Exhibit 10.16
COMMERCIAL PROMISSORY NOTE
THIS NOTE MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED, ENCUMBERED,
HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH TRANSFER, SALE, ASSIGNMENT,
PLEDGE, ENCUMBRANCE, HYPOTHECATION OR OTHER DISPOSITION COMPLIES WITH THE
PROVISIONS OF THE SUBSCRIPTION AGREEMENT DATED AS OF APRIL 1, 1998 (A COPY OF
WHICH IS ON FILE WITH XXXXXXXXX.XXX LLC (TOGETHER WITH ITS SUCCESSORS, THE
"COMPANY") AND WHICH SHALL BE MAILED TO THE HOLDER HEREOF WITHOUT CHARGE
WITHIN FIVE DAYS AFTER RECEIPT BY THE COMPANY OF A WRITTEN REQUEST THEREFOR
FROM SUCH HOLDER). IN ADDITION TO THE RESTRICTIONS ON TRANSFER SET FORTH OR
REFERRED TO IN SUCH AGREEMENT, NO TRANSFER, SALE, ASSIGNMENT, PLEDGE,
ENCUMBRANCE, HYPOTHECATION OR OTHER DISPOSITION OF THIS NOTE MAY BE MADE
EXCEPT (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS IN EFFECT
THEREUNDER (THE "ACT"), AND ALL APPLICABLE STATE SECURITIES OR "BLUE SKY"
LAWS OR (B) IF SUCH TRANSFER, SALE, ASSIGNMENT, PLEDGE, ENCUMBRANCE,
HYPOTHECATION OR OTHER DISPOSITION IS EXEMPT FROM THE PROVISIONS OF THE ACT
AND, IF REQUIRED BY THE COMPANY, THE COMPANY HAS BEEN FURNISHED WITH AN
OPINION OF COUNSEL FOR THE HOLDER, WHICH OPINION AND COUNSEL SHALL BE
REASONABLY SATISFACTORY TO THE COMPANY, TO THAT EFFECT. THE HOLDER OF THIS
NOTE, BY ACCEPTANCE HEREOF, AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF
THE AFORESAID AGREEMENT.
$ 1,000,000.00 April 15, 1998
For value received, XXXXXXXXX.XXX LLC (the "Company"), a Delaware
Limited Liability Company with its principal offices located at Five High
Ridge Park, Stamford, Connecticut 06905-1325 (the "Maker"), promises to pay
to the order of XXXXX XXXXXXX (the "Holder"), at CMC 0000 Xxxxxxxxxx Xxxxxxx,
Xxxxxxx, Xxxxxxxxx 00000, or at such other place or places as the Holder
hereof from time to time may designate in writing, the principal sum of One
Million Dollars ($1,000,000.00), in lawful money of the United States, with
interest thereon in like lawful money at a rate which is equal to six percent
(6%) per annum (the "Effective Rate") calculated on the basis of a 365-day
year for the actual number of days elapsed in arrears on the balance of this
loan outstanding from time to time until the entire principal balance
together with interest in areas has been fully paid. Interest only shall be
payable semi-annually on the first day of April and October.
Any principal balance outstanding under this Note together with interest
at the Effective Rate, if not required to be paid sooner pursuant to the
terms hereof, together with any other indebtedness due under this Note, shall
become finally due and payable on April 15, 2003 (the "Maturity Date").
If a default shall occur under the terms of this Note and continue
uncured for thirty (30) days after notice from the Holder to the Maker, the
Holder may, at its option, declare the principal sum then remaining unpaid
hereunder, together with all interest due and payable thereon, and all other
sums owing hereunder, immediately due and payable without notice. From and
after the Maturity Date, or from and after default and acceleration of the
Maturity Date, or from and after any judgment, the entire principal remaining
unpaid hereunder shall bear an annual interest rate equal to the Effective
Rate plus two percent (2%). Failure to exercise such option or any other
rights the Holder may be entitled to, shall not constitute a waiver of the
right to exercise such option or any other rights in the event of any
subsequent default, whether of the same or different nature.
If this Note is placed in the hands of an attorney for collection or is
collected through any legal proceeding, the undersigned promised to pay all
costs, expenses and disbursements incurred in enforcing this Note, including
reasonable attorney's fees and court costs.
Notwithstanding any provisions of this Note, it is the understanding and
agreement of the Maker and the Holder that the rate of interest to be paid by
Maker to Holder shall not exceed the maximum rate of interest permissible to
be charged by Holder under applicable law. All sums in excess of those
lawfully collectible as interest for the periods in question shall be applied
to principal immediately upon receipt of such moneys by the Holder.
The Maker waives the rights of presentment, notice of protest, demand,
dishonor and nonpayment of this Note, and consents to any and all renewals
and extensions in the time of payment hereof. The right to plead any and all
statutes of limitations as a defense to (i) any demand on this Note, and (ii)
any and all obligations or liabilities arising out of or in connection with
this Note, is expressly waived by the undersigned to the fullest extent
permitted by law.
The principal amount outstanding under this Note at any particular time
may be prepaid in whole or in part at any time upon thirty (30) days prior
written notice by Maker to Holder. Any prepayment so made shall not preclude
subsequent prepayment. Any prepayment shall be applied first against
permitted expenses of Holder as provided for herein, second to unpaid
interest due under this Note and then to principal.
This Note is issued pursuant to, and the Holder is entitled to the
benefits of and is subject to the restrictions on transfer and other
provisions of, that certain Subscription Agreement by and between the Maker
and the Holder of event date herewith (the "Subscription Agreement"). All the
terms, covenants, conditions, provisions and agreements of the Subscription
Agreement are hereby made a part of this Note to the same extent and with the
same effect as if fully set forth herein.
Any notice to the undersigned or to the Holder provided for in this Note
shall be given by delivering or by mailing such notice in accordance with the
notice provisions of the Subscription Agreement.
This Note may not be modified or terminated orally, but only by
agreement in writing signed by the party against whom enforcement of such
change or termination is sought.
This Note is to be governed and construed according to the laws of the
State of Connecticut.
IN WITNESS WHEREOF, the undersigned as Maker has hereunto caused this
Note to be duly executed as of the date first above written.
PRICELINE COM LLC
Attest: By: /s/ Xxx Xxxxxx
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Xxx Xxxxxx, President
/s/ Xxxxxx X. Xxxxxx
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