Document:

ex10-4.htm

EXHIBIT 10.4

 

FIXED ASSET NOTE

$4,700,000.00 

July 27, 2011

FOR VALUE RECEIVED, the undersigned, EDAC TECHNOLOGIES CORPORATION, a Wisconsin corporation, GROS-ITE INDUSTRIES, INC., and APEX MACHINE TOOL COMPANY, INC., each a Connecticut corporation and each with a place of business located at 1806 Farmington Avenue, Farmington, Connecticut 06032 (collectively, the "Maker"), hereby unconditionally promises to pay to the order of TD BANK, N.A. (the “Payee” or “Bank”), or any subsequent assignee or holder (Payee and any subsequent assignee or holder being sometimes referred to as “Holder”) at the office of the Bank located at 102 West Main Street, New Britain, Connecticut 06050-0174, the principal amount of FOUR MILLION SEVEN HUNDRED THOUSAND AND 00/100 DOLLARS ($4,700,000.00)  advanced to Maker by Bank under the terms of that certain Credit Agreement dated May 27, 2009, by and between Maker and the Bank (as amended and in effect from time to time, the “Credit Agreement”), together with interest thereon as provided herein and all other sums due from Maker to Bank under the Credit Agreement and this Note.

The unpaid principal amount of this Note shall be paid at the times and in the manner set forth in Section 2.4C.4 of the Credit Agreement.

 

Interest on the unpaid principal amount of this Note shall be payable at the times and in the manner specified in Section 2.4C.5 of the Credit Agreement.

 

This Note is the Fixed Asset Note referred to in Section 2.4C.3 of the Credit Agreement, the terms and conditions of which are hereby incorporated by this reference.  Capitalized terms used herein without definition shall have the meanings set forth in the Credit Agreement.

 

If a payment of principal or interest hereunder is not made within fifteen (15) days of its due date, the undersigned will also pay on demand a late payment charge equal to six percent (6%) of the amount of such payment.  Nothing in the preceding sentence shall affect the Bank’s rights to exercise any of its rights and remedies provided in the Credit Agreement if an Event of Default has occurred.

 

No reference to the Credit Agreement nor any provision thereof shall affect or impair the absolute and unconditional obligation of the undersigned Maker of this Note to pay the principal of and interest on this Note as herein provided.

This Note shall be subject to those prepayment provisions set forth in Section 2.4C.8 of the Credit Agreement.

All sums paid under this Note shall be applied first to all fees, costs and expenses incurred by Bank under the Credit Agreement and this Note, then to any late charges payable by Maker, then to any accrued and unpaid interest, with the balance, if any, to be applied to unpaid principal.

 

  

  

  

Until notified in writing of the transfer of this Note, Maker shall be entitled to deem Payee or such person who has been so identified by the transferor in writing to Maker as the holder of this Note, as the owner and holder of this Note.

The Credit Agreement and this Note shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of Connecticut.

Upon the occurrence and during the continuance of an Event of Default (as defined in Section 11 of the Credit Agreement), the unpaid principal amount of this Note may become or may be declared to be due and payable in the manner, upon the conditions and with the effect provided in the Credit Agreement.

The terms of this Note are subject to amendment only in the manner provided in the Credit Agreement.

Any failure by Bank to exercise any right under this Note or the Credit Agreement arising or existing as a result of the occurrence of an Event of Default, or any delay in such exercise, shall not constitute a waiver of the right to exercise such right at a later time so long as such Event of Default shall remain uncured, and shall not constitute a waiver of the right to exercise such right if any other Event of Default shall occur and be continuing.  The acceptance by Bank of the payment of any sum due and payable under this Note after the date specified for such payment shall not be a waiver of Bank’s right to require prompt payment when due of all other sums payable under this Note or of Bank’s right to declare a default for failure to make prompt payment in full.

Maker and each endorser, guarantor and surety of this Note, and each other person liable or who shall become liable for all or any part of the indebtedness evidenced by this Note:

(a)          waive demand, presentment, protest, notice of protest, notice of dishonor, diligence in collection, notice of nonpayment and all notices of a like nature; and

(b)          consent to (i) the release, surrender, exchange or substitution of all or any part of the security for the indebtedness evidenced by this Note, or the taking of any additional security; (ii) the release of any or all other persons from liability, whether primary or contingent, for the indebtedness evidenced by this Note or for any related obligations; and (iii) the granting of any other indulgences to any such person; and

(c)          consent to (i) all renewals, extensions or modifications of this Note or the Credit Agreement (including any affecting the time of payment), and (ii) all advances under this Note or the Credit Agreement.

 

  

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Any such renewal, extension, modification, advance, release, surrender, exchange, substitution, taking or indulgence may take place without notice to any such person, and, whether or not any such notice is given, shall not impair the liability of any such person.

Maker hereby gives Holder a lien and right of setoff for all of its liabilities in respect of such indebtedness upon and against all of its deposits, credits and property, now or hereafter in the possession or control of Holder or in transit to Holder.  Holder may, at any time after the occurrence and during the continuance of an Event of Default, apply the same, or any part thereof, to any liability of Maker or any such other person, whether matured or unmatured, to Holder.

If this Note is now, or hereafter shall be, signed by more than one Person, it shall be the joint and several obligation of all such persons (including, without limitation, all makers, endorsers, guarantors and sureties, if any) and shall be binding on all such Persons and their respective heirs, executors, administrators, legal representatives, successors and assigns.  This Note and all covenants, agreements and provisions set forth in this Note shall inure to the benefit of Holder and its successors and assigns, including any lender(s) with which Holder may participate in the making of any loans or advances evidenced by this Note.

As used in this Note, words of any gender shall be deemed to apply equally to any other gender, the plural shall include the singular and the singular shall include the plural (as the context shall require), and the word “person” shall refer to individuals, entities, authorities and other natural and juridical persons of every type.

MAKER AND EACH AND EVERY ENDORSER, GUARANTOR AND SURETY OF THIS NOTE, AND EACH OTHER PERSON WHO IS OR WHO SHALL BECOME LIABLE FOR ALL OR ANY PART OF THIS NOTE, HEREBY ACKNOWLEDGE THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION AND WAIVE THEIR RIGHTS TO NOTICE AND HEARING UNDER CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES OR BY OTHER APPLICABLE LAW WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH HOLDER MAY DESIRE TO USE.

MAKER AND EACH AND EVERY ENDORSER, GUARANTOR AND SURETY OF THIS NOTE, AND EACH OTHER PERSON WHO IS OR WHO SHALL BECOME LIABLE FOR ALL OR ANY PART OF THIS NOTE, HEREBY WAIVE TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION, OR PROCEEDING OR ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTION OF WHICH THIS NOTE IS A PART AND/OR IN THE ENFORCEMENT BY BANK OF ANY OF ITS RIGHTS AND REMEDIES HEREUNDER OR UNDER APPLICABLE LAW.  MAKER ACKNOWLEDGES THAT IT MAKES THIS WAIVER KNOWINGLY, VOLUNTARILY AND ONLY AFTER CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER BY ITS ATTORNEY.

 

  

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[Signature Page to Fixed Asset Note]

IN WITNESS WHEREOF, Maker has executed this Note as of the date first set forth above.

EDAC TECHNOLOGIES CORPORATION

By: /s/Glenn L. Purple                      

  Name: Glenn L. Purple

  Its Vice President- Finance

  Duly Authorized

GROS-ITE INDUSTRIES, INC.

By: /s/Glenn L. Purple                       

      Name: Glenn L. Purple

      Its Secretary

      Duly Authorized

APEX MACHINE TOOL COMPANY, INC.

By: /s/Glenn L. Purple                       

      Name: Glenn L. Purple

      Its Secretary

  Duly Authorized

 

  

4ex10-1.htm

Exhibit 10.1

SECURITIES AGREEMENT AND MUTUAL RELEASE

  

This Securities Agreement and Mutual Release (this “Agreement”), dated July 26, 2011, is entered into by and between American Restaurant Concepts, Inc., a Florida corporation (the “Company”), and James Robert Shaw (“Shaw”).

Recitals

WHEREAS, the Company has issued shares of its common stock, par value $0.001 per share (the “Common Stock”), to Shaw; and

 

WHEREAS, the parties desire to enter into this Agreement for the purpose of terminating certain shares of Common Stock that have been issued to Shaw and settling all rights, duties and obligations of the parties with respect to such shares.

 

NOW, THEREFORE, in consideration of the foregoing premises and representations, warranties, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

1.           Termination of Shaw Shares.  The parties hereby agree that all Shaw Securities (as defined below) are hereby terminated in their entirety on the date hereof.  Shaw agrees to return all certificates representing the Shaw Securities to the Company immediately for termination and cancellation and to take all such actions as may be necessary to enable the Company to terminate and cancel the Shaw Securities.  For the purposes of this Agreement, “Shaw Securities” shall mean the 13,520,000 shares of Common Stock represented by certificate no. 1034 issued in the name of James Shaw.

 

2.           Consideration.  In consideration for executing this Agreement and returning the certificates representing the Shaw Securities to the Company, the Company shall issue 2,000,000 shares (the “Shares”) of Common Stock to Shaw.  The Company shall deliver the Shares to Shaw at the address set forth in Section 7(h) hereof promptly after both the execution of this Agreement by Shaw and the return of the certificates representing the Shaw Securities to the Company for termination and cancellation.

 

3.           Mutual Release.  Each party, for itself and on behalf of its heirs, assigns, beneficiaries, executors, administrators, subsidiaries, directors, officers, shareholders, affiliates, employees, agents, representatives, attorneys, accountants, successors and assigns, as applicable (collectively, the “Releasing Parties”), does hereby fully and irrevocably remise, release and forever discharge the other party, and its heirs, assigns, beneficiaries, executors, administrators, subsidiaries, directors, officers, shareholders, affiliates, employees, agents, attorneys, accountants, successors and assigns, as applicable (collectively, the “Released Parties”), of and from any and all manner of claims, actions, causes of action, grievances, liabilities, obligations, promises, damages, agreements, rights, debts and expenses (including claims for attorneys' fees and costs), of every kind, either in law or in equity, whether contingent, mature, known or unknown, or suspected or unsuspected, including, without limitation, any claims arising under any federal, state, local or municipal law, common law or statute, whether arising in contract or in tort, and any claims arising under any other laws or regulations of any nature whatsoever, that the Releasing Parties ever had, now have or may in the future have, for or by reason of any cause, matter or thing whatsoever, relating to the Shaw Securities (collectively, “Claims”).  The Releasing Parties further agree and covenant not to sue or bring, or assign to any third person, any Claims or charges against any of the Released Parties with respect to any matter covered by the release set forth above, and not to assert against any of the Released Parties any action, grievance, suit, litigation or proceeding for any matter covered by the release set forth above.

 

  

  

  

4.             Shaw Representations and Warranties.  Shaw hereby represents, warrants, covenants and agrees that he: (i) owns or controls one hundred percent (100%) of the Shaw Securities terminated by this Agreement and his respective Claims released by this Agreement and no other person or entity owns any interest therein, whether by assignment, subrogation or otherwise, (ii) Shaw has not in any way assigned, conveyed or otherwise transferred to any person or entity any interest in the Shaw Securities terminated by this Agreement or his respective Claims released by this Agreement, (iii) with the exception of the Shaw Securities and 340,000 shares of Common Stock represented by stock certificate no. 1039 that are held in the name of Crescent Hill Capital, Corp., Shaw does not own or control, directly or indirectly, any shares of Common Stock, or securities convertible or exercisable into shares of Common Stock, (iv) Shaw presently possesses the exclusive right to receive the Shares to be issued hereunder, and (v) Shaw has the power and authority to enter into and perform this Agreement.

 

5.             Violation of Agreement.  Shaw hereby agrees that if he violates any of the terms of this Agreement, Shaw shall return the Shares, or such other securities as the Shares may have been converted into or exchanged for, along with any dividends, whether paid in the form of cash, stock or other property, and any proceeds received from the sale of any such Shares or securities, to the Company.  In such event, Shaw’s release of his respective Claims against the Company will continue to apply and Shaw will be liable for any attorney’s fees or other costs incurred by the Company as a result of Shaw’s violation of this Agreement.

6.             Costs and Expenses.  Each party shall bear its own costs and expenses, including attorneys’ fees, in connection with the negotiation, execution and performance of this Agreement.

7.             Miscellaneous.

(a)           Entire Agreement.  This Agreement contains the entire agreement between the parties and supersedes all prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereto, and no party shall be liable or bound to any other party in any manner by any warranties, representations, guarantees or covenants except as specifically set forth in this Agreement.  Neither party relied upon any representation or warranty, whether written or oral, made by the other party or any of its or his officers, directors, employees, agents or representatives, in making its or his decision to enter into this Agreement.

(b)           Amendments and Modifications.  This Agreement may not be amended, modified or supplemented except by an instrument or instruments in writing signed by the party against whom enforcement of any such amendment, modification or supplement is sought.

 

(c)           Extensions and Waivers.  At any time after the execution of this Agreement, the party entitled to the benefits of a term or provision may: (i) extend the time for the performance of any of the obligations or other acts of the parties hereto; (ii) waive any inaccuracies in the representations and warranties contained herein or in any document, certificate or writing delivered pursuant hereto; or (iii) waive compliance with any obligation, covenant, agreement or condition contained herein.  Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument or instruments in writing signed by the party against whom enforcement of any such extension or waiver is sought.  No failure or delay on the part of any party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant or agreement.

 

  

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(d)           Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns; provided, however, that Shaw may not assign any of his rights or delegate any of his obligations under this Agreement without the express prior written consent of the Company.  Nothing in this Agreement is intended to confer upon any person not a party hereto (and their successors and assigns) any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

(e)           Headings; Definitions.  The section and article headings contained in this Agreement are inserted for convenience of reference only and will not affect the meaning or interpretation of this Agreement.  All references to sections or articles contained herein mean sections or articles of this Agreement unless otherwise stated.  All capitalized terms defined herein are equally applicable to both the singular and plural forms of such terms.

 

(f)           Severability.  If any provision of this Agreement or the application thereof to any person or circumstance is held to be invalid or unenforceable to any extent, the remainder of this Agreement shall remain in full force and effect and shall be reformed to render this Agreement valid and enforceable while reflecting to the greatest extent permissible the intent of the parties.

 

           (g)           Specific Performance.  The parties hereto agree that in the event any party fails to consummate the transactions for which it is obligated hereunder in accordance with the terms of this Agreement, irreparable damage would occur, no adequate remedy at law would exist and damages would be difficult to determine.  It is accordingly agreed that any party that is an intended beneficiary of any such transactions shall be entitled to specific performance in such event, without the necessity of proving the inadequacy of money damages as a remedy, in addition to any other remedy at law or in equity.

 

(h)           Notices.  All notices hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered personally, sent by documented overnight delivery service or, to the extent receipt is confirmed, telecopy, telefax or other electronic transmission service to the appropriate address or number as set forth below.

 

If to the Company:

American Restaurant Concepts, Inc.

12763 Clear Springs #1

Jacksonville, Florida 32225

Attention:  Michael Rosenberger

If to Shaw:

To that address set forth on the Company’s books and records.

(i)           Construction.  This Agreement shall be governed by and construed in accordance with the laws of the State of Florida.  Any action arising out of or relating to any of the provisions of this Agreement may be brought and prosecuted only in the courts of, or located in, the State of Florida, and in the event of such election the parties hereto consent to the jurisdiction and venue of said courts.

 

(j)           Counterparts.  This Agreement may be executed in two or more counterparts and delivered via facsimile, each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement.

 

[Remainder of page intentionally left blank]

  

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IN WITNESS WHEREOF, the parties have caused this Agreement to be properly executed, all as of the date first written above.

 

	  	
AMERICAN RESTAURANT CONCEPTS, INC.

	  	  
	 	 
	  	  
	  	
By:  /s/ Michael Rosenberger                                               

	
 

	
        Michael Rosenberger

        President

	 	 
	  	  
	  	
/s/ James Robert Shaw                                                           

	  	
James Robert Shaw

 

 

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