Contract
THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.
ALTA DISPOSAL LTD.
20% SECURED NOTE
Due Date: June 1, 2014
| CDN$330,000.00 | Issue Date: | March 3, 2013 |
FOR VALUE RECEIVED, Alta Disposal Ltd., an Alberta corporation (the “Company”), hereby promises to pay to the order of 514742 B.C LTD. or its assigns (the “Holder”) Three Hundred and Thirty Thousand Dollars ($330,000.00) (the “Principal”) when due, whether upon the Maturity Date (as defined below) or otherwise (in each case in accordance with the terms hereof) and to pay interest (“Interest”) on any outstanding Principal at the applicable Interest Rate (as defined below), from the date set out above as the Issuance Date (the “Issuance Date”) until the same becomes due and payable, whether upon the Maturity Date otherwise (in each case in accordance with the terms hereof). The Principal is comprehensive of the aggregate principal sum of Two Hundred and Ninety-Three Thousand Dollars ($293,00 ) advanced by the Holder, Four Thousand ($4,000) in expenses incurred by the Holder, and third party commission of Thirty-Three Thousand Dollars ($33,000) payable by the Holder to Forefront Advisors.
1. Principal. Unless otherwise provided herein, on the Maturity Date, the Company shall pay to the Holder an amount in cash representing all outstanding Principal and accrued and unpaid Interest (as defined below), if any. The “Maturity Date” shall be 90 days from the Issuance Date. The Company may prepay any portion of the outstanding Principal, accrued and unpaid Interest, if any, without penalty.
2. Transaction Fee. In addition to the Principal, the Company shall pay to the Holder by the Maturity Date a transaction fee (the “Transaction Fee”) of Six Thousand Six Hundred Dollars ($6,600) (being Two Percent (2%) of the Principal). The Transaction Fee shall be non-interest bearing until the Maturity Date, whereupon it shall accrue interest until paid at the Default Interest Rate (as define below).
3. Interest; Interest Rate. The Interest Rate (the “Interest Rate”) on this Note shall be twenty percent (20%) per annum, accruing from the Issuance Date, computed daily on the basis of a 365-day year and payable on the Maturity Date. Any portion of the Principal, Transaction Fee and accrued Interest not paid when due hereunder shall bear interest at the default interest rate (the “Default Interest Rate”) of forty percent (40%) per annum accruing from the Maturity Date, computed daily on the basis of a 365-day year. Interest shall be payable to the record holder of this Note in cash.
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4. Default Penalty. If the Company fails to pay any portion of the Principal, Transaction Fee, or Interest when due hereunder, the Company shall pay to the Holder a default penalty (the “Default Penalty”) of Eighty-Two Thousand Five Hundred Dollars ($82,500), being twenty-five percent (25%) of the Principal. Any unpaid portion of the Default Penalty not paid when due hereunder shall bear interest at the Default Interest Rate until paid.
5. Manner of Payment. The payment of Principal, Interest, of the Transaction Fee, or, if applicable, the Default Penalty in respect this Note shall be paid by the Company to the Holder by wire transfer of immediately available funds to an account or accounts designated by Xxxxxx in writing. If any payment in respect of this Note is due on a day which is not a Business Day, such payment shall be due on the next succeeding Business Day. “Business Day” means any day other than a Saturday, Sunday or legal holiday in the City of Vancouver.
6. Prepayment by Company. The Company may prepay all or any portion of the Principal, Transaction Fee, or Interest at any time prior to the Maturity Date, provided that this Note shall bear minimum aggregate interest of Sixteen Thousand Two Hundred and Seventy Four Dollars ($16,274) (being 90 days interest accruing at the Interest Rate), notwithstanding any prepayment of the Principal Amount.
7. Security. Payment of the principal of, and interest on, this Note, is secured by all present and after acquired property of the Company (the “Security”). The Company and the Holder shall execute the General Security Agreement, annexed hereto as Exhibit A, which, along with Section 8B of this Note, shall govern the release of the Security upon an Event of Default (as defined below). The Company further agrees that it will not transfer, assign, pledge or provide a negative pledge to any third party with respect to the Security while the Note is outstanding.
8. Events of Default
A. The term “Event of Default” shall mean any of the events set forth in this Section 8A (the term “Company” for this purpose shall include all subsidiaries of the Company):
i. Non-Payment of Obligations. The Company shall default in the payment of the Principal, Interest, or the Transaction Fee in respect of this Note, as and when the same shall become due and payable, whether by acceleration or otherwise.
ii. Bankruptcy, Insolvency, etc. The Company shall:
a) admit in writing its inability to pay its debts as they become due;
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b) apply for, consent to, or acquiesce in, the appointment of a trustee, receiver, sequestrator or other custodian for the Company or any of its property, or make a general assignment for the benefit of creditors;
c) in the absence of such application, consent or acquiesce in, permit or suffer to exist the appointment of a trustee, receiver, sequestrator or other custodian for the Company or for any part of its property and that is not dismissed within sixty (60) days;
d) permit or suffer to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law, or any dissolution, winding up or liquidation proceeding, in respect of the Company, and, if such case or proceeding is not commenced by the Company or converted to a voluntary case, such case or proceeding is consented to or acquiesced in by the Company or results in the entry of an order for relief; or
e) take any corporate or other action authorizing any of the foregoing.
B. Action Upon Default; Consent to Judgment. If any Event of Default described in Section 8A above shall occur, the entire Principal Amount and any Interest due under this Note shall become due and payable immediately at the election of the Holder. Upon default of any of the obligations set forth in this Note, the Company and the Holder, authorize and empower any attorney, Justice of the Peace, or Clerk of Court of Record in any of the jurisdictions in which the makers or endorsers reside, work or own property in the Province of British Columbia, or in any other jurisdiction, to enter judgment by confession against such makers and endorsers, jointly and severally, in favor of the Holder or its assigns, for (i) the release of the Security; or (ii) the full amount due plus all costs of collection, including without limitation court costs and reasonable attorney's fees. The Company expressly waives any summons or other process, consents to immediate execution of said judgment, and expressly waives benefit of all exemption laws and presentment, demand, protest, and notice of maturity, and/or protest, and also waives benefit of any other requirements necessary to hold each of them liable as makers and endorsers.
9. Miscellaneous.
A. Parties in Interest. All covenants, agreements and undertakings in this Note binding upon the Company or the Holder shall bind and inure to the benefit of the successors and permitted assigns of the Company and the Holder, respectively, whether so expressed or not.
B. Construction; Headings. This Note shall be deemed to be jointly drafted by the Company, the Holder and the Security Holder, and shall not be construed against any person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect the interpretation of, this Note.
C. Notices. All notices, demands, consents, requests, instructions and other communications to be given or delivered or permitted under or by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby shall be in writing and shall be deemed to be delivered and received by the intended recipient as follows: (i) if personally delivered, on the Business Day of such delivery (as evidenced by the receipt of the personal delivery service), (ii) if mailed certified or registered mail return receipt requested, two (2) Business Days after being mailed, (iii) if delivered by overnight courier (with all charges having been prepaid), on the Business Day of such delivery (as evidenced by the receipt of the overnight courier service of recognized standing), or (iv) if delivered by facsimile transmission or other electronic means, including email, on the Business Day of such delivery if sent by 6:00 p.m. in the time zone of the recipient, or if sent after that time, on the next succeeding Business Day. If any notice, demand, consent, request, instruction or other communication cannot be delivered because of a changed address of which no notice was given, or the refusal to accept same, the notice, demand, consent, request, instruction or other communication shall be deemed received on the second business day the notice is sent (as evidenced by a sworn affidavit of the sender). All such notices, demands, consents, requests, instructions and other communications will be sent to the following addresses or facsimile numbers as applicable:
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| If to the Company, to: | Alta Disposal Ltd. | |
| 000 X. Xxxxxx Xxxx, Xxxxx 000, | ||
| Scottsdale, Arizona 858251 | ||
| Attention: Xxxx Xxxxx, Chief Executive Officer | ||
| Telephone No.: (000) 000-0000 | ||
| Facsimile No.: (000) 000-0000 | ||
| With copies to: | XxxXxxxxx Xxxxxx | |
| 4th Floor - 000 Xxxxxxxxx Xxxxxx | ||
| Vancouver BC V6C 3P1 | ||
| Attn: Xxxxxx Xxxxxxxx | ||
| Telephone No.: (000) 000-0000 | ||
| Facsimile No.: (000) 000-0000 | ||
| If to the Holder, to: | 514742 B.C LTD | |
| Coquitlam, British Columbia V3C 3P5 | ||
| Attention: Xxx Xxxx | ||
| 0000 Xxxxxxxxx Xxx | ||
| With copies to: | XxXxxxxx LLP | |
| Royal Centre, 0000 X. Xxxxxxx Xxxxxx, Xxxxx 0000 | ||
| PO Box 11117 | ||
| Vancouver, BC V6E 4N7 | ||
| Attn: Xxxxx Xxxx | ||
| Telephone No.: (000)000.0000 | ||
| Facsimile No.: (000) 000.0000 |
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D. Cancellation. After all Principal, accrued Interest and other amounts at any time owed on this Note have been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.
E. Governing Law; Jurisdiction; Severability; Jury Trial. This Note shall be construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Note shall be governed by, the internal laws of the Province of Alberta, without giving effect to any choice of law or conflict of law provision or rule (whether of the Province of Alberta or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the Province of Alberta. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the Province of Alberta, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of this Note. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company's obligations to the Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY.
F. No Waiver. No delay in exercising any right hereunder shall be deemed a waiver thereof, and no waiver shall be deemed to have any application to any future default or exercise of rights hereunder.
G. Modification and Severability. If, in any action before any court or agency legally empowered to enforce any provision contained herein, any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make it enforceable by such court or agency. If any such provision is not enforceable as set forth in the preceding sentence, the unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable provision had never been contained herein.
H. Currency. All references to currency hereunder shall be in Canadian Dollars.
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IN WITNESS WHEREOF, this Note has been executed and delivered on the date specified above by the duly authorized representative of the Company.
| COMPANY: | |
| Alta Disposal Ltd. | |
| By: |  |
| Xxxx Xxxxx | |
| Chief Executive Officer | |
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| EXHIBIT A |
| [GSA] |
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