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Exhibit
10.19
THIS NOTE HAS NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY
NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION SUBJECT TO, THE
REGISTRATION REQUIREMENTS UNDER SUCH ACT OR AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT, IN EACH CASE IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OF AMERICA.
COPY
AMENDED AND RESTATED
PROMISSORY NOTE (THE “ NOTE ”)
CLEARPOINT RESOURCES,
INC.
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| $1,290,000 |
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April 14, 2008 |
FOR VALUE RECEIVED, the
undersigned, ClearPoint Resources, Inc. (f/k/a Mercer Staffing,
Inc.) (“ CPR ”), hereby promises to pay
to, or to the order of, Blue Lake Rancheria, a federally recognized
Indian tribe (“ Blue Lake ”), the
principal sum of One Million Two Hundred and Ninety Thousand U.S.
Dollars ($1,290,000.00) (the “ Principal Amount
”), together with interest at the rate and at such time as
set forth below, all upon and subject to the terms and conditions
set forth herein.
B A C K G R O U N
D
WHEREAS, CPR and Blue Lake
are parties to a Promissory Note, dated March 1, 2005,
pursuant to which CPR owes Blue Lake the principal amount of
$1,290,000 (the “ Original Note ”). The
Original Note had a maturity date of March 31, 2008. CPR paid
Blue Lake quarterly interest during the term of the Original Note;
and
WHEREAS, this Note amends and
restates in its entirety the Original Note.
NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual covenants
and promises hereinafter set forth, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, CPR and Blue Lake, intending to be legally bound
hereby, agree as follows
1. Principal and Interest
Payments . Unless this Note is prepaid pursuant to
Section 2 hereof or otherwise becomes due and payable on an
earlier date in accordance with the terms hereof, the Principal
Amount shall be due and payable as follows: (a) Two Hundred
Thousand U.S. Dollars ($200,000), which Blue Lake acknowledges was
paid to Blue Lake on April 8, 2008, (b) CPR shall pay
Blue Lake Fifty Thousand U.S. Dollars ($50,000) on the first
business day of each calendar month for twelve
(12) consecutive months (totaling $600,000 in the aggregate),
the first payment to occur on May 1, 2008 and the last to
occur on April 1, 2009, and (c) on April 30, 2009,
CPR shall pay to Blue Lake the balance of the Principal Amount,
equal to Four Hundred and Ninety Thousand U.S. Dollars ($490,000),
plus accrued interest. All interest shall be payable on
April 30, 2009, unless this Note is prepaid in accordance with
Section 2 or otherwise becomes due and payable on an earlier
date in accordance with the terms hereof. All sums outstanding from
time to time hereunder shall bear interest until the date paid at
the rate of ten percent (10%) per annum. Interest shall accrue
at the applicable rate on the basis of a 360-day year and the
actual number of days elapsed.
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2. Prepayment . CPR
shall have the right to prepay from time to time without premium or
penalty. Any prepayment shall be used to first to pay any accrued
but unpaid interest and then, second, shall be applied to reduce
the final balloon Principal Amount payment.
3. Escrow Agreement .
This Note, and the due performance by CPR of all of its obligations
hereunder, is secured by that certain escrow agreement (the “
Escrow Agreement ”), dated of even date
herewith, by and among ClearPoint Business Resources, Inc., CPR and
Blue Lake.
4. Event of Default
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a. Event of Default .
Following the date hereof, the following events shall each
constitute an “ Event of Default
”:
(i) if CPR shall fail to make
any payment of principal or interest under this Note when such
payment is due, which default shall remain uncured for five
(5) business days after written notice of such failure shall
have been given by Blue Lake to CPR;
(ii) if CPR or any individual
guaranteeing or providing security for this Note shall enter into
any agreement with one or more of its or their respective creditors
regarding any moratorium with respect to its or their debts or the
participation
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