Exhibit 10.13
PROMISSORY NOTE
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$4,342,927.00
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May 7, 2009
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FOR VALUE RECEIVED,
BARRY HERTZ, TRACK DATA CORPORATION , a Delaware
corporation , SILVER POLISH, LLC , a New Jersey
limited liability company, and ISAAC GENUTH , for purposes of
this Agreement having an address c/o Steven Pfeffer,
Esq., 2105 West County Line Road, Jackson, New Jersey 08527
(jointly and severally, (singly by name, and collectively, jointly
and severally, the “Borrowers”), hereby promises to pay
without defalcation or offset to the order of SOVEREIGN BANK
, having an office at 619 Alexander Road, Princeton, New Jersey
08540, and its successors and assigns (“Lender”), in
lawful money of the United States of America in immediately
available funds, the principal sum of FOUR MILLION, THREE
HUNDRED FORTY TWO THOUSAND, NINE HUNDRED TWENTY SEVEN AND 00/100
($4,342,927.00) DOLLARS , together with interest according to
the following terms and conditions.
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Payments. This Promissory Note
(“Note”) shall be paid as follows:
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(A) The
sum of $542,927.00 shall be paid to Lender on or before June 15,
2009 unless within ten (10 days from the date hereof, the Borrowers
demonstrate to the Lender that Borrowers have delivered to the
Township of Lakewood, ocean county, New Jersey as beneficiary
(“Beneficiary”), an irrevocable standby letter of
credit issued by a commercial bank having capital and surplus of
not less that $100,000,000 in substantially the same form annexed
hereto as Exhibit “A” in the face amount of
$542,927 (the ”Replacement LC”) coupled with a written
request to the Beneficiary to accept the Replacement LC in
substitution of the Lender’s existing Amendment #1 to
Irrevocable Standby Letter of Credit No. 3844 dated July 8, 2008
(the “Amended LC”), a copy of which is annexed hereto
as Exhibit “B ” and made a part hereof, in which
case, and only in which case, the payment of the $542,927.00 shall
be deferred until July 17, 2009, TIME BEING OF THE ESSENCE AS TO
ALL DATES HEREIN . Even if the Beneficiary fails or refuses to
accept the Replacement LC in substitution of the Amended LC, for
any reason or no reason, Borrowers shall nevertheless pay the
sum of $542,927.00 to lender no later that 3:00 P.M.
prevailing time on July 17, 2009.
(B) The
balance due Lender under this Note shall be due and payable, if not
sooner paid, on November 7, 2009, TIME BEING OF THE ESSENCE
, (the “Maturity Date”) at which time all remaining
principal and accrued interest, if any, and all other sums owing
under this Note shall be due and payable in full.
2.
Interest. The rate of interest on the principal
balance due on this Note shall be ten percent (10.0%) per annum.
Provided Borrowers are free from default hereunder and under the
“Yomah Agreement” (hereinafter defined), Lender agrees
to waive any interest payable on said amounts. However, in the
event Borrowers default under the “Yomah Agreement”
(hereinafter defined) or fail to make any principal payment
required hereunder when due, then interest at the aforementioned
rate shall accrue on all unpaid amounts from the date of this Note
until all sums due Lender hereunder are paid in full. Interest
shall be computed on the basis of a 360 day year but shall be
charged for the actual number of days elapsed.
3.
Application of payments. Payments received under
this Note (including prepayments) shall be applied first to
principal and then to interest. The making of any prepayment shall
not change the Maturity Date or the date payments referenced in
Section 1(A) are due.
4.
Prepayments . Prepayment of the sums due lender
under this Note are permitted at any time without penalty or
premium.
5.
Place and manner of Payment . Payments under this
Note are to be made in immediately available funds at the offices
of Lender listed in this Note or at such other location designated
by lender.
6.
Credits for Unit Release Fees . Borrowers have
been afforded the right to secure “Unit Releases”
pursuant
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