REVOLVING PROMISSORY NOTE
(Floating Rate with LIBOR Option)
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BORROWER’S NAME AND
ADDRESS
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OFFICER
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MATURITY DATE
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K.
Ehrhardt
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May 1,
2008
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Phoenix, Arizona
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October 23, 2006
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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.
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BORROWER:
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PROLINK
HOLDINGS CORP., a Delaware
corporation
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By:
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/s/ Michael
Browne
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Name:
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Michael
Browne
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Title:
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Chief Financial
Officer
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PROLINK
SOLUTIONS, LLC, a Delaware limited
liability company
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By:
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/s/ Michael
Browne
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Name:
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Michael
Browne
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Title:
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Chief Financial
Officer
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NOTICE: THIS
NOTE CONTAINS PROVISIONS FOR A VARIABLE INTEREST RATE WHICH MAY
RESULT IN INCREASES IN THE INTEREST RATE.
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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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