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Exhibit 10.2
FOURTH AMENDMENT TO PROMISSORY NOTE
FOURTH AMENDMENT TO PROMISSORY NOTE dated as of the 6th day of January,
2001 by and between XXXXXXX X. XXXXXXX, XX. ("Xxxxxxx") and PSYCHEMEDICS
CORPORATION (the "Company").
WHEREAS, Xxxxxxx and the Company entered into a Promissory Note dated
January 6, 1997, (the "Note") in the original principal amount of Two Hundred
Nine Thousand Eight Hundred Ninety-two Dollars ($209,892.00); and
WHEREAS, the due date of the Note was extended pursuant to a First
Amendment to the Note dated January 6, 1998, a Second Amendment to the Note
dated January 6, 1999 and a Third Amendment to the Note dated January 6, 2000;
and
WHEREAS, the principal amount and accrued interest outstanding as of the
date hereof under the Note, as amended, is $193,431.33; and
WHEREAS, Xxxxxxx'x obligations under the Note as amended are secured by a
pledge of shares of Common Stock of the Company pursuant to a Pledge Agreement
dated January 6, 1997 (the "Pledge Agreement");
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto hereby agree as follows:
1. AMENDMENT. (a) The Note as previously amended is hereby further amended
by deleting the first three paragraphs thereof and inserting in lieu thereof the
following:
"FOR VALUE RECEIVED, the undersigned XXXXXXX X. XXXXXXX, XX. hereby
promises to pay to the order of PSYCHEMEDICS CORPORATION, a Delaware
corporation (the "Company"), in accordance with and subject to the terms
and conditions set forth herein, on or before January 6, 2002, the
principal sum of ONE HUNDRED NINETY-THREE THOUSAND FOUR HUNDRED THIRTY-ONE
DOLLARS AND 33/100 ($193,431.33), or so much thereof as may from time to
time be outstanding, and to pay interest on the unpaid portion of such
principal amount at the rate of 6.15% PER ANNUM until such principal amount
and all accrued unpaid interest thereon shall have been paid.
Interest accrued on the unpaid balance of principal from time to time
outstanding shall be payable together with payment of principal. Each
payment made under this Note shall be applied first to interest then due
and then to principal.
This Note is secured by a pledge of certain shares of Common Stock of
the Company owned by the undersigned more particularly described in the
Pledge Agreement dated January 6, 1997 (the "Pledge Agreement") by and
between the undersigned and the Company. The Pledge Agreement is intended
to provide additional security to the Company for the obligations of the
undersigned under this Note and is not intended to limit in any way the
obligations of the undersigned under this Note which is a full recourse
obligation of the undersigned."
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(b) All references in the Pledge Agreement to the Note shall be deemed to
refer to the Note, as modified and amended hereby.
2. RATIFICATION. (a) The terms and provisions of the Note, as modified and
amended hereby, are hereby ratified and confirmed by Kubacki in all respects and
the Note shall remain in full force and effect in accordance with its terms as
so modified and amended.
(b) The obligations of Xxxxxxx to repay to the Company all indebtedness
under the Note, as modified and amended hereby, and to pay and perform all of
its other obligations to the Company are and will continue to be secured by the
Pledge Agreement and the Company is and will continue to be entitled to the
benefit of all of the rights and remedies thereunder.
(c) Nothing herein is intended or shall be construed so as to discharge,
release, terminate, or otherwise limit or modify any indebtedness, obligations,
or liabilities of Xxxxxxx or any collateral security therefor.
3. MISCELLANEOUS. This Fourth Amendment to Promissory Note shall be
governed by the laws of the Commonwealth of Massachusetts, shall be construed as
a sealed instrument, and shall be binding upon, and inure to the benefit of, the
parties hereto and their respective successors and assigns.
Executed as a sealed instrument as of the date set forth above.
PSYCHEMEDICS CORPORATION
By: /s/ Xxxxx X. Xxxxxx
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Xxxxx Xxxxxx, Vice President
/s/ Xxxxxxx X. Xxxxxxx, Xx
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Xxxxxxx X. Xxxxxxx, Xx.
