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Exhibit 10.1
PROMISSORY NOTE
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$1,500,000
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Sunnyvale,
California
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November __, 2008
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FOR VALUE RECEIVED,
CORE SYSTEMS INCORPORATED, a California corporation ("Maker"),
unconditionally promises to pay to C ACQUISITION CORP., a Delaware
corporation ("Holder"), or order, at such address as Holder shall
designate by written notice to Maker, the principal sum of One
Million Five Hundred Thousand Dollars ($1,500,000) with interest
from the date of this Note on unpaid principal at the rate of six
percent (6%) per annum.
The Maker shall make
an initial principal payment of $500,000 on or before December 24,
2008. No interest shall accrue with respect to such initial
principal payment until and after its due date.
Thereafter, the
remaining principal and accrued interest shall be paid in equal
monthly installments of principal and interest, evenly amortized
over a period of sixty (60) months commencing on February 1, 2009
and continuing on the first day of each month thereafter until paid
in full. Payments shall be applied first to accrued interest and
the balance to principal.
All principal and
interest payments shall be made in lawful money of the United
States. Time is of the essence for each and every obligation
under this Note. Maker shall be entitled to prepay any or all of
the principal at any time without penalty. Maker shall be entitled
to a prepayment discount in the amount of ten percent (10%) of the
principal balance then outstanding in the event that Maker prepays
the entire balance of principal and accrued interest.
In the event of the
occurrence of any one or more of the following events, the whole
sum of unpaid principal and accrued interest shall become
immediately due and payable at the option of the Holder:
1. Failure
to pay an installment of interest or principal when due if such
failure continues for a period of five (5) days after such
installment is due;
2. Any
breach or default by Maker under the Security Agreement given to
secure this Note;
3. Insolvency
(however evidenced) or the commission of any act of insolvency;
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