Exhibit 10.2
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MILL ROAD
CAPITAL, L.P.
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TERM NOTE
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$4,200,000.00
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September 4, 2009
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For value received, the undersigned
(hereinafter, the “ Borrower ”) hereby promises
to pay in lawful money of the United States of America in
immediately available funds to the order of Mill Road Capital,
L.P., a Delaware limited partnership with a principal place of
business at Two Sound View Drive, Greenwich, CT 06830 (hereinafter,
the “ Lender ”), at the address of the Lender or
at such other address as the holder hereof may designate, the
aggregate principal sum of Four Million Two Hundred Thousand
($4,200,000.00) DOLLARS or, if less, the aggregate unpaid principal
amount of all advances made by the Lender to the Borrower, together
with all interest accruing thereon, pursuant to the Term Loan
established pursuant to the terms and conditions of a certain Term
Loan Agreement of even date herewith (as from time to time amended,
restated, supplemented or otherwise modified, the “ Loan
Agreement ”) by and among the Borrower and the Lender.
This note (the “ Note ”) is issued pursuant to
the Loan Agreement and is the “ Term Loan Note ”
as defined therein. Capitalized terms used herein that are not
defined shall have the same meanings assigned to such terms in the
Loan Agreement. Reference is made to the Loan Agreement,
the terms of which are incorporated herein by reference, for a
statement of all of the terms and conditions under which the Term
Loan is made, this Note is delivered and this Note is to be
repaid. In the event of any inconsistency between the
terms of the Loan Agreement and this Note, the terms of the Loan
Agreement shall govern and control.
Interest shall accrue on the unpaid principal
balance of this Note as set forth in the Loan
Agreement. Interest shall be computed on the basis of a
365- or 366-day year and paid for the actual number of days
elapsed. The entire unpaid principal balance on this
Note and all accrued interest thereon remaining unpaid shall be
immediately due and payable in full in immediately available funds
on the Term Loan Maturity Date. Time is of the essence
hereof.
Upon the occurrence and continuance of an Event
of Default or after maturity or after judgment has been rendered on
this Note, the unpaid principal balance of this Note shall accrue
interest at a rate as set forth in Section 4.5 of the Loan
Agreement.
The Borrower may prepay this Note, or portions
hereof, as provided in the Loan Agreement, subject to the
prepayment provisions set forth therein.
Upon the occurrence and continuance of an Event
of Default, all payments, including any prepayments, shall, at the
option of the Lender, be applied first to the payment of all costs
and expenses incurred by the Lender arising out of the loan
transaction evidenced by this Note, which have not been paid or
reimbursed to the Lender, then to accrued interest on the unpaid
principal balance of this Note, and then to the balance on account
of the outstanding principal balance of this Note.
Upon the happening and continuance of any Event
of Default, the Lender may (i) declare the then outstanding
principal balance of this Note and all interest accrued thereon and
all applicable late charges and surcharges and all other
liabilities and obligations of the Borrower to the Lender to be
immediately due and payable, or (ii) terminate any obligation of
the Lender to
make advances
pursuant to the Term Loan under the Loan Agreement, whereupon the
same shall become immediately due and payable without presentment
or demand for payment, notice of non-payment, protest or any other
demand or notice of any kind, all of which are expressly waived by
the Borrower, except as otherwise set forth in the Loan
Agreement. Failure to exercise either or both such
options shall not constitute a waiver of the right to exercise the
same in the event of any subsequent default. Notwithstanding the
foregoing, upon the occurrence and continuance of an Event of
Default described in Sections 11.1(f) or (g) of the Loan Agreement,
(A) any obligation of the Lender to advance hereunder shall
automatically terminate and (B) the outstanding principal balance
of this Note and all interest accrued thereon and all applicable
late charges and surcharges and all other liabilities and
obligations of the Borrower to the Lender shall become
automatically due and payable without presentment or demand for
payment, notice of non-payment, protest or any other demand or
notice of any kind, all of which are expressly waived by the
Borrower.
This Note has been executed and delivered in
accordance with the Loan Agreement, which is incorporated herein by
reference and which sets forth further rights of the Lender and
duties of the Borrower and any guarantor, endorser or surety of any
obligation of the Borrower to the Lender with respect hereto. All
advances under the Term Loan made by the Lender to the Borrower and
payments of principal and interest re