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PROMISSORY NOTE

Promissory Note

PROMISSORY NOTE | Document Parties: CATCHER HOLDINGS, INC | Vivato Networks, Inc You are currently viewing:
This Promissory Note involves

CATCHER HOLDINGS, INC | Vivato Networks, Inc

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Title: PROMISSORY NOTE
Governing Law: Oregon     Date: 12/5/2007
Industry: Security Systems and Services     Sector: Services

PROMISSORY NOTE, Parties: catcher holdings  inc , vivato networks  inc
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Exhibit 10.50

PROMISSORY NOTE

 

BORROWER:   

Catcher Holdings, Inc.

44084 Riverside Parkway

Suite 320

Leesburg, VA 20176

   LENDER:   

Vivato Networks, Inc.

322 NW Sixth Ave Suite 100

Portland OR 97209

 

Maximum Principal Amount: $1,000,000.00    Initial Interest Rate: 20%
Date of Note: November, 30 2007   

1. PROMISE TO PAY. The Borrower hereby promises to pay to the order of Lender on or before the Maturity Date, at Lender’s principal place of business, or at such other place as Lender may direct, the principal sum of One Million Dollars ($1,000,000.00) or so much thereof as may be advanced and outstanding, together with all interest accrued on unpaid principal, to be computed on each Advance from the date of its disbursement to Borrower, at a rate as provided in Section 5 below, as provided in the Loan Agreement (as defined in Section 3 below). The outstanding principal amount of this Note, together with accrued interest thereon, shall be due and payable in full on the Maturity Date. The outstanding unpaid principal balance of this Note at any time shall be the total principal amounts advanced hereunder by Lender less the amounts of payments of principal made hereon by Borrower, which balance may be endorsed hereon from time to time by Lender in accordance with Section 2.

2. RECORDING ADVANCES . Lender is authorized to record on Schedule A – Loan Advances hereto, and on any continuation(s) of such Schedule that may be attached to this Note: (a) the date and principal amount of each Advance by Lender under the Loan Agreement; which recordation will constitute prima facie evidence of the accuracy of the information so endorsed on Schedule A – Loan Advances ; provided however, that any failure to record such information on such Schedule or continuation thereof will not in any manner affect the obligations of Borrower to make payments of principal and interest in accordance with the terms of this Note. Lender will promptly provide Borrower with a copy of each recordation made by Lender on Schedule A – Loan Advances attached hereto.

3. PURPOSE. This Note is issued pursuant to certain transactions referenced in that certain Business Loan Agreement between Lender and Aequitas Capital Management, Inc dated November 30, 2007 (the “ Loan Agreement ”) and is subject to all of the terms thereof. Capitalized terms used herein which are not otherwise defined, if any, shall have the meanings ascribed to them in the Loan Agreement.

4. ADVANCES; RESTRICTIONS. The outstanding balance of Advances made under this Note may fluctuate from time to time, to be increased by future Advances which may be made by Lender and to be decreased by repayments made by Borrower. Borrower acknowledges and agrees that Lender is under no obligation to make any Advance hereunder and any Advance shall be in Lender’s sole and absolute discretion pursuant to the terms of the Loan Agreement.

5. INTEREST RATE AND PAYMENT. Interest shall accrue on the unpaid balance of this Note at the rate of 20% per annum on the unpaid principal balance and shall be calculated on the basis of a 365-day or 366-day year and actual days elapsed. NOTICE : Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law.

6. PAYMENT. Borrower will pay this Note as follows: Borrower will make monthly interest-only payments on the outstanding balance of the Note commencing one month after the date of the Note and continuing on the same day of each month thereafter. At Lender’s option, such payments shall be made to Lender via an Automated Clearing House (“ACH”) transfer from Borrower’s checking account.

7. MATURITY; APPLICATION OF PAYMENTS. The outstanding principal balance and all accrued and unpaid interest shall be due and payable on or before January 30, 2008 (the “ Maturity Date ”), provided, however, that after the occurrence of an Event of Default, the outstanding principal and all accrued interest shall be payable on demand. Unless otherwise agreed or required by applicable law, payments will be applied first to expenses for which Borrower is liable hereunder (including unpaid collection costs and late charges), next to accrued and unpaid interest, and the balance to principal. In addition, the outstanding principal balance and all accrued and unpaid interest shall be due and payable in the event of (1) a sale of all or substantially all of the assets of Borrower, or (2) the transfer of ownership or beneficial interest, by merger or otherwise, of 25% or more of the stock or membership interests of Borrower, other than transfers between or among the shareholders of Borrower in existence as of the date of this Agreement.

 

Page 1 of 5 – PROMISSORY NOTE

 


8. FEES AND CHARGES. Borrower agrees that all loan fees and prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, all or any portion of this Note may be prepaid at any time. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s obligations to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower’s making fewer payments. Borrower agrees not to send Lender payments marked “paid in full”, “without recourse”, or similar language. If Borrower sends such payment, Lender may accept it without losing any of Lender’s rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that payment constitutes “payment in full” of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of any disputed amount must be mailed or delivered to Lender at the address above.

9. a LATE CHARGE. If a payment is 15 days or more late, Borrower will pay to Lender a late charge equal to the lesser o


 
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