Back to top

SUBORDINATED PROMISSORY NOTE

Promissory Note

SUBORDINATED PROMISSORY NOTE | Document Parties: P&F INDUSTRIES INC | Coffman Stairs LLC | WM Coffman LLC You are currently viewing:
This Promissory Note involves

P&F INDUSTRIES INC | Coffman Stairs LLC | WM Coffman LLC

. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here.
Title: SUBORDINATED PROMISSORY NOTE
Governing Law: New York     Date: 6/16/2009
Industry: Appliance and Tool     Sector: Consumer Cyclical

SUBORDINATED PROMISSORY NOTE, Parties: p&f industries inc , coffman stairs llc , wm coffman llc
50 of the Top 250 law firms use our Products every day

Exhibit 2.2

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

 

SUBORDINATED PROMISSORY NOTE

 

$3,971,901.64

 

June 8, 2009

 

FOR VALUE RECEIVED, the undersigned, WM Coffman LLC, a Delaware limited liability company (including its successors, the “ Borrower ”), hereby promises to pay to the order of Coffman Stairs LLC, a Delaware limited liability company (the “ Holder ”), in lawful money of the United States of America and in immediately available funds the principal sum of Three Million Nine Hundred Seventy-One Thousand Nine Hundred One and Sixty-Four Hundredths ($3,971,901.64) Dollars , together with interest on the unpaid principal balance at the rate and on the terms and conditions provided in this subordinated promissory note (the “ Note ”).

 

1.                                       Acquisition Agreement .  This Note evidences payment of a portion of the purchase price payable under the Asset Purchase Agreement, dated on or about the date hereof, between the Borrower and the Holder (the “ APA ”). This Note is the Seller Note referred to in the APA. Unless otherwise defined herein, capitalized terms used in this Note have the same meanings set forth in the APA.

 

2.                                       Interest; Principal .  Interest on the unpaid principal balance of this Note shall accrue (i) from the date hereof at the rate of six and one-half (6.5%) percent per annum, (ii) from and after the Maturity Date, as defined herein, or during the continuance of an Event of Default, as defined herein, at the rate set forth in (i) plus two (2.0%) percent, or (iii) if less than the rates applicable under (i) and (ii), the maximum rate permitted by law.  Interest shall be calculated on the basis of a 360 day year for the actual days elapsed.  The Borrower shall pay to the Holder all accrued interest on:  (i) March 31, June 30, September 30 and December 31 of each year (each, a “ Quarterly Payment Date ”); or (ii) if any such interest payment is not permitted to be made under the Subordination Agreement (as defined below), the first Business Day that such payment is permitted to be made under the Subordination Agreement, provided such Business Day occurs not later than one year after the scheduled Quarterly Payment Date for such payment.  To the extent all or any portion of any interest payment is not permitted to be made under the Subordination Agreement for a period of one year after the scheduled Quarterly Payment Date for such payment, such amount shall be added to the principal hereunder, shall accrue interest as provided in the first sentence of this Section 2 and shall be paid on the Maturity Date.   The Borrower shall pay to the Holder all outstanding principal and accrued interest on the date (the “Maturity Date”) that is the latter of: (i) the last day of the Contingency Period; or (ii) the earlier of (a) the date that is 3 years and 90 days after the date hereof or (b) the date that all obligations under the Credit Agreement (as defined below) are satisfied in full.

 

3.                                       Manner and Application of Payment .  If a payment to be made by the Borrower hereunder shall become due on a Saturday, Sunday or bank holiday in New York City, New York, such payment shall be made on the next succeeding business day.  All payments of principal and interest shall be made to the Holder in immediately available funds to an account designated by the Holder in writing. Any payment made hereunder shall be applied first to costs and expenses due hereunder, then to accrued interest and thereafter to principal.  All payments under this Note shall be made in accordance with the applicable provisions of the APA, including APA Section 2.2.7.

 



 

4.                                       Prepayment .  The Borrower may at its option, after payment of all obligations of the Borrower to PNC Bank, National Association, as Agent under the Revolving Credit, Term Loan and Security Agreement dated on or about the date hereof (the “Credit Agreement”), prepay the outstanding principal balance of this Note, in whole or in part, at any time or, from time to time, without premium or penalty; provided , that any such prepayment shall also include all accrued but unpaid interest on the Note through the repayment date.

 

5.                                       Right of Setoff.   The Borrower shall be entitled to set off against the unpaid principal and interest balance of this Note, provided such setoff is conducted in accordance with the applicable provisions of the APA, including APA Section 7.4.

 

6.                                       Subordination .  ALL OBLIGATIONS UNDER THIS NOTE ARE SUBJECT TO THE TERMS OF A SUBORDINATION AGREEMENT, DATED ON OR ABOUT THE DATE HEREOF, AMONG THE BORROWER, THE HOLDER AND PNC BANK, NATIONAL ASSOCIATION (THE “ SUBORDINATION AGREEMENT ”).

 

7.                                       Default.   Each of the following events shall be an “ Event of Default ” hereunder:

 

(a)                                   the Borrower fails to pay any of the principal, interest or any other amounts payable under this Note when and as the same becomes due and payable, except to the extent such payment is not permitted under the Subordination Agreement;

 

(b)                                  the Borrower files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter i


 
SITE SEARCH

AGREEMENTS / CONTRACTS

Document Title:

Entire Document: (optional)

Governing Law:(optional)


Try our advanced search >>
 

CLAUSES

Search Contract Clauses >>

Browse Contract Clause Library>>

Get Email Updates
Email:
This is only a partial view of this document. We have millions of legal documents and clauses drafted by top law firms. learn more search for free browse for free learn more