TERM NOTE A
Exhibit
10.2
March
30,
2007
$6,500,000.00
FOR
VALUE
RECEIVED, SEQUIAM CORPORATION, a California corporation (“Borrower”)
promises to pay to the order of BIOMETRICS INVESTORS, L.L.C. (hereinafter,
together with any holder hereof, called “Lender”),
at
the main office of the Lender, up to the principal sum of Six Million Five
Hundred Thousand Dollars ($6,500,000)
or, if
less, the aggregate unpaid principal amount of all advances made to Maker by
Holder under this secured Term Note A (the “Note”),
plus
all accrued but unpaid interest.
Xxxxxxxx further promises to pay interest on the outstanding principal amount
hereof on the dates and at the rates provided in the Agreement from the date
hereof until payment in full hereof.
This
Note
was delivered pursuant to that certain Agreement, as it may be amended from
time
to time, together with all exhibits thereto, dated March
30,
2007 between Lender and Borrower (the “Agreement”).
All
terms which are capitalized and used herein (which are not otherwise defined
herein) shall have the meaning ascribed to such term in the
Agreement.
THE
OUTSTANDING PRINCIPAL BALANCE OF XXXXXXXX'S LIABILITIES TO LENDER UNDER THIS
NOTE SHALL BE PAYABLE ON APRIL 15, 2009 (the “Maturity
Date”)
OR THE
TERMINATION DATE (as defined in the Agreement), following the occurrence of
an
Event of Default (as defined in the Agreement).
This
Note
amends and restates that Second Amended, Restated and Consolidated Senior
Secured Term Note dated November 1, 2005 made by Borrower to Xxx Xxxxxxxx
Xxxxxx, Attorney In Fact for the Trust under the Will of Xxxx Xxxxxxxxxxx,
which
was transferred to Lender by Xxxxxxx X. Xxxx, Attorney In Fact for the Trust
under the Will of Xxxx Xxxxxxxxxxx, and this Note further evidences the amounts
advanced by Xxxxxx to Borrower under the Agreement pursuant to Term Loan A,
as
defined under the Agreement.
Xxxxxxxx
hereby authorizes the Lender to charge any account of Xxxxxxxx for all sums
due
hereunder. If payment hereunder becomes due and payable on a Saturday, Sunday
or
legal holiday under the laws of the United States or the State of Illinois,
the
due date thereof shall be extended to the next succeeding business day, and
interest shall be payable thereon at the rate specified during such extension.
Credit shall be given for payments made in the manner and at the times provided
in the Agreement. It is the intent of the parties that the rate of interest
and
other charges to Borrower under this Note shall be lawful; therefore, if for
any
reason the interest or other charges payable hereunder are found by a court
of
competent jurisdiction, in a final determination, to exceed the limit which
Lender may lawfully charge Borrower, then the obligation to pay interest or
other charges shall automatically be reduced to such limit and, if any amount
in
excess of such limit shall have been paid, then such amount shall be refunded
to
Borrower.
The
principal and all accrued interest hereunder may be prepaid by Xxxxxxxx, in
part
or in full, at any time and without penalty. Any partial payment shall be
applied against the outstanding balance of the Note.
Borrower
waives the benefit of any law that would otherwise restrict or limit Lender
in
the exercise of its right, which is hereby acknowledged, to set-off against
the
Liabilities, without notice and at any time hereafter, any indebtedness matured
or unmatured owing from Lender to Borrower (or any one of them). Borrower waives
any right to assert a counterclaim, other than a counterclaim for gross
negligence or willful misconduct, which Borrower (or any one of them) may now
have or hereafter may have to any action by Lender in enforcing this Note and/or
any of the other Liabilities, or in enforcing Lender's rights in the Collateral
and ratifies and confirms whatever Lender may do pursuant to the terms hereof
and of the Agreement and with respect to the Collateral and agrees that Xxxxxx
shall not be liable for any error in judgment or mistakes of fact or law other
than for gross negligence or willful misconduct.
Borrower,
any other party liable with respect to the Liabilities and any and all endorsers
and accommodation parties, and each one of them, if more than one, waive any
and
all presentment, demand, notice of dishonor, protest, and all other notices
and
demands in connection with the enforcement of Xxxxxx's rights
hereunder.
The
loan
evidenced hereby has been made and this Note has been delivered at Chicago,
Illinois. THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE INTERNAL LAWS OF
THE
STATE OF ILLINOIS AS TO INTERPRETATION, ENFORCEMENT, VALIDITY, CONSTRUCTION,
EFFECT, AND IN ALL OTHER RESPECTS, INCLUDING WITHOUT LIMITATION, THE LEGALITY
OF
THE INTEREST RATE AND OTHER CHARGES, and shall be binding upon Borrower and
Xxxxxxxx's heirs, legal representatives, successors and assigns (and each of
them, if more than one). If this Note contains any blanks when executed by
Borrower (or any one of them, if more than one), the Lender is hereby
authorized, without notice to Borrower (or any one of them, if more than one)
to
complete any such blanks according to the terms upon which the loan or loans
were granted. Wherever possible, each provision of this Note shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Note shall be prohibited by or be invalid under
such law, such provision shall be severable, and be ineffective to the extent
of
such prohibition or invalidity, without invalidating the remaining provisions
of
this Note. The term “Borrower”
as
used
herein shall mean all parties signing this Note, and their respective successors
and assigns shall be jointly and severally obligated hereunder.
To
induce
the Lender to make the loan evidenced by this Note, Borrower (i) irrevocably
agrees that, subject to Xxxxxx's sole and absolute election, all actions arising
directly or indirectly as a result or in consequence of this Note or any other
agreement with the Lender, or the Collateral, shall be instituted and litigated
only in courts having situs in the City of Chicago, Illinois; (ii) hereby
consents to the exclusive jurisdiction and venue of any State or Federal Court
located and having its situs in said city; and (iii) waives any objection based
on forum non-conveniens. IN ADDITION, XXXXXX AND BORROWER (OR ANY ONE OF THEM,
IF MORE THAN ONE) HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING WHICH
PERTAINS DIRECTLY OR INDIRECTLY TO THIS NOTE, THE LIABILITIES, THE COLLATERAL,
ANY ALLEGED TORTIOUS CONDUCT BY BORROWER OR LENDER OR WHICH IN ANY WAY, DIRECTLY
OR INDIRECTLY, ARISES OUT OF OR RELATES TO THE RELATIONSHIP BETWEEN BORROWER
AND
XXXXXX. In addition, Xxxxxxxx agrees that all service of process shall be made
as provided in the Agreement.
As
used
herein, all provisions shall include the masculine, feminine, neuter, singular
and plural thereof, wherever the context and facts require such construction
and
in particular the word “Borrower” shall be so construed.
(Signatures
continue on attached page)
--
IN
WITNESS WHEREOF, each of Borrower, if more than one, has executed this Note
on
the date above set forth.
SEQUIAM
CORPORATION,
a
California corporation
By:
Name:
Title: