AMENDED AND RESTATED SECURED
PROMISSORY NOTE
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$4,000,000.00
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Phoenix, Arizona
September 27, 2005
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1. FOR VALUE
RECEIVED, MATRIXX INITIATIVES, INC. , a Delaware corporation
(“ Matrixx ”), and ZICAM, LLC , an
Arizona limited liability company (“ Zicam ”,
together with Matrixx, the “ Makers ”), jointly
and severally promise to pay to the order of COMERICA BANK, a
Michigan banking corporation (“ Payee ”), on or
before the Revolving Loans Maturity Date, the principal sum of FOUR
MILLION AND NO/100 DOLLARS ($4,000,000.00), or such lesser sum as
shall equal the aggregate outstanding principal amount of the
Revolving Loans made by Payee to Makers pursuant to the Agreement
(as defined below).
2. Makers
have previously entered that certain Revolving Promissory Note,
dated as of May 29, 2002 (the “ Prior Note
”), and Makers and Payee have previously entered into that
certain Credit Agreement, dated as of May 29, 2002 (as amended
to date, the “ Prior Agreement ”). Makers and
Payee desire to amend and restate the Prior Note in its entirety in
accordance with the terms and conditions of this Amended and
Restated Secured Promissory Note (this “ Note
”).
3. Makers
promise to make principal reduction payments on the outstanding
principal balance hereof in the amounts and on the dates specified
in the Agreement. Makers further promise to pay interest from the
date of this Note, in like money, on the aggregate outstanding
principal amount hereof at the rates and on the dates provided in
the Agreement. All computations of interest shall be in accordance
with the provisions of the Agreement.
4. Makers
hereby authorize Payee to record in its books and records the date
and amount of each Loan, and of each payment of principal made by
Makers, and Makers agree that all such notations shall, in the
absence of manifest error, be conclusive as to the matters so
noted; provided, however , any failure by Payee to make such
notation with respect to any Loan or payment thereof shall not
limit or otherwise affect Makers’ obligations under the
Agreement or this Note.
5. Upon the
occurrence and during the continuance of an Event of Default, in
addition to and not in substitution of any of Payee’s other
rights and remedies with respect to such Event of Default, the
entire unpaid principal balance of the Loans shall bear interest at
the Base Lending Rate plus three hundred (300) basis
points. In addition, interest, Expenses, the Fees, and other
amounts due hereunder not paid when due shall bear interest at the
Base Lending Rate plus three hundred (300) basis points until
such overdue payment is paid in full.
6. If any
payment due hereunder, whether for principal, interest, or
otherwise, is not paid on or before the tenth (10
th ) day after the date such payment is due, in
addition to and not in substitution of any of Payee’s other
rights and remedies with respect to such nonpayment, Makers shall
pay to Payee, a late payment fee (“ Late Payment Fee
”) equal to five percent (5%) of the amount of such overdue
payment. The Late Payment Fee shall be due and payable on the
eleventh (11 th )
day after the due date of the overdue payment with respect
thereto.
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7. Makers
shall make all payments hereunder in lawful money
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