TERM PROMISSORY NOTE
(Floating Rate)
|
|
|
|
|
|
|
BORROWER’S NAME AND
ADDRESS
|
|
OFFICER
|
|
MATURITY DATE
|
|
|
|
|
|
|
|
|
|
K. Ehrhardt
|
|
September 30, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Phoenix, Arizona
|
|
October 23, 2006
|
On
September 30, 2009 (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, the principal sum of Two Million
Five Hundred Thousand and No/100 Dollars ($2,500,000.00), or so
much thereof as may be advanced from time to time, together with
interest from the date of disbursement computed on the principal
balances hereof from time to time outstanding, adjusted daily to
the rate which is one percent (1.0%) per annum in excess of 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 provisions of Section 2.3 of that certain
Loan and Security Agreement dated of even date herewith (the
“Loan Agreement”). Capitalized terms not otherwise
defined herein shall have the same meaning as set forth in the Loan
Agreement.
Commencing on
December 1, 2006 and on the same day of each successive month
thereafter, Borrower shall make a principal payment of $52,083.33,
plus accrued interest with a final payment of all outstanding
principal plus accrued interest on the Maturity Date. 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.
In addition to
the regularly scheduled principal payments provided above, if
Borrower (a) is unable to maintain cash or cash equivalents on
its balance sheet of a minimum of One Million Five Hundred Thousand
and No/100 Dollars ($1,500,000.000) as of the end of each fiscal
quarter of Borrower’s fiscal year and/or (b) an Event of
Default shall have occurred during such fiscal year, Borrower shall
pay within ten (10) days of delivery to Lender of
Borrower’s fiscal year end statements, pursuant to
Section 6.11(b) of the Loan Agreement, thirty percent
(30%) of
Excess Cash
Flow as an additional principal payment. This payment shall be
applied, in inverse order of maturity, to the principal balance
outstanding under this Note.
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 the expiration of any
applicable notice and opportunity to cure periods, then, at the
option of Lender hereof and without notice or demand, the entire
balance of principal and accrued inter
|