Document:

Exhibit 10.16

 

 

 

September
7, 2012

 

Naples
Women’s Center LLC

Attn: Dr. Michael Dent

1726
Medical Blvd, Suite 101

Naples, FL 34110

 

Re:
Term Loan in the amount of $215,000 

 

Dear
Dr. Dent:

 

Florida
Community Bank, N.A. (“Bank” or “FCB”) is pleased to provide you with this Term Sheet, for Discussion purposes
only, in consideration of your financing request. This Term Sheet is not exhaustive and outlines only the key terms and conditions
to be contained in a proposed credit relationship between FCB and Naples Women’s Center LLC. The proposed credit facility shall
be subject to other terms and conditions normally required by Bank for similar transactions to be fully described in loan documents
prepared by Bank’s legal counsel. This is not a commitment to lend.

 

BORROWER:
Naples Women’s Center LLC (“Borrower”) 

 

FACILTITY:
Term Loan

 

PURPOSE:
To refinance existing debt with Fifth Third Bank.

 

AMOUNT:
$215,000

 

TERM:
5 years

 

INTEREST
RATE: 4.75% Fixed

 

REPAYMENT
TERMS: Monthly payments sufficient to amortize the amount plus interest over a term of 5 years.

 

BANK
FEE: None

 

GUARANTORS:
The payment of this Facility shall be unlimited and unconditionally guaranteed by Dr. Michael Dent and Dr. Carolyn
Monaco, jointly and severally. The scope of this guaranty to include all payment and performance obligations of Borrower (including
indemnification and other obligations relating to hazardous and toxic waste) under the loan documents and subject to a BSA review
performed by Bank.

 

COLLATERAL:
Unsecured

 

     

     

    

 

Naples
Women’s Center LLC

Term Sheet

September
7, 2012

 

  

FINANCIAL
REPORTING: Borrower, as indicated below, shall furnish to FCB the following financial information, in each instance prepared
in accordance with generally accepted accounting principles consistently applied and otherwise in form (with original signatures)
and substance satisfactory to Bank:

 

ANNUAL
FINANCIAL STATEMENTS: Borrower shall deliver to Bank within 30 days after the close of each year compiled financial statements.

 

ANNUAL
FINANCIAL STATEMENTS: Guarantors shall deliver to Bank, annually, within 13 months of the previous statement date on file
with Bank, Guarantors’ financial statement. Said financial statement shall disclose all of Guarantors’ assets, liabilities, net
worth, income and contingent liabilities, all in reasonable detail and acceptable to Bank and submitted on a form to be provided
by Bank or on such other form acceptable to Bank, signed by Guarantor and certified by Guarantor to Bank to be true, correct and
complete.

 

TAX
RETURNS: Borrower and Guarantors shall deliver to Bank, within 30 days of filing complete copies of federal and state tax
returns, as applicable, each of which shall be signed and certified by Borrower/Guarantor to be true and complete copies of such
returns. In the event and extension is filed, Borrower shall deliver a copy of the extension within 30 days of filing.

 

COVENANT:
In addition to the covenant customarily required by FCB for similar loans and/or similar borrowers, the following covenant
shall be applicable to this facility:

 

Debt
Service Coverage Ratio. Borrower shall, at all times, maintain a Cash Flow Coverage Ratio of not less than 1.25x to 1.00,
measured annually beginning 12/31/13. “Debt Service Coverage Ratio” shall mean the earnings before interest,
income taxes, depreciation and amortization of Naples Women’s Center LLC, to current obligations including the sum of interest
expense and current portion of long term debt.

 

TERMS
AND CONDITIONS:

 

		1.	Borrower
                                         will establish and maintain an operating account with FCB;
		2.	Borrower
                                         shall not, directly or indirectly, create, incur, assume or become liable for any additional
                                         indebtedness without approval from FCB;
		3.	Borrower
                                         agrees not to further encumber the business assets of Naples Women’s Center LLC with
                                         any additional liens without receiving approval from FCB;
		4.	Borrower
                                         and Guarantors to maintain combined minimum liquidity of $215,000;
		5.	Evidence
                                         of Dr. Dent’s liquidity prior to closing.

 

This
Term Sheet supersedes any and all prior Term Sheets and proposals with respect to this transaction, whether written or oral, including
any previous loan proposals made by FCB or anyone acting with its authorization. No modification shall be valid unless made in
writing and signed by an authorized officer of FCB. This Term Sheet is not assignable, and no party other than Borrower shall
be entitled to rely on this Term Sheet.

 

If
the above terms and conditions outlined herein are acceptable to you, and you wish the Bank to proceed with its due diligence,
underwriting and approval of these Credit Facilities please
indicate your acceptance by signing a copy of this proposal letter and returning it to the undersigned no later than September
14, 2012. The terms of this proposal are valid until such date.

 

    page 2

     

    

 

Naples
Women’s Center LLC

Term Sheet

September
7, 2012

 

  

Thank
you for allowing us to be of service. Please do not hesitate to give me a call at 239-552-1770 if I can be of further assistance.

 

Sincerely,

 

Florida
Community Bank, N.A.

 

	By:	/s/
Patti A. Byers	 
	 	Patti
    A. Byers, Senior Vice President	 

 

ACCEPTANCE:

 

The
above Term Sheet is agreed to and accepted on the terms and conditions provided in this letter.

 

	 	Naples
    Women’s Center LLC
	 	 	 
	 	By:	/s/
    Michael Dent
	 	 	Michael
    Dent, Manager
	 	 	 
	 	Date 	9/7/12

 

 

page 3EX-10.1

 Exhibit 10.1 

SMITH MICRO SOFTWARE, INC. 

SECURED PROMISSORY NOTE 
  

			
	Issuance Date: February 7, 2017	  	Principal: $1,000,000            

 FOR VALUE RECEIVED, SMITH MICRO SOFTWARE, INC., a Delaware corporation (“Payor”), promises to pay to
the order of WILLIAM W. SMITH, JR. AND DIEVA L. SMITH, JT/WROS, or their assigns (collectively, “Holder”), the principal sum of One Million Dollars ($1,000,000) (“principal”) with interest on the outstanding
principal amount at the rate of eighteen percent (18%) per annum (“interest”) (computed by applying a daily rate equal to 1/365 of the per annum rate to the number of actual calendar days elapsed) or, if less, at the highest
rate of interest then permitted under applicable law. Interest shall commence with the date hereof and shall continue on the outstanding principal balance until paid in accordance with the provisions hereof. 

1. Note. This Secured Promissory Note (this “Note”) is being issued by Payor to document a term loan for $1,000,000
made by Holder to Payor on the issuance date hereof. 
 2. Maturity. Unless sooner paid in accordance with the terms hereof,
the entire unpaid balance of principal and all unpaid accrued interest under this Note shall become fully due and payable on March 24, 2017 (the “Maturity Date”). All or any portion of the principal and interest may be prepaid
at any time or times prior to the Maturity Date at the option of Payor.  
 3. Payments. 

(a) Form of Payment. All payments of principal and interest shall be in lawful money of the United States of America to Holder, by wire
transfer of immediately available funds to a bank account designated in writing by Holder. All cash payments shall be applied first to accrued and unpaid interest, and thereafter to principal. 

(b) Payment of Interest. The interest shall accrue and be payable in full on the Maturity Date. No additional interest shall accrue or
be earned on the accrued portion of the interest. 
 (c) Acceleration. In the event any of the following events occurs (each, an
“Acceleration Event”), Holder may, by written notice to Payor, declare all or a portion of the outstanding balance of unpaid principal and interest owed to Holder under this Note due and payable at such time and Payor shall promptly
pay such amount, provided, however, that upon the occurrence of any event described in subsections (i) or (ii) of this Section 3(c), the entire outstanding balance of unpaid principal and interest under this Note shall
be automatically due and payable at such time without presentment, demand, protest or notice of any kind, all of which are expressly waived by Payor: 

(i) Payor becomes insolvent or admits in writing its inability to pay its debts as they mature, makes an assignment for the benefit of
creditors, or applies for or consents to the appointment of a receiver, trustee, or similar officer for it or for all or any substantial part of its property or business, or such receiver, trustee or similar officer is appointed, and such
appointment shall continue undischarged for a period of 10 days after such appointment; 

  
 1 

 (ii) any bankruptcy, insolvency, reorganization or liquidation proceeding or other proceeding
for relief under any bankruptcy law or any law for the relief of debtors is instituted by or against Payor and is not discharged within 10 days after such institution, or Payor or all or any material part of its business is in the process of
dissolution, liquidation, windup or termination whether pursuant to the terms of any agreement, court order, or otherwise; or 
 (iii)
there is a sale, transfer or other disposition of all or substantially all of Payor’s assets in one transaction or series of related transactions. 

4. Lost, Stolen, Destroyed or Mutilated Note. In case this Note shall be mutilated, lost, stolen or destroyed, Payor shall issue a new
Note of like date, tenor and denomination and deliver the same in exchange and substitution for and upon surrender and cancellation of any mutilated Note, or in lieu of any Note lost, stolen or destroyed, upon receipt of evidence satisfactory to
Payor of the loss, theft or destruction of such Note. 
 5. Security Interest. 

(a) As security for each and every obligation, agreement and covenant of Payor to Holder hereunder, including, without limitation, the payment
when due of the full amount due hereunder, the payment of all other amounts from time to time owing under this Note, and the full performance of all obligations of Payor hereunder, Payor hereby assigns and pledges to Holder, and grants to Holder, a
security interest and lien on, all of Payor’s right, title and interest in and to the following described property, whether presently existing or hereafter created or acquired and wherever located (collectively, the
“Collateral”): 
 (i) All accounts receivable, contract rights, book debts, debentures, drafts and other obligations and
indebtedness arising from the sale, lease or exchange of goods or other property and/or the performance of services, in each case by Payor or any of its subsidiaries; 

(ii) All rights in, to and under all purchase orders for goods, services or other property to be delivered by Payor or any of its
subsidiaries; 
 (iii) All rights to any goods, services or other property represented by any of the foregoing (including returned or
repossessed goods and unpaid seller’s rights of rescission, replevin, reclamation and rights to stoppage in transit); 
 (iv) All
monies due (or which will become due) to Payor or any of its subsidiaries under all contracts for the sale, lease or exchange of goods or other property and/or the performance of services (whether or not yet earned by performance); and 

(v) All proceeds of any of the foregoing and all collateral security and guaranties of any kind given by any person with respect to any
of the foregoing. 

  
 2 

 The terms used to describe such Collateral shall have the meanings assigned by the Uniform Commercial Code
as presently enacted in California (the “UCC”); provided that the use of terms which represent only a broader category of items of Collateral (or use of terms which are not defined in the UCC) shall not be deemed to directly or
indirectly reduce the more expansive meaning of the terms used in the UCC to define broader categories of such items of Collateral. 

(b) Payor shall be entitled, without any consent or approval by Holder, to exercise as it may deem appropriate any and all rights and
privileges to which it is entitled as a holder of record of the Collateral, unless and until an Acceleration Event shall have occurred. All non-cash proceeds, any securities or other non-cash property received
by Payor in respect of the Collateral, including without limitation any securities or other non-cash property received in exchange for or in addition to the Collateral pursuant to any merger, consolidation or dissolution, shall promptly be delivered
in pledge to Holder to be held by Holder and be considered “Collateral” for purposes of this Note. Until the repayment in full of all principal due under this Note, all proceeds (as defined in the UCC) in respect of the Collateral
received by Payor and not pledged or applied as a prepayment in accordance with this Note shall be deemed to be held in trust by Payor and as Collateral hereunder for the benefit of Holder. 

(c) Payor shall execute all financing statements, continuation statements, assignments, certificates, deposit account control agreement
corresponding to any account in which Collateral is maintained, and other documents and instruments with respect to the Collateral pursuant to the UCC and otherwise as may be necessary or reasonably requested by Holder to perfect or from time to
time to publish notice of, or continue or renew the security interests granted hereby (including, without limitation, such financing statements, continuation statements, certificates, and other documents as may be necessary or reasonably requested
to perfect a security interest in any additional property or rights hereafter acquired by Payor or in any replacements, products or proceeds thereof), in each case in form satisfactory to Holder. Payor agrees to pay the cost of filing the same in
all public offices where filing is necessary or reasonably requested by Holder, and will pay any and all recording, transfer or filing taxes that may be due in connection with any such filing. Payor grants Holder the right, at any time and at
Holder’s option, and at Payor’s expense, to file any or all such financing statements, continuation statements, and other documents pursuant to the UCC and otherwise as Holder reasonably may deem necessary or desirable. 

(d) Payor hereby appoints Holder as the Payor’s attorney-in-fact to do any and every act that the Payor is obligated by this Note to do,
and to exercise all rights of Payor in the Collateral and to make collections and to execute any and all papers and instruments and to do all other things necessary to preserve and protect the Collateral and to make collections and to protect
Holder’s security interest in the Collateral (without any obligation to do so). 
 6. Governing Law. This Note is to be
construed in accordance with and governed by the internal laws of the State of California without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of
California to the rights and duties of Payor and the Holder. All disputes and controversies arising out of or in connection with this Note shall be resolved exclusively by the state and federal courts located in Orange County in the State of
California, and each of Payor and the Holder hereto agrees to submit to the jurisdiction of said courts and agrees that venue shall lie exclusively with such courts. 

  
 3 

 7. Amendment. Any term of this Note may be amended and the observance of any term of this
Note may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of Holder. 

8. Notices. Except as may be otherwise provided herein, all notices or other communications hereunder shall be in writing and shall be
deemed given upon delivery if delivered personally, two business days after mailing if mailed by prepaid registered or certified mail, return receipt requested, or upon confirmation of good transmission if sent by email, addressed as follows: 

 

			
	 (a) If to Holder, to:
  

William W. Smith, Jr.
 51 Columbia

Aliso Viejo, CA 92656
 Email: bsmith@smithmicro.com
	  	 (b) If to Payor, to:
  

Smith Micro Software, Inc.
 51 Columbia

Aliso Viejo, CA 92656
 Attention: Steven M. Yasbek

Email: syasbek@smithmicro.com

 9. Expenses. If any action at law or in equity is necessary to enforce or interpret the terms of this
Note, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 

10. Attorneys’ Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Note, the prevailing
party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 

11. Severability. If one or more provisions of this Note are held to be unenforceable under applicable law, such provision shall be
excluded from this Note and the balance of the Note shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. 

12. Delivery. This Note, to the extent signed and delivered by means of a facsimile machine or PDF attachment to electronic mail, shall
be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. 

[Signature follows on next page] 

  
 4 

 IN WITNESS WHEREOF, Payor has caused this Secured Promissory Note to be duly executed by its
officer, thereunto duly authorized as of the date first above written. 
  

			
	SMITH MICRO SOFTWARE, INC.
		
	By:	 	 /s/ Steven M. Yasbek

	Name: Steven M. Yasbek
	Title: Chief Financial Officer

  
 5

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