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EXHIBIT 10.16
Xx. Xxxxxx Xxxxxx
The Xxxxxx Group, Inc.
0000 Xxxx Xxxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxxx 00000
Re: Repayment of Loan
Dear Xxxxxx:
This letter will memorialize our recent conversations regarding the
repayment of your promissory note in the principal amount of $256,250.00 to
Logic Devices Incorporated (the "Company") which came due July 24, 1998 (the
"Note"). Defined terms used herein will have the meanings ascribed to them in
the Note unless otherwise defined herein. In consideration of the foregoing and
for other good and valuation consideration, the receipt and sufficiency of which
are hereby acknowledged, you and the Company agree as follows:
1. The Maturity Date will be extended to July 24, 1999.
2. Default Interest will continue to accrue on the Note until payment and will
be paid on the extended Maturity Date.
3. The principal and the accrued and unpaid Interest on which Default Interest
is based was $302,048.90 on July 24, 1998.
4. At the point when, prior to the extended Maturity Date, the Nasdaq NMS
market price of the shares of common stock of the Company reaches $3.25 on a
last sale basis on a given trading day, you agree to sell the shares of
common stock which you purchased with the proceeds of the Note as promptly
as practicable and consistent with existing market conditions. If the market
price drops below $3.25, further sales will not be required until the
closing price reaches this point again.
5. All proceeds from any sales by you of the Company's common stock purchased
with the proceeds of the Note will be promptly remitted to the Company in
payment of the amounts owing to the Company under the Note until such Note
has been paid in full. Thereafter, any further sales will no longer be
subject to Section 4 above and you will be entitled to retain all the
proceeds from any such additional sales.
6. The terms of the Notes, as modified hereunder, will continue in full force
and effect, and the Company retains all rights and remedies available to it
thereunder.
WITHOUT IMPLICATION THAT ANY SUCH CONSENT IS REQUIRED, YOU HEREBY WAIVE THE
PROVISIONS OF SECTION 2(f) OF THE REGISTRATION RIGHTS AGREEMENT BETWEEN YOU AND
THE COMPANY REGARDING
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ANY FUTURE REGISTRATIONS OF THE COMPANY'S SECURITIES.
If the foregoing is acceptable to you, please sign and return the duplicate
original of this letter agreement to my attention.
Yours truly,
/s/ Xxxxxxx Xxxx
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Xxxxxxx Xxxx
President
Accepted and Agreed:
/s/ Xxxxxx X. Xxxxxx
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Xxxxxx X. Xxxxxx
January 8, 1999
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