Document:

Exhibit 10.6

 

Recording Requested by and

After Recording Return to:

Sally B. McMinimee, Esq.

Prince, Yeates & Geldzahler

15 West South Temple, #1700

Salt Lake City, Utah 84101

 

LEASE SUBORDINATION AGREEMENT

 

THIS LEASE SUBORDINATION AGREEMENT (“Agreement”), dated the 6 of November, 2017, executed by and among PCL L.L.C., of 10011 South Centennial Parkway, Suite 275, Sandy City, Utah 84070 (hereinafter called “Lender”); OVERSTOCK.COM, INC., a Delaware corporation of 799 West Coliseum Way, Midvale, Utah 84047 (hereinafter called “Tenant”), and O.COM LAND, LLC, a Utah limited liability company of 799 West Coliseum Way, Midvale, Utah 84047 (hereinafter called “Landlord”).

 

W I T N E S S E T H:

 

WHEREAS, Tenant has entered into a certain Lease with Landlord dated October 24, 2014 (hereinafter, the “Lease”), a copy of which Lease is attached hereto as Exhibit “A”, covering certain land (the “Land”) located at 799 West Coliseum Way, Midvale, Utah  84047, buildings containing office space of approximately 257,000 square feet (the “Buildings”), and a parking structure (the “Parking Structure”).  The Land, the Buildings and the Parking Structure are hereafter collectively referred to as the “Premises”, located on the real property described on Exhibit “B” attached hereto.

 

WHEREAS, Lender is making a loan (“Loan”) to Landlord to be secured by a Deed of Trust, Assignment of Rents, Assignment of Leases, Security Agreement and Fixture Filing of even date herewith (hereafter, “Trust Deed”) upon the Premises, including an assignment of Landlord’s interest in the Lease; and

 

WHEREAS, Lender requires a subordination of Tenant’s interest to its possible fee ownership of the Premises in the event of a default by the Landlord in its obligations to the Lender in the event that the Lender were to acquire title to the Premises.

 

NOW, THEREFORE, in consideration of the sum of Ten Dollars ($10.00) by each party in hand paid to the other, the receipt of which is hereby acknowledged, and in consideration of the mutual promises, covenants and agreements herein contained, the parties hereto, intending to be legally bound hereby, promise, covenant and agree as follows:

 

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1.                                      SUBORDINATION.

 

A.            Subordination of Lease. The Trust Deed and any and all extensions, renewals, modifications or replacements thereof shall be and at all times remain a lien or charge on the Premises prior to and superior to the Lease or any other leasehold interests of the Tenant.  Tenant unconditionally waives, relinquishes and subordinates any priority of the Lease and Tenant’s right and interest to the Premises thereunder to the lien or charge of the Trust Deed, and any and all extensions, renewals, modifications or replacements thereof.

 

The Lease, all renewals, modifications, consolidations, replacements and extensions of the Lease and all estates, options, liens and charges therein contained or created thereunder are and shall be subject and subordinate to the Loan in favor of Lender, to be secured by the Trust Deed in favor of the Lender, with the same force and effect as if the Trust Deed in favor of the Lender had been executed, delivered, and duly recorded with the Salt Lake County Recorder, prior to Tenant taking possession of the Premises and prior to the execution and delivery of the Lease by Tenant and the Landlord.  The recording information of the Trust Deed to which the Lease is being subordinated is Entry Number 12652771, recorded November 6, 2017 with the Salt Lake County Recorder.

 

B.            Reliance.  Tenant acknowledges that Lender, in extending or continuing to extend credit to Landlord, including the Loan secured by the Premises pursuant to the Trust Deed, is doing so in reliance on this Agreement.

 

2.                                      NO LIABILITY OF LENDER.  Lender shall not be liable to Tenant for any act or omission of any person or entity as a lessor under the Lease, nor for the return of any sums which Tenant may have paid to any other person or entity as a lessor under the Lease as security deposits, advances or otherwise.

 

3.                                      RENTAL PAYMENTS UPON DEFAULT.  Tenant Agrees and the Landlord directs that in the event of a default by Landlord in its loan obligation to Lender, upon written notice to the Tenant and Landlord by Express Courier at the addresses set forth above, Tenant shall, from and after one (1) day following the date the notice is sent by express courier to Landlord and Tenant, pay any and all rents required to be paid pursuant to the Lease directly to Lender at the address contained in the notice.  Tenant shall continue to make all rental payments to the Lender unless and until the Lender directs Tenant to resume making the rental payments due under the Lease to the Tenant.

 

4.                                      NO ADVANCE RENTAL PAYMENTS.  Tenant and Landlord agree that the Tenant shall not make any payment of rent to the Landlord in advance and that rental shall be paid to Landlord in the amount due each month on, or within five (5) days, of the due date of such rental payment.

 

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5.                                      NO MODIFICATION OF LEASE. Tenant and Landlord agree that Tenant and Landlord will not terminate, alter, modify or amend the terms of the Lease without Lender’s prior written consent.  Tenant and Landlord further agree that Tenant and Landlord will not assign, sublet or otherwise grant possession of any portion of the Premises to any other party without the prior written consent of the Lender.

 

6.                                      INSURANCE PROCEEDS; EMINENT DOMAIN PROCEEDING PROCEEDS.  Tenant and Landlord agree that the proceeds of any and all insurance described in the Lease, including business interruption insurance, will be not be disbursed to any party other than the Lender without the Lender’s prior written consent.  Tenant and Landlord further agree that any and all proceeds of any eminent domain proceeding will not be disbursed without Lender’s prior written consent.

 

7.                                      OPTION TO PURCHASE.  If the Lease contains an Option to Purchase in favor of the Tenant, the Landlord and Tenant agree that the Tenant’s Option to Purchase shall be subordinate and junior to Lender’s Trust Deed as described in Paragraph 1 and any Tenant’s Option to Purchase may be exercised if and only if the Option Purchase Price exceeds the amount of the Loan owed by the Landlord to Lender secured by the Premises and that upon exercise of the Option to Purchase the purchase proceeds will be deposited with a title company with instructions that the lien of the Lender must be fully repaid prior to any transfer of the Premises to the Tenant.

 

8.                                      TENANT SOLE OWNER OF LEASEHOLD INTEREST.  Tenant hereby warrants and represents, covenants and agrees with Lender that Tenant is now the sole owner of the leasehold estate created by the Lease and shall not hereafter assign the Lease except as permitted by the terms thereof, and that notwithstanding any such assignment or any sublease, Tenant shall remain primarily liable for the observance and performance of all of its agreements under the Lease.

 

9.                                      BINDING EFFECT OF AGREEMENT.  This Agreement shall be binding upon the parties hereto and their respective heirs, administrators, executors, successors and assigns.

 

10.                               ESTOPPEL.  Tenant acknowledges and represents that:

 

A.            Lease Effective.  The Lease has been duly executed and delivered by Tenant and, subject to the terms and conditions thereof, the Lease is in full force and effect, and the obligations of the Tenant thereunder are valid and binding.

 

B.            No Default.  As of the date hereof and to the best of Tenant’s knowledge, (i) there exists no breach of or default under the Lease, nor any condition, act or event which with the giving of notice or the passage of time, or both, would constitute such a breach or default, and (ii) there are no existing claims, defenses or offsets against the rental due or to become due under the terms of the Lease

 

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11. MISCELLANEOUS.

 

A.            Further Assurances.  At the request of any party hereto, each other party shall execute, acknowledge and deliver such other documents and/or instruments as may be reasonably required by the requesting party in order to carry out the purpose of this Agreement, provided that no such document or instrument shall modify the rights and obligations of the parties set forth herein.

 

B.            Successors, Assigns; Governing Law.  This Agreement shall be binding upon and inure to the benefit of successors, assigns and other transferees of the parties hereto, and shall be governed by and construed in accordance with the laws of the State of Utah.

 

C.            Conflicts.  In the event of any inconsistency between the terms of this Agreement and the Lease, the terms of this Agreement shall control.

 

D.            Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute and be construed as one and the same agreement.

 

	
 
    	
LENDER:
    
	
 
    	
PCL   L.L.C., a Utah limited liability company,
    
	
 
    	
 
    
	
 
    	
By:   CIRQUE PROPERTIES, INC., a Wyoming corporation, Its Manager
    
	
 
    	
 
    
	
 
    	
 
    	
By:    
    	
/s/ Douglas B. Christensen
    
	
 
    	
 
    	
Douglas   B. Christensen
    
	
 
    	
 
    	
Its: Vice   President
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
OVERSTOCK.COM, INC.,   a Delaware corporation,
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert P. Hughes
    
	
 
    	
Name:
    	
Robert P. Hughes
    
	
 
    	
Its:
    	
SVP Finance and Risk   Management
    
					

 

[Signatures continue on the following page]

 

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LANDLORD:
    
	
 
    	
O.COM   LAND, LLC, a Utah limited liability company,
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Carter Lee
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Carter Lee
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
Manager
    

 

5ex_100276.htm

Exhibit 10.47 

 

Pursuant to Instruction 2 of Item 601(a) of Regulation S-K, the Company has filed only the form of this Promissory Note although the Company has entered into various such Promissory Notes that are substantially identical in all material respects except as to the parties thereto and certain other details. The Schedule that follows the form of Promissory Note identifies Promissory Notes that have not been filed (or incorporated by reference) because they are substantially identical in all material respects to the form of Promissory Note that is being filed, and sets forth the material details in which the omitted Promissory Notes differ from the form of Promissory Note that is being filed.

 

PROMISSORY NOTE

 

$______________[Amount]

Broward County, Florida

______________ [Date]

 

FOR VALUE RECEIVED, the undersigned, (hereinafter referred to as the ("Maker") promises to pay to the order of____________, his successors or assigns, (hereinafter referred to as "Payee"), the principal sum of ________________________________ ($______________), together with interest on the principal balance from time to time outstanding, at the rate of _______ percent (__.00%) per annum; principal and interest shall be payable as follows: interest shall be payable monthly and the balance of the principal sum, together with any accrued  and unpaid accrued interest, shall be paid no later than ________, 20__.

 

[This Promissory Note is intended to replace and substitute in its entirety the Notes issued to the Payee in the following amounts received on the following dates:_______________]

 

In the event that the Maker defaults in the payment of any payment of the principal sum or interest owing hereunder when and as the same shall become due and payable and such default shall continue for a period of 15 days, then the Payee may declare this Promissory Note to be in default.  The Payee must provide written notice to the Maker that the Payee is declaring the Note to be in default.  The Maker shall have a cure period of 15 days to resolve the default.  If at the end of the cure period the default has not been resolved, then the entire principal sum and all accrued interest shall become due and payable at once without any additional notice and demand at the option of the Payee.  While in default, amounts outstanding under this Promissory Note shall bear interest at the rate of _____  percent (___%) per annum. 

 

This Promissory Note may be prepaid in whole or in part at any time without penalty or premium.  All payments made shall first be applied to accrued and unpaid interest and then to principal. Any prepayment shall require payment of all accrued interest thereon.

 

In the event of an action to enforce this Promissory Note is commenced in a court of competent jurisdiction or in the event recourse to any court shall be deemed necessary by Payee or Payee deems it necessary to employ legal counsel in order to collect or enforce the terms and provisions hereof for any reason, including but not limited to the filing of a proof(s) of claim or any other proceedings under the Acts of Congress relating to Bankruptcy Proceedings or in any other type of receivership or insolvency proceedings, Payee shall be entitled to reasonable attorney’s fees (through and including any appellate proceedings) and all costs and expenses incurred by Payee in collecting or enforcing payment hereof.

 

The Maker and any endorsers, sureties, guarantors, and all others who are, or may become liable for the payment hereof, (a) severally waive presentment for payment, demand, notice of protest of this Promissory Note, and all other notices in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this Promissory Note, (b) expressly consent to all extensions of time, renewals, postponements of time of payment of this Promissory Note or other modifications hereof from time to time prior to or after the day they became due without notice, consent or consideration to any of the foregoing, (c)  expressly agree to the addition or release of any party or person primarily or secondarily liable hereon, (d)  expressly agree that the Payee shall not be required first to institute any suit, or to exhaust  its remedies against the undersigned or any other person or party to become liable hereunder in order to enforce the payment of this Promissory Note, and (e)  expressly agree that, notwithstanding the occurrence of any of the foregoing (except the express written release by the Payee of any such person), the Maker shall be and remain, directly and primarily liable for all sums due under this Promissory Note.

 

Notwithstanding any other provisions of this Promissory Note or any other instrument executed in connection with the loan evidenced here by, it is expressly agreed that the amounts payable under this Promissory Note or under the other aforesaid instruments for the payment of interest or any other payment in the nature of or which would be considered as interest or other charge for the use or loan of money shall not exceed the highest rate allowed by the laws of the State of Florida, from time to time, and in the event the provisions of this Promissory Note or of such other instrument referred to above in this paragraph with respect to the payment of interest  or other payments in the nature of or which would be considered as interest or other charge for the use or loan of money shall result in exceeding such limitation, then the excess over such limitation shall not be payable and the amount otherwise agreed to have been paid shall be reduced by the excess so that such limitation will not be exceeded.  If any payment is actually made which shall result in such limitation being exceeded, the amount of the excess shall constitute and be treated as a payment on the principal hereof and shall operate to reduce such principal by the amount of such excess, or if in excess of the principal indebtedness, such excess shall be refunded.

 

This Promissory Note shall be construed in accordance with the laws of the State of Florida.

 

MAKER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LITIGATION BASED HEREUNDER, OR ARISING OUT OF, OR IN CONNECTION WITH THIS PROMISSORY NOTE OR ANY DOCUMENT EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF EITHER THE MAKER OR LENDER. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PAYEE TO EXTEND THE CREDIT EVIDENCED BY THIS NOTE.

 

 

MAKER:

 

OMNICOMM SYSTEMS, INC.

 

 

_________________________

[Name]    

[Title]

 

ACCEPTED BY:

 

 

_________________________

[Name]  

 

 

SCHEDULE OF SUBSTANTIAL IDENTICAL PROMISSORY NOTES

 

Pursuant to Instruction 2 of Item 601(a) of Regulation S-K, the Company has filed only the form of this Promissory Note although the Company has entered into various such Promissory Notes that are substantially identical in all material respects except as to the parties thereto and certain other details. The following schedule identifies Promissory Notes that have not been filed (or incorporated by reference) because they are substantially identical in all material respects to the form of Promissory Note that is being filed, and sets forth the material details in which the omitted Promissory Notes differ from the form of Promissory Note that is being filed.

 

	
  Promissory

  Note Date

  	
   

  Name of Payee

  	
   

  Amount

  	
   

  Interest

  	
  Balance

  due

  	
  Amount Outstanding at September 30, 2017 

  
	
  June 30,2016 (1)

  	
  Noesis International Holdings

  2700 North Military Trail, Boca Raton, FL 33431

  	
  $137,500

  	
  12%

  	
  April 1, 2020

  	
  $137,500

  
	
  June 30,2016 (1)

  	
  Noesis International Holdings

  2700 North Military Trail, Boca Raton, FL 33431

  	
  $45,000

  	
  12%

  	
  April 1, 2020

  	
  $45,000

  
	
  June 30,2016 (1)

  	
  Ad Klinkenberg

  Achtergracht 29

  1017 WN 

  Amsterdam

  The Netherlands

  	
  $120,000

  	
  10%

  	
  April 1, 2020

  	
  $120,000

  
	
  June 30,2016 (1)

  	
  Noesis International Holdings

  2700 North Military Trail, Boca Raton, FL 33431

  	
  $100,000

  	
  12%

  	
  April 1, 2020

  	
  $100,000

  
	
  June 30,2016 (1)

  	
  Wim Boegem

  Singel 83 1012 VE

  Amsterdam

  The Netherlands

  	
  $300,000

  	
  10%

  	
  April 1, 2020

  	
  $300,000

  
	
  February 29, 2016

  	
  Cornelis F. Wit

  2101 West Commercial Blvd, Suite 3500, Ft. Lauderdale, FL 33309

  	
  $450,000

  	
  12%

  	
  April 1, 2019

  	
  $400,000

  

 

 

	 	(1)
	This Promissory Note supersedes and replaces a prior Promissory Note to the payee, extends the maturity date of the prior Promissory Note, and may have reduced or increased the amount of the prior Promissory Note.

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