Contract
Amendment,
dated July 8, 2008 (the “Amendment”)
to the
Grid Secured Promissory Note (the “Note”),
dated
April 24, 2008, by and between Xxxxx.xxx Group, Inc., (“Borrower”)
and
Xxxxxxxxxxx X. Xxxxx (“Lender”).
Any
capitalized term used but not defined in this Amendment shall have the meaning
given to such term in the Note.
WHEREAS,
pursuant to the Note the Borrower is entitled to borrow from the Lender an
amount not to exceed four hundred thousand dollars ($400,000)
dollars.
WHEREAS,
the Borrower and the Lender would like to amend the Note to increase the amount
that can be borrowed under the Note from four hundred thousand dollars
($400,000) to seven hundred thousand dollars ($700,000).
WHEREAS,
pursuant to the Note, the Borrower granted the Lender a security interest in
all
amounts receivable by the Borrower in connection with or related to a jury
award
awarded to the Borrower against Kestrel Technologies, Inc. on or about April
1,
2008, not including certain attorneys’ fees as set forth further in the
Note.
WHEREAS,
the Borrower and Lender would like to amend the collateral given in the Note
to
remove the previous collateral and instead include a security interest in the
domain name of the Borrower, “xxxxx.xxx”.
NOW,
THEREFORE, pursuant to Section 6(d) of the Note, the Lender agrees as
follows:
1. Amendment
to Section 2 of the Note.
Effective as of the date hereof, the first sentence of Section 2 of the Note
is
deleted in its entirety and replaced with the following:
“The
Loans in the aggregate shall not exceed seven hundred thousand dollars
($700,000) dollars.”
2. Amendment
to Section 5 of the Note.
Effective as of the date hereof, Section 5 of the Note is deleted in its
entirety and replaced with the following:
“SECURITY
INTEREST.
A. The
Lender hereby releases its security interest and any other right, title or
interest Lender may have in all amounts receivable by the Borrower in connection
with or related to a jury award of approximately $700,000 (inclusive of
pre-trial interest) awarded to the Borrower against Kestrel Technologies, Inc.
on or about April 1, 2008.
B. The
Borrower hereby grants to the Lender a security interest in all of its right,
title and interest in and to the domain name “xxxxx.xxx” (the “Collateral”).
The
Lender hereby acknowledges that the Borrower is granting a similar security
interest in the Collateral to Valhalla Investment Partners pursuant to a
substantially similar Note issued on or about the date hereof.”
3. No
Other Amendments.
Except
as expressly amended, modified and supplemented hereby, the provisions of the
Note, as amended, are and will remain in full force and effect and, except
as
expressly provided herein, nothing in this Amendment will be construed as a
waiver of any of the rights or obligations of the parties under the
Note.
4.
Conflicts
in Terms.
In the
event of any conflict in terms between this Amendment and the Note, the terms
and conditions of this Amendment shall prevail.
5. Governing
Law.
This
Amendment shall be governed by, and construed in accordance with, the laws
of
the State of Florida (without giving effect to any conflicts of laws principles
there under).
6. Descriptive
Headings.
Descriptive headings are for convenience only and will not control or affect
the
meaning or construction of any provisions of this Amendment.
7. Counterparts.
This
Amendment may be executed in any number of identical counterparts, each of
which
will constitute an original but all of which when taken together will constitute
but one instrument.
8. Severability.
In the
event one or more of the provisions of this Amendment should, for any reason,
be
held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provisions of this
Amendment, and this Amendment shall be construed as if such invalid, illegal
or
unenforceable provision had never been contained herein.
[Remainder
of Page Intentionally Left Blank]
IN
WITNESS WHEREOF, the parties have executed this Amendment as of the date set
forth above.
BORROWER:
Xxxxx.xxx
Group, Inc.
By:
/s/
Xxxx X. Xxxxx
XX
Name:
Xxxx X. Xxxxx XX
Title:
Chief Executive Officer and President
LENDER:
/s/
Xxxxxxxxxxx X.
Xxxxx
Xxxxxxxxxxx
X. Xxxxx