demand.
Section 2.7.
Partial or Incomplete
Payments .
Remittances in payment of any part of this
Note other than in the required amount in immediately available
funds at the place where this Note is payable shall not, regardless
of any receipt or credit issued therefor, constitute payment until
the required amount is actually received by Lender in full in
accordance herewith and shall be made and accepted subject to the
condition that any check or draft may be handled for collection in
accordance with the practice of the collecting bank or banks.
Acceptance by Lender of any payment in an amount less than the full
amount then due shall be deemed an acceptance on account only, and
the failure to pay the entire amount then due shall be and continue
to be an Event of Default in the payment of this Note.
Amended and Restated
Promissory Note – Page 3
Section 2.8.
Default Rate,
etc .
For so long as any Event of Default exists
under this Note or under any of the other Loan Documents,
regardless of whether or not there has been an acceleration of the
indebtedness evidenced by this Note, and at all times after the
maturity of the indebtedness evidenced by this Note (whether by
acceleration or otherwise), and in addition to all other rights and
remedies of Lender hereunder, interest shall accrue on the
outstanding principal balance hereof at the Default Rate, and such
accrued interest shall be immediately due and payable. Borrower
acknowledges that it would be extremely difficult or impracticable
to determine Lender’s actual damages resulting from any late
payment or Event of Default, and such late charges and accrued
interest are reasonable estimates of those damages and do not
constitute a penalty. If Lender determines that the amount of
capital required or expected to be maintained by Lender or any
entity controlling Lender, is increased as a result of a Change,
then, within fifteen (15) days of demand by Lender, Borrower shall
pay to Lender the amount necessary to compensate for any shortfall
in the rate of return on the portion of such increased capital that
Lender determines is attributable to this Note or the principal
amount outstanding hereunder (after taking into account
Lender’s policies as to capital adequacy).
ARTICLE
III
EVENT OF DEFAULT AND
REMEDIES
Section 3.1.
Event of
Default .
The occurrence or happening, at any time
and from time to time, of anyone or more of the following shall
immediately constitute an “ Event of Default ”
under this Note:
(a)
Borrower shall fail,
refuse or neglect to pay and satisfy, in full and in the applicable
method and manner required, any required payment of principal or
interest or any other portion of the indebtedness evidenced by this
Note within three days of when the same shall become due and
payable, whether at the stipulated due date thereof, at a date
fixed for payment, or at maturity, by acceleration or otherwise;
or
(b)
The occurrence of any
other Event of Default or Default as defined in or under this Note,
the Loan Agreement or any other Loan Document that remains uncured
under and pursuant to the provisions of this Note, the Loan
Agreement or any other Loan Document.
Section 3.2.
Remedies
.
Upon the occurrence of an Event of Default,
Lender shall have the immediate