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REVOLVING PROMISSORY NOTE (Floating Rate with LIBOR Option)

Promissory Note

REVOLVING PROMISSORY NOTE
(Floating Rate with LIBOR Option) | Document Parties: PROLINK HOLDINGS CORP. | PROLINK SOLUTIONS, LLC | COMERICA BANK You are currently viewing:
This Promissory Note involves

PROLINK HOLDINGS CORP. | PROLINK SOLUTIONS, LLC | COMERICA BANK

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Title: REVOLVING PROMISSORY NOTE (Floating Rate with LIBOR Option)
Governing Law: Arizona     Date: 10/27/2006
Industry: Computer Peripherals    

REVOLVING PROMISSORY NOTE
(Floating Rate with LIBOR Option), Parties: prolink holdings corp. , prolink solutions  llc , comerica bank
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Exhibit 10.2

REVOLVING PROMISSORY NOTE
(Floating Rate with LIBOR Option)

 

 

 

 

 

BORROWER’S NAME AND ADDRESS

 

OFFICER

 

MATURITY DATE

ProLink Holdings Corp.

 

K. Ehrhardt

 

May 1, 2008

ProLink Solutions, LLC

 

 

 

 

410 S. Benson Lane

 

 

 

 

Chandler, Arizona 85224

 

 

 

 

 

 

 

 

 

 

$3,000,000.00

 

Phoenix, Arizona

 

October 23, 2006

On May 1, 2008 (the “Maturity Date”), for value received, PROLINK HOLDINGS CORP., a Delaware corporation and PROLINK SOLUTIONS, LLC, a Delaware limited liability company (individually and/or collectively as the context requires, “Borrower”), jointly and severally, promise to pay to the order of COMERICA BANK or its successor-in-interest (“Lender”), at its office at 75 East Trimble Road, San Jose, California 95131, or at such other place as Lender may from time to time designate in writing, all outstanding amounts hereunder as part of the Revolving Loan (as defined in that certain Loan and Security Agreement dated of even date herewith (the “Loan Agreement”)) commitment in the principal sum of Three Million and No/100 Dollars ($3,000,000.00), or so much thereof as may be advanced and re-advanced from time to time and not repaid as provided below (but not to exceed a maximum principal amount at any given time of Three Million and No/100 Dollars ($3,000,000.00), from time to time, together with interest from the date of disbursement computed on the principal balances hereof from time to time outstanding, at an adjusted daily rate equal to the Base Rate of interest (as herein defined) being charged by Lender (“ Note ”). For the purpose of this Note, the Base Rate is that rate so announced by Lender as its “base rate” from time to time and which serves as the basis upon which effective rates of interest are calculated for those loans making reference thereto. The interest rate payable hereunder shall fluctuate with any change in the Base Rate, and such fluctuation in the interest rate shall be effective on the effective date of each and every change in the Base Rate as, from time to time, announced by Lender at its corporate headquarters in Detroit, Michigan. The interest rate charged herein is further subject to the rate reduction and LIBOR Option provisions of Section 2.3 of the Loan Agreement. Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Loan Agreement.

See LIBOR Addendum to Promissory Note, attached hereto and incorporated herein by reference, for terms and conditions applicable to the LIBOR Option (as defined therein).

Interest shall be payable on the first day of each calendar month following the date hereof. Interest shall be computed daily based upon a three hundred sixty (360) day year for the actual number of days elapsed. Should interest not be paid when due, it shall become part of the principal and thereafter bear interest as herein provided. Notwithstanding anything contained herein to the contrary, pursuant to the terms and conditions of the Loan Agreement, Lender may disburse from time to time sufficient amounts to pay interest due on the Note.

 


 

The principal amount payable under this Note shall be the sum of all advances made by Lender to or at the request of Borrower, less principal payments actually received in cash by Lender. The books and records of Lender shall be the best evidence of the principal amount and the unpaid interest amount owing at any time under this Note and shall be conclusive absent manifest error. No interest shall accrue under this Note until the date of the first advance made by Lender, thereafter interest on all advances shall accrue and be computed on the principal balance outstanding from time to time under this Note until the same is paid in full.

Should default be made in the payment of principal or interest when due after the expiration of any applicable notice and opportunity to cure periods or in the performance or observance when due of any term, covenant or condition of any deed of trust, security agreement or other agreement (including amendments and extensions thereof) securing or pertaining to this Note, after expiration of any applicable notice and opportunity to cure periods, then, at the option of Lender hereof, the entire balance of principal and accrued interest then remaining unpaid shall become immediately due and payable and thereafter bear interest, until paid in full, at the increased rate of three percent (3%) per annum over and above the interest rate(s) contracted for herein as it may vary from time to time. Borrower acknowledges and agrees that during the time that any payment of principal, interest or other amounts due under this Note is delinquent, Lender will incur additional costs and expenses attributable to its loss of use of the money due and to the adverse impact on Lender’s ability to avail itself of other opportunities. Borrower acknowledges and agrees that it is extremely difficult and impractical to ascertain the extent of such costs and expenses and that proof of actual damages would be costly or inconvenient. Borrower therefore agrees that interest at the increased rate of three percent (3%) per annum over and above the interest rate(s) contracted for in this Note represents a reasonable sum considering all the circumstances existing on the date of this Note and represents a fair and reasonable estimate of such costs and expenses. No delay or omission on the part of Lender in exercising any right hereunder, or under any such deed of trust, security agreement or other agreement shall operate as a waiver of such right or of any other right under this Note or under any such deed of trust, security agreement or other agreement.

If any payment of principal or interest under this Note shall not be made within fifteen (15) calendar days of the date due, a late charge of five percent (5%) of the overdue amount may be charged by Lender for the purpose of defraying the expenses incident to handling such delinquent payments. Borrower acknowledges and agrees that it is extremely difficult and impractical to ascertain the extent of such expenses and that proof of actual damages would be costly or inconvenient. Borrower therefore agrees that such late charge represents a reasonable sum considering all of the circumstances existing on the date of this Note and represents a fair and reasonable estimate of the costs that will be sustained by Lender due to the failure of Borrower to make timely payments. Such late charge shall be paid without prejudice to the right of Lender to collect any other amounts provided to be paid or to declare a default under this Note or from exercising any of the other rights and remedies of Lender, including, without limitation, the right to declare the entire balance of principal and accrued interest then remaining unpaid immediately due and payable, subject to notice and cure periods as provided in the Loan Agreement.

Borrower agrees to pay the contracted rate of interest, which includes interest at the rate set forth herein and all costs and fees associated with obtaining this credit accommodation to the extent

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any such costs and fees are deemed interest under applicable law. Borrower and Lender agree that none of the terms and provisions contained herein shall be construed to create a contract for the use, forbearance or detention of money requiring payment of interest at a rate in excess of the maximum interest rate permitted to be charged by the laws of the State of Arizona. In such event, if any holder of this Note shall collect monies which are deemed to constitute interest which would otherwise increase the effective interest rate on this Note to a rate in excess of the maximum rate permitted to be charged by the laws of the State of Arizona, all such sums deemed to constitute interest in excess of such maximum rate shall, at the option of the holder, be credited to the payment of other amounts payable hereunder or returned to Borrower.

If this Note is not paid when due, whether at its specified or accelerated maturity date, Borrower promises to pay all costs of collection and enforcement of this Note, including, but not limited to, reasonable attorneys’ fees and costs, incurred by Lender on account of such collection or enforcement, whether or not suit is filed hereon.

Principal and interest shall be payable in lawful money of the United States without set off, demand or counterclaim. Borrower waives the defense of the statute of limitations in any action on this Note. Presentment, notice of dishonor, and protest are waived by all makers, sureties, guarantors and endorsers of this Note. Such parties expressly consent to any extension of the time of payment hereof or any installment hereof, to any renewal, and to the release of any or all of the security given for the payment of this Note or the release of any party liable for this obligation.

Borrower agrees that Lender may provide any financial or other information, data or material in Lender’s possession relating to Borrower, the Loan, this Note, the property or the improvements, to Lender’s parent, affiliate, subsidiary, participants or service providers, without further notice to Borrower.

This Note is secured by the Collateral (as such term is defined in the Loan Agreement). This Note shall be governed and construed in accordance with the laws of the State of Arizona.

Borrower may prepay this Note in whole or in part on any interest payment date without penalty upon thirty (30) days prior written notice to holder subject to the prepayment provision affecting LIBOR Options pursuant to the LIBOR Addendum to Note. No partial prepayment shall affect the obligation of Borrower to pay the next and subsequent regular installments payable hereunder until the entire balance of principal and interest shall have been paid in full.

[SIGNATURE PAGE FOLLOWS]

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BORROWER:

 

 

 

 

 

 

 

 

 

 

 

PROLINK HOLDINGS CORP., a Delaware
corporation

 

 

 

 

 

 

 

 

 

 

 

By:

 

/s/ Michael Browne

 

 

 

 

Name:

 

 

Michael Browne

 

 

 

 

Title:

 

Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

PROLINK SOLUTIONS, LLC, a Delaware limited
liability company

 

 

 

 

 

 

 

 

 

 

 

By:

 

/s/ Michael Browne

 

 

 

 

Name:

 

 

Michael Browne

 

 

 

 

Title:

 

Chief Financial Officer

 

 

NOTICE: THIS NOTE CONTAINS PROVISIONS FOR A VARIABLE INTEREST RATE WHICH MAY RESULT IN INCREASES IN THE INTEREST RATE.

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LIBOR
ADDENDUM TO NOTE

This Addendum to Note (this “Addendum”) is entered into as of                      , by and between COMERICA BANK or its successor-in-interest (“Bank”), and PROLINK HOLDINGS CORP., a Delaware corporation and PROLINK SOLUTIONS, LLC, a Delaware limited liability company (collectively, “Borrower”). This Addendum supplements the terms of the Revolving Promissory Note (Floating Rate With LIBOR Option) of even date herewith and governs Borrower’s ability to obtain Advances at the LIBOR Option inter


 
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