Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.6

 

			
	US $100,000.00
	 	October 31, 2007

BRIDGE LOAN

PROMISSORY NOTE

(Non-Negotiable)

FOR VALUE RECEIVED, the undersigned, Remote Knowledge, Inc., a Delaware corporation
(“Maker”), promises to pay to the order of Steve Phelps, or any successor holder of this
Note (“Holder”), at Holders office, or such other place as Holder may designate, the
principal amount of One Hundred Thousand Dollars ($100,000).

1. Interest. As soon as practical after delivery of this Note to Holder and transfer of funds
to Maker, Maker shall deliver to Holder Thirty-three Thousand Three Hundred Thirty-three shares
(33,333) of common stock of Maker issued in the name of Holder as interest. Holder shall be
entitled to retain all such shares regardless whether the Note may be prepaid. At the end of each
month following default in payment of principal and continuing until principal is paid in full,
Eleven Thousand One Hundred Eleven shares (11,111) of Makers common stock shall be delivered to
Holder.

2. Payments. All outstanding principal shall be payable on October 31, 2007 (the
“Maturity Date”).

3. Guaranty. Payment of this Note is and shall be guaranteed by this performance pledge (the
“Guaranty”) by Alan Granader, Dan Granader, and Randy S. Bayne (the “Guarantors”).
This Guaranteed Promissory Note is an absolute, continuing, irrevocable, and unconditional guaranty
of payment and performance, and not a guaranty of collection, and Maker shall remain liable on its
obligations hereunder until the payment in full of the principal and interest (the “Guaranteed
Obligations”).

(a) In the event of default by Maker in payment of the Guaranteed Obligations, or
any part thereof, when such Guaranteed Obligations are due to be paid or performed by Maker, the
Guarantors shall promptly pay the Guaranteed Obligations then due in full without notice or demand,
and it shall not be necessary for Holder, in order to enforce such payment by the Guarantors, to
institute suit or exhaust its remedies against Maker or others. THE GUARANTORS HEREBY IRREVOCABLY
AGREE THAT, UNTIL PAYMENT IN FULL TO HOLDER OF THE GUARANTEED OBLIGATIONS, THE GUARANTORS SHALL
HAVE NO RIGHT TO RECOVER FROM MAKER ANY CLAIMS THE GUARANTORS HAVE OR MIGHT HAVE AGAINST MAKER (AS
SUCH TERM “CLAIM” IS DEFINED IN THE UNITED STATES BANKRUPTCY CODE 11 U.S.C. § 101[5] AS AMENDED
FROM TIME TO TIME) IN CONNECTION WITH PAYMENTS MADE BY OR ON BEHALF OF THE GUARANTORS TO HOLDER
UNDER THIS GUARANTY INCLUDING, WITHOUT IMPLIED LIMITATION, ALL RIGHTS THE GUARANTORS MAY NOW OR
HEREAFTER HAVE UNDER ANY AGREEMENT OR AT LAW OR IN EQUITY (INCLUDING, WITHOUT LIMITATION, ANY LAW
SUBROGATING THE GUARANTOR TO THE RIGHTS OF HOLDER) TO ASSERT ANY CLAIM AGAINST OR SEEK
CONTRIBUTION, INDEMNIFICATION OR ANY OTHER FORM OF REIMBURSEMENT FROM MAKER OR ANY OTHER PARTY
LIABLE FOR PAYMENT OF ANY OR ALL OF THE INDEBTEDNESS.

(b) If acceleration of the time for payment by Maker of all or any portion of the
indebtedness is stayed upon the insolvency, bankruptcy, or reorganization of Maker, the Guaranteed
Obligations shall nonetheless be payable by the Guarantors hereunder forthwith on demand by Holder.

4. Prepayment. Maker may pay all or any part of the principal owing on this Note at any time
or times prior to maturity without payment of any premium or penalty.

5. Default. Each of the following events shall constitute an event of default (“Event of
Default”) and Holder, in addition to any remedies available to it at law or in equity, shall
thereupon have the option to declare Maker in default under this Note and declare due all
obligations of Maker to Holder (it also being understood that the occurrence of any of the Events
of Default set forth in subsections (c) or (d) automatically shall constitute an Event of Default
and cause an immediate acceleration of Maker’s indebtedness to Holder):

 

 

 

(a) the failure of Maker to make any payment required hereunder when due;

(b) default by Maker in the performance or observance of any other term, covenant,
condition or obligation contained in this Note, which default is not cured within 15 days after
Maker’s written notice thereof;

(c) the filing of any petition by Maker under any provision of the Federal
Bankruptcy Code or any state law relating to insolvency; or the filing of any such petition against
Maker, unless such petition and all proceedings thereunder are dismissed within 60 days from such
filing; or the appointment of a trustee or receiver for all or any assets of Maker, unless such
appointment is vacated or dismissed within 60 days from the date of such appointment;

(d) an adjudication that Maker is insolvent or bankrupt.

6. Collection Costs. Upon the occurrence of any Event of Default, Maker agrees to pay
Holder, upon demand, any and all costs, expenses and fees, including without limitation,
reasonable attorneys’ fees incurred before or after suit is commenced in order to enforce payment
hereof, and in the event suit is brought to enforce payment hereof, that such costs, expenses and
fees shall be determined by a court proceeding without a jury.

7. Waiver. Maker hereby acknowledges and agrees that the failure by Holder to insist upon
Maker’s strict performance of this Note or the failure by Holder to exercise its remedies
hereunder shall not be deemed a waiver of such default, and shall not be a waiver by Holder of any
of Holder’s rights or remedies hereunder or at law or in equity.

8. Transfer. This Note is not transferable by the Holder without the express written
permission of Maker which shall not be unreasonably withheld.

9. Governing Law. All amounts payable hereunder are payable in lawful money of the United
States of America. This Note shall be governed by and construed in accordance with the laws of
the State of Texas, without regard to its conflicts of laws principles.

10. Representations and Warranties of Maker. Maker hereby represent and warrants to Holder
as follows:

(a) Maker has full power, authority and capacity to issue this Note and to perform
and comply with all covenants and obligations contained herein.

(b) This Note has been duly executed and delivered by Maker and constitutes the
legal, valid and binding obligations of Maker, enforceable against Maker in accordance with its
terms, subject to bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors’ rights generally.

11. Representations and Warranties of Guarantors. The Guarantors represent and warrant to
Holder as follows:

(a) Guarantors have the power and authority and legal right to execute, deliver, and
perform their obligations under the Guaranty and the Guaranty constitutes the legal, valid, and
binding obligation of Guarantors, enforceable against Guarantors in accordance with its terms,
except as limited by bankruptcy, insolvency, or other laws of general application relating to the
enforcement of creditor’s rights.

(b) The execution, delivery, and performance by Guarantors of this Guaranteed
Promissory Note do not and will not violate or conflict with any law, rule, or regulation or any
order, writ, injunction, or decree of any court, governmental authority or agency, or arbitrator.

 

2

 

(c) No authorization, approval, or consent of, and no filing or registration with,
any court, governmental authority, or third party is necessary for the execution, delivery, or
performance by Guarantors of this Guaranty Agreement or the validity or enforceability thereof.

(d) Guarantors have, independently and without reliance upon Maker and based upon
such documents and information as Guarantors have deemed appropriate, made their own analysis and
decision to become Guarantors of this Guaranteed Promissory Note

 

3

 

IN WITNESS WHEREOF, this Note has been duly executed to be effective as of the 5th day of April,
2007.

	 	 	 	 	 
	Holders Address

	 	 	 	Maker:
	 

	 	 	 	REMOTE KNOWLEDGE, INC.,
	 

	 	 	 	a Delaware Corporation
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Henry Houston
	 
	 	 	 	 
	 

	 	 	 	Name: Henry Houston CFO
	 
	 	 	 	 
	 

	 	Guarantors:
	 	Alan Granader
	 
	 	 	 	 
	 

	 	 	 	/s/ Alan Granader
	 
	 	 	 	 
	 

	 	 	 	Dan Granader
	 
	 	 	 	 
	 

	 	 	 	/s/ Dan Granader
	 
	 	 	 	 
	 

	 	 	 	Randy S. Bayne
	 
	 	 	 	 
	 

	 	 	 	/s/ Randy S. Bayne

 

4Filed by Bowne Pure Compliance

 

Exhibit 10.7

Sanders Morris Harris

527 Madison Avenue, 14th Floor

New York, NY 10022

Telephone: (212) 317-2700

Fax: (212) 317-2710

January 18, 2007

 

Mr. Randy Bayne

Chief Executive Officer

Remote Knowledge, Inc.

3657 Briarpark Drive, Suite 100

Houston, TX 77042

Dear Mr. Bayne:

This letter (the “Agreement”) will confirm the engagement of Sanders Morris Harris Inc., a
Texas corporation (“SMH”) by Remote Knowledge, Inc., a Delaware corporation (the “Company”), as
financial adviser in connection with the Company’s proposed private issuance of approximately $10
million in convertible debt securities or any other form of equity-linked securities (“Securities”)
to accredited investors (the “Offering”).

SMH will assist the Company in making introductions to potential investors, negotiating the
terms of any contemplated investment in the Company, and consummating the Offering, including, but
not limited to: (1) familiarizing itself to the extent it deems appropriate and feasible with the
business operations, properties, financial condition, and prospects of the Company, (2) screening
and contacting prospective investors, (3) assisting in negotiations with prospective investors, (4)
assisting the Company in preparing Offering Materials (as hereinafter defined) for distribution by
SMH to potential investors selected by SMH and the Company, and (5) advising and assisting the
Company in structuring and pricing the Offering.

The Offering will be conducted pursuant to the terms and conditions of a customary placement
agent agreement acceptable to SMH, the Company, and their respective counsel. The Company shall
retain control of the Offering and shall have the right to determine (1) whether to close the sale
of the Securities to a specific investor, (2) whether to close or terminate the Offering, and (3)
the content of the Offering Materials. It is understood by both parties that SMH intends to
solicit interests from a limited number of potential investors and on a “best-efforts” only basis.
SMH will, in their sole discretion, determine the reasonableness of its efforts and is under no
obligation to perform at any level other than what it deems reasonable.

In return for SMH’s services in the placement of Securities, the Company will pay SMH the
following fees:

(1) a retainer fee equal to $25,000 payable upon execution of this Agreement, which shall be
credited against any future financing fee as outlined subsequently;

(2) a fee equal to 7.0% of the gross proceeds (excluding investments by the entities
identified on Exhibit A attached hereto), consisting of a 3.0% advisory fee and 4.0% placement
agent fee, of any Securities (excluding those Warrant Securities set forth in (3) below); and

(3) a cash fee equal to 7.0% of the exercise price of all Securities constituting warrants,
options or other rights to purchase Securities (the “Warrant Securities”), (excluding investments
by the entities identified on Exhibit A attached hereto) which amount is deemed earned upon the
closing of the offering and only payable to
SMH upon the cash exercise of any of the Warrant Securities (whether during the term of this
agreement or thereafter).

 

 

 

Remote Knowledge, Inc.

January 18, 2007

Page 2

In addition, SMH will be entitled to receive at closing of the Offering a warrant (the
“Warrant”) to purchase the number of additional equivalent Securities equal to 7.0% of the number
or amount of equity Securities or Securities convertible into equity Securities issued in the
Offering (excluding investments by the entities identified on Exhibit A attached hereto), at a
price equal to the price paid by investors in the Offering. The Warrant shall be exercisable for
five years from the closing date, shall include standard anti-dilution provisions for stock splits,
stock dividends, and recapitalizations, a cashless exercise provision, and, provided that the
Company has registered a class of securities under the Securities Act or the Securities Exchange
Act of 1934, shall provide one demand registration right and one subsequent piggyback registration
right on all registration statements, except for those filed under forms S-4 or S-8, filed by the
Company under the Securities Act unless the securities issuable upon exercise of the Warrants would
be freely tradeable under Rule 144(k) upon issuance.

In addition to the foregoing, the Company will, upon request, reimburse SMH of its reasonable
out-of-pocket expenses incurred in connection with the Offering (whether or not a closing occurs),
including due diligence expenses, and professional fees and disbursements. In addition, the
Company agrees to provide the necessary information for SMH to perform background checks on the
Company’s senior management, of which such expenses shall be included as professional fees and
reimbursed accordingly.

The term of this Agreement shall begin on the date hereof and shall terminate six months
thereafter. SMH reserves the right to terminate this engagement on 7 days notice.

The Company will furnish SMH such information concerning the Company as SMH reasonable
determines to be appropriate with respect to the Offering (“Information”). The Company shall
afford SMH and its counsel and representatives full and complete access to its books and records
and will use commercially reasonable effort to afford SMH with full and complete cooperation of
management to gather the Information. The Company recognizes and confirms that SMH, (i) will use
and rely on the Information in performing the services contemplated by this Agreement, without
independently verifying the accuracy and completeness of the same, (ii) does not assume
responsibility for the accuracy or completeness of the Information, and (iii) will not make an
appraisal of any assets or liability of the Company.

The Company hereby represents to SMH that all solicitation materials prepared by the Company
and used in connection with the Offering (the “Offering Materials”) will not, as of the date of any
offer or sale in connection with the Offering, contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements contained therein, in light of the
circumstances under which they were made, not misleading. If at any time any event occurs as a
result of which the Offering Materials as then amended or supplemented, would include an untrue
statement of a material fact or omit to state any material fact necessary to make the statements
therein, in light of the circumstances under which they were made when such Offering Materials are
delivered to a prospective purchaser pursuant hereto, not misleading, the Company will promptly
notify SMH to suspend solicitation of prospective purchasers in connection with the Offering; and
if the Company decides to amend or supplement the Offering Materials, it will promptly advise SMH
by telephone (with confirmation in writing) and will promptly prepare an amendment or supplement
that will correct such statement or omission.

SMH will not violate, or cause the Company to violate, any applicable securities laws in
connection with the Offering.

In connection with this engagement, it is contemplated that SMH will receive from the Company
certain information the Company considers confidential. The parties have previously entered into a
Confidentiality Agreement that shall remain in full force and effect. SMH shall use this
confidential information solely for the purpose of providing services to the Company and will not
disclose to any party (other than SMH’s officers, directors, employees, affiliates, and counsel who
have a need to know such information, herein “Representatives”) any such confidential information,
except with the prior written approval of the Company; provided, however, that

 

 

 

Remote Knowledge, Inc.

January 18, 2007

Page 3

the foregoing restrictions shall not apply to any information that: (i) is included in the
Offering Materials and disclosed pursuant to the distribution of the Offering Materials as
permitted by the Company, (ii) the Company consents to having disclosed in connection with the
Offering, (iii) is publicly available when provided or thereafter becomes publicly available other
than through disclosure by SMH or its Representatives, or (iv) is required to be disclosed by SMH
by judicial or administrative process in connection with any action, suit, proceeding, or
investigation; and provided, further, however, that SMH shall give the Company notice of any such
requirement immediately upon the becoming aware of same and shall not disclose such information
except only to the extent required after the maximum time permitted. Information shall be deemed
“publicly available” if it becomes a matter of public knowledge or is contained in materials
available to the public or is obtained by SMH from any source other than the Company or its
representatives, provided that such source was not to SMH’s actual knowledge subject to a
confidentiality agreement with the Company. SMH will take reasonable steps to assure that the
Offering Materials are not distributed to any persons not permitted to receive them pursuant to the
terms hereof.

The Company hereby represents and warrants to SMH, that the Company, directly or indirectly
through any broker, dealer, or agent other than SMH, has not taken and will not take any action
which would subject the Offering to the provisions of Section 5 of the Securities Act. It is
understood that this Agreement is made with the view of keeping the Offering within the exemption
provided by Section 4(2) under the Securities Act. The Company will arrange for the qualification
of the Securities under the laws of such jurisdictions as SMH and the Company jointly determine and
will continue such qualifications in effect so long as required for completion of the Offering.

If the Offering is successfully completed, the Company agrees that SMH will have, for a period
of one year from the date of closing of the Offering, the right of first refusal to assist the
Company on (1) all additional Securities financings, either in the form of a public offering or a
private placement, on terms that are customary for such financings; (2) any future sale or merger
of the Company or any significant portion of its assets; and/or (3) the sale, trade, or liquidation
of existing warrants. SMH’s right of first refusal shall expire 10 days after SMH is notified by
the Company in writing of plans for a financing or sale, unless SMH notifies the Company in writing
of its intent to exercise its right of first refusal.

The Company acknowledges that SMH will be acting on behalf of the Company and will require
indemnification by the Company. The Company further acknowledges that SMH’s indemnification
provisions attached hereto as Exhibit B are incorporated by reference herein or are made a part
hereof for all purposes as though set forth entirely herein.

The parties agree that their relationship under this Agreement is an advisory relationship
only, and nothing herein shall cause SMH to be partners, agents or fiduciaries of, or joint
venturers with, the Company or with each other.

The Company and SMH acknowledge and agree that there are no brokers, representatives, or other
persons that have an interest in the compensation due to SMH from any transaction contemplated
herein.

The Company agrees that, following the closing of the Offering, SMH shall have the right to
place advertisements in financial and other newspapers and journals at its own expense describing
its services to the Company hereunder, provided that SMH will submit a copy of any such
advertisement to the Company for its approval, which approval shall not be unreasonably withheld or
delayed.

This Agreement may not be amended or modified except in writing and shall be governed by, and
construed in accordance with the laws of the State of Texas.

 

 

 

Remote Knowledge, Inc.

January 18, 2007

Page 4

If this Agreement reflects our mutual understanding, please execute two copies in the space
indicated below and return one to us.

Very truly yours,

SANDERS MORRIS HARRIS INC.

	 	 	 	 	 
	By:

	 	/s/ William W. Sprague
 

	 	 
	 

	 	William W. Sprague, Managing Director	 	 

Accepted and agreed to as of January 18, 2007:

Remote Knowledge, Inc.

	 	 	 	 	 
	By:

	 	/s/ Randy Bayne
 

	 	 
	Name: Mr. Randy Bayne	 	 
	Title: President and CEO	 	 

 

 

 

Exhibit A

Potential Investors or Buyers:

The Granader Family

Yasmine Patterson

Rowayda Beshr

The Freidkin Family Office

Steve Jenkins

Fielding Cocke

Monoque Baliban

Dr Gene Morris

Robert Duncan

Ralph Lord

Lewie Ventures ( Hedi McAlister)

 

 

 

Exhibit B

Indemnification

Remote Knowledge, Inc., a Delaware corporation (the “Company”) and its subsidiaries, agrees to
indemnify and hold harmless Sanders Morris Harris Inc., a Texas corporation (“SMH”), together with
its affiliates, directors, officers, agents, and employees (SMH and each such entity or person, an
“Indemnified Person”), from and against any and all losses, claims, damages, judgments, and
liabilities, expenses, or costs (and all actions in respect thereof and any legal or other expenses
in giving testimony or furnishing documents in response to a subpoena or otherwise), including the
cost of investigating, preparing for, or defending any such action or claim, whether or not in
connection with litigation in which an Indemnified Person is a party, as and when incurred,
directly or indirectly caused by, relating to, based upon, or arising out of SMH’s performance of
its engagement by the Company under the letter agreement dated as of January 17, 2006, as it may be
amended from time to time (the “Agreement”), or otherwise arising out of or in connection with
advice or services provided or to be provided by Indemnified Persons pursuant to the Agreement, the
transactions contemplated thereby, or any Indemnified Person’s actions or inactions in connection
with any such advice, services, or transactions, including any indemnified person’s sole or
contributory negligence, if such activities were performed (i) in good faith and (ii) in such
manner reasonably believed by such Indemnified Person to be within the scope of the authority
conferred by the Agreement or by law and to be on behalf of the Company or in furtherance of the
performance of SMH’s services under the Agreement; provided, however, such indemnity agreement
shall not apply to any such loss, claim, damage, liability, or cost incurred by any Indemnified
Person to the extent it is found in a final judgment by a court of competent jurisdiction (not
subject to further appeal) to have resulted primarily and directly from the gross negligence or
willful misconduct or bad faith of such Indemnified Person. The Company also agrees that no
Indemnified Person shall have any liability (whether direct or indirect, in contract or tort or
otherwise) to the Company for or in connection with the any advice or services provided by any
Indemnified Persons in connection with the Agreement, the transactions contemplated by the
Agreement, or any Indemnified Persons’ actions or inactions in connection with any such advice,
services, or transactions except for any such liability for losses, claims, damages, liabilities,
or costs found in a final judgment by a court of competent jurisdiction (not subject to further
appeal) to have resulted primarily and directly from such Indemnified Person’s gross negligence or
willful misconduct or bad faith in connection with such advice, actions, inactions, or services.

These Indemnification Provisions shall be in addition to any liability that the Company may
otherwise have to any Indemnified Person and shall extend to the following: SMH, its affiliated
entities, directors, officers, employees, agents, legal counsel and controlling persons of SMH
within the meaning of the federal securities laws, and the respective successors, assigns, heirs,
beneficiaries, and legal representatives of each of the foregoing indemnified persons or entities.
All references to SMH or Indemnified Persons in these Indemnification Provisions shall be
understood to include any and all of the foregoing indemnified persons or entities.

If any action, proceeding, or investigation is commenced, as to which an Indemnified Person
proposes to demand such indemnification, it will notify the Company with reasonable promptness;
provided, however, that any failure by an Indemnified Person to notify the Company will not relieve
the Company from its obligations hereunder except if and only to the extent that the Company’s
defense of such action, proceeding or investigation is actually prejudiced by the Indemnified
Person’s failure so to notify the Company. SMH will have the right to retain counsel of its own
choice to represent it; however, such firm shall be acceptable to the Company, which acceptance
shall not be unreasonably withheld, and unless the Company assumes SMH’s defense as provided below,
the Company will pay the reasonable fees and expenses of such counsel, and such counsel shall to
the fullest extent consistent with its professional responsibilities cooperate with the Company and
any counsel designated by it. The Company will be entitled to participate at its own expense in
the defense, or if it so elects, to assume and control the defense of any action, proceeding, or
investigation, but, if the Company elects to assume the defense, such defense shall be conducted by
counsel reasonably acceptable to SMH. Any Indemnified Person may retain additional counsel of its
own choice to represent it but shall bear the fees and expenses of such counsel unless the Company
shall have specifically authorized the retaining of such counsel. The Company will not be liable
for any settlement of any claim against an Indemnified Person made without its written consent.

 

 

 

In order to provide for just and equitable contribution, if a claim for indemnification
pursuant to these Indemnification Provisions is made but it is found in a final judgment by a court
of competent jurisdiction (not
subject to further appeal) that such indemnification may not be enforced in such case, even
though the express provisions hereof provide for indemnification in such case, then the Company, on
the one hand, and any Indemnified Person, on the other hand, shall contribute to the losses,
claims, damages, liabilities, or costs to which the Indemnified Persons may be subject in
accordance with the relative benefits received by the Company, on the one hand, and SMH, on the
other hand, and also the relative fault of the Company, on the one hand, and SMH, on the other
hand, in connection with the statements, acts or omissions that resulted in such losses, claims,
damages, liabilities, or costs, and the relevant equitable considerations shall also be considered.
No person found liable for a fraudulent misrepresentation shall be entitled to contribution from
any person who is not also found liable for such misrepresentation. Notwithstanding the foregoing,
SMH shall not be obligated to contribute any amount hereunder that exceeds the amount of fees
received by SMH pursuant to the Agreement.

Neither termination nor completion of the engagement of SMH or any Indemnified Person under
the Agreement shall affect the provisions of these Indemnification Provisions, which shall then
remain operative and in full force and effect.

If any provision contained in this Exhibit B is held by a court of competent jurisdiction or
other authority to be invalid, void, unenforceable, or against its regulatory policy, the remainder
of the provisions contained in this Exhibit B shall remain in full force and effect and shall in no
way be affected, impaired, or invalidated. These Indemnification Provisions may not be amended or
modified in any way, except by subsequent agreement executed in writing.

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