Document:

EXHIBIT 10.1

 

DEMAND NOTE

 

	
  $200,000

  	
   

  	
  As of
  January 25, 2002

  

 

For value received, the
undersigned Axcess Inc. (the “Maker”) promises to pay ON DEMAND, in immediately
available funds, to the order of Amphion Investments LLC (hereinafter referred
to as the “Payee”), at the office of 
Payee located at 350 Madison Avenue New York, New York 10017, the
principal sum of Two Hundred Thousand Dollars ($200,000.00) plus 6.75% interest
plus such additional amounts (including interest) as may be shown on a Schedule
of Advances annexed hereto and acknowledges in writing by the maker
(“Principal”).

 

Notwithstanding anything to the
contrary set forth herein, the entire unpaid Principal is subject to mandatory
prepayment in the event of any liquidation, dissolution or winding up of the
Maker.  The consolidation or merger of
the Maker into or with any other entity or entities, or the sale or lease,
exchange or other transfer by the Maker into or with any other entity or
entities, or the sale, lease, exchange or other transfer by the Maker of all or
substantially all of its assets, or dissolution without reconstitution of the
Maker of this Note, appointment of a receiver of any part of the property of ,
assignment for the benefit of creditors by, or commencement of any proceeding
under the United States Bankruptcy Code or any insolvency laws by or against
the Maker, shall be deemed to be a liquidation, dissolution or winding up of
the Maker within the meaning of the provisions of this paragraph.

 

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

 

The Principal outstanding under
this Note may convert at any time, at the election of the Payee, into
securities of the Maker.

 

Every maker, endorser and
guarantor hereof or of the indebtedness evidenced hereby (a) waives notice of
and consents to any and all advances, settlements, compromises, favors and
indulgences (including, without limitation, any extension or postponement of
the time for payment), and any and all additions, substitutions and releases of
any person primarily or secondarily liable, (b) waives presentment, demand,
notice, protest and all other demands, notices and suretyship defenses
generally, in connection with the delivery, acceptance, performance, default or
enforcement of or under this Note, and (c) agrees to pay, to the extent
permitted by law, all costs and expenses, including, without limitation,
reasonable attorneys’ fees, incurred or paid by the Payee in enforcing this
Note and any collateral or security therefor on default, whether or not
litigation is commenced.

 

No delay or omission of the
Payee in exercising any right or remedy hereunder shall constitute a waiver of
any such right or remedy.  Acceptance by
the Payee of any payment after the acceleration shall not be deemed a waiver of
such acceleration. A waiver on one occasion shall not operate as a bar to or
waiver of any such right or remedy on any future occasion on any future
occasion.

 

The Maker represents that this
Note has been duly executed and delivered and constitutes a legal, valid and
binding obligation of the Maker, enforceable against the Maker in accordance
with its terms.  The execution, delivery
and performance of this Note does not and will not violate or conflict with,
result in a breach of, or constitute a default under, any applicable law or any
indenture, agreement, or other contractual restriction, or instrument to which
the Maker is a party, or all such violations, conflicts, breaches, or defaults
have been duly waived.

 

This Note shall take effect as an
instrument under seal and shall be governed and construed in accordance with
the laws of the New York.

 

 

	
   

  	
  AXCESS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ALLAN GRIEBENOW

  
	
   

  	
   

  	
  Allan Griebenow, Chief Executive Officer

  

 

1

 

SCHEDULE OF ADVANCES

 

This Schedule supplements the
Note dated January 25, 2002 by and between AXCESS INC. as Maker and Amphion
Investments LLC  as Payee.  The Maker hereby acknowledges receipt of the
advances in the amount and on the dates set forth below, all of which shall be
included as “Principal” under, and be governed by the terms and conditions of,
said Note.

 

	
  Date of
  Advance

  	
   

  	
  Amount of
  Advance

  	
   

  	
  % Interest

  	
   

  	
  Receipt Acknowledged

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  1/30/02

  	
   

  	
  $

  	
  150,000

  	
   

  	
  6.75

  	
  %

  	
  By:

  	
  /s/ ALLAN
  GRIEBENOW

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Allan
  Griebenow, Chief Executive Officer

  	
   

  
	
  7/2/02

  	
   

  	
  $

  	
  75,000

  	
   

  	
  6.75

  	
  %

  	
  By:

  	
  /s/ ALLAN
  GRIEBENOW

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Allan
  Griebenow, Chief Executive Officer

  	
   

  
	
  3/31/03

  	
   

  	
  $

  	
  50,000

  	
   

  	
  6.75

  	
  %

  	
  By:

  	
  /s/ ALLAN
  GRIEBENOW

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Allan
  Griebenow, Chief Executive Officer

  	
   

  
												

 

2EXHIBIT
10.34

 

THIRD
AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS
THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”),
dated as of May 12, 2003, is entered into between FOOTHILL CAPITAL CORPORATION, a California corporation, as
agent (in such capacity, “Agent”) for the Lenders (as defined below),
and EN POINTE TECHNOLOGIES SALES, INC.,
a Delaware corporation (“Borrower”).

 

RECITALS

 

A.            Borrower, the lenders signatory
thereto (the “Lenders”) and Agent have previously entered into that
certain Loan and Security Agreement dated December 28, 2001, as amended by that
First Amendment to Loan and Security Agreement, dated July 30, 2002, and that
Second Amendment to Loan and Security Agreement, dated October 9, 2002 (as
amended, the “Loan Agreement”), pursuant to which the Lenders have made
certain loans and financial accommodations available to Borrower.  Terms used herein without definition shall
have the meanings ascribed to them in the Loan Agreement.

 

B.            Borrower and Agent now wish to amend
the Loan Agreement on the terms and conditions set forth herein.

 

C.            Borrower is entering into this
Amendment with the understanding and agreement that, except as specifically
provided herein, none of Agent’s or any Lender’s rights or remedies as set
forth in the Loan Agreement are being waived or modified by the terms of this
Amendment.

 

AMENDMENT

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants herein contained, and
for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereby agree as follows:

 

1.             Amendment to Loan Agreement.

 

(a)           The definition of “Base Rate Margin”
contained in Section 1.1 of the Loan Agreement is hereby amended and restated
to read in its entirety as follows:

 

“ “Base Rate Margin”
means two percentage points (2.00%); provided, however, on each
date on which financial statements are timely delivered under Section 6.3(a),
beginning with the delivery of financial statements for the fiscal quarter
ending March 31, 2003, the Base Rate Margin shall be reset to be a number of
percentage points depending on Borrower’s EBITDA for the prior 12 months,
measured quarterly, as set forth below:

 

 

 

	
  Trailing 12 Month EBITDA

  	
   

  	
  Margin over 

  Base Rate

  	
   

  
	
  Greater than or equal to $6,000,000

  	
   

  	
  0.75

  	
  %

  
	
  Greater than
  or equal to $4,000,000 but less than $6,000,000

  	
   

  	
  1.00

  	
  %

  
	
  Greater than
  or equal to $2,000,000 but less than $4,000,000

  	
   

  	
  1.75

  	
  %

  
	
  Less than
  $2,000,000

  	
   

  	
  2.50

  	
  %

  

 

; provided, further, if financial
statements are not timely delivered under Section 6.3(a) the Base Rate
Margin shall be set on the date such financial statements are due at two and
one-half percentage points (2.50%) and
shall remain at that rate until the delivery of financial statements that
permit the setting of the Base Rate Margin in accordance with the table above.”

 

(b)           The definition of “LIBOR Rate Margin”
contained in Section 1.1 of the Loan Agreement is hereby amended and restated
to read in its entirety as follows:

 

“ “LIBOR Rate Margin”
means four and one-fourth percentage points (4.25%); provided, however,
on each date on which financial statements are timely delivered under Section
6.3(a), beginning with the delivery of financial statements for the fiscal
quarter ending March 31, 2003, the LIBOR Rate Margin shall be reset to be a
number of percentage points depending on Borrower’s EBITDA for the prior 12
months, measured quarterly, as set forth below:

 

	
  Trailing 12 Month EBITDA

  	
   

  	
  Margin over

  Base LIBOR

  Rate

  	
   

  
	
  Greater than
  or equal to $6,000,000

  	
   

  	
  3.00

  	
  %

  
	
  Greater than
  or equal to $4,000,000 but less than $6,000,000

  	
   

  	
  3.25

  	
  %

  
	
  Greater than
  or equal to $2,000,000 but less than $4,000,000

  	
   

  	
  4.00

  	
  %

  
	
  Less than
  $2,000,000

  	
   

  	
  4.75

  	
  %

  

 

 

; provided, further, if financial
statements are not timely delivered under Section 6.3(a) the LIBOR Rate
Margin shall be set on the date such financial statements are due at four and
three-fourths percentage points (4.75%) and shall remain at that rate until the
delivery of financial statements that permit the setting of the LIBOR Rate Margin
in accordance with the table above.”

 

2

 

(c)           Section 2.6(c) of the Loan Agreement
is hereby amended and restated in its entirety to read as follows:

 

                                                “(c)         Guaranty
Reserve Fee.  On the first
day of each month during the term of this Agreement, Borrower shall pay Agent
(for the ratable benefit of the Lenders with a Revolver Commitment, subject to
any letter agreement between Agent and individual Lenders), a Guaranty Reserve
fee which shall accrue at a rate equal to one and one-fourth percentage points
(1.25%) per annum times the Daily Balance of the IBMCC Obligations.”

 

(d)           Section 7.19(a)(i) of the Loan
Agreement is hereby amended and restated in its entirety to read as follows:

 

“(i)          Minimum EBITDA.  EBITDA, measured on a fiscal quarter-end basis, of not less than
the required amount set forth in the following table for the applicable period
set forth opposite thereto:

 

	
  Applicable Amount

  	
   

  	
  Applicable Period

  
	
  $(3,500,000)

  	
   

  	
  For
  the 12 month period  ending March 31,
  2003

  
	
   

  	
   

  	
   

  
	
  $(1,900,000)

  	
   

  	
  For
  the 12 month period  ending June 30,
  2003

  
	
   

  	
   

  	
   

  
	
  $(750,000)

  	
   

  	
  For
  the 12 month period  ending September
  30, 2003

  
	
   

  	
   

  	
   

  
	
  $300,000

  	
   

  	
  For
  the 12 month period  ending December
  31, 2003

  
	
   

  	
   

  	
   

  
	
  $2,450,000

  	
   

  	
  For the 12 month period  ending on the last day of each fiscal
  quarter thereafter”

  

 

(e)           Section 7.19(a)(ii) of the Loan
Agreement is hereby amended and restated in its entirety to read as follows:

 

“(ii)         Tangible Net Worth.  Tangible Net Worth, measured on a fiscal
quarter-end basis, of not less than the required amount set forth in the
following table for the applicable period set forth opposite thereto:

 

3

 

	
  Applicable Amount

  	
   

  	
  Applicable Period

  
	
  $15,000,000

  	
   

  	
  For
  the fiscal quarter ending March 31, 2003

  
	
   

  	
   

  	
   

  
	
  $14,250,000

  	
   

  	
  For
  the fiscal quarter  ending June 30,
  2003

  
	
   

  	
   

  	
   

  	
   

  
	
  $14,250,000

  	
   

  	
  For
  the fiscal quarter ending September 30, 2003

  
	
   

  	
   

  	
   

  	
   

  
	
  $14,500,000

  	
   

  	
  For
  the fiscal quarter  ending December
  31, 2003

  
	
   

  	
   

  	
   

  
	
  $14,600,000

  	
   

  	
  For
  each fiscal quarter ending thereafter”

  

 

2.             Effectiveness of this Amendment.  Agent must have received the following
items, in form and content acceptable to Agent, before this Amendment is
effective, and before any Lender is required to extend any credit to Borrower
as provided for by this Amendment.

 

(a)           Amendment; Acknowledgement.  This Amendment and the attached
Acknowledgement by Guarantors, each fully executed in a sufficient number of
counterparts for distribution to all parties.

 

(b)           Amendment Fee.  An amendment fee in the amount of Fifty
Thousand Dollars ($50,000), fully earned as of, and due and payable on, the
date hereof.

 

(c)           Representations and Warranties.  The representations and warranties set forth
herein and in the Loan Agreement must be true and correct.

 

(d)           Other Required Documentation.  All other documents and legal matters in
connection with the transactions contemplated by this Amendment shall have been
delivered or executed or recorded and shall be in form and substance
satisfactory to Agent.

 

3.             Representations and Warranties.  Borrower represents and warrants as follows:

 

(a)           Authority.  Borrower has the requisite corporate power
and authority to execute and deliver this Amendment, and to perform its
obligations hereunder and under the Loan Documents (as amended or modified
hereby) to which it is a party.  The
execution, delivery and performance by Borrower of this Amendment have been
duly approved by all necessary corporate action, have received all necessary
governmental approval, if any, and do not contravene any law or any contractual
restriction binding on Borrower.  No
other corporate proceedings are necessary to consummate such transactions.

 

(b)           Enforceability.  This Amendment has been duly executed and
delivered by Borrower.  This Amendment
and each Loan Document (as amended or modified hereby) is the

 

4

 

legal, valid and binding obligation of Borrower,
enforceable against Borrower in accordance with its terms, and is in full force
and effect.

 

(c)           Representations and Warranties.  The representations and warranties contained
in each Loan Document (other than any such representations or warranties that,
by their terms, are specifically made as of a date other than the date hereof)
are correct on and as of the date hereof as though made on and as of the date
hereof.

 

(d)           No Default.  After giving effect to this Amendment, no
event has occurred and is continuing that constitutes an Event of Default and
by entering into this Amendment, Agent is not waiving and shall not be deemed
to have waived any Event of Default that may exist.

 

4.             Choice of Law. 
The validity of this Amendment, its construction, interpretation and
enforcement, the rights of the parties hereunder, shall be determined under, governed
by, and construed in accordance with the internal laws of the State of
California governing contracts only to be performed in that State.

 

5.             Counterparts. 
This Amendment may be executed in any number of counterparts and by
different parties and separate counterparts, each of which when so executed and
delivered, shall be deemed an original, and all of which, when taken together,
shall constitute one and the same instrument. 
Delivery of an executed counterpart of a signature page to this
Amendment by telefacsimile shall be effective as delivery of a manually
executed counterpart of this Amendment.

 

6.             Reference to and Effect on the Loan Documents.

 

(a)           Upon and after the effectiveness of
this Amendment, each reference in the Loan Agreement to “this Agreement”,
“hereunder”, “hereof” or words of like import referring to the Loan Agreement,
and each reference in the other Loan Documents to “the Loan Agreement”,
“thereof” or words of like import referring to the Loan Agreement, shall mean
and be a reference to the Loan Agreement as modified and amended hereby.

 

(b)           Except as specifically amended above,
the Loan Agreement and all other Loan Documents, are and shall continue to be
in full force and effect and are hereby in all respects ratified and confirmed
and shall constitute the legal, valid, binding and enforceable obligations of
Borrower to Lenders and Agent without defense, offset, claim or contribution.

 

(c)           The execution, delivery and
effectiveness of this Amendment shall not, except as expressly provided herein,
operate as a waiver of any right, power or remedy of Agent or any Lender under
any of the Loan Documents, nor constitute a waiver of any provision of any of
the Loan Documents.

 

(d)           To the extent that any terms and
conditions in any of the Loan Documents shall contradict or be in conflict with
any terms or conditions of the Loan Agreement, after giving effect to this
Amendment, such terms and conditions are hereby deemed modified or amended
accordingly to reflect the terms and conditions of the Loan Agreement as
modified or amended hereby.

 

5

 

7.             Ratification. 
Borrower hereby restates, ratifies and reaffirms each and every term and
condition set forth in the Loan Agreement, as amended hereby, and the Loan
Documents effective as of the date hereof.

 

8.             Estoppel. 
To induce Agent to enter into this Amendment and to induce the Lenders
to continue to make advances to Borrower under the Loan Agreement, Borrower
hereby acknowledges and agrees that, after giving effect to this Amendment, as
of the date hereof, there exists no Event of Default and no right of offset,
defense, counterclaim or objection in favor of Borrower as against Agent or any
Lender with respect to the Obligations.

 

IN WITNESS WHEREOF,
the parties have entered into this Amendment as of the date first above
written.

 

	
   

  	
  EN POINTE TECHNOLOGIES SALES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Kevin D. Ayers

  	
   

  
	
   

  	
  Title:

  	
  CFO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FOOTHILL CAPITAL CORPORATION,

  
	
   

  	
  as Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larissa Megerdichian

  	
   

  
	
   

  	
  Title

  	
  VP

  	
   

  

 

6

 

ACKNOWLEDGEMENT BY GUARANTORS

 

Dated
as of May 12, 2003

 

Each of the
undersigned, being a Guarantor (each a “Guarantor” and collectively, the
“Guarantors”) under their respective Guaranty and Security Agreement,
dated December 28, 2001, and made in favor of Agent for the benefit of the
Lenders (each a “Guaranty” and collectively, the “Guaranties”),
hereby acknowledges and agrees to the foregoing Third Amendment to Loan and
Security Agreement (the “Amendment”) and confirms and agrees that its
Guaranty is and shall continue to be, in full force and effect and is hereby
ratified and confirmed in all respects except that, upon the effectiveness of,
and on and after the date of the Amendment, each reference in such Guaranty to
the Loan Agreement (as defined in the Amendment), “thereunder”, “thereof” or
words of like import referring to the “Loan Agreement”, shall mean and be a
reference to the Loan Agreement as amended or modified by the Amendment.  Although Lender has informed Guarantors of
the matters set forth above, and Guarantors have acknowledged the same, each
Guarantor understands and agrees that Lender has no duty under the Loan
Agreement, the Guaranties or any other agreement with either Guarantor to so
notify any Guarantor or to seek such an acknowledgement, and nothing contained
herein is intended to or shall create such a duty as to any advances or
transaction hereafter.

 

	
   

  	
  EN POINTE TECHNOLOGIES, INC.

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Kevin D.
  Ayers

  	
   

  
	
   

  	
  Title:

  	
  CFO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EN POINTE TECHNOLOGIES VENTURES, INC.

  
	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  A. Mercer

  	
   

  
	
   

  	
  Title:

  	
   CFO

  	
   

  

 

7

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