Exhibit 10.14
OurPet's
Company
PROMISSORY NOTE
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$_$150,000 Date: Aug. 1/st/, 2000
For value received, the undersigned, OurPet's Company, (the "Borrower"), at 0000
Xxxx Xxxxxx, Xxxxxxxx Xxxxxx, Xxxx, 00000, promises to pay to the order of
Beachcraft Limited Partnership, (the "Lender"), at Rt. 1, Box 1330, PO Box 280,
Cookville, TX. 75558 (or at such other place as the Lender may designate in
writing) the sum of $150,000 with interest from August 1, 2000, on the unpaid
principal at the rate of 10,00% per annum.
The principal shall be payable in full with one installment of $150,000 plus
interest, on February 1/st/, 2000.
The Lender shall receive one quarter warrant [1/4] three-year warrant
exercisable at $1.25/share for each $1.00 loaned for every 6 month the loan is
active. The effective date of these warrants will be August 1, 2000.
If the Lender agrees in writing no later than January 31, 2000 that this note
can be extended, the loan extension time period will be determined by the
Borrower.
All payments on this Note shall be applied first in payment of accrued interest
and any remainder in payment of principal.
If the installment is not paid, in full, when due, the remaining unpaid balance
and accrued interest shall become due immediately at the option of the Lender.
The Borrower reserves the right to prepay this Note (in whole or in part) prior
to the due date with no prepayment penalty.
If the payment obligation under this Note is not paid when due, the Borrower
promises to pay all costs of collection, including reasonable attorney fees,
whether or not a lawsuit is commenced as part of the collection process.
If any of the following events of default occur, this Note and any other
obligations of the Borrower to the Lender, shall become due immediately, without
demand or notice:
1) the failure of the Borrower to pay the principal and any accrued interest
in full on or before the Due Date;
2) the filing of bankruptcy proceedings involving the Borrower as a Debtor:
3) the application for appointment of a receiver for the Borrower,
4) the making of a general assignment for the benefit of the Borrower's
creditors:
5) the insolvency of the Borrower;
6) the misrepresentation by the Borrower to the Lender for the purpose of
obtaining or extending credit.
The Lender understands that the promissory note described herein is a
subordinate debt position to other existing senior debt holders or their
successors of OurPet's Company obligations. Currently, these lenders are limited
to The Summit Business Capital, and the Small Business Administration.
If any one or more of the provisions of this Note are determined to be
unenforceable, in whole or in part, for any reason, the remaining provisions
shall remain fully operative.
All payments of principal and interest on this Note shall be paid in the legal
currency of the United States. Borrower waives presentment for payment, protest,
and notice of protest and nonpayment of this Note.
The Company shall not effect any such consolidation or merger unless prior to or
simultaneously with the consummation thereof the survivor or successor
corporation resulting from such consolidation or merger shall assume by written
instrument delivered to the Lender all obligations present and due under the
terms of the Note.
No renewal or extension of this Note, delay in enforcing any right of the
Lender under this Note, or assignment by Lender of this Note shall affect the
liability of the Borrower. All rights of the Lender under this Note are
cumulative and may be exercised concurrently or consecutively at the Lender's
option.
This Note shall be construed in accordance with the laws of the State of Ohio.
Signed this 1st day of August, 2000, at Fairport Harbor, Ohio.
Borrower:
Our Pets
By: /s/ Xxxxxx Xxxxxxx
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Xxxxxx Xxxxxxx, President
Witness:
/s/ Xxxx X. Xxxxxxx
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Xxxx X. Xxxxxxx
