Document:

ex10-1.htm

Exhibit 10.1

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS.  THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO GUARDIAN 8 HOLDINGS THAT SUCH REGISTRATION IS NOT REQUIRED.

 

TERM NOTE

 

DATED: April 18, 2014

 

FOR VALUE RECEIVED, GUARDIAN 8 HOLDINGS, a Nevada corporation (the “Borrower”), hereby promises to pay to C. Stephen Cochennet (the “Holder”) or its registered assigns or successors in interest, on order, the sum of Ninety Thousand Dollars ($90,000.00)(the “Principal Amount”) together with any accrued and unpaid interest hereon, on July 15, 2014 (the “Maturity Date”) if not sooner paid.

 

The following terms shall apply to this Note:

 

1. Interest Rate.  Interest payable on this Note shall accrue at a rate per annum (the “Interest Rate”) equal to twelve percent (12%) per annum.  Interest on the Principal Amount shall be payable in full on the Maturity Date, whether by acceleration or otherwise.  In the event of the redemption or conversion of all or any portion of the Principal Amount, accrued interest on the amount so redeemed or converted shall be paid on the date of redemption or conversion, as the case may be.

 

2. Payment of Principal Amount.   The Borrower shall pay the Holder the entire Principal Amount of this Note, if not earlier redeemed, on the Maturity Date in one lump sum payment.

 

3. Optional Redemption of Principal Amount.  The Borrower will have the option of prepaying the outstanding Principal Amount (“Optional Amortizing Redemption”), in whole or in part, by paying to the Holder a sum of money equal to one hundred percent (100%) of the Principal Amount to be redeemed, together with accrued but unpaid interest thereon and any and all other sums due, accrued or payable to the Holder arising under this Note (the “Redemption Amount”) on the Redemption Payment Date (as defined below).  The Borrower shall deliver to the Holder a notice of redemption (the “Notice of Redemption”) specifying the date for such Optional Redemption (the “Redemption Payment Date”), which date shall be not less than seven (7) business days after the date of the Notice of Redemption (the “Redemption Period”).  On the Redemption Payment Date, the Redemption Amount shall be paid in good funds to the Holder.  In the event the Borrower fails to pay the Redemption Amount on the Redemption Payment Date as set forth herein, then such Notice of Redemption will be null and void.

 

4. Events of Default. Upon the occurrence and continuance of an Event of Default beyond any applicable grace period, the Holder may make all sums of principal, interest and other fees then remaining unpaid hereon and all other amounts payable hereunder immediately due and payable.  In the event of such an acceleration, the amount due and owing to the Holder shall be 100% of the outstanding principal amount of the Note (plus accrued and unpaid interest and fees, if any) (the “Default Payment”).  The Default Payment shall be first applied to accrued and unpaid interest due on the Note and then to outstanding principal balance of the Note.

 

  

1

  

 

The occurrence of any of the following events is an “Event of Default”:

 

	
i.  

	
Failure to Pay Principal, Interest or other Fees.  The Borrower fails to pay when due any installment of principal or interest hereon in accordance herewith, and such failure shall continue for a period of thirty (30) days following the date upon which any such payment was due.

 

	
ii.  

	
Receiver or Trustee.  The Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business; or such a receiver or trustee shall otherwise be appointed.

 

	
iii.  

	
Judgments.  Any money judgment, writ or similar final process shall be entered or filed against the Borrower or its property or other assets for more than $50,000, and shall remain unvacated, unbonded or unstayed for a period of thirty (30) days.

 

	
iv.  

	
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings or relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower.

 

5. Failure or Indulgence Not Waiver.  No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.  All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

6. Notices.  Any notice herein required or permitted to be given shall be in writing and shall be deemed effectively given:  (a) upon personal delivery to the party notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent to the Borrower at: Guardian 8 Holdings, 15230 N. 75th Street, Suite 1002, Scottsdale, Arizona  85260, facsimile number 913-317-8858 and to the Holder at the address and facsimile number set forth on the signature page of this Note, or at such other address as the Borrower or the Holder may designate by ten days advance written notice to the other parties hereto.

 

7. Amendment Provision.  The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented, and any successor instrument issued hereunder, as it may be amended or supplemented.

 

8. Assignability.  This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to the benefit of the Holder and its successors and assigns, and may not be assigned by the Borrower without the consent of the Holder.

 

  

2

  

 

9. Governing Law.  This Note shall be governed by and construed in accordance with the laws of the State of Nevada, without regard to principles of conflicts of laws.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of Nevada or in the federal courts located in the State of Nevada.  Both parties agree to submit to the jurisdiction of such courts.  The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs.  In the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or unenforceability of any other provision of this Note. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Borrower in any other jurisdiction to collect on the Borrower’s obligations to Holder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other court in favor of the Holder.

 

10. Construction.  Each party acknowledges that its legal counsel participated in the preparation of this Note and, therefore, stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Note to favor any party against the other.

 

IN WITNESS WHEREOF, the Borrower has caused this Note to be signed in its name effective as of this 18th day of April, 2014.

 

GUARDIAN 8 HOLDINGS

By: /s/ Kathleen Hanrahan                                                      

      Kathleen Hanrahan, Interim CFO

 

HOLDER:

/s/ C. Stephen Cochennet                                                      

C. Stephen Cochennet

  

3ex10-2.htm

Exhibit 10.2 

 

 

 

 

	
PRIOR 

OBLIGATION 

INFORMATION

	 	
LOAN NUMBER

 

910326

	 	
ACCT. NUMBER

 

27981.15

	
NOTE DATE 

 

01/17/14

	
CREDIT LIMIT

 

$700,000.00

	 	
MATURITY DATE

 

01/17/15

	  	 	  	 	  	 	  	  	 	  
	
AMENDED

 OBLIGATION 

INFORMATION

	 	
LOAN NUMBER 

910326

	 	
ACCT. NUMBER

 

27981.15

	 	MODIFICATION DATE

 

April 28, 2014

	 	 	
CREDIT LIMIT

 

$900,000.00

	 	 	 	 	 	 	 	 	 	 
	  	 	
MATURITY DATE

01/17/15

	 	
INDEX (w/margin) 

 

Cornerstone Bank Corporate

Base Rate plus 1.000%

 

	 	
INTEREST RATE

 

6.000%

	 	 	
INITIALS

 

JVD

	  	 	  	 	
Creditor Use Only

	  	 	  
	  	 	  	 	  	 	  	  	 	  

 

DEBT MODIFICATION AGREEMENT 

 

DATE AND PARTIES. The date of this Debt Modification Agreement (Modification) is April 28, 2014. The parties and their addresses are:

 

LENDER:

CORNERSTONE BANK

9120 W 135th Street

Overland Park, KS 66221

Telephone: (9131239-8100

BORROWER:

GUARDIAN 8 CORPORATION

an Arizona Corporation

15230 N 75th St., Suite 1002

Scottsdale, AZ 85260

 

 

1. DEFINITIONS. In this Modification, these terms have the following meanings:

 

A. Pronouns. The pronouns "I," "me," and "my" refer to each Borrower signing this Modification, individually and together with their heirs, executors, administrators, successors, and assigns, and each other person or legal entity (including guarantors, endorsers, and sureties) who agrees to pay this Loan. "You" and "your" refer to the Lender, with its participants or syndicators, successors and assigns, or any person or entity that acquires an interest in the Modification or the Prior Obligation.

 

B. Amended Obligation. Amended Obligation is the resulting agreement that is created when the Modification amends the Prior Obligation. It is described above in the AMENDED OBLIGATION INFORMATION section.

 

C. Credit limit. Credit limit means the maximum amount of principal you will permit me to owe you under this line of Credit, at any one time. My Credit limit is stated at the top of this Modification.

 

D. Loan. Loan refers to this transaction generally. It includes the obligations and duties arising from the terms of all documents prepared or submitted in association with the Prior Obligation and this modification, such as applications, security agreements, disclosures, notes, agreements, and this Modification.

 

  

  

  

 

E. Modification. Modification refers to this Debt Modification Agreement.

 

F. Prior Obligation. Prior Obligation refers to my original agreement described above in the PRIOR OBLIGATION INFORMATION section, and any subsequent extensions, renewals, modifications or substitutions of it.

 

	
2.  

	
BACKGROUND. You and I have previously entered into a Prior Obligation. As of the date of this Modification, the outstanding, unpaid balance of the Prior Obligation is $700,000.00. Conditions have changed since the execution of the Prior Obligation instruments. In response, and for value received, you and I agree to modify the terms of the Prior Obligation, as provided for in this Modification.

 

	
3.  

	
CONTINUATION OF TERMS. I agree and understand that all other terms and provisions in the Prior Obligation survive and continue in full force and effect, except to the extent that they are specifically and expressly amended by this Modification. The express amendment of a term does not amend related or other terms - even if the related or other terms are contained in the same section or paragraph of the Prior Obligation. For illustration purposes only, a modification of the interest rate to be paid during the term of the loan would not modify the default rate of interest even though both of those terms are described in the Prior Obligation in a common section titled "Interest". The term "Prior Obligation" includes the original instrument and any modifications prior to this Modification.

 

	
4.  

	
TERMS. The Prior Obligation is modified as follows:

A. Promise to Pay. My promise to pay is modified to read:

 

(1) PROMISE TO PAY. For value received, I promise to pay you or your order, at your address, or at such other location as you may designate, amounts advanced from time to time under the terms of the Loan up to the maximum outstanding principal balance of $900,000.00 (Principal), plus interest from the date of disbursement, on the unpaid outstanding Principal balance until the Loan is paid in full and you have no further obligations to make advances to me under the Loan.

 

My Credit Limit has been increased by $200,000.00.

 

B. Payments. The payment provision is modified to read:

 

(1) PAYMENT. I agree to pay all accrued interest on the balance outstanding from time to time in regular payments beginning May 17, 2014, then on the same day of each month thereafter. A final payment of the entire unpaid outstanding balance of Principal and interest will be due January 17, 2015.

 

Payments will be rounded to the nearest $.01. With the final payment I also agree to pay any additional fees or charges owing and the amount of any advances you have made to others on my behalf. Payments scheduled to be paid on the 29th, 30th or 31 st day of a month that contains no such day will, instead, be made on the last day of such month.

 

C. Security. The security provision is modified to read:

 

(1) Existing Collateral Added. The following previously executed security instruments or agreements are added as security for the Amended Obligation: Letter of Credit Rights Control Agreement dated January 17, 2014 secured by a Letter of Credit dated January 17, 2014 issued by F&M Bank & Trust Company, Letter of Credit #FM 14SDP00028 and a Security Agreement dated January 17, 2014 secured by a State of Nevada UCC filed February 3, 2014, document number 2014002933-0 for All Business Assets to include inventory and account receivables..

 

  

  

  

 

D. Fees and Charges. As additional consideration for your consent to enter into this Modification, I agree to pay, or have paid these additional fees and charges:

 

(1) Nonrefundable Fees and Charges. The following fees are earned when collected and will not be refunded if I prepay the Loan before the scheduled maturity date.

 

Loan Origination Fee. A(n) Loan Origination Fee fee of $300.00 payable from separate funds on or before today's date.

 

(2) Late Charge. If a payment is more than 10 days late, I will be charged 5.000 percent of the Unpaid Portion of Payment. I will pay this late charge promptly but only once for each late payment.

 

	
5.  

	
WAIVER. I waive all claims, defenses, setoffs, or counterclaims relating to the Prior Obligation, or any document securing the Prior Obligation, that I may have. Any party to the Prior Obligation that does not sign this Modification, shall remain liable under the terms of the Prior Obligation unless released in writing by you.

 

	
6.  

	
REASONISI FOR MODIFICATION. to increase line of credit availability

THIS WRITTEN AGREEMENT IS THE FINAL EXPRESSION OF THE AGREEMENT BETWEEN YOU AND LENDER, AND AS SUCH IT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR OR CONTEMPORANEOUS ORAL AGREEMENT. ADDITIONAL TERMS:

BY SIGNING OR INITIALING BELOW, BOTH PARTIES AFFIRM THAT NO UNWRITTEN ORAL AGREEMENT BETWEEN THEM EXISTS.

Lender:

Cornerstone Bank

By /s/ John V Doull                                                      

John V Doull, Assistant Vice President

Borrower:

Guardian 8 Corporation

By /s/ Steve Cochennet                                                      

Steve Cochennet, President/Secretary

  

  

  

 

7. SIGNATURES. By signing, I agree to the terms contained in this Modification. I also acknowledge receipt of a copy of this Modification.

BORROWER:

Guardian 8 Corporation

By /s/ Steve Cochennet                                                      

Steve Cochennet, President/Secretary

LENDER:

Cornerstone Bank

By /s/ John V Doull                                                      

John V Doull, Assistant Vice President

 

  

  

  

DISBURSEMENT AUTHORIZATION AND CASH PAYMENT SUMMARY 

DATE AND PARTIES. The date of this Disbursement Authorization and Cash Payment Summary is April 28, 2014. The parties and their addresses are:

LENDER:

CORNERSTONE BANK

9120 W 135th Street

Overland Park, KS 66221

Telephone: (913) 239-8100

BORROWER:

GUARDIAN 8 CORPORATION

an Arizona Corporation

15230 N 75th St., Suite 1002

Scottsdale, AZ 85260

Loan Number: 910326

1. DEFINITIONS. As used in this Disbursement Authorization and Cash Payment Summary, the terms have the following meanings:

A. Pronouns. The pronouns "I", "me" and "my" refer to all Borrowers signing this Disbursement Authorization and Cash Payment Summary, individually and together. "You" and "Your" refer to the Lender.

B. Loan. "Loan" refers to this transaction generally, including obligations and duties arising from the terms of all documents prepared or submitted for this transaction such as applications, security agreements, disclosures or notes, and this Disbursement Authorization and Cash Payment Summary.

2. DISBURSEMENT SUMMARY. The following summarizes the disbursements from the Loan.

	
Initial Advance

	  	  	  	
$0.00

	  	
Cash Paid In

	  	
$300.00

	  	  
	  	
Amount Contributed by Borrower

	  	
$0.00

	  	  
	
Total Cash Received

	  	  	  	
$300.00

	  	
Disbursed to Borrowers

	  	
$700,000.00

	  	  
	  	
Disbursed to Lender

	  	
$0.00

	  	  
	  	
Disbursed to Other Payees

	  	
$300.00

	  	  
	
Total Amounts Disbursed

	  	  	  	
$700,300.00

	
Amount Remaining To Be Disbursed

	  	  	  	
$0.00

	
Undisbursed Fees/Charges

	  	  	  	
$0.00

  

  

  

 

3. DISBURSEMENT AUTHORIZATION. I authorize you to disburse the following amounts from my Loan.

	
DISBURSED TO:

	  	
DATE:

	  	  	  	
AMOUNT DISBURSED:

	
Disbursements to Borrower:

	  	  	  	  	  	
$700,000.00

	
     Loan Payment/Payoff to

     account #910326

	  	
 

04/28/2014

	  	
 

$700,000.00

	  	  
	
Disbursements to Lender:

	  	  	  	  	  	
$0.00

	
Disbursements to third parties:

	  	  	  	
$0.00

	
TOTAL DISBURSED:

	  	  	  	  	  	
$700,000.00

4. CASH PAYMENT SUMMARY. The following loan charges are cash payments collected prior to or at settlement.

	
DISBURSED TO:

	  	
DATE:

	  	  	  	
AMOUNT DISBURSED:

	
Cash Fees & Charges disbursed to third parties:

	  	
$300.00

	
    Cornerstone Bank:

	  	
04/28/2014

	  	
$700,000.00

	  	  
	
      Loan Origination Fee

	  	  	  	
$300.00

	
B

	  
	
Items marked with an asterisk (*) have been paid outside of closing in whole or in part

	
Items marked with a (B) are paid by borrower, Items marked with a (S) are paid by seller, Items marked with a (L) are paid by lender, Items marked with a (T) are paid by third party

	  	  	  	  	  	  	  
	
TOTAL OF CASH PAYMENTS:

	  	  	  	
$700,000.00

Remaining Credit Line: $200,000.00

I acknowledge receipt of a copy of this Disbursement Authorization and Cash Payment Summary on April 28, 2014.

BORROWER:

Guardian 8 Corporation

By /s/ Steve Cochennet                                                      Date 4/28/2014                                

Steve Cochennet, President/Secretary

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