Document:

exv10w2

 

Exhibit 10.2

COMMERCIAL

PROMISSORY NOTE

Borrower: ProLink Solutions, LLC, a Delaware limited liability company

	 	 	 	 	 
	 

	 	Execution Date:
	 	February 23, 2006
	 

	 	Effective Date:
	 	February 23, 2006
	$500,000.00

	 	Maturity Date:
	 	August 22, 2006

Borrower promises to pay to the order of David S. Band and Stanley B. Kane, as Co-Trustees of the
Putters Loan Trust, collectively and together with their successors and assigns is called “Lender”)
at 240 S. Pineapple Avenue, 10th Floor, Sarasota, Florida 34236, or such other place as
Lender may hereafter designate in writing, the following:

The principal of Five Hundred Thousand Dollars ($500,000.00) together with interest thereon from
the date hereof as described below is due on the date(s) described below:

INTEREST RATE

The outstanding principal balance of this Note (the “Loan”) shall bear interest at a rate of
Fifteen Percent (15%) per annum. Interest shall be computed daily on the outstanding principal
balance of the Loan. Interest shall be payable monthly in arrears, and shall be computed on the
basis of a 360-day year for actual days elapsed, and will commence accruing on the date of
disbursement of funds to the Borrower.

Interest shall be calculated on the basis of a 360 day year for actual days elapsed.

PAYMENTS

Principal and interest payments shall be made in the following manner:

Interest only on the outstanding principal balance of the Loan shall be due and payable monthly for
interest which has accrued during the preceding month. The first such payment shall be due and
payable on March 22, 2006, and on the 22nd day of each month thereafter during the term
hereof until August 22, 2006.

Unless sooner paid all outstanding principal and accrued interest, if any, shall be fully due and
payable on August 22, 2006.

COLLATERAL

     THIS NOTE IS SECURED BY THE FOLLOWING SPECIFIC COLLATERAL: Personal property as described in
that certain Security Agreement and UCC-1 Financing Statements to be executed and delivered by
Borrower to Lender of even date herewith.

 

 

DEFAULT/DEFAULT INTEREST

     If this Note is not payable on demand, Lender may declare it immediately due and payable upon
the occurrence of any of the following Events of Default: (i) when permitted under any security
agreement now or hereafter in effect securing payment hereof; or (ii) if Lender deems itself
insecure; or (iii) upon any default in the payment of any sum due hereunder or due by the Borrower
hereof to the Lender under any other promissory note or under any security instrument or other
written obligation of any kind now existing or hereafter created; or (iv) upon the insolvency,
bankruptcy, dissolution, death or incompetency of any Borrower, endorser or guarantor hereof.
After maturity, whether by acceleration or otherwise, this Note shall bear interest at the highest
rate allowed by law.

     Notwithstanding anything herein to the contrary, the interest rate applicable to this Note
shall at no time exceed the maximum rate permitted by applicable law whether now or hereafter in
effect. All payments made hereunder shall be applied first to accrued interest then due and owing;
next to amounts expended by Lender to cure any defaults under this Note and the Security Agreement
referenced hereinabove, or any other loan documents executed in connection herewith; next charges,
costs, expenses or attorneys’ fees and paralegals’ fees then due and payable to Lender under the
Note and the Security Agreement or any other loan documents executed in connection herewith; and
the balance, if any, to principal.

LATE CHARGES

     If any payment hereunder (other than the final balloon payment) is not made within ten (10)
days from its original due date, the undersigned shall pay to Lender a late charge equal to five
percent (5%) of the delinquent payment.

GENERAL TERMS

     This Note may be prepaid, in whole or in part, at any time without penalty.

     Each Borrower, endorser and guarantor, jointly and severally; (i) promises to pay all
collection costs, including a reasonable attorneys fee (which said term shall be inclusive of
attorneys and paralegals fees), whether incurred in connection with collection, trial, appeal or
otherwise; (ii) waives presentment, demand, notice of dishonor and protest; and (iii) gives the
Lender a security interest in any funds or other assets from time to time on deposit with or in
possession of the Lender, and the Lender may, at any time, set off the indebtedness evidenced by
this Note against any such funds or other assets. In addition to any specific collateral listed
herein, this Note is also secured by all collateral covered by any security agreement which by its
terms covers this Note.

     LENDER AND BORROWER, UPON EXECUTION AND ACCEPTANCE HEREOF, HEREBY EACH KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS PROMISSORY NOTE AND/OR ANY AGREEMENT CONTEMPLATED
TO BE

2

 

EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN), OR ACTIONS OF LENDER. THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER
MAKING THE LOAN EVIDENCED BY THIS NOTE.

	 	 	 
	 

	 	ProLink Solutions, LLC, a Delaware limited

liability company
	 
	 	 
	 
	 	/s/ Barry A. Sullivan
	 

	 	 
	 

	 	Barry A. Sullivan

Chief Financial Officer

3exv10w3

 

Exhibit
10.3

SECURITY AGREEMENT

     This is a Security Agreement between Borrower and Lender identified below dated effective as
of February 23, 2006.

	 	 	 	 	 
	Borrower: 	 	ProLink Solutions,
LLC

c/o Lawrence D. Bain, President & CEO

410 South Benson Lane

Chandler, Arizona 85224

Email: bainl@goprolink.com
	 
	 	 	 	 
	Lender: 	 	David S. Band and Stanley B. Kane, as Co-Trustees

of the Putters Loan Trust

c/o David S. Band

P.O. Box 49948

Sarasota, Florida 34230

Email: dband@abelband.com
	 
	 	 	 	 
	Obligations: 

	 	1. 
	 	The payment and performance of that certain promissory note of even date in
the principal amount of Five Hundred Thousand Dollars ($500,000.00), executed by Borrower and
delivered to Lender (the “Note”).
	 
	 	 	 	 
	 

	 	2. 
	 	All other liabilities or obligations of
Borrower to Lender due or to become due or arising hereafter whether
direct, indirect, primary, secondary, absolute or contingent and
relating to the indebtedness secured hereby.
	 
	 	 	 	 
	 

	 	3. 
	 	Performance of all agreements contained in this
Security Agreement.
	 
	 	 	 	 
	Collateral: 	 	The Collateral shall consist of the following: (i) all of the payments due, or
to become due, under those certain golf course lease agreements more specifically set forth on
Exhibit “A” attached hereto (collectively, the “Leases”); and (ii) that certain GPS equipment
subject to the Leases, as more specifically set forth on Exhibit “B” attached hereto
(collectively, the “Equipment”).

	1.	 	Grant of Security Interest. Borrower grants to Lender a security interest (the
“Security Interest”) in the Collateral, products of the Collateral, proceeds of the Collateral
and replacements of the Collateral, where applicable. The Security Interest shall secure the
payment and performance of all Obligations.
	 
	2.	 	Borrower’s Warranties. Borrower represents and warrants as follows:

 

 

	 	a.	 	Borrower is the owner of the Collateral free of all claims, encumbrances, liens
and security interests, except for the Security Interest granted hereby.
	 
	 	b.	 	Borrower has the right to make this Agreement.
	 
	 	c.	 	Borrower will not assign, pledge, mortgage, hypothecate or transfer the
Collateral during the term of this Agreement, without the prior written consent of
Lender.

	3.	 	Borrower’s Agreements. Borrower agrees as follows:

	 	a.	 	It will pay the Lender all the amounts payable on the Note and all other
amounts due Lender whether evidenced by the Note or not, as and when the same shall be
due and payable, whether at maturity, by acceleration or otherwise, and will perform
all terms of the Note.
	 
	 	b.	 	It will defend the Collateral against the claims and demands of all persons.
	 
	 	c.	 	It will pay as part of the debt hereby secured all amounts, including
reasonable attorneys’ fees, paralegal, legal assistant and similar fees and costs, with
interest thereon, paid by Lender in taking possession of, disposing of or preserving
the Collateral after any default hereinafter described.
	 
	 	d.	 	It will not:

	 	(i)	 	permit any liens or security interests to attach to any of the
Collateral, except as created hereby;
	 
	 	(ii)	 	permit any of the Collateral to be levied upon under any legal
process; or
	 
	 	(iii)	 	permit anything to be done that may impair the value of any of
the Collateral or the security intended to be afforded by this Agreement.

	 	e.	 	It will do all acts and things which Lender may deem necessary to perfect and
continue perfected the security interest granted by this Agreement and to protect the
Collateral, and hereby authorizes Lender to file any financing statements,
continuation, amendment and termination statements as Lender determines are necessary,
and Borrower appoints Lender its attorney in fact, with full power of substitution, to
do all such acts and all other acts Borrower may be required to do under this
Agreement.
	 
	 	f.	 	It will notify Lender within ten (10) days of a change in the Borrower’s State
of incorporation.

	4.	 	Default. It shall be a default hereunder if any of the following events occur:

 

 

	 	a.	 	Any representation or warranty made by Borrower in this Agreement is untrue or
is not fulfilled.
	 
	 	b.	 	Borrower fails to pay any Obligation when due.
	 
	 	c.	 	Borrower fails to observe or perform any covenant, warranty or agreement to be
performed by Borrower under this Agreement or any of the Obligations or other
agreements with Lender, following Lender’s written notice to the Borrower and the
Borrower’s failure to cure within ten (10) days of such written notice.
	 
	 	d.	 	Borrower is involved in any substantial financial difficulty as evidenced by:

	 	(i)	 	an assignment, composition or similar device for the benefit of
creditors;
	 
	 	(ii)	 	inability to pay debts when due;
	 
	 	(iii)	 	an attachment or receivership of assets, not dissolved within
forty-five (45) days;
	 
	 	(iv)	 	the voluntary filing of a petition in bankruptcy or the
institution of any other proceeding under the law relating to bankruptcy,
bankruptcy reorganization, insolvency or relief of borrowers; or
	 
	 	(v)	 	the involuntary filing of a petition in bankruptcy or the
institution of any other proceeding under any law relating to bankruptcy,
bankruptcy reorganization, insolvency or relief of borrowers.

	 	e.	 	Encumbrance of any or all of the Collateral.

	5.	 	Lender’s Remedies on Default:

	 	a.	 	Upon default by Borrower, Lender shall have all of the rights and remedies of a
lender under the Uniform Commercial Code or other applicable law and all rights
provided herein, in the Notes, or in any other applicable security or loan agreement,
including, without limitation, the right to retain all or any portion of the Collateral
in full or partial satisfaction of the Notes and the right to sell, lease or otherwise
dispose of any or all of the Collateral, all of which rights and remedies shall, to the
full extent permitted by law, be cumulative. The waiver of any default hereunder shall
not be a waiver of any subsequent default.
	 
	 	b.	 	After deducting all costs and expenses of every kind incurred in, or incidental
to, the retaking, holding, advertising, preparing for sale, or the selling, leasing or
otherwise disposing of the Collateral, including, without limitation, attorneys’ fees,
paralegal, legal assistant and similar fees and costs, all of which costs and expenses
Borrower agrees to pay, Lender may apply the net proceeds of any sale, lease or other
disposition of the Collateral to payment of the Obligations hereby secured, whether due
or not, in such order as Lender may elect. At any such sale,

 

 

Lender may, if Lender is the highest bidder, purchase any or all of the Collateral
so sold, free from any right of redemption in Borrower, which right of redemption is
hereby expressly waived. Only after full payment of all Obligations, and any other
payments Lender may be required by law to make, need Lender account to Borrower for
any surplus. Borrower shall remain liable to Lender for the payment of any
deficiency with interest at the highest rate allowable by law.

	6.	 	Notices. All notices under this Security Agreement shall be in writing and shall be
deemed delivered twenty-four (24) hours after being deposited in the U. S. mails, postage
prepaid, addressed to Borrower at the address specified above or, at such other address as may
be designated by Borrower, provided Lender is in receipt of such change of address.
	 
	7.	 	Binding Effect. All rights of the Lender hereunder shall inure to the benefit of its
successors and assigns; and all obligations of Borrower shall bind their heirs, executors,
administrators, successors and assigns.
	 
	8.	 	Waivers by Borrower. Borrower hereby waives presentment, notice of dishonor and
protest of all instruments included in or evidencing any of the Obligation or the Collateral
and any and all other notices and demands whatsoever (except as expressly provided herein)
whether or not relating to such instruments. In the event of any litigation at any time
arising with respect to any matter connected with this Agreement or the Obligations, Borrower
hereby waive the right to a trial by jury and waive any and all defenses, rights of set off
and rights to interpose counterclaims of any nature.
	 
	9.	 	Miscellaneous.

	 	a.	 	If more than one (1) Borrower signs this Agreement, the liability of each
Borrower shall be joint and several.
	 
	 	b.	 	The laws of the State of Florida shall govern the construction of the interest,
rights and duties of the parties under this Agreement.
	 
	 	c.	 	A carbon, photographic or other reproduction of this Agreement shall be
sufficient as a financing statement.
	 
	 	d.	 	If any term of this Agreement shall be held to be invalid, illegal or
unenforceable the validity of all other terms hereof shall in no way be affected
thereby.

     IN WITNESS WHEREOF, the undersigned has executed this Security Agreement the day and year
first above written.

 

 

	 	 	 
	WITNESSES:

	 	BORROWER:
	 
	 	 
	 

	 	ProLink Solutions, LLC
	 
	 	 
	/s/
Dave M. Gomez
	 	/s/ Barry A. Sullivan
	 

	 	 
	Dave M. Gomez

	 	Barry A. Sullivan
	General Counsel

	 	Chief Financial Officer
	ProLink Solutions, LLC

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